Re: Student loan payments: get advice and actual numbers here
Posted: Sat Feb 03, 2018 11:39 am
You can still see the rates...Click on the "2" after 1.95%. They went up for everything that wasn't the 5 year loan.
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+1. Almost the same situation except I graduated with 101k.Anonymous User wrote:I posted in this thread two years ago - near the beginning of my repayment journey. May 2015 graduate with $83k total. I just finished paying them off. I never refinanced because I didn’t feel the rate reduction was worth the risk of losing the federal loan protections. Best of luck to all of you in your repayment journey - you can do it!
46.What happens if my income changes significantly before the annual date when I’m
required to recertify my income?
If your income has significantly decreased or increased, you may (but are not required to) ask your
servicer to recalculate your current monthly payment amount at any time. You can do this by submitting a
new Income-Driven Repayment Plan Request and checking the box to indicate that you are requesting a
recalculation due to a change in your circumstances. You will be required to provide documentation of
your current income.
Along those lines, I'm a 2013 grad who diversified (not particularly carefully/thoughtfully). I have a medium amount of loans remaining, refi-ed at around 4% avg interest that I'm on track to pay off a couple years ahead of schedule.Johann wrote:while im sure it feels good to be done paying loans, you missed out on about 40-50k of stock market gains (each). something to always keep in mind in being smart about diversification.
You put $10k into crypto, or you have $10k in after pulling initial money? How did you get a 3.865% rate? I am also a third year in a secondary market. Started with about $210k in loans. 7 year refi at 4.5% (payment about 3k/month). Loans down to $160k.Anonymous User wrote:My stats:
3rd yr associate in biglaw in secondary market. Had $15k total scholarship at T6. For my first year, I kept my federal loans, which were around 6.5-9%. Then once I realized I wasn't getting fired anytime soon, I refinanced with SoFi for a 5yr fixed rate of 3.865%. My monthly payment is $3,700, but I pay $4,300, then put a good chunk of my bonus towards them. Hoping to pay them off in another 2.5 years.
February 2016: $223k
February 2017: $199k
February 2018: $157.5k
Investments:
Maxed out 401k each year
~$11k in Wealthfront at 9.0 risk. Contribute $500 a month.
~$9k in a rainy day fun. Contribute $100/m (my first year I contributed around $600/m). Admittedly, I consider wealthfront to be my very rainy day fund, at least while the market is good.
~$10k in crypto (I sold enough to recoup my initial investment so this is more play money. Not used to calculate net worth/what mortgage i could afford/or to be actually relied on etc.)
Anonymous User wrote:You put $10k into crypto, or you have $10k in after pulling initial money? How did you get a 3.865% rate? I am also a third year in a secondary market. Started with about $210k in loans. 7 year refi at 4.5% (payment about 3k/month). Loans down to $160k.Anonymous User wrote:My stats:
3rd yr associate in biglaw in secondary market. Had $15k total scholarship at T6. For my first year, I kept my federal loans, which were around 6.5-9%. Then once I realized I wasn't getting fired anytime soon, I refinanced with SoFi for a 5yr fixed rate of 3.865%. My monthly payment is $3,700, but I pay $4,300, then put a good chunk of my bonus towards them. Hoping to pay them off in another 2.5 years.
February 2016: $223k
February 2017: $199k
February 2018: $157.5k
Investments:
Maxed out 401k each year
~$11k in Wealthfront at 9.0 risk. Contribute $500 a month.
~$9k in a rainy day fun. Contribute $100/m (my first year I contributed around $600/m). Admittedly, I consider wealthfront to be my very rainy day fund, at least while the market is good.
~$10k in crypto (I sold enough to recoup my initial investment so this is more play money. Not used to calculate net worth/what mortgage i could afford/or to be actually relied on etc.)
