Student loan payments: get advice and actual numbers here

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Wed Aug 16, 2017 2:53 pm

Johann wrote:
Anonymous User wrote:
Anonymous User wrote:So, I have a $45,000 per year scholarship to a t14 (edit: t13, f georgetown) that costs ~60,000 per year. I am a rising 2L. I take out no loans for living expenses as my fiancé is working and we saved money for living expenses before coming to law school. I paid the first semester 1L tuition differential, ~7,500, out of pocket and took out loans on the 7,500 from second semester.

I had a 1L SA in a secondary market, so in my bank account I currently have ~$22,000. My fiancé has ~20,000 in hers. I am now taking out loans at roughly ~15,000 for 2L and probably ~18,000 for 3L. Should I pay off the 7,500 from 1L now or save my money? I have secured a 3,500/wk biglaw SA for 2L. How much of that (I'm living in DC for the next summer) should I expect to actually pocket post expenses? Should I pay off my loans through summer associateships or just save the loans for post grad repayment? Thoughts appreciated.

personal decision. if youre looking at 33k of debt and biglaw money, theres no wrong answer really. invest in tax-advantage retirement accounts if you want. buy shit if you want to enjoy your last years of freedom. refi for low rates. pay all the debt down with your savings. doesnt matter. id just invest it/retirement accounts and keep taking the debt prolly.

considering both tax deductions and origination fees and interest, I would max tax advantage retirmenent accounts and avoid loans to the extent possible

but I also wouldn't sacrifice your last years of freedom in the name of interest savings so to the extent taking out more loans helps you optimize the time before you spend all your time in big law with littleto no debt, then take out those loans

as johann said, with that low of numbers there's no wrong choice. maybe look into betting on politics

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Danger Zone
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Re: Student loan payments: get advice and actual numbers here

Postby Danger Zone » Wed Aug 16, 2017 3:01 pm

Harsh :lol:

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Tue Aug 22, 2017 10:21 am

FRB people - does your loan show up on your credit reports?

I refinanced with FRB in February and it's still not on my credit reports. This is even with buying a house in March and having my mortgage lender use one of those services that ensures everything is up to date on your credit report. My Fedloans and CommonBond loans do show up as closed accounts.

It's not a huge deal, just surprised not to see it after 7 months.

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bk1
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Re: Student loan payments: get advice and actual numbers here

Postby bk1 » Tue Aug 22, 2017 12:20 pm

JenDarby wrote:FRB people - does your loan show up on your credit reports?

No. When I called, they said that was normal, that you have to ask them (and fill out paperwork) for them to report it.

I filled out the paperwork a while ago, but it still hasn't shown (and I've been too lazy to bother them again about it).

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Tue Aug 22, 2017 1:36 pm

Thanks bk! I had a feeling there might be some explanation/process.

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SmokeytheBear
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Re: Student loan payments: get advice and actual numbers here

Postby SmokeytheBear » Tue Aug 22, 2017 1:37 pm

JenDarby wrote:Thanks bk! I had a feeling there might be some explanation/process.


Doesn't show up on mine. I'd rather it didn't.

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Tue Aug 22, 2017 1:39 pm

SmokeytheBear wrote:
JenDarby wrote:Thanks bk! I had a feeling there might be some explanation/process.


Doesn't show up on mine. I'd rather it didn't.

Yea I'm going to leave it alone. No need for a new personal loan and down the road closed account on my reports at this point.

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boredtodeath
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Re: Student loan payments: get advice and actual numbers here

Postby boredtodeath » Tue Aug 22, 2017 1:40 pm

Why would you want it reported? Am I missing something?

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SmokeytheBear
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Re: Student loan payments: get advice and actual numbers here

Postby SmokeytheBear » Tue Aug 22, 2017 1:41 pm

boredtodeath wrote:Why would you want it reported? Am I missing something?


Number of accounts is a factor in your credit score (more accounts is good and more accounts in good standing is good).

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Tue Aug 22, 2017 1:53 pm

SmokeytheBear wrote:
boredtodeath wrote:Why would you want it reported? Am I missing something?


Number of accounts is a factor in your credit score (more accounts is good and more accounts in good standing is good).

Yep, if your credit history wasn't very deep/varied in type of account then it could help.

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boredtodeath
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Re: Student loan payments: get advice and actual numbers here

Postby boredtodeath » Tue Aug 22, 2017 2:11 pm

JenDarby wrote:
SmokeytheBear wrote:
boredtodeath wrote:Why would you want it reported? Am I missing something?


Number of accounts is a factor in your credit score (more accounts is good and more accounts in good standing is good).

Yep, if your credit history wasn't very deep/varied in type of account then it could help.


Isn't it also affected by amount of outstanding balances? So if you have a massive student loan balance, probably better to not have that reported?

