And it is. In the vast majority of cases people will still pay back the entire amount they borrowed plus some amount of interest. You’re not looking at the bigger picture.
USCHO Fan Forum
This is a sample guest message. Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!
-
The USCHO Fan Forum has migrated to a new plaform, xenForo. Most of the function of the forum should work in familiar ways. Please note that you can switch between light and dark modes by clicking on the gear icon in the upper right of the main menu bar. We are hoping that this new platform will prove to be faster and more reliable. Please feel free to explore its features.
Welcome folks, to the Biden administration!
- Thread starter jericho
- Start date
- Status
And it is. In the vast majority of cases people will still pay back the entire amount they borrowed plus some amount of interest. You’re not looking at the bigger picture.
French Rage
NICKERSON HAS [CENSORED]
It reduces the fucking principal.
You’re completely missing the point. In my example someone’s balance might go from $30k to $20k on whatever date but they are still going to pay back $40k plus $5k or something like that in interest. They’ve still paid back all the money they borrowed, they just didn’t get hit as hard on the interest.
French Rage
NICKERSON HAS [CENSORED]
So if someone's principal goes from $30K to $20K, it is increased, reduced, or the same?
ScoobyDoo
NPC
What in the fucking hell are you talking about?
RaceBoarder
Waiting for the Snow to fly...
Drew, I see the point you are trying to make.
It's just something that doesn't apply to very many people. Yes, those people are paying back more than their original balance. But overall they are still paying $10k less out of pocket. It's still a win for them.
It's just something that doesn't apply to very many people. Yes, those people are paying back more than their original balance. But overall they are still paying $10k less out of pocket. It's still a win for them.
It absolutely is, and if it were up to me I would do even more. The point I’m trying to make is that all the disingenuous folks on twitter trying to say these folks are getting a huge break are completely mistaken. A lot of people are still going to pay back every penny they borrowed and then some.
Deutsche Gopher Fan
Registered User
My fave: today is like 9/11 for people with Harvard in their bio
French Rage
NICKERSON HAS [CENSORED]
Except for voting for people who would try to do even more. You know, the one thing you can do.
So they're not saving at least $10K in future payments?
Correct. Their principal still goes down $10K despite your lying otherwise.
If someone borrows $40k and pays back $45k versus borrowing $40k and paying back $60k how much have they saved on principal?
So, in your scenario, they save $15,000 instead of $10,000?
French Rage
NICKERSON HAS [CENSORED]
Principal is the principal balance on a loan at any point in time. The question "how much have they saved on principal" doesn't make any sense after the loan is said and done.
This reduces the current principal of the loan by $10K. Just by itself ignoring future interest that's $10K less that they have to pay off of the principal balance; it's even more when you factor in that a lower principal means subsequent interest amortization amounts will be smaller, leading to a payment savings of more than $10K, which I believe would be a huge break to a lot of people, despite your claim otherwise.
French Rage
NICKERSON HAS [CENSORED]
To be fair, because making the same basic argument over and over is getting tiring, he is equating principal with "initial loan balance" and not "principal balance", despite, you know, the word "principal" being in the latter and not the former. Yes, a person could very well pay more than the initial loan balance even with these changes. Literally no one is pretending that is not the case. But it does lower than current principal balance by $10K, despite his claim it does not (or his misunderstanding of terms making him think it does not).
It depends on when in the course of loan they get the balance reduction but I used that for a round number. Everyone will save more than $10k in payments because interest is calculated on outstanding balance.
I’m not saying this in a sarcastic way but everyone would be well served to play around with amortization tables.
Kepler
Cornell Big Red
Concur. One of the best practical uses for probability and also helps focus the mind.
My answer to you was complete sarcasm. As for amortization tables, I’ve looked at them for a while now. Fair to venture I understand them just as well as you. I stopped my wife’s student loans right at 10k in hopes the man I voted for forgave $10k in student loans. Are you telling me he only forgave $10k in interest?? (again, sarcasm)
What makes you appear condescending, and worthy of dressing down, is you assume few of us, including me, have never bothered to look at such tables. I’ll save probably around $13,000 when all is said and done, assuming I pay out the full 10 years. Current plan is to pay down the past 2.5 years once it restarts in January. Does that bring down the principal, Drew, and how will that look in an amortization table?
French Rage
NICKERSON HAS [CENSORED]
Drew, you would be well served to memorize the entire list of English kings from 1066 onward, because it would do every bit as little as studying amortization tables to change the fact that a) this reduces the principal by $10K and b) you said it did not.
Last edited:
https://www.investopedia.com/terms/p/principal.asp
Today reduces the outstanding balance not principal. And that really has nothing to do with my original point.
French Rage
NICKERSON HAS [CENSORED]
fta:
But hey let's take your definition for a second and re-inspect your original gem of a post:
Going by your definition, literally nothing ever reduces the principal at all. If it's just the original loan amount, that never changes. Even if you go in and pay the entire loan back the day after you take it out, the original loan amount was still the original loan amount. Whether you paid it back immediately without a single cent of interest or took decades and paid boatloads of interest, the original loan amount was still the original loan amount. So what you said there means absolutely nothing. So you either a) were wrong or b) proclaimed a vapid tautology.
Last edited:
- Status