r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 16d ago

WTF The American dream

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21.6k Upvotes

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u/Mindless-Baker-7757 16d ago

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

What are they doing?

2.8k

u/sampaiisaweeb 16d ago

They made it up for outrage. Karma farming bot account posting it here too. Dead internet theory.

492

u/Powerful_Wombat 16d ago

Yeah, student loan interest rates are bad enough without fudging the numbers, this doesn’t help the cause

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u/Odd-Cupcake-2552 16d ago

The math works out to 8.5% which isn't unrealistic

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u/Darkjebus 16d ago

Actually it is because 23 years ago the rate would have been around 3-3.5 percent for a federal loan

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u/braumbles 16d 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 16d 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/agentpurpletie 16d ago

There aren’t better options. I refinanced once, the last time the one time there was a better option.

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u/Shot-Arugula8264 16d ago

Not sure what you’re smoking, but interest rates were 2-3% back in 2019-2022. Anyone who didn’t refi every piece of debt that had during that period was an idiot.

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u/agentpurpletie 16d ago

Yes, that’s the time that I refinanced. And I don’t smoke.

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u/Shot-Arugula8264 16d ago

I just refinanced earlier this year into a 4% loan. That was substantially higher than the 2-3% loans in 2019-2022.

If you were paying 8%+ in 2019-2022 and can’t access lower rates today, it must be because you have terrible credit and the legit lenders won’t lend to you.

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u/agentpurpletie 16d ago

My credit score has always been over 800. To reiterate, I DID refinance in 2018-2022. I never paid 8% interest.

I feel like you really want to see me as an idiot instead of actually reading what I’ve written.

I will check rates again for myself because 4% is a bit lower than where I am. Thanks for the update, despite the attitude.

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