Student loan payments: get advice and actual numbers here Forum
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- Joined: Tue Aug 11, 2009 9:32 am
Re: Student loan payments: get advice and actual numbers here
Loans remaining: ~$220,000
Half of it with SoFi: ~$1,100/m payment static; Half of it with Fed Gov: ~$900/m
Biglaw
2nd year
~$45,000 savings
Quitting in April to start a startup. Interviewing with several accelerators at the moment, as I've been working on my startup during my time here and have launched a beta. However, accelerator investment is far from guaranteed, and I won't be paying myself a salary anyway even if we get funding post-accelerator. Need to figure out what to do re. loan payment before and after I quit. Our team is fine relocating to a cheaper area to save on rent and food. Possibly overseas options for lower COL.
off the top of my head:
1. Should I defer payment?
2. What are the rules on length of deferment?
3. Should I Refinance right before quitting for a longer term to have smaller monthly payments?
4. Any other related advice? Anything else I haven't thought of?
Thanks all!
Half of it with SoFi: ~$1,100/m payment static; Half of it with Fed Gov: ~$900/m
Biglaw
2nd year
~$45,000 savings
Quitting in April to start a startup. Interviewing with several accelerators at the moment, as I've been working on my startup during my time here and have launched a beta. However, accelerator investment is far from guaranteed, and I won't be paying myself a salary anyway even if we get funding post-accelerator. Need to figure out what to do re. loan payment before and after I quit. Our team is fine relocating to a cheaper area to save on rent and food. Possibly overseas options for lower COL.
off the top of my head:
1. Should I defer payment?
2. What are the rules on length of deferment?
3. Should I Refinance right before quitting for a longer term to have smaller monthly payments?
4. Any other related advice? Anything else I haven't thought of?
Thanks all!
- jaesonko
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Re: Student loan payments: get advice and actual numbers here
yes, exactlyJenDarby wrote: wait, so you want the referree bonus and then half the referrer bonus as well?
but still,
Desert Fox wrote:
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Re: Student loan payments: get advice and actual numbers here
I'm going to start making loan payments this January. My total loan debt is approximately $32,000. I'm not doing any IBR/PAYE plans as I don't seem to qualify. Does it make sense to refinance my loans?
It seems like the main downfall is that you lose the protections of IBR and deferment. Also, are the private lenders particularly predatory? Are you more at risk?
It seems like the main downfall is that you lose the protections of IBR and deferment. Also, are the private lenders particularly predatory? Are you more at risk?
- JenDarby
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- Joined: Wed Oct 20, 2010 3:02 am
Re: Student loan payments: get advice and actual numbers here
With only 32k in loans there should be no real risk of losing federal protections at such a low debt level. Private lenders are not predatory and you are not at risk with a reputable one, barring the complete collapse of our economy and financial markets in which case 32k in law school debt won't be your biggest problem.Anonymous User wrote:I'm going to start making loan payments this January. My total loan debt is approximately $32,000. I'm not doing any IBR/PAYE plans as I don't seem to qualify. Does it make sense to refinance my loans?
It seems like the main downfall is that you lose the protections of IBR and deferment. Also, are the private lenders particularly predatory? Are you more at risk?
You WILL pay all of that debt off so depending on your current interest rates, you might as well refinance and save some money in the meantime. Look at CommonBond, SoFi and Earnest.
Last edited by JenDarby on Mon Jan 29, 2018 10:36 pm, edited 1 time in total.
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Re: Student loan payments: get advice and actual numbers here
I have around 21 grand at 5.060% and then 11 grand at 6.06%. That's with auto pay interest reduction.JenDarby wrote:With only 32k in loans there should be no real risk of losing federal protections at such a low debt level. Private lenders are not predatory and you are not at risk with a reputable one, barring the complete collapse of our economy and financial markets in which case 32k in law school debt won't be your biggest problem.Anonymous User wrote:I'm going to start making loan payments this January. My total loan debt is approximately $32,000. I'm not doing any IBR/PAYE plans as I don't seem to qualify. Does it make sense to refinance my loans?
It seems like the main downfall is that you lose the protections of IBR and deferment. Also, are the private lenders particularly predatory? Are you more at risk?
You WILL pay all of that debt off so depending on your current interest rates, you might as well refinance and save some money in the meantime. Look at CommonBond, SoFi and Earnest.
