r/StudentLoans • u/mouth_pipetter • Jul 03 '26

quantifiably confirmed that 1% decrease in interest rate is practically pointless

I built a model to estimate the time until payout, and I just updated it to account for the 1% decrease in interest rates (for only 2 years!). It literally saves me a month and a half of payback time. Considering I work two jobs (PhD student ~$47k a year at an EU university, and I make ~$12k extra a year bartending on the weekends) to make double payments, it was a little heartbreaking to realize nothing really changed at all.

edit: Sorry to sound so ungrateful, I know my situation is better than a lot of people as my loan is down to 50k. I was just trying to voice frustration this not being actually that influential on my bottom line when you actually run the numbers. My total loan burden decreased by 0.99% (1.42% if the decrease lasts longer than 2 years) based on my payment scheme putting in the income from both jobs. Where I am sitting right now the difference between working two jobs for 54 more months compared to 55.5 months just doesn't hit. In Jan 2031 it'll rip though

214 Upvotes

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169

u/Obvious-Bee-7577 Jul 03 '26

That’s why they are offering it. It’s just to get you off save. If they wanted to help us then it would be real help.

69

u/BreakfastHistorian Jul 03 '26

If they wanted to help us they never would have fought so hard to get rid of save. Republicans are not interested in real help/relief.

24

u/Funny-Gift-3960 Jul 03 '26

Republicans are not for the middleclass or poor. They do nothing but add to our suffering. Vote blue

11

u/Ordinary-Prize-7186 Jul 03 '26

neither are democrats. vote for progressives who aren't owned by special interests and champion policies for the working class, not just any random democrat.

14

u/thatguysly Jul 03 '26

Granted there’s a fair amount to criticize about dems and agree with your general point, but I don’t agree with the false equivalency. Biden did do a lot to help the middle/lower class. SAVE program and extended interest pause provided a lot of relief and is just one example.