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Danger Zone
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Re: Student loan payments: get advice and actual numbers here

Postby Danger Zone » Tue Aug 22, 2017 2:12 pm

Correct

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SmokeytheBear
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Re: Student loan payments: get advice and actual numbers here

Postby SmokeytheBear » Tue Aug 22, 2017 2:22 pm

boredtodeath wrote:
JenDarby wrote:
SmokeytheBear wrote:
boredtodeath wrote:Why would you want it reported? Am I missing something?


Number of accounts is a factor in your credit score (more accounts is good and more accounts in good standing is good).

Yep, if your credit history wasn't very deep/varied in type of account then it could help.


Isn't it also affected by amount of outstanding balances? So if you have a massive student loan balance, probably better to not have that reported?


Well that's interesting. I re-fied $125kish with FR seven months ago. It took a few months for those federal loans to show as paid off and removed on my credit report (and, as noted above, the FR loan has not appeared on my credit report). But my credit score still has not changed even though those balances were paid off (still around 790).

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bk1
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Re: Student loan payments: get advice and actual numbers here

Postby bk1 » Tue Aug 22, 2017 2:36 pm

boredtodeath wrote:Isn't it also affected by amount of outstanding balances? So if you have a massive student loan balance, probably better to not have that reported?

It's current balance vs original balance, not just the amount currently outstanding.

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Pokemon
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Re: Student loan payments: get advice and actual numbers here

Postby Pokemon » Wed Aug 23, 2017 9:58 am

I feel stupid for not knowing this, but if I rebalance my Merrill account which I use to invest in etf/funds etc, is there a tax. Most of the funds have gained in last year. To rebalance I would have to sell part of position in some etfs and invest it in other indices.

sener212
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Re: Student loan payments: get advice and actual numbers here

Postby sener212 » Wed Aug 23, 2017 10:44 am

Pokemon wrote:I feel stupid for not knowing this, but if I rebalance my Merrill account which I use to invest in etf/funds etc, is there a tax. Most of the funds have gained in last year. To rebalance I would have to sell part of position in some etfs and invest it in other indices.


Yes, assuming your account is not a retirement account (401k, IRA, Roth IRA) or some other type of tax deferred/protected account (HSA is one of the only other ones). Will be helpful to do some Googling. This is basic stuff you're going to want to understand if you're going to be managing your investments (that's ok though everyone has to learn, and it can be confusing).

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Pokemon
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Re: Student loan payments: get advice and actual numbers here

Postby Pokemon » Wed Aug 23, 2017 12:11 pm

sener212 wrote:
Pokemon wrote:I feel stupid for not knowing this, but if I rebalance my Merrill account which I use to invest in etf/funds etc, is there a tax. Most of the funds have gained in last year. To rebalance I would have to sell part of position in some etfs and invest it in other indices.


Yes, assuming your account is not a retirement account (401k, IRA, Roth IRA) or some other type of tax deferred/protected account (HSA is one of the only other ones). Will be helpful to do some Googling. This is basic stuff you're going to want to understand if you're going to be managing your investments (that's ok though everyone has to learn, and it can be confusing).


Sucks, was hoping no tax until withdrawn from the brokerage account.

grixxlybear99
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Re: Student loan payments: get advice and actual numbers here

Postby grixxlybear99 » Wed Aug 23, 2017 3:04 pm

Question about FedLoan (PSLF) and re-certification:

So, I recently re-certified for PAYE through FedLoan. Last year I was on GreatLakes, but submitted a PSLF certification form back in June and have been switched from Greatlakes to FedLoan. I am a bit concerned about some stories I've heard about recertification timelines with FedLoan. Has anyone re-certified with FedLoan and experienced any issues? I am concerned I will be thrown off PAYE while I await re-certification, which will cause me to go into forbearance, resulting in no qualifying payments for PSLF until re-certification goes through.

Thanks

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Nebby
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Re: Student loan payments: get advice and actual numbers here

Postby Nebby » Thu Aug 24, 2017 7:55 am

grixxlybear99 wrote:Question about FedLoan (PSLF) and re-certification:

So, I recently re-certified for PAYE through FedLoan. Last year I was on GreatLakes, but submitted a PSLF certification form back in June and have been switched from Greatlakes to FedLoan. I am a bit concerned about some stories I've heard about recertification timelines with FedLoan. Has anyone re-certified with FedLoan and experienced any issues? I am concerned I will be thrown off PAYE while I await re-certification, which will cause me to go into forbearance, resulting in no qualifying payments for PSLF until re-certification goes through.

Thanks

Some people have had issues and lost a month on forbearance. You should just stay vigilant and call them liberally. They respond better to phone calls. Whenever you have to fax something, fax it more than once and on separate days.