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- Desert Fox
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Re: Student loan payments: get advice and actual numbers here
https://www.earnest.com/invite/john1293JenDarby wrote:wait, so you want the referree bonus and then half the referrer bonus as well?jaesonko wrote:hey all,
now that i've found out that ive actually passed the bar, i'm going to go ahead and refi through earnest. anybody want to share a referral code (giving preference to anyone willing to split their referral bonus)
but still,
Desert Fox wrote:
I'll venmo you 50 bucks if I actually get the 200 from earnest.
Last edited by Desert Fox on Fri Jan 26, 2018 11:43 pm, edited 1 time in total.
- JenDarby
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Re: Student loan payments: get advice and actual numbers here
so quick calculations, on a 10 yr repayment for both loans you would have a blended rate of around 5.4037 and blended payment of 345.81/mo.Anonymous User wrote:I have around 21 grand at 5.060% and then 11 grand at 6.06%. That's with auto pay interest reduction.
Taking the rates separately, you will pay around $5,802 total interest on the 21k loan and $3,695 on the 11k loan for a total of $9,497 over 10 years.
Someone above, for instance, got a 5-yr fixed rate of 3.3 with commonbond. On 32k that would give you a monthly payment of $579 and you would pay a total of $2,756 in interest
OTOH if you didn't refi and paid off the loans in 5 years you would pay $2,812 in interest on the 21k loan and $1,778 on the 11k loan for a total of $4,590 in interest
Last edited by JenDarby on Mon Jan 29, 2018 10:36 pm, edited 1 time in total.
- esrom55
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Re: Student loan payments: get advice and actual numbers here
So how do I contact the FRB mafia if I'm interested in consolidating? Seems silly to not get a referral, but I'm unsure who to contact without ending up with cinderblock shoes in the East River.
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Re: Student loan payments: get advice and actual numbers here
esrom55 wrote:So how do I contact the FRB mafia if I'm interested in consolidating? Seems silly to not get a referral, but I'm unsure who to contact without ending up with cinderblock shoes in the East River.
I think Smokey or bk are up next
Last edited by Danger Zone on Sat Jan 27, 2018 2:33 pm, edited 1 time in total.
- JenDarby
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Re: Student loan payments: get advice and actual numbers here
hey who knows what deals they're cutting behind the scenes!Danger Zone wrote:esrom55 wrote:So how do I contact the FRB mafia if I'm interested in consolidating? Seems silly to not get a referral, but I'm unsure who to contact without ending up with cinderblock shoes in the East River.
I think Smokey or bk are up next
Last edited by JenDarby on Mon Jan 29, 2018 10:36 pm, edited 1 time in total.
- SmokeytheBear
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Re: Student loan payments: get advice and actual numbers here
JenDarby wrote:hey who knows what deals they're cutting behind the scenes!Danger Zone wrote:esrom55 wrote:So how do I contact the FRB mafia if I'm interested in consolidating? Seems silly to not get a referral, but I'm unsure who to contact without ending up with cinderblock shoes in the East River.
I think Smokey or bk are up next
I know it was you, Fredo.
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Re: Student loan payments: get advice and actual numbers here
Just graduated this past May and my law school loans are coming due. I am really at a loss here and can use some help/guidance on how to manage this level of debt.
Debt: ~$220K ($130K in gov't loans, rest is private loans)
Payments: $2,450 total (starting this month )
Income: ~$45K (Non-profit)
Plan: No plan yet (IDR application still pending)
Important info: Also have $9K in credit card debt. Plus, a big chunk of my debt comes from private loans, so I unfortunately I can't get on an income based repayment plan for those...
At this point, I can't keep up with my rent/bills much longer (I live in a major market with high cost of living). Should I just go into forbearance on my private loans? Should I consolidate all my private loans? Should I just give up and move abroad? This level of debt is truly soul crushing...
Debt: ~$220K ($130K in gov't loans, rest is private loans)
Payments: $2,450 total (starting this month )
Income: ~$45K (Non-profit)
Plan: No plan yet (IDR application still pending)
Important info: Also have $9K in credit card debt. Plus, a big chunk of my debt comes from private loans, so I unfortunately I can't get on an income based repayment plan for those...
At this point, I can't keep up with my rent/bills much longer (I live in a major market with high cost of living). Should I just go into forbearance on my private loans? Should I consolidate all my private loans? Should I just give up and move abroad? This level of debt is truly soul crushing...
