FosterMomForKittens
123268
2201
60
“In all Federal student loans, if the original loan balance is $10,000, the interest rate is 5%, and no payments are required during the 45-month in-school period and the six-month grace period that follows, the amount of accrued interest when the repayment period begins is approximately:
$10,000 x (0.05 / 365 days) x 1,551 days = $2,125
So, the loan balance when repayment begins is $12,125 ($10,000 + $2,125). The interest has added $2,125 to your student loan debt.”
NatesSauceLab
Yeah, right. I borrowed 60 to get my BA and M.Ed but I owe 90. Fuck me, right?
FlaminkoFactor
Then there are private student loans at over 14%... often with variable interest and even more limited repayment & deferment options. All that shit, federal and private exploitation, should be illegal. Also, Betsy Devos should be in prison.
JGregory32
So your saying form a corporation borrow money at 0.75 to pay off the student loan. Have the corporation declare bankruptcy and get a government bailout to pay the corporate debts?
wagsd67512
Could imagine how strong our economy would be if people could borrow money at 1/2 percent and be able to write off all cost and improvements on their homes and cars.
pancakeEwokEscapade
We can't get a job without college. Why are we paying for it? If it's something businesses require, they should pay for it. Remember indentured servitude? That's college.
Applecrack
Theres something called a supply curve whereas the interest rate is x and people willing to supply loans is y. The curve looks similar to a y=sqrt(x) We can dream about low interest student loans but the reality is no one is going to give someone with no assets and no credit score a huge loan at low interest. If the government wants to enforce it then the government is going to have to supply all the loans.
dohcohv
Subsidized student loans don't accrue interest while you are in school, the government basically pays that interest. Unsubsidized does accrue interest since they are private loans.
nicfletcherdotphoto
Turning students into indentured workers.
idiotsonfire
College should be tuition free, even private colleges.
idiotsonfire
Education, medicine, war, and housing should not be for-profit industries, same with food. Certain things should never be for-profit.
idiotsonfire
Cars, computers, clothing, all that shit? Yeah, go for it, open market on those, those can be done by private corporations no problem.
PorneliusHubertII
Funny, when $10,000 was going to be forgiven, i was actually excited to pay down the remaining $10,000 i would owe as fast as possibly. Now that its been cancelled, im not so motivated to make any more than the minimum payment. My loans are fed capped at 2%.
jayman0123
#1 is categorically wrong. we absolutely should not charge students .75% interest on student loans. There is an entire industry dependent on students paying much much more than that in interest. burn it to the ground. college should be free.
mechsrule009
Simple rule: once total interest reaches 100% of principal, no more interest can be accrued
Euchre
I remember in high school when the college education industry decided they were really a for profit industry. They were telling us you'd need a degree, ANY degree to get ANY job - even flipping burgers - in the near future. Of course even back then, when prices were lower, lots said 'but I can't afford it', and those same college promoters were accompanied by specialists in student aid, including loans. Imagine that!
GodAintReal
We’re literally not gonna stop treating fucking WATER as a profit center. Profit is the ONLY thing the people at the “top” care about. Your entire lives - never mind your comfort, security, or dignity - don’t mean shit to them. Stop appealing to their humanity - they don’t have any.
kakistocratxvi
Posts like this that say "we need to stop XYZ" are useless because they never offer a solution. There is only one solution to basically all of these problems: vote, and make sure all your friends and family vote too.
sauronater
I'm not sure even voting can fix this for the foreseeable future. We need more than 2 viable parties and we need real choice. A fair bit of Dems are bought out too, just not nearly to the same extent as the GOP is
[deleted]
[deleted]
Wookieoo7
You keep saying that but how does that help? Just yelling the words means that you any more security for your bank account.
[deleted]
[deleted]
sleepinggreenidea
...and? We can already find out these rates if we look. You also charmingly assume that the companies would automate interest rates into the blockchain - thus giving up their privacy - rather than using out-of-band mechanisms to calculate, maintain, and enforce them. They wouldn't. They have no incentive to do so, and it would impose limits on their business practices they'd deem unacceptable. You'd need the gov't to enforce compliance, and if we're doing that, we can fix this w/o crypto.
RottedOnion
All my friends vote, but we live in a deep red state so we end up with science denying rich asswipes in charge every election.
TheFastpaws
Bury the rich six feet under. Here is your solution.