$30k 401K (didn't start maxing until year 2)
$50k in "other investments" ("high apy" savings account, small real estate investment)
$30k in cash
$50k in crypto (also took out initial investment, $50k is about what my "portfolio" is worth - pure gamble money at this point)
An update 13 months on:Anonymous User wrote:Debt at graduation in 2015: 145k (147k capitalized on repayment in Oct 2015)
Interest rates: 6.7% (blended rate)
Debt at DRB refinance in 05/2015: 145k (DRB let me refi while I was still finishing 3L without making payments until Oct)
Payment and VARIABLE interest rate: ~2600/mo at 2.48% that gradually increased to 2.84% - 5yr term
Interest paid in 2015: 2.4k (incl capitalized interest)
Interest paid in 2016: 2.7k (Jan - Sep)
Debt at First Republic refinance in 09/2016: $119k
Payment and FIXED interest rate: ~2080/mo at 1.95% - 5yr term
Interest paid in 2016: $617 (Oct - Dec)
Total Interest Paid in 2016: $3.3k
Current Balance: $111k
Planning to pay off the First Republic refi 13 months early (possibly earlier) to collect the incentive interest rebate. Using Excel IRR function, my effective interest rate from 05/2015 - 08/2020 will be 1.7% (calculation includes the rebate).
I would PAYE and view it as a 8% tax for 20 years. 5.35% is hardly better than your current rates. At least kick the can down the road a couple more years until you know what job you end up in for a long term career.Anonymous User wrote:Hoping to get some advice from some of the great advisors in here tailored to my situation.
Debt at Graduation (2015): $270K
Debt Now: $250K
Refi: 20-year/5.35% Fixed/$1700 per mo
Income: $210k per year
I live in Bay Area/NYC and work in biglaw. I imagine staying in biglaw for another year but hopefully not much more. Currently looking at in-house positions. I expect to take a pay cut then. SO makes about $130K working for a middle-stage startup. We have about $80K in savings and another $125K in 401ks. Recently started investing with $10K in Betterment/Wealthfront. Hoping to increase that somewhat.
I have been very risk adverse, having as much debt as I do, and hoping to eventually buy a house, likely in a high COL area. I like having the flexibility of a low monthly payment and paying excess so I can continue saving for a down payment.
Considering refi-ing now and had been pretty set on it but am getting a bit spooked thinking about losing IBR/PAYE opportunities down the road. Any idea on what I should do? I'm also considering FRB, which would presumably have better rates.
They raised their rate- not sure what 5 year is but 10 year is now 3.35%, which is a .75% hike- is this still far and away the best option tho?LazyLASA wrote:You can still see the rates...Click on the "2" after 1.95%. They went up for everything that wasn't the 5 year loan.
If you land the Federal govt job you should absolutely switch to PAYE/REPAYE. They can't retroactively cancel PSLF. If you lose the Federal govt job (which I've heard is very hard to do), you just need to get any other government job to continue to qualify for PSLF (you can even go back to the private sector for a short time until you find a government job again. It's just 10 years of repayment while working in govt, not 10 CONSECUTIVE years). The forgiveness under PSLF is NOT taxable.Anonymous User wrote:I graduated from a T14 in May 2016. I passed a bar and started work in a litigation firm in August 2016, where I still am. My current salary is $120k with $5-10k bonus.
I want to move out of litigation and into a career with less and more consistent working hours (I plan on starting a family soon). I also value stability. Therefore, I am looking at federal jobs. I don't have the years or type of experience that most federal openings require. The only job I've gotten a callback for is a GS 11 position. Taking a GS 11 position would be quite a pay cut (although the step would matter greatly).
My current loan balance is ~118k @ 6%. I am currently making $1,300/mo payments and have about 8.5 years left on the standard repayment plan.
The questions I am asking myself are:
- Can I suck it up for 8-9 more years until I get this paid off? But by then, will I have too much experience in my niche field to land a federal job?
- If I take the GS 11 job, will I have enough money to live off of and save securely? GS 11 + $1,300/mo in loan payments is very tough. My take home net would be slim.
- If I take the GS 11 job, would it make sense to switch to REPAYE and pursue PSLF? On one hand, it would alleviate the immediate financial stress and I would pay less over time. But, I run the risk of PSLF being cancelled, or losing my job, etc etc and having a large loan balance waiting. I would have to pay taxes on a significant sum of money. Which means that I would have to start a side-fund for that, which is essentially an additional monthly loan payment. Additionally, it would take 10 years. So instead of 8.5 years remaining (currently), it would add about 2 more years to my debt life.