- boredtodeath
- Posts: 697
- Joined: Tue May 08, 2012 3:37 pm
Re: Student loan payments: get advice and actual numbers here
What is the monthly payment on just the private loans? I would get your govt loan servicer to switch your govt loans over to PAYE/REPAYE immediately if you are eligible. Your payments will be next to nothing on the govt loans if you are eligible for PAYE/REPAYE with that debt level and salary.Anonymous User wrote:Just graduated this past May and my law school loans are coming due. I am really at a loss here and can use some help/guidance on how to manage this level of debt.
Debt: ~$220K ($130K in gov't loans, rest is private loans)
Payments: $2,450 total (starting this month )
Income: ~$45K (Non-profit)
Plan: No plan yet (IDR application still pending)
Important info: Also have $9K in credit card debt. Plus, a big chunk of my debt comes from private loans, so I unfortunately I can't get on an income based repayment plan for those...
At this point, I can't keep up with my rent/bills much longer (I live in a major market with high cost of living). Should I just go into forbearance on my private loans? Should I consolidate all my private loans? Should I just give up and move abroad? This level of debt is truly soul crushing...
Once you get your govt loans on PAYE/REPAYE, can you look into refinancing your private loans to lower the monthly payment? What is the current interest rate on those loans? It will probably be difficult but worth looking into.
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Re: Student loan payments: get advice and actual numbers here
My monthly payments on the private loans are ~$950. I am hoping that I get approved for PAYE/REPAYE, as I definitely qualify. I really dropped the ball and should have applied much sooner than I did (I applied mid November).boredtodeath wrote:What is the monthly payment on just the private loans? I would get your govt loan servicer to switch your govt loans over to PAYE/REPAYE immediately if you are eligible. Your payments will be next to nothing on the govt loans if you are eligible for PAYE/REPAYE with that debt level and salary.Anonymous User wrote:Just graduated this past May and my law school loans are coming due. I am really at a loss here and can use some help/guidance on how to manage this level of debt.
Debt: ~$220K ($130K in gov't loans, rest is private loans)
Payments: $2,450 total (starting this month )
Income: ~$45K (Non-profit)
Plan: No plan yet (IDR application still pending)
Important info: Also have $9K in credit card debt. Plus, a big chunk of my debt comes from private loans, so I unfortunately I can't get on an income based repayment plan for those...
At this point, I can't keep up with my rent/bills much longer (I live in a major market with high cost of living). Should I just go into forbearance on my private loans? Should I consolidate all my private loans? Should I just give up and move abroad? This level of debt is truly soul crushing...
Once you get your govt loans on PAYE/REPAYE, can you look into refinancing your private loans to lower the monthly payment? What is the current interest rate on those loans? It will probably be difficult but worth looking into.
The interest rates vary on the private loans (I have 4 different private loan servicers)-- as low as 6% on one, as high as 9% on another. I don't have any savings or assets so I don't think I would be able to refinance my private loans.
- boredtodeath
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Re: Student loan payments: get advice and actual numbers here
Anonymous User wrote:My monthly payments on the private loans are ~$950. I am hoping that I get approved for PAYE/REPAYE, as I definitely qualify. I really dropped the ball and should have applied much sooner than I did (I applied mid November).boredtodeath wrote:What is the monthly payment on just the private loans? I would get your govt loan servicer to switch your govt loans over to PAYE/REPAYE immediately if you are eligible. Your payments will be next to nothing on the govt loans if you are eligible for PAYE/REPAYE with that debt level and salary.Anonymous User wrote:Just graduated this past May and my law school loans are coming due. I am really at a loss here and can use some help/guidance on how to manage this level of debt.
Debt: ~$220K ($130K in gov't loans, rest is private loans)
Payments: $2,450 total (starting this month )
Income: ~$45K (Non-profit)
Plan: No plan yet (IDR application still pending)
Important info: Also have $9K in credit card debt. Plus, a big chunk of my debt comes from private loans, so I unfortunately I can't get on an income based repayment plan for those...
At this point, I can't keep up with my rent/bills much longer (I live in a major market with high cost of living). Should I just go into forbearance on my private loans? Should I consolidate all my private loans? Should I just give up and move abroad? This level of debt is truly soul crushing...
Once you get your govt loans on PAYE/REPAYE, can you look into refinancing your private loans to lower the monthly payment? What is the current interest rate on those loans? It will probably be difficult but worth looking into.
The interest rates vary on the private loans (I have 4 different private loan servicers)-- as low as 6% on one, as high as 9% on another. I don't have any savings or assets so I don't think I would be able to refinance my private loans.