Nosso
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Re: Student loan payments: get advice and actual numbers here

Postby Nosso » Thu Aug 24, 2017 3:48 pm

Nebby wrote:
grixxlybear99 wrote:Question about FedLoan (PSLF) and re-certification:

So, I recently re-certified for PAYE through FedLoan. Last year I was on GreatLakes, but submitted a PSLF certification form back in June and have been switched from Greatlakes to FedLoan. I am a bit concerned about some stories I've heard about recertification timelines with FedLoan. Has anyone re-certified with FedLoan and experienced any issues? I am concerned I will be thrown off PAYE while I await re-certification, which will cause me to go into forbearance, resulting in no qualifying payments for PSLF until re-certification goes through.

Thanks

Some people have had issues and lost a month on forbearance. You should just stay vigilant and call them liberally. They respond better to phone calls. Whenever you have to fax something, fax it more than once and on separate days.


I spoke with someone with fedloan regarding this because I'm in the same boat. Basically, they wait until around the time that you make your 12th payment for the year before processing your certification form. So I plan on hounding them once that date nears to make sure that everything is set to go and my 13th payment is the new, adjusted rate.

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SmokeytheBear
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Re: Student loan payments: get advice and actual numbers here

Postby SmokeytheBear » Tue Aug 29, 2017 6:55 pm

Odd question. I have a five year FR loan that I have been making hefty payments to over the last few months. The first payment due was something like $2300, so I payed $2300 and then an extra $4000 toward the principal. I've done this for a few months now, so my total principal amount has gone down faster than was originally amoratized. Even though the principal is lower than originally amoratized on a 5 year schedule, my invoice amount is still $2300, which the amount going to principal higher and the amount going to interest lower. Seems odd. Why wouldn't they just re-amoratize the loan over five years so I pay a lower interest and principal?

What's the deal?

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bk1
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Re: Student loan payments: get advice and actual numbers here

Postby bk1 » Tue Aug 29, 2017 7:01 pm

SmokeytheBear wrote:Odd question. I have a five year FR loan that I have been making hefty payments to over the last few months. The first payment due was something like $2300, so I payed $2300 and then an extra $4000 toward the principal. I've done this for a few months now, so my total principal amount has gone down faster than was originally amoratized. Even though the principal is lower than originally amoratized on a 5 year schedule, my invoice amount is still $2300, which the amount going to principal higher and the amount going to interest lower. Seems odd. Why wouldn't they just re-amoratize the loan over five years so I pay a lower interest and principal?

What's the deal?

Because the terms of the loan you signed stated that your monthly payment would always be $2300?

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SmokeytheBear
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Re: Student loan payments: get advice and actual numbers here

Postby SmokeytheBear » Tue Aug 29, 2017 7:06 pm

bk1 wrote:
SmokeytheBear wrote:Odd question. I have a five year FR loan that I have been making hefty payments to over the last few months. The first payment due was something like $2300, so I payed $2300 and then an extra $4000 toward the principal. I've done this for a few months now, so my total principal amount has gone down faster than was originally amoratized. Even though the principal is lower than originally amoratized on a 5 year schedule, my invoice amount is still $2300, which the amount going to principal higher and the amount going to interest lower. Seems odd. Why wouldn't they just re-amoratize the loan over five years so I pay a lower interest and principal?

What's the deal?

Because the terms of the loan you signed stated that your monthly payment would always be $2300?


Funny--you're right; it literally says that "monthly payments will consist of principal and interest in the amount of [$2300]." So they just adjust the two so I am always paying that. I guess I dont work in finance, but that just seems odd.

Ok cool thanks.

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JenDarby
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Re: Student loan payments: get advice and actual numbers here

Postby JenDarby » Tue Aug 29, 2017 7:49 pm

SmokeytheBear wrote:
bk1 wrote:
SmokeytheBear wrote:Odd question. I have a five year FR loan that I have been making hefty payments to over the last few months. The first payment due was something like $2300, so I payed $2300 and then an extra $4000 toward the principal. I've done this for a few months now, so my total principal amount has gone down faster than was originally amoratized. Even though the principal is lower than originally amoratized on a 5 year schedule, my invoice amount is still $2300, which the amount going to principal higher and the amount going to interest lower. Seems odd. Why wouldn't they just re-amoratize the loan over five years so I pay a lower interest and principal?

What's the deal?

Because the terms of the loan you signed stated that your monthly payment would always be $2300?


Funny--you're right; it literally says that "monthly payments will consist of principal and interest in the amount of [$2300]." So they just adjust the two so I am always paying that. I guess I dont work in finance, but that just seems odd.

Ok cool thanks.

I'm on the 10 year but hoping to pay it off in 4 for that interest rebate.

To be on the safe side, I'm just hoarding cash for that purpose, knowing that my monthly payments won't change or get pushed back from early payments.

Anonymous User
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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Thu Aug 31, 2017 1:03 pm

When refinancing loans after a clerkship, does anybody know if it's better (a) to first use the clerkship bonus to pay down loans and then refinance or (b) to refinance and then use the bonus to make a big payment? (i.e., does the order matter at all?) just wondering if having the extra bonus cash on hand would lead to a better refinancing rate, even if it means there's more to refinance. Thanks in advance!




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