I'm looking for general thoughts and would appreciate any input. Thank you.
Interesting. The bolded is contrary to what I've read. I'll have to do some more research. Do you have sources for that? As far as I understood, it had to be 10 consecutive years of payments while working a federal job. And I was informed by someone that PSLF IS taxable. Hmm.boredtodeath wrote:If you land the Federal govt job you should absolutely switch to PAYE/REPAYE. They can't retroactively cancel PSLF. If you lose the Federal govt job (which I've heard is very hard to do), you just need to get any other government job to continue to qualify for PSLF (you can even go back to the private sector for a short time until you find a government job again. It's just 10 years of repayment while working in govt, not 10 CONSECUTIVE years). The forgiveness under PSLF is NOT taxable.Anonymous User wrote:I graduated from a T14 in May 2016. I passed a bar and started work in a litigation firm in August 2016, where I still am. My current salary is $120k with $5-10k bonus.
I want to move out of litigation and into a career with less and more consistent working hours (I plan on starting a family soon). I also value stability. Therefore, I am looking at federal jobs. I don't have the years or type of experience that most federal openings require. The only job I've gotten a callback for is a GS 11 position. Taking a GS 11 position would be quite a pay cut (although the step would matter greatly).
My current loan balance is ~118k @ 6%. I am currently making $1,300/mo payments and have about 8.5 years left on the standard repayment plan.
The questions I am asking myself are:
- Can I suck it up for 8-9 more years until I get this paid off? But by then, will I have too much experience in my niche field to land a federal job?
- If I take the GS 11 job, will I have enough money to live off of and save securely? GS 11 + $1,300/mo in loan payments is very tough. My take home net would be slim.
- If I take the GS 11 job, would it make sense to switch to REPAYE and pursue PSLF? On one hand, it would alleviate the immediate financial stress and I would pay less over time. But, I run the risk of PSLF being cancelled, or losing my job, etc etc and having a large loan balance waiting. I would have to pay taxes on a significant sum of money. Which means that I would have to start a side-fund for that, which is essentially an additional monthly loan payment. Additionally, it would take 10 years. So instead of 8.5 years remaining (currently), it would add about 2 more years to my debt life.
I'm looking for general thoughts and would appreciate any input. Thank you.
Yup, exactly. I saw your post in the other thread so I see you've been to the IRS website. I actually had the same misconception about the forgiveness being taxable (I thought it was the same as PAYE) but it's not. Which is a wild deal for anyone with a large loan balance and any interest in working for govt.Anonymous User wrote:Interesting. The bolded is contrary to what I've read. I'll have to do some more research. Do you have sources for that? As far as I understood, it had to be 10 consecutive years of payments while working a federal job. And I was informed by someone that PSLF IS taxable. Hmm.boredtodeath wrote:If you land the Federal govt job you should absolutely switch to PAYE/REPAYE. They can't retroactively cancel PSLF. If you lose the Federal govt job (which I've heard is very hard to do), you just need to get any other government job to continue to qualify for PSLF (you can even go back to the private sector for a short time until you find a government job again. It's just 10 years of repayment while working in govt, not 10 CONSECUTIVE years). The forgiveness under PSLF is NOT taxable.Anonymous User wrote:I graduated from a T14 in May 2016. I passed a bar and started work in a litigation firm in August 2016, where I still am. My current salary is $120k with $5-10k bonus.
I want to move out of litigation and into a career with less and more consistent working hours (I plan on starting a family soon). I also value stability. Therefore, I am looking at federal jobs. I don't have the years or type of experience that most federal openings require. The only job I've gotten a callback for is a GS 11 position. Taking a GS 11 position would be quite a pay cut (although the step would matter greatly).
My current loan balance is ~118k @ 6%. I am currently making $1,300/mo payments and have about 8.5 years left on the standard repayment plan.
