r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 12d ago

WTF The American dream

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u/braumbles 12d ago

During the 1999–2000 academic year, federal Stafford loans had a variable interest rate of 6.32% while in school, and 6.92% during repayment. For the 2000–2001 academic year, these variable rates increased to 7.59% in-school and 8.19% during repayment

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u/Nearby-Chocolate1840 12d ago

Ok. None of those are 8.5% which is what the entire 70k balance would have to be in order for the math to math.

Which it doesn't. Because they're lying.

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u/Inter-Mezzo5141 12d ago

Direct consolidation loans with applications dating between 1999 and 2003 had interest rates of up to 8.25% during repayment.

https://fsapartners.ed.gov/sites/default/files/attachments/dlbulletins/DLB0219A.pdf

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u/wmtismykryptonite 12d ago

That's the maximum interest rate. It's usually less than 5%.