Those interest rates are high for student loans in general (don't know what the private lending market looks like pre-refi). It doesn't cost you anything to inquire with SoFi, CommonBond, Earnest, etc and see if they will offer you a refi. You may not get it but it is absolutely worth the effort to go on their websites and try.
If you can't refi the private loans, can you work with your existing lenders to extend the repayment term? This would lower the monthly payments. They may be open to working with you on this if the alternative is that you would default. This would also be easier if you consolidated the private loans with one lender.
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Re: Student loan payments: get advice and actual numbers here
boredtodeath wrote:What is the monthly payment on just the private loans? I would get your govt loan servicer to switch your govt loans over to PAYE/REPAYE immediately if you are eligible. Your payments will be next to nothing on the govt loans if you are eligible for PAYE/REPAYE with that debt level and salary.Anonymous User wrote:Just graduated this past May and my law school loans are coming due. I am really at a loss here and can use some help/guidance on how to manage this level of debt.
Debt: ~$220K ($130K in gov't loans, rest is private loans)
Payments: $2,450 total (starting this month )
Income: ~$45K (Non-profit)
Plan: No plan yet (IDR application still pending)
Important info: Also have $9K in credit card debt. Plus, a big chunk of my debt comes from private loans, so I unfortunately I can't get on an income based repayment plan for those...
At this point, I can't keep up with my rent/bills much longer (I live in a major market with high cost of living). Should I just go into forbearance on my private loans? Should I consolidate all my private loans? Should I just give up and move abroad? This level of debt is truly soul crushing...
Once you get your govt loans on PAYE/REPAYE, can you look into refinancing your private loans to lower the monthly payment? What is the current interest rate on those loans? It will probably be difficult but worth looking into.
Echo this. You need to get on PAYE/REPAYE ASAP. You'll then be paying a fixed 10%.
Living frugally is one thing, but I wonder whether this is even possible in your situation. I'm Big Law and even decided to go this route myself.
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Re: Student loan payments: get advice and actual numbers here
Probably a dumb question but...
Can you refinance student loans with a credit score? I literally have no credit (yes I know this is terrible, and I'm getting on it.)
I will have about $100k in loans and will be making market in NYC biglaw when I graduate in May.
Can you refinance student loans with a credit score? I literally have no credit (yes I know this is terrible, and I'm getting on it.)
I will have about $100k in loans and will be making market in NYC biglaw when I graduate in May.
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Re: Student loan payments: get advice and actual numbers here
You have a credit history (your student loans), thus you should be scorable.Anonymous User wrote:Probably a dumb question but...
Can you refinance student loans with a credit score? I literally have no credit (yes I know this is terrible, and I'm getting on it.)
I will have about $100k in loans and will be making market in NYC biglaw when I graduate in May.
I'm not sure whether they will refi you. My suspicion is yes based on your dti ratio. Having more assets will also likely make it easier to refi.
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Re: Student loan payments: get advice and actual numbers here
Someone once posted a spreadsheet that was set up to calculate ones repayment of their FRB loan, but I can't seem to find it anywhere. It was really helpful with all the values and equations already filled in, and all you needed to do was plug in your individual numbers. It even had comparisons to a non FRB loan, as well as a calculation to figure out what you'd forgo by keeping the minimum 3500 balance in the account.
If anyone happens to have a link to download this spreadsheet, or even something similar, I'd greatly appreciate it!
If anyone happens to have a link to download this spreadsheet, or even something similar, I'd greatly appreciate it!
- JenDarby
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Re: Student loan payments: Actual numbers
^ this was Jan 2017, so here's an update as a data point. Modified my FRB re-refinance:JenDarby wrote:Debt at graduation in 2014: 194k
Interest rates: 72k at 7.65%, 41k at 6.55%, 36k at 6.16%, 20.5k at 5.160% (returned some $$ after disbursement to avoid the fee)
Interest paid in 2014: 17.5k
Debt at refinance in 02/2015: 176k
Payment and VARIABLE interest rate: ~1,850/mo at 4.16% that gradually increased to 4.68% - 10yr term
Interest paid in 2015: 7.95k
Interest paid in 2016: 7.15k
Debt at refinance in 01/2017: 145k
Payment and FIXED interest rate: ~1,450/mo at 3.75% - 10yr term
Debt at modification in 10/2017: 136k
Payment and FIXED interest rate: ~975/mo at 2.95% - 15yr term (I'm getting aggressive with payments so should have just done 2.65% - 10yr option)
Interest paid in 2017: ~4.9k
Current balance: 124k
I am definitely aiming for the 2% of original loan balance interest rebate, so plan to be paid off by January 2021
Last edited by JenDarby on Mon Jan 29, 2018 10:24 pm, edited 2 times in total.
