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

Posted: Tue Sep 26, 2017 5:28 pm
by bk1
Anonymous User wrote:Just got off the phone with my banker for a modification and there was no mention of 30% or referrals. He said it was just the same process as the initial qualification...

Not too surprised. Got the impression that things are kind of a clusterfuck at FRB over this recent rate reduction because it came out of the blue and I don't think they expected a ton of people looking to modify their loan.

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

Posted: Tue Sep 26, 2017 8:05 pm
by Danger Zone
I submitted an application today to refi with FRB and my banker also did not say I needed 30% liquid. Told him how much I wanted to refi and how much liquidity I had (about 20%) and he said that works.

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

Posted: Tue Sep 26, 2017 9:03 pm
by Johann
in the event people are refi-ing, you should seriously consider paying it forward and giving jendarby and BK1 a referral bonus. theyve spent a shitload of time in here giving advice that is always even keeled and well thought out (and they also have a lot a lot of student loan debt).

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

Posted: Wed Sep 27, 2017 8:34 am
by Danger Zone
Agreed. JD got me going with the process.

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

Posted: Wed Sep 27, 2017 1:32 pm
by bk1
Appreciate the shoutout. Just trying to help others out since this place has been incredibly helpful to me over the years.

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

Posted: Wed Sep 27, 2017 11:14 pm
by Anonymous User
How does modifying FR loans affect the rebate? It doesnt eliminate interest accrued right?

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

Posted: Wed Sep 27, 2017 11:38 pm
by bk1
Anonymous User wrote:How does modifying FR loans affect the rebate? It doesnt eliminate interest accrued right?

I doubt it, but I also suspect that modifying does not reset the clock (since the term dates from your initial origination date).

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

Posted: Thu Sep 28, 2017 12:19 am
by spyke123
bk1 wrote:
Anonymous User wrote:How does modifying FR loans affect the rebate? It doesnt eliminate interest accrued right?

I doubt it, but I also suspect that modifying does not reset the clock (since the term dates from your initial origination date).


What does resetting clock have to do with the rebate? Do you mean modifying wont be considered repayment so wont trigger rebate?

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

Posted: Thu Sep 28, 2017 12:47 am
by bk1
spyke123 wrote:
bk1 wrote:
Anonymous User wrote:How does modifying FR loans affect the rebate? It doesnt eliminate interest accrued right?

I doubt it, but I also suspect that modifying does not reset the clock (since the term dates from your initial origination date).


What does resetting clock have to do with the rebate? Do you mean modifying wont be considered repayment so wont trigger rebate?

I mean you have 48 months to pay it off to get the rebate and I bet that clock runs from the initial origination date whether you modify or not.

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

Posted: Thu Sep 28, 2017 12:56 am
by Mr. Peanutbutter
bk1 wrote:
spyke123 wrote:
bk1 wrote:
Anonymous User wrote:How does modifying FR loans affect the rebate? It doesnt eliminate interest accrued right?

I doubt it, but I also suspect that modifying does not reset the clock (since the term dates from your initial origination date).


What does resetting clock have to do with the rebate? Do you mean modifying wont be considered repayment so wont trigger rebate?

I mean you have 48 months to pay it off to get the rebate and I bet that clock runs from the initial origination date whether you modify or not.

Or worse, it resets the clock but all the interest you paid previously at the higher rate is not included

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

Posted: Thu Sep 28, 2017 11:19 am
by Anonymous User
~$190k here which includes accrued interest (abysmal interest rates; the average is around 5.9%), just starting big law and also have the wife bringing in some bread. Short term goal is to save up for a down payment on a house. Luckily, I'm not paying rent now, but that situation is imminently temporary.

I'm strongly considering refinancing. The lowest SoFI rates look like they're at 3.875 for 7 year fixed. This would save me ~$34,000 over the life of the loan, but increase my monthly payment from $2000 to $2500. I think Earnest's rates are a bit lower. I've never heard of them but they seem to be a big player.

As far as variable rates, I have no idea what the market will look like going forward, so I'm leaning towards fixed.

Any advice would be appreciated, I plan on reading through this thread when I have time, as I'm sure there are many starting off in a similar boat as myself.

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

Posted: Thu Sep 28, 2017 11:26 am
by JenDarby
^ are you in a market where First Republic services (NY, Palm Beach, Portland (OR), Palo Alto, SF, Boston, SoCal)?

If in any of those areas and you have some cash liquidity, then FRB is BY FAR your best option with fixed rates of 1.95 - 5yr / 2.35 - 7yr / 2.6 - 10yr / 2.95 - 15yr

they do require you set up a checking account and maintain $3,500 in the account. They also PREFER you do other banking services with them, but is not really an enforced requirement.

