This viral post claims to help people understand student loans better, but gives bad/misleading info regarding the nature of student loans vs mortgages and how interest is calculated.
▪️The meme makes a big deal about student loan interest being compounded daily, but this is insignificant. Most of us should have calculated interest rates compounding annually/monthly/daily/hourly/continually back in middle school algebra.
▪️The differences are underwhelming. If you had $100K in savings with an APR of 5%, after 10 yrs you’d have $164,700.95 with monthly compounding, vs $164,866.48 with daily. Over 10 yrs the difference is less than $200 (0.2% of the initial balance). Which is why many banks offer daily compounding savings accounts.
▪️You can absolutely pay down your student loan principal with extra payments, although you might need to let the lender know in writing. Very strange that a post claiming to give people info about SLs would fail to inform people about this!
https://www.studentloanborrowerassistance.org/how-do-i-pay-extra-to-reduce-principal/
▪️Ironically, the difference between SLs and many other loans is that Federal law prohibits prepayment penalties on SLs (public and private). On other loans, there can sometimes be added fees for paying off a loan too early.
https://www.forbes.com/advisor/mortgages/prepayment-penalty-what-it-is-and-how-to-avoid-one/
▪️The reason SLs seem to catch borrowers off guard compared to mortgages is not because interest is calculated differently, it’s because the borrower doesn’t begin payments for 4+ years. If you didn’t start paying your mortgage until 4 years after closing you’d have the same issue.
▪️This post claims to want SLs treated like mortgages, but ignores the many ways SLs get preferential treatment. Like tax deductions and income-based repayment plans. Now, borrowers can cap their payments at 5% of discretionary income, no matter how much they owe!
▪️And after 20 years (sometimes 10 years) the remaining loan balance is forgiven (absorbed by the US Treasury). That is a repayment deal that no mortgage can touch, and one that incentivizes students to borrow recklessly.
https://budgetmodel.wharton.upenn.edu/issues/2022/8/26/biden-student-loan-forgiveness
▪️The central problem is that college has gotten vastly more expensive, which government subsidizing and guaranteeing SLs has only exacerbated. At best, changing how SLs are structured would just shift the financial burden more to the taxpayer.
As with the leftist freak out over “banned books” this is not banning books, it’s still easy to get Harry Potter and bookstores should be able to limit whatever books they want for whatever reason. But not only does it show a double standard, the rationale is far less justifiable than removing certain content from school libraries. At least there the justification was the content of certain books are inappropriate for children, clearly not every book should be available in a school library. Here, there’s no argument about the content they just don’t like the author’s politics!
Because news came out about his letter to the FBI, revealing he was a nutcase. The letter was rambling and incoherent, claiming he was trained by the US military off the books, and that Walz had instructed him to kill Amy Klobuchar so he could run for Senate. None of it made any sense (Walz is not running for Senate) and none of the assassinations made any sense, even in a diabolical way.
Nearly all of his hit list was Democrats (including Walz) and abortion clinics, but he was supposedly working for Walz?! Plus, one of the guys he killed wasn’t even on his list, and others were no longer in office or deceased. None of it makes sense from any coherent angle.
Basically, it appears the guy was mentally ill and neither the left or right can use the incident to push their agendas anymore, so the story was dropped.
This is so dumb. First, this means LA began as Spanish land founded to support Spanish missions (i.e. colonialism). Which contradicts their entire premise. But the reality is that Los Angeles is a quintessential American city.
▪️When the US acquired California in the 1840s, LA was a small town of less than 2,000 people. It was basically nothing. It became large only after the gold rush and the railroads completed in the 1870-80s, which brought thousands of new settlers and a booming commercial center.
▪️But LA had a major issue limiting its growth, no water. It wasn’t until Mulholland found a water source and built an aqueduct down from Northern California that LA had the infrastructure to grow into a major city.
▪️Then, a combination of oil, real estate and the film industry caused it to boom in the early 1900s. Post WWII, industries like aerospace continued its spectacular growth. Calling this “Mexican land” is a brain dead take. Neither the Mexicans, Spanish nor ...
