Student loan payments: get advice and actual numbers here Forum
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Re: Student loan payments: get advice and actual numbers here
Rising 3L here, SO and I are both 24 and finishing school this year.
If we take out in loans what we have been for the last two years, we will grad right around 200-215k debt (combined). By the end of summer, I'll have saved up approximately 22k from my SA gig. This is the total and full amount of our savings/assets at this point.
I was thinking about investing 10k and putting 12k in emergency savings. Is this a good approach or should I throw the 10k straight at less loans for this year and keep the 12k emergency savings? What are the pros and cons of each option? I've been really struggling to figure this out lately and SO doesn't really have a preference for either approach, though I feel like they would prefer to still have some access to the money in the event we need it for a major emergency (i.e. an event costing more than the 12k savings)
ETA: this might be better off in the financial advice thread, but I'm more worried about the loan advice
If we take out in loans what we have been for the last two years, we will grad right around 200-215k debt (combined). By the end of summer, I'll have saved up approximately 22k from my SA gig. This is the total and full amount of our savings/assets at this point.
I was thinking about investing 10k and putting 12k in emergency savings. Is this a good approach or should I throw the 10k straight at less loans for this year and keep the 12k emergency savings? What are the pros and cons of each option? I've been really struggling to figure this out lately and SO doesn't really have a preference for either approach, though I feel like they would prefer to still have some access to the money in the event we need it for a major emergency (i.e. an event costing more than the 12k savings)
ETA: this might be better off in the financial advice thread, but I'm more worried about the loan advice
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Re: Student loan payments: get advice and actual numbers here
I definitely think fully funding the e-fund makes sense. How are you planning to pay off your loans (income-based or refi, over how many years)? What is the purpose of the additional 10k?Anonymous User wrote:Rising 3L here, SO and I are both 24 and finishing school this year.
If we take out in loans what we have been for the last two years, we will grad right around 200-215k debt (combined). By the end of summer, I'll have saved up approximately 22k from my SA gig. This is the total and full amount of our savings/assets at this point.
I was thinking about investing 10k and putting 12k in emergency savings. Is this a good approach or should I throw the 10k straight at less loans for this year and keep the 12k emergency savings? What are the pros and cons of each option? I've been really struggling to figure this out lately and SO doesn't really have a preference for either approach, though I feel like they would prefer to still have some access to the money in the event we need it for a major emergency (i.e. an event costing more than the 12k savings)
ETA: this might be better off in the financial advice thread, but I'm more worried about the loan advice
- El Pollito
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Re: Student loan payments: get advice and actual numbers here
idk they sent the letter via regular mail but i'm guessing its what grandinquisitor saidPokemon wrote:magnum_law wrote:What? That can happen - how??El Pollito wrote:my remaining fed loans got kicked out of repaye
Last edited by El Pollito on Sat Jan 27, 2018 2:52 am, edited 1 time in total.
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Re: Student loan payments: get advice and actual numbers here
I figured it would just make more sense to have 10k invested and 12k in e-fund than to have 22k in an e-fund because that seems unnecessary since right now we live on less than 30k a years.bk1 wrote:I definitely think fully funding the e-fund makes sense. How are you planning to pay off your loans (income-based or refi, over how many years)? What is the purpose of the additional 10k?Anonymous User wrote:Rising 3L here, SO and I are both 24 and finishing school this year.
If we take out in loans what we have been for the last two years, we will grad right around 200-215k debt (combined). By the end of summer, I'll have saved up approximately 22k from my SA gig. This is the total and full amount of our savings/assets at this point.
I was thinking about investing 10k and putting 12k in emergency savings. Is this a good approach or should I throw the 10k straight at less loans for this year and keep the 12k emergency savings? What are the pros and cons of each option? I've been really struggling to figure this out lately and SO doesn't really have a preference for either approach, though I feel like they would prefer to still have some access to the money in the event we need it for a major emergency (i.e. an event costing more than the 12k savings)
ETA: this might be better off in the financial advice thread, but I'm more worried about the loan advice
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Re: Student loan payments: get advice and actual numbers here
In general, figure out what your efund should be (rule of thumb is generally 3-6 months' expenses, though some people go up to 12) and then have that much. If you live on less than 2-3k/month then 12k is fine for the efund. If you are expecting your expenses to rise after graduation, then you might want to take that into consideration. Also, I don't know whether your employers will provide a bar stipend, but consider how much it will cost you guys to live after graduation before you start earning a paycheck.Anonymous User wrote:I figured it would just make more sense to have 10k invested and 12k in e-fund than to have 22k in an e-fund because that seems unnecessary since right now we live on less than 30k a years.bk1 wrote:I definitely think fully funding the e-fund makes sense. How are you planning to pay off your loans (income-based or refi, over how many years)? What is the purpose of the additional 10k?Anonymous User wrote:Rising 3L here, SO and I are both 24 and finishing school this year.
