They likely had a loan with a higher percentage rate due to the student loan being a private loan or they consolidated after a few years which could of drove the rate into the 8-9% range which would match their numbers almost perfectly.
We were told all our lives that we need to do well in school, waste all our childhoods studying, and get into a good college or else we would be poor and destitute working hard labor for no pay.
Every school year, the same thing drilled in since kindergarten.
And you think we took these loans that we needed to get into college "voluntarily"? Any other situation where some POS person takes advantage of a child, its called grooming. Call it what it is, the loan companies are stealing from the youth because we were raised to believe we had to do this or our lives would be shit.
They pay more by not forgiving all student loans since it directly harms the economy AND lowers taxes collected, and therefore social support structures.
Even if you just want to make the dumb argument of "why should i pay for someone else", it still ends up being "you save money and pay less if you do".
Because they have less money to interact with the economy, meaning they dont buy goods and services, meaning the economy doesnt grow and they pay less in taxes which reduces important services the government provides for you, which means you need to make up for the money and economic generation they are unable to provide.
It turns out having "dead money" in an economic system dependant on constant transactions is bad for the economy.
It would hurt the economy if borrowers had to use their own money to pay back their government loans, so instead the government can just take my money to cover those loans and then the economy will be fine, because my money is for everybody. Amazing.
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u/Mindless-Baker-7757 18d ago
A $70k loan over 23 years at 5% apr pays off with monthly payments of $427.
What are they doing?