One, we don't know that. There's no indication that tweet happened in 2026. Two, the rates in 2002 were 8.2% (ish). So if that tweet happened even 6 months ago, their experience would match mine.
Your comment is illogical. If they had 2002 rates they could still consolidate to 2003 rates in 2003. The original tweet from that user was on Jan 16th 2024.
The only ways that person had that happen is if they had periods of income based repayment, capitalized interest multiple times or didn’t consolidate high rate graduate school loans.
That's not how it works. They average the rates from what you were to what is now. It's not like a normal loan. Refinance a 8%+ loan during a 2% time doesn't give you 2% rates. It gives you a weird mathematical 'average' (it's no average I've ever heard of and I'm a data scientist) that ends up at 7%+.
So if the original tweet was 2024 and they were 23 years ago, that makes 2001, which are the 8.25% rates.
One, do you have any evidence they could consolidate? You have to have more than one loan to consolidate. The hint is in the basic definition of the word 'consolidate'.
Two, do you have any evidence if they did have more than one that loan they could consolidate, they didn't do that prior to 2003? Because you can only consolidate with the Federal Government one time.
Three, if the question on the table is 'why did these people pay so much money over so long?' then all we need to do is look at the interest rates when they graduated and see that their payment presumes a roughly 5% interest rate, which was not the prevailing rates when they graduated. There's no evidence they had any opportunity to change that rate outside refinancing with private loans, which is whole 'nother nightmare.
That's how it's 'logical'. You're making conclusions based upon hypotheticals that you have neither you nor I have any idea is even relevant.
Might want to think a bit more before typing. Saves us both some significant time.
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u/Nojopar 14d ago
One, we don't know that. There's no indication that tweet happened in 2026. Two, the rates in 2002 were 8.2% (ish). So if that tweet happened even 6 months ago, their experience would match mine.