If we take out in loans what we have been for the last two years, we will grad right around 200-215k debt (combined). By the end of summer, I'll have saved up approximately 22k from my SA gig. This is the total and full amount of our savings/assets at this point.
I was thinking about investing 10k and putting 12k in emergency savings. Is this a good approach or should I throw the 10k straight at less loans for this year and keep the 12k emergency savings? What are the pros and cons of each option? I've been really struggling to figure this out lately and SO doesn't really have a preference for either approach, though I feel like they would prefer to still have some access to the money in the event we need it for a major emergency (i.e. an event costing more than the 12k savings)
ETA: this might be better off in the financial advice thread, but I'm more worried about the loan advice
If you think you're going to use that 10k (whether for living expenses next summer, paying for a bar trip, topping up your efund to match your graduation living expenses, etc), then I wouldn't invest it. To the extent you're not going to use it for any of that and don't intend to use it in the short term, then investing makes sense (though I'd at least max out your IRA first).
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Re: Student loan payments: get advice and actual numbers here
TYFT. I didn't even think about the fact that our e-fund will have to increase post-grad when we move to a bigger place. Leaving it all in a 1% savings is definitely the right move.bk1 wrote: If you think you're going to use that 10k (whether for living expenses next summer, paying for a bar trip, topping up your efund to match your graduation living expenses, etc), then I wouldn't invest it. To the extent you're not going to use it for any of that and don't intend to use it in the short term, then investing makes sense (though I'd at least max out your IRA first).
- grand inquisitor
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Re: Student loan payments: get advice and actual numbers here
ymmv but they kicked me off ibr once and i disputed it and it turned out they had doubled my income by calculating it as a weekly, rather than biweekly, paycheck. don't trust that they did the math right.El Pollito wrote:idk they sent the letter via regular mail but i'm guessing its what grandinquisitor saidPokemon wrote:magnum_law wrote:What? That can happen - how??El Pollito wrote:my remaining fed loans got kicked out of repaye
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Re: Student loan payments: get advice and actual numbers here
Debt: ~$56k
Payment: $512/mo under 10-year plan
Income: $135k
Plan: standard 10-year; probably ought to pay it off within 5 years
Note: Have ~$70k liquid, but should probably put a lot of this into a low-cost fund. My plan is 3-5 years at the firm (or between two firms, depending on access to clients), then in-house. If I move firms, it'd probably be to a market-paying firm based on the in-house options I'm considering.
Any advice for balancing investments, debt payments, and liquidity? I'm not necessarily saving for any major purchases any time soon, but that could always change.
Payment: $512/mo under 10-year plan
Income: $135k
Plan: standard 10-year; probably ought to pay it off within 5 years
Note: Have ~$70k liquid, but should probably put a lot of this into a low-cost fund. My plan is 3-5 years at the firm (or between two firms, depending on access to clients), then in-house. If I move firms, it'd probably be to a market-paying firm based on the in-house options I'm considering.
Any advice for balancing investments, debt payments, and liquidity? I'm not necessarily saving for any major purchases any time soon, but that could always change.
- Johann
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Re: Student loan payments: get advice and actual numbers here
whats your interest rate?Anonymous User wrote:Debt: ~$56k
Payment: $512/mo under 10-year plan
Income: $135k
Plan: standard 10-year; probably ought to pay it off within 5 years
Note: Have ~$70k liquid, but should probably put a lot of this into a low-cost fund. My plan is 3-5 years at the firm (or between two firms, depending on access to clients), then in-house. If I move firms, it'd probably be to a market-paying firm based on the in-house options I'm considering.
Any advice for balancing investments, debt payments, and liquidity? I'm not necessarily saving for any major purchases any time soon, but that could always change.
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Re: Student loan payments: get advice and actual numbers here
$68K salary, $110K debt. How much should I expect my payments to be under REPAYE or IBR? $500-600 range?
- A. Nony Mouse
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Re: Student loan payments: get advice and actual numbers here
I would suspect it's much much lowerAnonymous User wrote:$68K salary, $110K debt. How much should I expect my payments to be under REPAYE or IBR? $500-600 range?
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Re: Student loan payments: get advice and actual numbers here
Thanks. I haven't started making payments yet, but it seems like the payments will be manageable. The $110K number still scares the shit out of me though.A. Nony Mouse wrote:You can check here: https://studentloans.gov/myDirectLoan/r ... tor.action
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Re: Student loan payments: get advice and actual numbers here
5-6.21%. I got a SoFi quote of 4.85% fixed (5 or 7, don't remember), which didn't really seem worth it.Johann wrote:whats your interest rate?Anonymous User wrote:Debt: ~$56k
Payment: $512/mo under 10-year plan
Income: $135k
Plan: standard 10-year; probably ought to pay it off within 5 years
Note: Have ~$70k liquid, but should probably put a lot of this into a low-cost fund. My plan is 3-5 years at the firm (or between two firms, depending on access to clients), then in-house. If I move firms, it'd probably be to a market-paying firm based on the in-house options I'm considering.
