My friend went to school for finance, so one would like to think he knows what he’s talking about but I’m genuinely lost about what he’s saying.
I have $72k in loans, plan to move home and pay at least half of that in a year and then pay off the rest of that within a few years. My loans are between 5% to 7% and I plan to tackle the 7% first.
He tried to tell me that the 20-25 year program is always the way to go. All the research I’ve seen shows that’s absolutely not the case and that interest will be massive. He’s insisting I’m dumb for trying to pay my loans quicker.
He then said he only pays $39 a month for his $120k student loan debt and said that’s all he’ll have to pay for 20 years. Is that possible in any realm or is he being delusional? For reference, he has next to nothing income right now, so this may be true for now, but he’ll eventually be paying more than $39 a month if his income increases correct?
Then he tried to tell me private loans are better and more flexible than federal.
Now he’s saying he made his private loans into federal to qualify for federal programs. Is that even possible?
He’s insisting these are all facts, but I can’t find anything to back it up. Am I crazy?