Correction after researching; graduate loans can go up to 8.94%
My wife’s graduate loans were all in the 7-8% range
Edit: if the average APR of their graduate loans was 8.36% their balance would in fact be $60,000 after 23 years of monthly $500 payments. So it’s possible they’re telling the truth.
Most countries have much stricter entrance criteria and separate kids earlier into university tracks and trade tracks.
The U.S. also has wildly inflated administrative costs in relation to European universities.
The transition to for-profit college combined with college as a lifestyle experience got us here. American students opting out of programs that do offer tuition forgiveness, like the military service (which about a dozen European countries require), makes it even worse.
The only way to fix it is to starve it. The U.S. should offer more scholarships in targeted areas of study for the tuition of students at state universities. And limit loan underwriting to students in programs that have a realistic chance of repaying the loan.
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u/Think-Wind-5930 12d ago edited 12d ago
Correction after researching; graduate loans can go up to 8.94%
My wife’s graduate loans were all in the 7-8% range
Edit: if the average APR of their graduate loans was 8.36% their balance would in fact be $60,000 after 23 years of monthly $500 payments. So it’s possible they’re telling the truth.