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7.9% annual interest?? I read this correctly? In the current world economy? No wonder people who can avoid paying it are doing exactly that. I just hope they ar

7.9% annual interest?? I read this correctly? In the current world economy? No wonder people who can avoid paying it are doing exactly that. I just hope they are saving this "extra" money as a reserve on this layoff rich environment instead of mindlessly consuming it. Sometimes you just have to admire the aesthetical and artistical aspects of this aggressively predatory world created by fine humans such as Thatcher, Reagan, Clinton, Jack Well and Carl Icahn. This human meat-grinder system is surely a beast to behold: "Don't wait, get them while they are young! it's the most efficient thing to do, slave them with compound interest as early as possible! why wait until they start a family and get a mortgage to fleece them?

tryauuum 2y ago
is this a lot? I remember having a mortgage in pre-war Russia, the interest was more than 10 percent
- Rinzler89 2y ago
  The stronger the country's economy is, the cheaper they can borrow money. The poorer the country is, the more expensive it is to borrow. Basically, "it's expensive to be poor" applies both to individuals as well as countries.
- splix 2y ago
  As I see from the public stats, it's about the rate people get for a car loan in US. And a car could easily be above $70K. From personal experience, when I had no credit history (i.e., the similar situation) I was charged twice of that rate. So it doesn't seem to be a lot.
  - fragmede 2y ago
    average car price in 2024 us $48k, so a $70k car is still for the posh.
mmaniac 2y ago
The newer plan 5 loans have lower interest rates... But are only forgiven after 40 years, not 30. On average new graduates will pay more over their lifetimes. The blame for this system, if one is inclined to blame, can be laid at the feet of Tony Blair's neoliberal New Labour. The decision to begin charging tuition fees was made because of a belief in market economics and privatisation, but also because of that government's stated ambition to get 50% of young adults into universities. Without both factors, I don't believe the system would have mutated into the expensive beast it is today.
rich_sasha 2y ago
Student loans in the UK were always pegged to inflation, not interest rates, as a supposedly fairer metric. Of course, inflation is usually slightly higher than interest rates...
cholantesh 2y ago
>Jack Well I assume you mean Welch, right?

tryauuum 2y ago

is this a lot? I remember having a mortgage in pre-war Russia, the interest was more than 10 percent

Rinzler89 2y ago
The stronger the country's economy is, the cheaper they can borrow money. The poorer the country is, the more expensive it is to borrow. Basically, "it's expensive to be poor" applies both to individuals as well as countries.
splix 2y ago
As I see from the public stats, it's about the rate people get for a car loan in US. And a car could easily be above $70K. From personal experience, when I had no credit history (i.e., the similar situation) I was charged twice of that rate. So it doesn't seem to be a lot.
- fragmede 2y ago
  average car price in 2024 us $48k, so a $70k car is still for the posh.

mmaniac 2y ago

The newer plan 5 loans have lower interest rates... But are only forgiven after 40 years, not 30. On average new graduates will pay more over their lifetimes. The blame for this system, if one is inclined to blame, can be laid at the feet of Tony Blair's neoliberal New Labour. The decision to begin charging tuition fees was made because of a belief in market economics and privatisation, but also because of that government's stated ambition to get 50% of young adults into universities. Without both factors, I don't believe the system would have mutated into the expensive beast it is today.

rich_sasha 2y ago

Student loans in the UK were always pegged to inflation, not interest rates, as a supposedly fairer metric. Of course, inflation is usually slightly higher than interest rates...

cholantesh 2y ago

>Jack Well I assume you mean Welch, right?