Debt Calculator:

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DeeCee

Posts: 1352
Joined: Mon Nov 15, 2010 4:09 am

Re: Debt Calculator:

Gatriel wrote:

you might want to calculate the present value of the loans, though? that way people could numerically quantify their "debt aversion" via discount rate.

That is a good idea. When I built the spreadsheet I thought about that, decided not to do it, but not I forgot why. I'll add that in later today.

AreJay711

Posts: 3406
Joined: Tue Jul 20, 2010 8:51 pm

Re: Debt Calculator:

Gatriel wrote:

you might want to calculate the present value of the loans, though? that way people could numerically quantify their "debt aversion" via discount rate.

That is a good idea. When I built the spreadsheet I thought about that, decided not to do it, but not I forgot why. I'll add that in later today.

It would be hard to properly discount it since people can have different discount rates. For wealth maximization of a firm level you can assume the interest rate but on an individual level that isn't true and are facing multiple interest rates.

I like the calculator though even if it is kinda sketch for a non-regular to download it instead of piecing the info together from online calculators.

Gatriel

Posts: 2018
Joined: Tue Sep 22, 2009 11:30 pm

Re: Debt Calculator:

DeeCee wrote:
Gatriel wrote:

you might want to calculate the present value of the loans, though? that way people could numerically quantify their "debt aversion" via discount rate.

That is a good idea. When I built the spreadsheet I thought about that, decided not to do it, but not I forgot why. I'll add that in later today.

Gatriel

Posts: 2018
Joined: Tue Sep 22, 2009 11:30 pm

Re: Debt Calculator:

AreJay711 wrote:It would be hard to properly discount it since people can have different discount rates. For wealth maximization of a firm level you can assume the interest rate but on an individual level that isn't true and are facing multiple interest rates.

I like the calculator though even if it is kinda sketch for a non-regular to download it instead of piecing the info together from online calculators.

I think this is why I didn't include it. What discount rate could one use, prudently?

fatduck

Posts: 4135
Joined: Mon Sep 13, 2010 10:16 pm

Re: Debt Calculator:

Gatriel wrote:
AreJay711 wrote:It would be hard to properly discount it since people can have different discount rates. For wealth maximization of a firm level you can assume the interest rate but on an individual level that isn't true and are facing multiple interest rates.

I like the calculator though even if it is kinda sketch for a non-regular to download it instead of piecing the info together from online calculators.

I think this is why I didn't include it. What discount rate could one use, prudently?

for most people it's probably not necessary. at the most basic level you could use the rate of inflation. for someone who was doing a more complex comparative analysis (say, between law and an alternate career path), they might appreciate the ability to modify the rate to suit their needs.

Gatriel

Posts: 2018
Joined: Tue Sep 22, 2009 11:30 pm

Re: Debt Calculator:

fatduck wrote:[

for most people it's probably not necessary. at the most basic level you could use the rate of inflation. for someone who was doing a more complex comparative analysis (say, between law and an alternate career path), they might appreciate the ability to modify the rate to suit their needs.

One could do it at the rate of inflation, however that assumes a very very low to nill interest rate. I'm outlining right now. I'll do it tonight after dinner.

pilchc

Posts: 30
Joined: Sun Dec 12, 2010 11:32 pm

Re: Debt Calculator:

Thanks OP.
This saved me a lot of time.

Gatriel

Posts: 2018
Joined: Tue Sep 22, 2009 11:30 pm

Re: Debt Calculator:

Yeah you're welcome dude.

rundoxierun

Posts: 1853
Joined: Wed Dec 03, 2008 1:46 am

Re: Debt Calculator:

sticker at a top school comes to 10 yr. repayment plan of about 2500/month. lulz.

Gatriel

Posts: 2018
Joined: Tue Sep 22, 2009 11:30 pm

Re: Debt Calculator:

Yeah, lets hope you're pulling down \$3500 a week so its NBD.

005618502

Posts: 2577
Joined: Thu May 06, 2010 10:56 pm

Re: Debt Calculator:

What should I put for interest rate if I plan to take out loans for full COA?

maglialoro

Posts: 281
Joined: Fri Jun 05, 2009 4:25 pm

Re: Debt Calculator:

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Last edited by maglialoro on Thu Jul 19, 2012 4:45 pm, edited 1 time in total.

pilchc

Posts: 30
Joined: Sun Dec 12, 2010 11:32 pm

Re: Debt Calculator:

I changed computers. I am trying to download this calculator again and the link keeps sending me to a "free file hosting" site. I cannot find the spreadsheet. Any suggestions?

YankeeFan2

Posts: 284
Joined: Sat Nov 05, 2011 12:53 pm

Re: Debt Calculator:

pilchc wrote:This spreadsheet is awesome! But...
I changed computers. I am trying to download this calculator again and the link keeps sending me to a "free file hosting" site. I cannot find the spreadsheet. Any suggestions?

