Student loan payments: get advice and actual numbers here

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DaftAndDirect

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

Postby DaftAndDirect » Wed Jul 18, 2018 12:38 am

boredtodeath wrote:
Anonymous User wrote:Graduated: 2017 - corporate associate in biglaw
Debt: 300k
Payments: $2090
Plan: 20 year (Earnest)
Income: $190k + $15k bonus (Cravath scale firm)

No credit card debt, still renting. Wife has no student loans or any debt.


We're in a similar position. Why did you decide to refinance so soon, if you don't mind my asking? I refi'd the same amount with FRB and partly regret it.


V10 midlevel here. I started BigLaw with $230k debt and am down to about $100k. Monthly payments were around $4k. Best of luck to you both. It is not easy on your psyche, especially if you're surrounded by colleagues who aren't carrying the same debt load.

L_William_W

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

Postby L_William_W » Fri Jul 20, 2018 12:25 pm

Debt $119,000 plus $8,000 interest

Yearly salary: I'd rather not say. It's not a McDonald's wage, but I'm definitely not making middle class money

I got a deferment, but I still pay $200 a month.

I'll never own a home or a car and this will hang over me until I'm a senior citizen. I'm so fucked.

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boredtodeath

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

Postby boredtodeath » Mon Jul 23, 2018 4:25 pm

DaftAndDirect wrote:
boredtodeath wrote:
Anonymous User wrote:Graduated: 2017 - corporate associate in biglaw
Debt: 300k
Payments: $2090
Plan: 20 year (Earnest)
Income: $190k + $15k bonus (Cravath scale firm)

No credit card debt, still renting. Wife has no student loans or any debt.


We're in a similar position. Why did you decide to refinance so soon, if you don't mind my asking? I refi'd the same amount with FRB and partly regret it.


V10 midlevel here. I started BigLaw with $230k debt and am down to about $100k. Monthly payments were around $4k. Best of luck to you both. It is not easy on your psyche, especially if you're surrounded by colleagues who aren't carrying the same debt load.


Thanks. Do you have a plan for what you might do about payments if/when you leave biglaw? I had always thought about staying in biglaw 4-5 years and then making a massive one-time payment when I left so that I could refi the remaining balance out to a smaller monthly payment and open myself up to different job opportunities (i.e. lower-paying ones) but I'm not sure I'll even last that long. You're right that it sucks to know you've limited yourself to doing certain types of jobs solely because of your debt load.

Good luck to you guys as well.

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DaftAndDirect

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

Postby DaftAndDirect » Mon Jul 23, 2018 5:49 pm

boredtodeath wrote:
DaftAndDirect wrote:
boredtodeath wrote:
Anonymous User wrote:Graduated: 2017 - corporate associate in biglaw
Debt: 300k
Payments: $2090
Plan: 20 year (Earnest)
Income: $190k + $15k bonus (Cravath scale firm)

No credit card debt, still renting. Wife has no student loans or any debt.


We're in a similar position. Why did you decide to refinance so soon, if you don't mind my asking? I refi'd the same amount with FRB and partly regret it.


V10 midlevel here. I started BigLaw with $230k debt and am down to about $100k. Monthly payments were around $4k. Best of luck to you both. It is not easy on your psyche, especially if you're surrounded by colleagues who aren't carrying the same debt load.


Thanks. Do you have a plan for what you might do about payments if/when you leave biglaw? I had always thought about staying in biglaw 4-5 years and then making a massive one-time payment when I left so that I could refi the remaining balance out to a smaller monthly payment and open myself up to different job opportunities (i.e. lower-paying ones) but I'm not sure I'll even last that long. You're right that it sucks to know you've limited yourself to doing certain types of jobs solely because of your debt load.

Good luck to you guys as well.


I just re-fi'd. With new market salary, I was able to kick my maturity out another 5 years and lower the interest rate, reducing my monthly payment from $4k to about $2k. I'm stashing the extra cash for now, with the expectation that I'll invest after the next major market correction (which I think will happen in 2020). I'm not leaving Biglaw until my effective net debt is ~$50k.

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

Postby Anonymous User » Mon Jul 23, 2018 7:24 pm

DaftAndDirect wrote:
boredtodeath wrote:
DaftAndDirect wrote:
boredtodeath wrote:
Anonymous User wrote:Graduated: 2017 - corporate associate in biglaw
Debt: 300k
Payments: $2090
Plan: 20 year (Earnest)
Income: $190k + $15k bonus (Cravath scale firm)

No credit card debt, still renting. Wife has no student loans or any debt.


We're in a similar position. Why did you decide to refinance so soon, if you don't mind my asking? I refi'd the same amount with FRB and partly regret it.


