Student loan payments w/biglaw

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Anonymous User
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Student loan payments w/biglaw

Postby Anonymous User » Fri Sep 09, 2011 6:10 pm

What is the most you've heard of someone paying off their loans per month with a market 160k salary in NYC or SF/LA?

Is 5k/month possible, if you are willing to live frugally for 4 years?

Anonymous User
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Re: Student loan payments w/biglaw

Postby Anonymous User » Fri Sep 09, 2011 6:12 pm

Anonymous User wrote:What is the most you've heard of someone paying off their loans per month with a market 160k salary in NYC or SF/LA?

Is 5k/month possible, if you are willing to live frugally for 4 years?


Simple math. You're paid ~110k post tax. Deduct 60k. Can you live off of 50k/year? Say 2.5k for rent, 500 for food, 1k for misc. That's 4k month. 48k. So, yes. Perhaps.

Just wondering: is there any tax deduction scheme for loan payments?

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Re: Student loan payments w/biglaw

Postby Anonymous User » Fri Sep 09, 2011 6:16 pm

Anonymous User wrote:
Anonymous User wrote:What is the most you've heard of someone paying off their loans per month with a market 160k salary in NYC or SF/LA?

Is 5k/month possible, if you are willing to live frugally for 4 years?


Simple math. You're paid ~110k post tax. Deduct 60k. Can you live off of 50k/year? Say 2.5k for rent, 500 for food, 1k for misc. That's 4k month. 48k. So, yes. Perhaps.

Just wondering: is there any tax deduction scheme for loan payments?


110k doesn't include local tax, which is over 10% in New York (7% State + 3.% and change in Local). So your post-tax is probably closer to 90k. Take off a couple thousand for health insurance and you are left with, say, 84k, which is 7k per month of take-home income. I imagine it would be hard though not impossible to live in New York off of 2k per month.

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Moxie
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Re: Student loan payments w/biglaw

Postby Moxie » Fri Sep 09, 2011 6:21 pm

Anonymous User wrote:
Anonymous User wrote:
Anonymous User wrote:What is the most you've heard of someone paying off their loans per month with a market 160k salary in NYC or SF/LA?

Is 5k/month possible, if you are willing to live frugally for 4 years?


Simple math. You're paid ~110k post tax. Deduct 60k. Can you live off of 50k/year? Say 2.5k for rent, 500 for food, 1k for misc. That's 4k month. 48k. So, yes. Perhaps.

Just wondering: is there any tax deduction scheme for loan payments?


110k doesn't include local tax, which is over 10% in New York (7% State + 3.% and change in Local). So your post-tax is probably closer to 90k. Take off a couple thousand for health insurance and you are left with, say, 84k, which is 7k per month of take-home income. I imagine it would be hard though not impossible to live in New York off of 2k per month.


+1. In NYC, I think $40k in the first year is pretty ambitious (considering high rent costs + paying back your salary advance), $30k might be more realistic.

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Re: Student loan payments w/biglaw

Postby Anonymous User » Fri Sep 09, 2011 6:28 pm

Anonymous User wrote:
Anonymous User wrote:
Anonymous User wrote:What is the most you've heard of someone paying off their loans per month with a market 160k salary in NYC or SF/LA?

Is 5k/month possible, if you are willing to live frugally for 4 years?


Simple math. You're paid ~110k post tax. Deduct 60k. Can you live off of 50k/year? Say 2.5k for rent, 500 for food, 1k for misc. That's 4k month. 48k. So, yes. Perhaps.

Just wondering: is there any tax deduction scheme for loan payments?


110k doesn't include local tax, which is over 10% in New York (7% State + 3.% and change in Local). So your post-tax is probably closer to 90k. Take off a couple thousand for health insurance and you are left with, say, 84k, which is 7k per month of take-home income. I imagine it would be hard though not impossible to live in New York off of 2k per month.


Actually it does. I plugged 160k into a NYC tax calculator. And I thought health insurance is typically covered by law firms.

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Re: Student loan payments w/biglaw

Postby Anonymous User » Fri Sep 09, 2011 6:31 pm

160 take home in NYC is somewhere between 90-100k, usually around 97k, this is something that has been done extensively on the site.

Second, I have heard of someone paying off 75k in one year, though they lived at home and others who have barely made a dent so it comes down to how you want to tip the quality of life scale.

Anonymous User
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Re: Student loan payments w/biglaw

Postby Anonymous User » Fri Sep 09, 2011 6:35 pm

Anonymous User wrote:
Anonymous User wrote:
Anonymous User wrote:
Anonymous User wrote:What is the most you've heard of someone paying off their loans per month with a market 160k salary in NYC or SF/LA?

Is 5k/month possible, if you are willing to live frugally for 4 years?


Simple math. You're paid ~110k post tax. Deduct 60k. Can you live off of 50k/year? Say 2.5k for rent, 500 for food, 1k for misc. That's 4k month. 48k. So, yes. Perhaps.

Just wondering: is there any tax deduction scheme for loan payments?


110k doesn't include local tax, which is over 10% in New York (7% State + 3.% and change in Local). So your post-tax is probably closer to 90k. Take off a couple thousand for health insurance and you are left with, say, 84k, which is 7k per month of take-home income. I imagine it would be hard though not impossible to live in New York off of 2k per month.


Actually it does. I plugged 160k into a NYC tax calculator. And I thought health insurance is typically covered by law firms.


Hmm it looks like the truth is in the middle:

http://www.moneychimp.com/features/tax_calculator.htm
That's $35,757 in Federal income tax on $160k income with the standard deduction and one exemption.

Federal payroll and unemployment tax is 7.65% up to $106,800, which is $8,170. So $43,927 in Federal taxes total.

New York City tax is say 3.6%: --LinkRemoved-- (I know it's not exactly, but close enough). That's $5,760. New York State then has a 7% tax on a $20,000+ bracket, so that is just under $11,200. Which gives a total of $60,887 in taxes, leaving you with just under $100k.

Though parking, health insurance, etc. are tax-free when paid through the employer, so often you might want to contribute to those plans. And you would be crazy not to contribute to retirement plans where the employer matches your funds. So once you take those into account, your take home is probably in the 80-90k range.

pehaigllleises
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Re: Student loan payments w/biglaw

Postby pehaigllleises » Fri Sep 09, 2011 6:39 pm

Anonymous User wrote:Just wondering: is there any tax deduction scheme for loan payments?


http://www.law.cornell.edu/uscode/usc_s ... -000-.html

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Re: Student loan payments w/biglaw

Postby Anonymous User » Fri Sep 09, 2011 6:41 pm

I guess if you weren't single, it could be done. Say spouse brings home 70k, plus you have 160k, you can probably put 5k and still live pretty well.




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