Same here. ?????

20130312

Posts: 3816
Joined: Wed Nov 09, 2011 8:53 pm

Re: Debt Calculator:

Wait, does interest compound on law school loans? My UG loans only accrue interest on the principal.

Gail

Posts: 977
Joined: Thu Nov 10, 2011 11:11 am

Re: Debt Calculator:

InGoodFaith wrote:Wait, does interest compound on law school loans? My UG loans only accrue interest on the principal.

I'm going to take a guess and say that the unsubsidized will. Subsidized will not accrue interest. So subtract the amount from subsidized and then add after 3 years.

I may be wrong with that though. I'm one of those that doesn't know how this works.

Bronck

Posts: 2025
Joined: Fri Jan 27, 2012 1:28 pm

Re: Debt Calculator:

Gail wrote:
InGoodFaith wrote:Wait, does interest compound on law school loans? My UG loans only accrue interest on the principal.

I'm going to take a guess and say that the unsubsidized will. Subsidized will not accrue interest. So subtract the amount from subsidized and then add after 3 years.

I may be wrong with that though. I'm one of those that doesn't know how this works.

We don't got no subsidized loans no more. Congress got rid of em.

Gail

Posts: 977
Joined: Thu Nov 10, 2011 11:11 am

Re: Debt Calculator:

Bronck wrote:
Gail wrote:
InGoodFaith wrote:Wait, does interest compound on law school loans? My UG loans only accrue interest on the principal.

I'm going to take a guess and say that the unsubsidized will. Subsidized will not accrue interest. So subtract the amount from subsidized and then add after 3 years.

I may be wrong with that though. I'm one of those that doesn't know how this works.

We don't got no subsidized loans no more. Congress got rid of em.

Not even the loans from UG? The ones that you defer while going to LS? That would seriously suck.

Bronck

Posts: 2025
Joined: Fri Jan 27, 2012 1:28 pm

Re: Debt Calculator:

Gail wrote:
Bronck wrote:
Gail wrote:
InGoodFaith wrote:Wait, does interest compound on law school loans? My UG loans only accrue interest on the principal.

I'm going to take a guess and say that the unsubsidized will. Subsidized will not accrue interest. So subtract the amount from subsidized and then add after 3 years.

I may be wrong with that though. I'm one of those that doesn't know how this works.

We don't got no subsidized loans no more. Congress got rid of em.

Not even the loans from UG?

Oh well, if your UG loans are subsidized, then they'll remain subsidized. But all new loans will be unsubsidized.

Mr. Pancakes

Posts: 1233
Joined: Thu Nov 24, 2011 1:11 pm

Re: Debt Calculator:

20130312

Posts: 3816
Joined: Wed Nov 09, 2011 8:53 pm

Re: Debt Calculator:

Mr. Pancakes wrote:that link didn't work, brah.

It's two years old, brah.

Also, neither my subbed nor unsubbed UG loans have compound interest. Hell, even my private loan doesn't compound interest.

izy223

Posts: 239
Joined: Wed Dec 21, 2011 4:51 pm

Re: Debt Calculator:

someone want to repost a link for us who didnt get there early enough

Tiago Splitter

Posts: 17152
Joined: Tue Jun 28, 2011 1:20 am

Re: Debt Calculator:

Per vanwinkle in another thread that I can't find, interest does not compound while under IBR. So that 200K debt that you can't service will only be 350K instead of 400K when the tax bomb hits 20 years down the line. Everybody breathe a sigh of relief.

005618502

Posts: 2577
Joined: Thu May 06, 2010 10:56 pm

Re: Debt Calculator:

Gail wrote:
Bronck wrote:
Gail wrote:
InGoodFaith wrote:Wait, does interest compound on law school loans? My UG loans only accrue interest on the principal.

I'm going to take a guess and say that the unsubsidized will. Subsidized will not accrue interest. So subtract the amount from subsidized and then add after 3 years.

I may be wrong with that though. I'm one of those that doesn't know how this works.

We don't got no subsidized loans no more. Congress got rid of em.

Not even the loans from UG? The ones that you defer while going to LS? That would seriously suck.

I didnt know how this worked either, especially since I took a year off and am now paying on my loans. I just called, they said that once you defer payment due to being a full time student again, if the undergrad loans were subsidized they will once again have the interest payed by the gov while you are in law school.

Great news!

Bronck

Posts: 2025
Joined: Fri Jan 27, 2012 1:28 pm

Re: Debt Calculator:

Tiago Splitter wrote:Per vanwinkle in another thread that I can't find, interest does not compound while under IBR. So that 200K debt that you can't service will only be 350K instead of 400K when the tax bomb hits 20 years down the line. Everybody breathe a sigh of relief.

Oh man, what a treat.