The general request is for 15% liquidity, though I have seen them allow for lower with a high salary and sub 200k debt level.

Considering your debt level is under 200k, I would personally refi UNLESS you think there's a good chance you may end up in a Gov role. There's also a strong argument on waiting to refi until you make it a year or so in biglaw, which I certainly understand.

If you're only taking a small dip in interest rates (the stated rates could change on qualification) with earnest or sofi then you may want to wait to see if you can make it in biglaw (many people can, but many people can't). There's a lot to be said for low payments on PAYE and saving money while retaining government protections in case of unemployment or a much lower income.

That being said, sofi, commonbond, and Earnest are all very reputable and there are many people on here who have refinanced with each.

I started with commonbond and then moved to FRB for a big reduction in a variable to a fixed rate. I sometimes regretted refinancing (I started at around 190k), but with the new lower FRB rates I think I made the right choice. At 190k your payments on a 10 yr 2.6% would be 1,307 which is totally manageable on biglaw salary.

All that being said, if you're in a services location and want to talk to an FRB banker, I could put you in touch and we would both get a referral bonus if you did refi.

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

Posted: Thu Sep 28, 2017 11:34 am
by Anonymous User
Same anon here. Thanks for the quick reply. I checked and I'm not in FRB's service area and they have phenomenal rates! :( My loan payments don't begin until mid January so maybe I'll see if rates move in the next few months.

Yeah, who knows about big law life. I'm pretty committed but I'm sure everyone who starts is.

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

Posted: Thu Sep 28, 2017 11:40 am
by JenDarby
Anonymous User wrote:Same anon here. Thanks for the quick reply. I checked and I'm not in FRB's service area and they have phenomenal rates! :( My loan payments don't begin until mid January so maybe I'll see if rates move in the next few months.

Yeah, who knows about big law life. I'm pretty committed but I'm sure everyone who starts is.

definitely get on PAYE or REPAYE (whichever you are eligible for) if you're going to wait to make a decision so you're making qualifying payments towards possible forgiveness. Since you qualify using the prior years tax information, your required payments will be very low and give you a lot of flexibility.

There are surely people here who can give you a referral to Earnest, sofi or commonbond too for a bonus. At those rates and depending on how debt adverse you are, a refi could still be in your best interest. I just wouldn't take for granted the ability to stock pile cash your first year, especially to save for a down payment etc. you could always throw it at loans down the road, and the interest difference over a year or so with that high of an income isn't really a make it or break it number.

You also do want to be sure not to ignore tax advantaged savings opportunities while you pay off your loan (401k, HSA) or potentially putting money in a backdoor Roth IRA. I hate my law school debt as much as the next person, but it's not necessarily the best plan to sprint to paying it off.

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

Posted: Thu Sep 28, 2017 1:54 pm
by bk1
JenDarby wrote:^ are you in a market where First Republic services (NY, Palm Beach, Portland (OR), Palo Alto, SF, Boston, SoCal)?

If in any of those areas and you have some cash liquidity, then FRB is BY FAR your best option with fixed rates of 1.95 - 5yr / 2.35 - 7yr / 2.6 - 10yr / 2.95 - 15yr

they do require you set up a checking account and maintain $3,500 in the account. They also PREFER you do other banking services with them, but is not really an enforced requirement.

The general request is for 15% liquidity, though I have seen them allow for lower with a high salary and sub 200k debt level.

Considering your debt level is under 200k, I would personally refi UNLESS you think there's a good chance you may end up in a Gov role. There's also a strong argument on waiting to refi until you make it a year or so in biglaw, which I certainly understand.

If you're only taking a small dip in interest rates (the stated rates could change on qualification) with earnest or sofi then you may want to wait to see if you can make it in biglaw (many people can, but many people can't). There's a lot to be said for low payments on PAYE and saving money while retaining government protections in case of unemployment or a much lower income.

That being said, sofi, commonbond, and Earnest are all very reputable and there are many people on here who have refinanced with each.

I started with commonbond and then moved to FRB for a big reduction in a variable to a fixed rate. I sometimes regretted refinancing (I started at around 190k), but with the new lower FRB rates I think I made the right choice. At 190k your payments on a 10 yr 2.6% would be 1,307 which is totally manageable on biglaw salary.

All that being said, if you're in a services location and want to talk to an FRB banker, I could put you in touch and we would both get a referral bonus if you did refi.

+1 to all of this (though 1307 would be the payment for the 2.95/15year loan, the 2.6/10year would be 1800/month). For someone who wants to buy a house, the 15 year easily makes the most sense (assuming you choose to refi). Heck, even if you don't want to buy a home, I think a strong argument could be made for the 15 year being hands down the best option (more flexibility, more liquidity, arguably cheaper when you consider investing your money in the market versus putting more of it into your loans).

