♿🔞 kon mute

@x0r@mamot.fr @Lana@beige.party it's an exaggerated post to make a point about real student loans, not a real example of money lending! it doesn't have to be legal (but given the short timescale, assume daily and not monthly compounding imo) *real* student loans are much bigger amounts of money and thus their compounding interest ends up being similarly drastic and impossible to keep up with, and take many many years to pay off.

@x0r@mamot.fr It varies a lot, especially because some people end up with private loans instead of federal. Between 4% and 18% depending on the situation, give or take a bit. The average for borrowed amounts is also more in the range of tens of thousands rather than hundreds of thousands, but that's still absolutely massive, especially if you don't actually secure well paying work after college for a variety of reasons (disability, homelessness, you ran out of money partway into the degree, etc)

@x0r@mamot.fr @daNanner@indiepocalypse.social in the US, debt (medical and student loans and many other things) can be sold to other companies. contracts like that can be transferrable, and student loans usually are sold to a kind of like, management company that handles them