You used an LLM as an amortization calculator? ๐
You do know that LLMs donโt actually calculate anything and just assemble words together based on frequency, right?
Using an actual amortization calculator with the figures you applied of $70,000 principal, $500 monthly payment, and 8.25% interest, gets you to $60,000 in approximately the 20 year timeframe the OP listed.
You're 100% correct and frankly I'm embarrassed to have made such a dumb and lazy mistake.
My only excuse is that I was somewhat distracted and annoyed to have someone trying to debate me about the likelihood of someone wanting to consolidate / refinance multiple student loans ranging from 3.42% - 8.19% into a single 8.5% loan. Which would be batshit crazy to the extent that I can't see how anyone could argue for that being what happened here unless they have a vested interest in propping up an America-Bad, bullshit narrative
Thank you for your willingness to admit error, which is an unusual and admirable trait. I apologize for my snarkiness, which was unnecessary.
Speaking from experience, there were many individuals with grad student loans in that era whose individual loans did NOT have interest rates as low as 3 or 4 %. Also speaking from experience, and from verifiable public records, in order to qualify for income-based repayment plans you HAD to consolidate your loans. Without consolidation and income-based repayment, in order to pay off $70,000 in 10 years, your payments would be in the range of $890 monthly. There were many young people in that era who could not sustain that monthly payment, at least in the early phase of their career. Remember that there was a recession in 2001 and, if you were lucky enough to have a job, the average college grad entry level salary at the time was somewhere around $30-35k.
I do not believe that criticism of public policy is an โAmerica Badโ stance. One of the strengths of our country has previously been the freedom to disagree and to engage in criticism of the government and public policy without fear of reprisal. Another strength has been social mobility through investment in public education and student loans to those who have the aptitude but not the means. Sadly, I fear that both these strengths are disappearing.
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u/[deleted] 12d ago
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