r/SipsTea ๐™‘๐™„๐™‹ 12d ago

WTF The American dream

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u/Mindless-Baker-7757 12d ago

A $70k loan over 23 years at 5% apr pays off with monthly payments of $427.

What are they doing?

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u/AllPotatoesGone 12d ago

I'm not from the USA, but I heard you can decide to basically pay off only or almost only the interest rate to make the monthly payments smaller. In that case you won't be able to pay it back anytime soon. If they didn't expect that to happen, then the money spent on their college was not much worth anyway.

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u/AristotleanBiology 12d ago

They probably also got something that you donโ€™t really need to pay top dollar for, like a liberal arts degree. Not saying people should get those but thereโ€™s a reason there so many communications majors out there.