Originally Posted by mschaffer66
Your friend doesn't have federal student loans. That's the problem.
Some of my loans are/were state loans or whatever they call them, which is totally different than federal loans. The federal loans are like 1% interest or something, non federal varies with the interest rate of everything else.
Originally Posted by ajmorell
Where the fukc are you finding federal loans that are 1%? Even my unsubsidized loans are 2.5%. The subsidized ones are like 5.5%. Paying student loans back sucks, but I'd rather have a good paying, secure job that I enjoy. Tell your friend to suck it up like the rest of us instead of looking for a handout....he didn't have to go to college
Yeah, I was wondering where you were finding federal loans at 1% as well. I think the rate on subsidized federal loans has been hovering between about 4.5% and 6.5% for about a decade now.
To the OP - if a significant portion of your friend's loans are federal, and they end up working for 10 years in certain fields like military, local/state government, teaching, qualified non-profits, etc. the remaining balance after that point can be forgiven if you've been making your mandatory payments without incident in that time. Combining that with an income contingent repayment plan can really reduce the total amount paid out at the end.
If your friend has a significant portion in private loans, well, then he's probably SOL.
FWIW, my best friend has multiple law degrees from some top schools and paid for almost everything with student loans and is nowhere near $200k in debt. Even the few doctors I know who are my age all seem to have about half of that debt. How somebody racks up that much is beyond me.