- SmokeytheBear
- Posts: 926
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Re: Student loan payments: get advice and actual numbers here
I'm sure I can google this, but I'm also sure one of my co-conspirators on here has already done more work than googling:
What is the best savings rate right now and from whom? I got something in the mail from Discover about 1.3%. I feel like someone recently said something about Capital One? Also, any good signup bonuses?
Looking to drop in about $25,000.
What is the best savings rate right now and from whom? I got something in the mail from Discover about 1.3%. I feel like someone recently said something about Capital One? Also, any good signup bonuses?
Looking to drop in about $25,000.
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- Johann
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Re: Student loan payments: get advice and actual numbers here
I got 1.3 at capital one 360 right now. Minimum 10k deposit. I looked and researched just last week on nerd wallet and shit there are some smaller banks with slightly better rates but this was overall best I could find that was also super easy.SmokeytheBear wrote:I'm sure I can google this, but I'm also sure one of my co-conspirators on here has already done more work than googling:
What is the best savings rate right now and from whom? I got something in the mail from Discover about 1.3%. I feel like someone recently said something about Capital One? Also, any good signup bonuses?
Looking to drop in about $25,000.
- jrthor10
- Posts: 369
- Joined: Fri Jul 08, 2011 10:33 am
Re: Student loan payments: get advice and actual numbers here
I use Goldman Sachs 1.40 and I find their interface pretty easy to use, although I don't think they have a mobile app FWIW.Johann wrote:I got 1.3 at capital one 360 right now. Minimum 10k deposit. I looked and researched just last week on nerd wallet and shit there are some smaller banks with slightly better rates but this was overall best I could find that was also super easy.SmokeytheBear wrote:I'm sure I can google this, but I'm also sure one of my co-conspirators on here has already done more work than googling:
What is the best savings rate right now and from whom? I got something in the mail from Discover about 1.3%. I feel like someone recently said something about Capital One? Also, any good signup bonuses?
Looking to drop in about $25,000.
- Johann
- Posts: 19704
- Joined: Wed Mar 12, 2014 4:25 pm
Re: Student loan payments: get advice and actual numbers here
fair enough. i see them now (Marcus by GS) but must have just skimmed and thought it was a smaller bank when looking at nerd wallet.jrthor10 wrote:I use Goldman Sachs 1.40 and I find their interface pretty easy to use, although I don't think they have a mobile app FWIW.Johann wrote:I got 1.3 at capital one 360 right now. Minimum 10k deposit. I looked and researched just last week on nerd wallet and shit there are some smaller banks with slightly better rates but this was overall best I could find that was also super easy.SmokeytheBear wrote:I'm sure I can google this, but I'm also sure one of my co-conspirators on here has already done more work than googling:
What is the best savings rate right now and from whom? I got something in the mail from Discover about 1.3%. I feel like someone recently said something about Capital One? Also, any good signup bonuses?
Looking to drop in about $25,000.
- JenDarby
- Posts: 17362
- Joined: Wed Oct 20, 2010 3:02 am
Re: Student loan payments: get advice and actual numbers here
If you can drop 25k into Discover you get a $200 bonus at 1.3%, and there's no minimum length you even have to keep the money there. They only do a soft pull so no credit risk. I just did it and got the bonus a day later. Makes it better than 1.4jrthor10 wrote:I use Goldman Sachs 1.40 and I find their interface pretty easy to use, although I don't think they have a mobile app FWIW.Johann wrote:I got 1.3 at capital one 360 right now. Minimum 10k deposit. I looked and researched just last week on nerd wallet and shit there are some smaller banks with slightly better rates but this was overall best I could find that was also super easy.SmokeytheBear wrote:I'm sure I can google this, but I'm also sure one of my co-conspirators on here has already done more work than googling:
What is the best savings rate right now and from whom? I got something in the mail from Discover about 1.3%. I feel like someone recently said something about Capital One? Also, any good signup bonuses?
Looking to drop in about $25,000.
I can't recall the code but if you google "discover savings tiered bonus" you'll find it
Last edited by JenDarby on Mon Jan 29, 2018 10:19 pm, edited 2 times in total.
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