GallusTadius
Certainly they could do this in the past, but I can't see any source where anyone can borrow at .75% today. Give me some sauce, or I'm calling BS.
barnwolf
Maybe that's the rate if you compound it daily instead of yearly? If you wanted to seem shocking that's the rate you'd list for something like an overnight loan.
sleepinggreenidea
Pretty sure they're talking overnight rates. Those are currently higher than this, but they've been obscenely low in the recent past. Like, almost-non-existent low during the Covid emergency. https://ycharts.com/indicators/overnight_federal_funds_rate_market_daily
sadurdaynight
If you're living on your own, and can't go live with mom-n-dad, then you might as well double your student loans in order to account for them lending you money to live. And, they lend you enough to live poverty-level. And, if you want to get a masters, basically double your student loans again.
Saxytimes
I have 200,000 in student loan debt. I would like to attempt paying off individual loans at a fraction of their cost to get that number down, I hope there's a way to bargain it down
weirdcalculator
I'm fairly certain student loans charge compound interest while you're in school (and thereafter). Your calculation is for simple interest. Interest charged during the reverse amortization phase gets added to principle and they charge interest on that going forward in addition to the initial loan balance. Of course no one can pay it all off right away, so you continue to pay interest on what's accrued at graduation. Most folks carry SL debt long past paying the initial loan amount.
brownribbon
Maybe they shouldn’t charge interest at all.
weirdcalculator
I'll do ya one better: They shouldn't charge for education at all.
MisuseOfLiterally
We should also stop letting banks, investors and politician get away with everything they do
ChallengerDeep
If you dropped loan interest rates to .75%, the size of tuition would skyrocket. Stop loaning so much money to teenagers will reduce costs.
luciferian669
Either pay a fortune for healthcare or sign up, simple tactics for warfare
DippinDerps
That should be anybody who needs to borrow money. :(
vhanW
Here's two studies to help, "Economic inequality cannot be explained by individual bad choices, study finds" https://phys.org/news/2023-06-economic-inequality-individual-bad-choices.amp. & also. "What game theory can teach us about standing up to bullies" https://phys.org/news/2023-06-game-theory-bullies.amp I wish you all good luck!
jwalburn44
At least be able to deduct college costs as business expenses.
Absent
A successful student ought to be the greatest return on investment a country can make, am I wrong?
ulfgarBentbeak
If they stay in country. It's actually not a great investment in the developing world, as those well trained professionals tend to relocate abroad for better income/opportunities. So the only return the country sees is if they send money home to family.
ulfgarBentbeak
That's not to say they shouldn't do it. Just that it's not the greatest return, because it doesn't have the best throughput. Usually infrastructure is better for returns for a developing nation, Roads/trains/powerplants/water. Things that can grow the economy, improve standard of living, and hence keep those professionals in country later down the line.
minipancho94
you are, because our country is owned by oligarchs, and especially those who profit from the military industrial complex. We had free college in the 50s, but "too many people were becoming educated" which was responsible for the massive antiwar sentiment we saw around korea and vietnam, in addition to an increase in "communist" sentiments as well.
burpwind
Stop treating the public as profic centres. Government isn't there to turn a profit.
Emrys12
But it is, currently there to turn a profit for some people in power and in usa outside of power as well.
bunnyishungry
I don't know why I thought it was a done deal. I saw some posts here about how their student loans were forgiven and thought, well that's that then. Also, that's a DEFINITE loan shark move, that's illegal in Canada. I think.
bunnyishungry
Nevermind it's not illegal. Still...what a crappy loan.
blainetog
*gasps in Neo-liberalism*
Sinasohn
This is why I will never vote for anyone who runs on a platform of "I'm a successful businessman". The government is just all of us chipping in to get stuff (roads, schools, fire departments, etc.) that we all need. Imagine you and your 3 mates want to get a pizza and Charlie says "let me collect the money and get the pizza" and then proceeds to collect $20 from all 4 people and then buys $30 worth of pizza. That's government run as a business.
minipancho94
the entire strategy was actually put in place in the 50s by conservatives because "too many people were getting educated" and it let to prolific anti-war sentiment and "communist leanings".
LAMovieDesign
Exactly. The government shouldn’t be charging interest for student loans. It’s in the country’s best interest that it has an educated populace.
MiniGodofDoom
What we supposed to do? Ditch the upperclass?
Eli93
I have been getting a little hungry lately...
burpwind
Bring out the guillotine.
