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LOL. I wish the government gave 0-interest loans. As it stands in the US, Stafford Loans are higher than most car loans [3.73% undergrad, 5.28% graduate, 6.28%
by yardie 5y ago
LOL. I wish the government gave 0-interest loans. As it stands in the US, Stafford Loans are higher than most car loans [3.73% undergrad, 5.28% graduate, 6.28% PLUS]. Costs are skyrocketing despite government loans. It's not the working/middle class students asking for new buildings, new "centers of research", new dorms, etc. Colleges are building these things, giving you the bill, and your options are go:not go.
- loonster 5y agoAs the percentage goes lower the amount of debt will increase. The same thing happened in mortgages. The monthly payment stayed relative constant (plus inflation).
- ric2b 5y agoWe're talking about teenagers, not adults with several years of household finance experience.
- loonster 5y agoIt doesn't matter. People care more about the monthly payment than they do the debt #. You can afford a much higher debt burden if the interest rate is smaller. For fun, assume you can afford $1000/month in housing costs. With a 30yr mortgage and 20% interest rate. How expensive of a house can you afford? What if interst rates dropped to 10%? 5? 2.5? Very strong correlation with home prices over the last 40 years.