V10 midlevel here. I started BigLaw with $230k debt and am down to about $100k. Monthly payments were around $4k. Best of luck to you both. It is not easy on your psyche, especially if you're surrounded by colleagues who aren't carrying the same debt load.


Thanks. Do you have a plan for what you might do about payments if/when you leave biglaw? I had always thought about staying in biglaw 4-5 years and then making a massive one-time payment when I left so that I could refi the remaining balance out to a smaller monthly payment and open myself up to different job opportunities (i.e. lower-paying ones) but I'm not sure I'll even last that long. You're right that it sucks to know you've limited yourself to doing certain types of jobs solely because of your debt load.

Good luck to you guys as well.


I just re-fi'd. With new market salary, I was able to kick my maturity out another 5 years and lower the interest rate, reducing my monthly payment from $4k to about $2k. I'm stashing the extra cash for now, with the expectation that I'll invest after the next major market correction (which I think will happen in 2020). I'm not leaving Biglaw until my effective net debt is ~$50k.


I'm the original anon quoted. If you're a midlevel on the new biglaw scale, won't your end of year bonus this year be basically enough to get you down to ~$50k in debt later this year?

Then again, I guess if you have a low interest rate and don't mind the debt psychologically, investing that cash is probably better long term.

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

Postby Anonymous User » Thu Aug 02, 2018 12:11 pm

1st year, 180k / no bonus firm. 116k in debt, all loans at 6.5+ interest.
Going at it aggressively around 4-5k a month, applying all payments to highest-interest loan first (7%).

My plan as of now is to go aggressive for 6-10 months to knock out a large portion, and then reevaluate whether I feel the need to continue or adjust my payments to a lower amount. I just hate having 6 figures of debt and want to get it down to something more reasonable (60k or so) fast.

Any remaining leftover money at month end will be dumped into a vanguard.

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

Postby Anonymous User » Thu Aug 02, 2018 1:56 pm

5th year associate here. Checking in to remind people that savings and investments compound, bonuses become meaningful and the really intimidating debt load becomes much less scary after just a few short years.

2013 grad.
$215k debt at graduation

5 years later:

Debt at $140k (refinanced early at 2.75%. Payments around $1800 a month—have never paid more than minimum).

Savings / 401K balance: $195k (enough to pay off loans whenever!!). Saving at a rate of $100-$125k a year now.

Felt much better about everything once my savings crossed over my debt, but the point is that I’m only 5 years out. Still VERY early in my career. All of this is doable.

I never had roommates, I went on nice vacations, and I have a nice quality of life. No income from a significant other. On the flip side, I’m not buying a house anytime soon (though I don’t think it’s a particularly good time to do so anyway). And I don’t have kids—which helps.

Focus on doing well in your career, increase your top line and the bottom line takes care of itself. Treat your first years in big law like you did 1L. Grind hard.

God speed.

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

Postby Anonymous User » Thu Aug 09, 2018 12:59 pm

anyone have a SoFi referral code? Looking to refinance

BigLawer

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

Postby BigLawer » Thu Aug 09, 2018 3:52 pm

Anonymous User wrote:anyone have a SoFi referral code? Looking to refinance


Here is mine: https://www.sofi.com/share/1570753?src=copy

I get $300, you get $100. If you PM me after you get the loan, I will venmo you the difference so we split the referral once received!

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

Postby Anonymous User » Thu Aug 09, 2018 4:29 pm

If anyone is planning to refinance with Earnest, here's a referral code:

https://www.earnest.com/invite/tyler1718

I used them because I got a better rate than SoFi (by a very tiny amount, but every little bit helps).

With Earnest referrals, we each get $200.

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

Postby Anonymous User » Thu Aug 09, 2018 10:45 pm

115k loans and 180k salary, SoFi offered me 4.47% 5 year plan; shouldn't it be a lot lower, even with recent % hikes?

Akriant

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

Postby Akriant » Wed Aug 15, 2018 10:40 am

Graduated in 2015 from a regional law school.
Capitalized student loan debt at graduation: 75k with 6.25% avg fixed rate
Current debt: 53k.
Started working at a non-profit, but then went private.
Current gross income 65k, which is about avg "early career" income in the city where I live.
Since switching jobs I've been throwing 1.4k a month. Current minimum payment is $798/month, but should go down to $712 by December.
Currently renting a room from my parents - depressing, yet cheap - $400/month.
Other loans - 400/month.
Expenses - varies.
I hope to tackle my student loans to the point where the minimum payment is around $500 a month on the standard 10 year plan and then probably start pouring all the surplus into savings. Should reach this goal by the third quarter of next year.
Any input on what else I can or should be doing?



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