3 ms·
> It's a LOT better than nothing. That's quite a stretch. People won't see a realized benefit for years, even decades. And with this being a temporary measure
by qes 7y ago
> It's a LOT better than nothing.
That's quite a stretch.
People won't see a realized benefit for years, even decades. And with this being a temporary measure, 3-6 months of no interest doesn't amount to very much - maybe a few thousand for people with somewhat larger loan amounts that are also all federal.
- WalterBright 7y ago> People won't see a realized benefit for years, even decades. This is how people get seduced into being eaten alive by interest payments, and how lenders make a fortune. Understanding compound interest and the time value of money is a big part of how people move up financially, and how not understanding it leaves people at the bottom tiers. For example, that mere "few thousand" can be applied to buy down the principle, which will have a sustained benefit to you for the life of the loan, and you'll pay it off much earlier.