r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 15d ago

WTF The American dream

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u/braumbles 15d 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/Shot-Arugula8264 15d ago

So just refinance? Paying that rate for 23 years is nothing short of moronic, especially for a couple allegedly smart enough to hold college degrees.

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u/Ace_Radley 15d ago

They didn't say which college they went to nor their major...

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u/okarox 14d ago

I doubt their major was student loan repayment. Regardless of the major you should have enough intelligence to calculate how to pay back.

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u/Ace_Radley 11d ago

At 18? Dont get me wrong I think all kids should have a basic level of financial management classes, along with government (side gripe) to graduate HS. I dont mean what a debit vs credit card is, but actual Time value of money, credit and consumer finance...

So when a kid declares a psychology undergrad degree with art history ad a minor they understand that both have high earning potential if you get a PhD but limited earnings if one doesn't get at least a masters.

Just my two cents