FoxySpirit
3rd way socialism: you turn all public services into private companies with the state as sole shareholder. It's then run and evaluated exactly like a traded company. WTF? You do not have to act like the market, you did not have to fuck us on energy prices when the energy mix is almost 100% renewable and national. Why say, "well, that's how the market went." Profit windfall in a state run company. At least they are discussing it now.
ulfgarBentbeak
When it comes to student debt, that isn't what is actually happening. The US has been largely indoctrinated to believe that the government should have no direct services. So instead they subsidize all those programs. So the federal student loans? They go through banks, who keep the profits, while if a borrower fails to repay the state repays the principal out of public funds. i.e. the government doesn't profit from student loans, private banks do.
ilikepot8os
When every GQPer says "Run the government like a business" this is what they mean. They want to turn a profit off the citizenry for their friends in business.
pandemicmodedad
China runs their government like a business and looked what happened.
Heavenissize17socks
GOP better check themselves.
Every American citizen pays federal, state, county, city, Sales, gasoline. Liquor, social security, toll and levie taxes. Some states don' t have certaib taxes , but the GOP think all those taxes are free money.
And now they want more.
sleepinggreenidea
No, what they mean is they want to be able to fire and exploit civil servants, and cut "wasteful" programs benefiting the public welfare.
chuckles11
It’s also their sneaky way of normalizing fascism. In a business the CEO runs the show. Challenge their authority and you’re gone.
sleepinggreenidea
Not fascism. Authoritarianism. Fascism is a specific type of authoritarianism, and it's not the one *traditional* Republicans want. TradGOP wants you to be helpless and alone in the face of the abuses of private wealthy actors; the state stands by and watches, stepping in only to disrupt your attempts to organize. Fascism is what the younger generation of Republicans fall asleep dreaming of. NewGOP wants to use a powerful, unaccountable state to oppress you directly.
Profanuum
The board hires and fires the ceo
sleepinggreenidea
In this analogy, the board would be the GOP and/or their donors. The electorate would be the small shareholders that the board does its best to prevent from "interfering" with their governance of the company.
FrozenCoast
There is a lot of overlap between boards of different companies and many are ex c-suite execs themselves. Just a big old boys club.
TheWombatStrikesAgain
Yeah, but the board are their donors, not the people.
12DrD21
Isn't the federal prime rate 5.25% at the moment? How are corporations borrowing at 0.75%?
glenlochie
Speak to Ronald Reagan. It's amazing the scope if economic destruction that puppet implemented
EaNasirsExcellentHighGradeCopper
the same way they can take risky chances, fail horribly, and get bailouts. Their bought pawns run government.
Ryebread91
Let's be honest, they risk jack. The ones who are affected by it aren't the c-suite. It's the jobs of everyone below them and their benefits. They are always just fine. Even if the business fails they've already got a few million plus their assets they can sell.
rjcrecraft60
I agree with the premise of the post but question their claim on Wall Street rates.
enderite
itwasababyox
Superhans!
MichaeIScott
Correct, they aren’t. Investment banking loans are always set at SOFR plus X. Super stable companies get loans at SOFR + 300bps (3%) and riskier ones get SOFR +750bps or higher. Source: I was an IB credit analyst for 5 years.
LaffertyDanie1
I've probably read your work
imredheaded
Probably circa ~2020. Commercial effective loan rates can be below prime. See this chart: https://fred.stlouisfed.org/series/EEANQ I can't find one for 2020 though. But the prime rate was 3.5%. Also that chart is the average so some with lots of assets can probably score lower rates as they are safer.
aPokal
The only thing coming to mind are banks going to governmental banks. Like federal reserve.
sherlockhooves
Reagan set it up for them
SniderThanYou
Are they talking about trading on margin? If so, that's not 0.75 APR... that's more like 0.75% per day.
shortlegcat
Because they will borrow like $10b?
IceNein
Also people don’t understand what short term interest rates mean. These aren’t for thirty year loans, they’re not even for five year loans, they’re for loans that get paid back within a couple of days to weeks.
barnwolf
I believe they are also fully collateralized.
jabike2424
They’re not and don’t.
TheHolyFatman
Hmmm, you're right, I believe. I thought they borrowed at the SOFR (formally LIBOR) rate, which is currently 5.06%
ExceptFluffyDuck
Yes but it also was around 0.05% for around a year. The meme is older, refers to a while ago. The principle still counts, I think.
djzapz
I think it's very concerning that people are willing to accept the information in that low-quality, pixelated, poorly cropped, heavily compressed "infographic".
