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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.

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

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

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.

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

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).

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.

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?

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?

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.

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).

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

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.

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?

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?

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.