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Chicago Public Schools to pay $850 million in interest on $500 million loan

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posted on Aug, 1 2017 @ 09:12 PM
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originally posted by: butcherguy
a reply to: Edumakated

Some person at work bought a car and had it financed for 72 months.
When I heard about it, I said.... "WTF? Six freaking years... paying off a car?"


People extend the years because they can then get a nicer vehicle and a lower payment. Of course, this is stupid considering that a car depreciates as soon as you drive it off the lot. What typically happens is they wind up in a negative equity position pretty quickly.

All those people driving fancy cars are not as well off financially as you think.

I took a 60 month car loan on my current car. I could have done a 2 or 3 year comfortably. Only reason I took it was it has a ZERO percent interest rate.




posted on Aug, 1 2017 @ 09:22 PM
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This is how loans work, unsubsidized Federal Stafford loans are at 7%, so about the same rate. Over 25 years, one would pay $35,000 on interest alone on a $20,000 student loan. Just to put things in perspective.

There are 210,000 people in Houston, TX school system and Texas on average spends $8,000 per student (well below the national average of $11,800) so I am guessing that Houston spends $1.68 billion on education per year ($8,000*210,000).

Chicago has well over 300,000 students, so it probably spends more.

Of course it is still a waste to spend that much money on repaying loans, but these numbers put things in perspective.

Source

Wikipedia

edit on 01pmTue, 01 Aug 2017 21:35:11 -0500kbpmkAmerica/Chicago by darkbake because: (no reason given)

edit on 01pmTue, 01 Aug 2017 21:36:06 -0500kbpmkAmerica/Chicago by darkbake because: (no reason given)



posted on Aug, 2 2017 @ 06:31 AM
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originally posted by: ketsuko
a reply to: Edumakated

Never seen a car loan go beyond 60 months or five years.


In my area they're approaching 10. People can't afford necessities like homes and cars so they're taking lower payments at total higher costs.

I know a person recently, 60 years old, no credit. The bank just gave her a 50 year mortgage on a house, with no money down. It's predatory.



posted on Aug, 2 2017 @ 06:33 AM
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originally posted by: Edumakated
Most people are payment driven. They don't look at the long term costs like total interest paid, etc. Most car loans now are like 7 years because by extending the term, the payment is lower and it allows people to "afford" nicer cars.


I'm aware, it doesn't mean it's a good thing for the consumer because most people do it though.



posted on Aug, 8 2017 @ 07:29 PM
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Gots to get edumacated.



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