SunkenFruit
Yea, I have only recently spent much time on Imgur and have to say it's probably one of the worst when it comes to blatent misinformation and propaganda that is blindly accepted so long as it fits the preferred narrative, which seems to be extremist and reactionary. There is little sourcing/citations, fact checking, or counter points. Attempts to have a nuanced, factual discussion seem to be met with some hostility.
djzapz
It's how echo chambers go. I'm politically aligned with most of these people but wow they're gullible and often straight up dumb...
IDontKnowWhatToDoAnymoreAndImTired
People here are still prone to uncritically accept information that validates their existing biases. Imgur users might ask for citations a little more often than, say, Fox News viewers, but they're still human.
nimeton0
How the f*ck do credit card companies like CITI get to charge someone (with a credit score of 240+) a whopping 29.99% interest on unpaid balances? That should be illegal.
[deleted]
[deleted]
jonReremy9669
the funniest is how CUNTservatives will make fun china and their social score... meanwhile.............
Ninjainslippers
Not defending them because fuck them but credit cards are unsecured loans, meaning they have no collateral and nothing to seize if you don't pay. Secured loans like home loans where they can take your shit if you don't pay have lower but still way too high of rates.
Krossis
Shit i have a 720 and my rate with them is 27% I just use them for the 6 months interest free perk
nimeton0
Crap, that should have read 840+
ulfgarBentbeak
how much of that is "fees"? I thought the anti-loan sharking laws capped interest at 25%. We do have those laws, it's just the bar for them to come into effect is still stupid high and there are several loop-holes. The biggest being that in most states that law only applies to "standard loans" (idk the criteria). That's why PayDay loan companies can have astronomical interest rates if calculated annually.
onecowboytoo
I also have a credit score in the 700s and my AMEX is 26.99 for purchases and 29.99 for cash advances. I make sure it gets paid in full.
TZO2k15
One word... =>Republicans<= that's why...
IceNein
They shouldn’t be giving credit to people with a 240 rating at all.
nimeton0
Crap, that should have read 840+
Krossis
Secured credit cards for people that doomed their own scores, but not everyone started with a blank slate, family members have been known to use children ssn to get utilities and such
[deleted]
[deleted]
JohnBluehill
How's that going to fix the interest rates charged by credit card companies, exactly? Even assuming crypto is an answer to that, maybe not everyone is into it because that verifiable ledger does dick all when the currency is unsecured: https://www.kaspersky.com/blog/top-5-cryptocurrency-heists/45945/
[deleted]
[deleted]
sleepinggreenidea
No they wouldn't. Nothing about having a publicly verifiable ledger would eliminate the power imbalance that lets the lender dictate rates. It would marginally reduce the credibility of their excuses for needing to charge usurious rates, but not much more than their earning statements already do - and that has no impact on said rates.
[deleted]
[deleted]
farfie
Didn't know KiraTV was a republican or billionaire. Too bad the currency keeps being used as casino gambling by rich and poor alike. With a value about as stable as Azidoazide Azide.
sleepinggreenidea
Bitcoin in particular is trash b/c it's a proof-of-work currency that wastes obscene amounts of power to perform every transaction, and allows those with wealth to use that to perform mining that peons can't. Centralized transaction processing is efficient, while distributed is inherently wasteful as it's predicated on redundancy. Further: transparency does not eliminate any of the evils you list, particularly "no regulation" - it's *designed* to evade regulation.
Ragebrew
Counterpoint: Make all forms of education free.
Akurei00
Investing in the education of its citizens is in the best interest of any country. It would lead to advancements that would keep that country in the running for the strongest, healthiest, and wealthiest in the world and could actually affect climate change. But that's a ridiculous idea. Corporate profits would have to suffer, and that's just not a feasible option.
SirHonytawk
Better education would mean smarter population, which wouldn't vote Republican, so they try to stop it in order to keep power.
bunnyishungry
And please feed your students while you're at it. Especially the kids.
Sinasohn
I agree 100% but will clarify by saying all public schools. Private schools can do whatever the heck they want but public schools -- from preschool to postdoc -- should be 100% tuition free with plenty of housing and food support available as well (if not completely free).
2thless
And keep university's from raising tuition at a much higher rate than inflation.
PedroBenecol
THIS
doctorwut02
Supreme Court: "No."
barnwolf
Turns out when the executive branch tries to create laws like it's the legislative branch, the judicial branch does its job and says no.
TheatreStreet
People: Yes!
TheatreStreet
Free edu