Any advice for balancing investments, debt payments, and liquidity? I'm not necessarily saving for any major purchases any time soon, but that could always change.
- A. Nony Mouse
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Re: Student loan payments: get advice and actual numbers here
I think that's pretty close actually.Mlk&Ckies wrote:I would suspect it's much much lowerAnonymous User wrote:$68K salary, $110K debt. How much should I expect my payments to be under REPAYE or IBR? $500-600 range?
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Re: Student loan payments: get advice and actual numbers here
Yeah you're right. I didn't expect payments to rise so quickly after you start making $40kishA. Nony Mouse wrote:I think that's pretty close actually.Mlk&Ckies wrote:I would suspect it's much much lowerAnonymous User wrote:$68K salary, $110K debt. How much should I expect my payments to be under REPAYE or IBR? $500-600 range?
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Re: Student loan payments: get advice and actual numbers here
Lol bruh that's nothingAnonymous User wrote:Thanks. I haven't started making payments yet, but it seems like the payments will be manageable. The $110K number still scares the shit out of me though.A. Nony Mouse wrote:You can check here: https://studentloans.gov/myDirectLoan/r ... tor.action
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- Johann
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Re: Student loan payments: get advice and actual numbers here
At this income level, it's SUPER IMPORTSNT to be smart with your pretax planning. Can basically create free money if you are smart and fiscally responsible. Search posts by avbucks. He's doing an IBR on a roughly similar income and has it all figured out.Anonymous User wrote:$68K salary, $110K debt. How much should I expect my payments to be under REPAYE or IBR? $500-600 range?
- El Pollito
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Re: Student loan payments: get advice and actual numbers here
help me escape AMT
Last edited by El Pollito on Sat Jan 27, 2018 2:51 am, edited 1 time in total.
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Re: Student loan payments: get advice and actual numbers here
To get back to numbers:
8 months in, first year non-NYC BigLaw:
Loan payments: $21,200 ($2,6500 x 8 )
Savings: $24,000
401K: $12,000 ($1,500 x 8 )
Could be putting more toward loans, but I realized early that if I didn't have balance in my life (save for a house, go on vacation, have a nice apartment) then I would burn out of biglaw before I could pay off my loans anyways. Know some people
living in shitty apartments throwing all their money to loans that are ready to quit. But to each their own.
8 months in, first year non-NYC BigLaw:
Loan payments: $21,200 ($2,6500 x 8 )
Savings: $24,000
401K: $12,000 ($1,500 x 8 )
Could be putting more toward loans, but I realized early that if I didn't have balance in my life (save for a house, go on vacation, have a nice apartment) then I would burn out of biglaw before I could pay off my loans anyways. Know some people
living in shitty apartments throwing all their money to loans that are ready to quit. But to each their own.
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Re: Student loan payments: get advice and actual numbers here
why do you think you owe AMT in july if you didnt on your last year tax return?El Pollito wrote:help me escape AMT
i mean you prolly will soon enough because of cali's state income tax. things you can do: max 401, HSAs, and pretax contributions. marry chup.
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Re: Student loan payments: get advice and actual numbers here
Johann wrote:why do you think you owe AMT in july if you didnt on your last year tax return?El Pollito wrote:help me escape AMT
i mean you prolly will soon enough because of cali's state income tax. things you can do: max 401, HSAs, and pretax contributions. marry chup.
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Re: Student loan payments: get advice and actual numbers here
You can start calling him your little tax deduction
- Johann
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Re: Student loan payments: get advice and actual numbers here
Just north of 500k debt between spouse and I. Roughly 6-7% (don't pay attn because it doesn't matter).
PAYE
just refiled the income calculation with my wife since marriage and combined payments for us are $1,500/month (which is well less than our monthly interest accruing)
Payment based on 200k income tax return
Household income now over 300k
To get kicked off PAYE, household income would have to be over 550k now.
PAYE
just refiled the income calculation with my wife since marriage and combined payments for us are $1,500/month (which is well less than our monthly interest accruing)
Payment based on 200k income tax return
Household income now over 300k
To get kicked off PAYE, household income would have to be over 550k now.
- El Pollito
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Re: Student loan payments: get advice and actual numbers here
i did but i didn't find out until someone told me that they got bonedJohann wrote:why do you think you owe AMT in july if you didnt on your last year tax return?El Pollito wrote:help me escape AMT
i mean you prolly will soon enough because of cali's state income tax. things you can do: max 401, HSAs, and pretax contributions. marry chup.
i think marrying him is tax favorable tho
Last edited by El Pollito on Sat Jan 27, 2018 2:49 am, edited 1 time in total.
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