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Upstart: a compelling alternative to PAYE?

Posted: Wed May 29, 2013 10:48 pm
by Anonymous User
Big firm associate here with a moderate amount of student loan debt. Was reading about upstart and was wondering if its a good option compared to PAYE? Anyone have any insights?

Re: Upstart: a compelling alternative to PAYE?

Posted: Wed May 29, 2013 10:58 pm
by quakeroats
Anonymous User wrote:Big firm associate here with a moderate amount of student loan debt. Was reading about upstart and was wondering if its a good option compared to PAYE? Anyone have any insights?


We'd need actual terms to give you a real estimate. Considering that the funding on the front page was only 50k, I'm guessing the typical applicant will get less than that. OTOH, you can probably bankruptcy out of Upstart (although that's less helpful for lawyers than others). Even so, PAYE's terms are so generous it's quite unlikely that Upstart can match them.

Re: Upstart: a compelling alternative to PAYE?

Posted: Sat Jun 01, 2013 4:55 pm
by El Dangeroso
Considering you only have a "moderate amount of student debt," you are likely not eligible for PAYE as you are required to show a partial financial hardship. Lumni is another company offering human capital contracts, although it is my understanding that they typically look for individuals that have not yet graduated. I think Upstart has a lot of benefits and is an extremely cool idea. Considering that you are already employed in what I assume is a relatively high paying job, they would give you a good look. But if you aren't having trouble paying your loans I don't see why you would be looking to exchange any of your future earnings...unless you are looking to leave your firm.

Re: Upstart: a compelling alternative to PAYE?

Posted: Sun Jun 02, 2013 11:24 am
by quakeroats
El Dangeroso wrote:Considering you only have a "moderate amount of student debt," you are likely not eligible for PAYE as you are required to show a partial financial hardship.


That's measured by your AGI. The only AGI you'll have at that point is from the year you just filed which will be your earnings from summering at a firm. Even if there's some kind of estimate for the current year, you'll be in your stub year (i.e., you'll probably make under 40k because you don't start making money until the last quarter). Which is to say, if you owe more than 30-40k, you're probably going to meet the hardship threshold.

Re: Upstart: a compelling alternative to PAYE?

Posted: Tue Jun 04, 2013 7:57 pm
by El Dangeroso
That's a good point. Plus it looks like to show partial financial hardship, your standard repayment over a 10 year payment just has to be greater than what you would pay under PAYE. love the DFW pic by the way.