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

Posted: Thu Sep 28, 2017 2:11 pm
by boredtodeath
Agree with everything jendarby and bk said. I'd strongly recommend waiting on refi until at least 1 year into biglaw. Get on PAYE, take the money that you would have paid toward the loan on the 10 year repayment plan and save some/invest the rest. In this market you'll likely beat the interest rate on your loan, you'll build a solid liquid reserve regardless, and you'll give yourself a year to figure out if working in biglaw is right for you.

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

Posted: Thu Sep 28, 2017 2:36 pm
by Anonymous User
boredtodeath wrote:Agree with everything jendarby and bk said. I'd strongly recommend waiting on refi until at least 1 year into biglaw. Get on PAYE, take the money that you would have paid toward the loan on the 10 year repayment plan and save some/invest the rest. In this market you'll likely beat the interest rate on your loan, you'll build a solid liquid reserve regardless, and you'll give yourself a year to figure out if working in biglaw is right for you.


Me again, replying to all.

No THIS is what I came here for. Thanks for the tips all around. What are the drawbacks to [RE]PAYE? For the time i'm on it, less will be going towards my principle balance than otherwise would. But paying more interest is ok in the short term because I'm deferring $500+ each month which can be invested or used for a down payment etc? And you can refinance later like nothing ever happened?

I think relief of this sort would be particularly beneficial for my early years, especially because I took out an advance for the summer so my pay checks are somewhat deflated for a while.

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

Posted: Fri Sep 29, 2017 6:48 pm
by Anonymous User
Just thought I'd get a quick checkup:

Law school class of '15. Firm pays Cravath. $85k debt remaining, re-fi'ed at First Republic (5-year, variable, so right now it's 2.35%). ~$40k in a Vanguard account. I'm in a high-COL city (NY/SF), not profligate but could probably be a bit stricter. At the moment, plan is to make loan payments, not pre-pay the loan, and keep socking away savings into the market.

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

Posted: Mon Oct 02, 2017 10:54 am
by Anonymous User
While saving towards the FRB liquidity requirement on a big law salary (180), what’s the best federal repayment plan to get onto? Want to minimize my payments to get the FRB refi quicker. First payment is due mid December and I hopefully would have the requisite liquidity by Feb 2018 (so only a 2-3 payments on a federal plan).

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

Posted: Mon Oct 02, 2017 11:01 am
by Mr. Peanutbutter
I might be shooting in the dark here but my guess is whichever is the lowest payment

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

Posted: Mon Oct 02, 2017 11:11 am
by Danger Zone
Mlk&Ckies wrote:I might be shooting in the dark here but my guess is whichever is the lowest payment

Yep

Though with only a few months of payments it won't mater at all

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

Posted: Mon Oct 02, 2017 11:17 am
by JenDarby
Danger Zone wrote:
Mlk&Ckies wrote:I might be shooting in the dark here but my guess is whichever is the lowest payment

Yep

to add to these very helpful responses (<3 DZ and mlk) it's likely going to be PAYE or REPAYE which are 10% of your discretionary income versus 15% on IBR, but could be IBR based on the 25 yr forgiveness horizon as opposed to 20 yr

so you want to get on the income based repayment plan that has the lowest payment

if you were going to be on it longer term then PAYE or REPAYE are the clear winners, with some more nuanced factors going into play between the two. but for a few months, just pick the one with lowest payments

be sure not to submit current pay stubs/offer letter (Great Lakes actually requested these from me to try to set my payments higher), but rather submit your last years W-2 which should show your lowest income to calculate payments, which should be next to nothing

when it comes down to it though, the liquidity requirement is not a SET IN STONE 15%. plus it's a function of your outstanding loan balance which higher payments would lower. so really this entire thing is pretty moot over a couple months

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

Posted: Wed Oct 04, 2017 6:14 pm
by Anonymous User
Not in a FRB area but I have an uncle that is. Is it still possible to sign up using his address?

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

Posted: Wed Oct 04, 2017 6:16 pm
by Nebby
Anonymous User wrote:Not in a FRB area but I have an uncle that is. Is it still possible to sign up using his address?

Yes, it's possible. It's also fraud.

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

Posted: Wed Oct 04, 2017 6:22 pm
by SmokeytheBear
Nebby wrote:
Anonymous User wrote:Not in a FRB area but I have an uncle that is. Is it still possible to sign up using his address?

Yes, it's possible. It's also fraud.


And they also ask for a good amount of infomration. so if they see you working for a law firm in denver but your "address" is in newport beach, ca, they're going to ask wtf.