How can people make payments for 20 years on school loans and barely make a dent in the principal? How are those loans different than a mortgage?
In: Economics
Their isn’t anything intrinsically different. you have a principal a rate and period. Federal education loans do allow ‘income based repayment plans’ that if you are below a certain income, your eligible to pay less then the standard minimum monthly payments. In that case you could spend 20 years paying it and not make a dent.
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