The questions I am asking myself are:
- Can I suck it up for 8-9 more years until I get this paid off? But by then, will I have too much experience in my niche field to land a federal job?
- If I take the GS 11 job, will I have enough money to live off of and save securely? GS 11 + $1,300/mo in loan payments is very tough. My take home net would be slim.
- If I take the GS 11 job, would it make sense to switch to REPAYE and pursue PSLF? On one hand, it would alleviate the immediate financial stress and I would pay less over time. But, I run the risk of PSLF being cancelled, or losing my job, etc etc and having a large loan balance waiting. I would have to pay taxes on a significant sum of money. Which means that I would have to start a side-fund for that, which is essentially an additional monthly loan payment. Additionally, it would take 10 years. So instead of 8.5 years remaining (currently), it would add about 2 more years to my debt life.
I'm looking for general thoughts and would appreciate any input. Thank you.
Under what you're saying, it could go something like this? (year/qualifying year)
1/1 - Fed
2/2 - Fed
3/3 - Fed
4/4 - Fed
5/- - Private
6/- - Private
7/5 - Fed
8/6 - Fed
9/7 - Fed
10/8 - Fed
11/9 - Fed
12/10 - Fed (payments end)
?
https://studentaid.ed.gov/sa/repay-loan ... /questionsAnonymous User wrote:Interesting. The bolded is contrary to what I've read. I'll have to do some more research. Do you have sources for that? As far as I understood, it had to be 10 consecutive years of payments while working a federal job. And I was informed by someone that PSLF IS taxable. Hmm.boredtodeath wrote:If you land the Federal govt job you should absolutely switch to PAYE/REPAYE. They can't retroactively cancel PSLF. If you lose the Federal govt job (which I've heard is very hard to do), you just need to get any other government job to continue to qualify for PSLF (you can even go back to the private sector for a short time until you find a government job again. It's just 10 years of repayment while working in govt, not 10 CONSECUTIVE years). The forgiveness under PSLF is NOT taxable.Anonymous User wrote:I graduated from a T14 in May 2016. I passed a bar and started work in a litigation firm in August 2016, where I still am. My current salary is $120k with $5-10k bonus.
I want to move out of litigation and into a career with less and more consistent working hours (I plan on starting a family soon). I also value stability. Therefore, I am looking at federal jobs. I don't have the years or type of experience that most federal openings require. The only job I've gotten a callback for is a GS 11 position. Taking a GS 11 position would be quite a pay cut (although the step would matter greatly).
My current loan balance is ~118k @ 6%. I am currently making $1,300/mo payments and have about 8.5 years left on the standard repayment plan.
The questions I am asking myself are:
- Can I suck it up for 8-9 more years until I get this paid off? But by then, will I have too much experience in my niche field to land a federal job?
- If I take the GS 11 job, will I have enough money to live off of and save securely? GS 11 + $1,300/mo in loan payments is very tough. My take home net would be slim.
- If I take the GS 11 job, would it make sense to switch to REPAYE and pursue PSLF? On one hand, it would alleviate the immediate financial stress and I would pay less over time. But, I run the risk of PSLF being cancelled, or losing my job, etc etc and having a large loan balance waiting. I would have to pay taxes on a significant sum of money. Which means that I would have to start a side-fund for that, which is essentially an additional monthly loan payment. Additionally, it would take 10 years. So instead of 8.5 years remaining (currently), it would add about 2 more years to my debt life.
I'm looking for general thoughts and would appreciate any input. Thank you.
Under what you're saying, it could go something like this? (year/qualifying year)
1/1 - Fed
2/2 - Fed
3/3 - Fed
4/4 - Fed
5/- - Private
6/- - Private
7/5 - Fed
8/6 - Fed
9/7 - Fed
10/8 - Fed
11/9 - Fed
12/10 - Fed (payments end)
?
Why not refinance?SmokeytheBear wrote:Just plugged in the numbers into HRBlock only to find out I’m getting hit with the AMT. FML
Federal loans have better protections.whsy wrote:Why not refinance?SmokeytheBear wrote:Just plugged in the numbers into HRBlock only to find out I’m getting hit with the AMT. FML