i owe 52000 in student loans. the interest rate is 5.5% and they let me pay $244/month
at this rate i will die before i pay off the entire loan. is this a good idea?
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i owe 52000 in student loans. the interest rate is 5.5% and they let me pay $244/month
holy shit i need to buy a school and give morons good boy points for reading wiki articles
a scheme is brewing
remember that the institutions that give the loans do so on a fractional reserve basis too
this means they aren't getting 5% but more like 50-100% apr on the loans they gave out.
Lol you were too stupid for college and got tricked into selling yourself into slavery.
Just get on the SAVE plan and pay 0
kek, yes do this, and the next GOP president in the next 20 years will revert it and he'll owe a LOT
A lot of idiots are going to get rugpulled hard on the SAVE cope
Save plan has 0 interest… you should still pay it off without accruing interest onlyroaches will get rugpulled
I have a student loan I could repay at any time, but as long as my interest is frozen at 0% I'd be a fool to repay
state of texas gave me 20k cause my parents dont have degrees
I didn't know that was a thing
>poor people playing the lottery in florida paid for all 4 years of my school
Feels good.
>i owe 52000 in student loans. the interest rate is 5.5% and they let me pay $244/month
They don't "let" you, moron, you can pay more.
according to the rules no one will have to assume the debt upon death.
Don't actually die though, just fake your own death bro
What happens if you don’t pay for this bullshit in burgerland?
credit tanks, no one will loan you money for houses or cars, wages garnished
So don't work, become a crypto bro and don't cash out in banks. Problem literally solved
literally nothing lmao the goyim are just scared of a complete nothingburger (their credit score)
>inb4 but if I dont have good credit I cant buy things I cant afford
I knew an internal medicine doctor. Accepted this fate and paid the minimum a month with no intentions of ever paying it back while he drives his Porsche Cayenne
Assuming that the interest accrues once per year, your yearly interest is 52,000 * 5.5% = 2860.
If you can pay back 244 per month, which is 2928 per year, paying this amount will bring your principal down by 2928 - 2860 = 68 to 52,000 - 68 = 51132, which is a reduction of 1.67%.
Consequently, the interest accrued next year would be 2812.26, which is 47.74 less, or a reduction of also 1.67%.
100/1.67 = 59.88, or let's round it to 60, which suggests the explanation that the maximum amount by which you can reduce your principal per year was chosen to let you pay off the loan in 60 years, which roughly corresponds to the life expectancy of 80 years (plus a few). The repayment-scheme was thus likely chosen to let the loan run over the duration of the entirety of the average of the post-schooling life. A bit longer than that, in fact, since the average life expectancy is a bit less than 80 and the average student will finish schooling around, say, 25, but I assume this is to account for long-term default risk. Quite ingenious: you are kept, for life, as an actual cash cow.
Why would you post something so fricking antisemitic you fricking bigot.
MODS do your fricking job and ban this piece of shit. PLEASE. FOR. THE. LOVE. OF. G*D. BAN HIM
Oi Vey!
Debt slavery is far more effective than some guy with a whip. 90% of the population underestimates just how much time the central planners spend thinking about how to keep the working class tied to their jobs that keep society running.
You’re not accounting for inflation. The real value of a $260 monthly payment decreases over time. A $260 payment today is substantially more than one in 10 years’ time.
That is true. I suppose you would have to discount in an exponential discounting factor (or a double-exponential one if you believe in hyperinflation), and also discount in the decreasing value of the principal which, over time, leads to the full 244.37 going towards paying it down.
this only helps if wages rise to keep up with inflation, which they definitely do not
My mortgage is almost 3 times that but i could sell me house for 500k pretty easy. Why don't you sell your piece of paper and pay it off.
I owe $150k for my MBA. My parents are giving me an interest free loan to knock out my two highest interest loans at 6.8%. Making $210k this year so I’m gonna try to get rid of all my federal loans. The fact that student loans aren’t 1-3% percent is a crime.
how nice of your parents
You morons had 3 INTEREST-FREE years and a frickload of helicopter money dropped to you. Anybody that didnt pay off their loans in that time period deserve the usury they signed up for.
Get a job that qualifies for PSLF and you'll have this off your credit in ten years. Frick that doomer anon above me. Under PSLF, as long as you make 120 qualifying payments, your entire loan will be forgiven.
Yeah, if you only make payments that cover interest charges, you get to pay forever. Stop being moronic.
>paying your federal student loans
Kek I haven't made a single payment since they restarted. Went all in on Link instead. Going for a strategic default. When Link moons I'll have enough to pay my 50k federal student loans back 10 fold.
that's awfully optimistic of you
I’m so glad I dropped out and never took out any loans. Imagine being one of these debt ridden homosexuals. Frick degrees and anyone who thinks having one makes them better than anyone else for any reason.
alright man yeah ill get a uhhhhh 2 double cheese, no pickle, a large fry, and a medium vanilla shake
What’s your income?
OH SAAAY CAN YOU SEEE
>mfw Dutch student loans have a very low minimum monthly payment and are forgiven after 30 years
I will most likely pay no more more than €40k of my €90k loan, depending on my future income
>take out maximum student loan of £60k
>don't need that much to live so put rest into buying 10k LINK
>drop out of degree but keep loan
>now owe £70k at 7.5% interest
>earn under £27.5k at shit wagie job so I have yet to pay a penny back
>debt gets wiped off in 27 years anyway
I basically got a free 10k stack, thanks tax payers
I thought Biden bros wiped out student loans. I remember all the celebration.
Slavery but with extra steps
That balance is high because either (A) you didn't work while in college, (B) you didn't live at home in college, (C) you didn't go to community college to save money on your gen-ed classes, (D) you didn't go to an in-state school to save on tuition
hope this is a larp, but if it isn't. What made you think it was a good idea to go through 4 years of college without working part-time the entire time during the side? It isn't the 1990s anymore man, college is expensive.
Why do people who do this to themselves blame corporations and “capitalism” instead of burning down colleges who put them in this lifelong debt in the first place?
College educated people are some of the dumbest individuals I know.