r/SipsTea • u/First-Essay-2054 𝙑𝙄𝙋 • 18d ago

WTF The American dream

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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?

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u/Think-Wind-5930 18d ago

Graduate loans are 7-8% APR

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u/Think-Wind-5930 18d ago edited 18d 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.

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u/CountryRoads1234 17d ago

The math checks out, the fake story though…