Student loan payments: Actual numbers

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Danger Zone
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Re: Student loan payments: Actual numbers

Postby Danger Zone » Sun Apr 23, 2017 2:38 pm

JenDarby wrote:really regretting my refi considering I could have stuck it out on PAYE for 23 more years (where I'd currently be paying almost my monthly refi amount, but of course in the next 8 years could hopefully make a significantly lower income and lower my monthly payments!) with the hopes of having zero assets in my mid 50s and ensuring no tax bomb

Such a shame :lol:

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Johann
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Re: Student loan payments: Actual numbers

Postby Johann » Sun Apr 23, 2017 3:50 pm

or you just dont want to overpay and would rather pay $7,500 several years after graduation. in X number of years, ive paid what most people who have refied have paid in that same X number of months. time value of money. uncertainty of the future etc.

Pokemon
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Re: Student loan payments: Actual numbers

Postby Pokemon » Sun Apr 23, 2017 6:48 pm

JenDarby wrote:really regretting my refi considering I could have stuck it out on PAYE for 23 more years (where I'd currently be paying almost my monthly refi amount, but of course in the next 8 years could hopefully make a significantly lower income and lower my monthly payments!) with the hopes of having zero assets in my mid 50s and ensuring no tax bomb



I am following the johan method and like it. I have peace of mind cause of my savings. Sure, my debt is still over 250k, but my first year was miserable as I was working biglaw hours and still feeling short about money due to debt payments I was making.

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Mlk&Ckies
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Re: Student loan payments: Actual numbers

Postby Mlk&Ckies » Sun Apr 23, 2017 7:43 pm

I'm not doing a full Johann, just doing PAYE until my credit score goes up and I have a decent chunk of change and a better idea of my future career trajectory. My group is kind of specialized and people seem to stick around for 5+ years if they enjoy it, so hopefully refi is an option. But I don't wanna lose the option of going gov/non-profit/poor if it's what I decide I'd be happier doing in a few years

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JenDarby
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Re: Student loan payments: Actual numbers

Postby JenDarby » Sun Apr 23, 2017 9:07 pm

I'm not anti PAYE for high earners. though I do think high earners should be able to refi AND save, and still live comfortably. I did on far less than biglaw salary for quite a while.

that being said, I think it's silly to be aggressively for any one strategy

hey, some of us bet big on HRC, some of us bet big on ourselves

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Mlk&Ckies
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Re: Student loan payments: Actual numbers

Postby Mlk&Ckies » Sun Apr 23, 2017 9:17 pm

JenDarby wrote:I'm not anti PAYE for high earners. though I do think high earners should be able to refi AND save, and still live comfortably. I did on far less than biglaw salary for quite a while.

that being said, I think it's silly to be aggressively for any one strategy

hey, some of us bet big on HRC, some of us bet big on ourselves

:lol:

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Danger Zone
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Re: Student loan payments: Actual numbers

Postby Danger Zone » Mon Apr 24, 2017 7:05 pm

JD just SLAYING it with low blows

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El Pollito
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Re: Student loan payments: Actual numbers

Postby El Pollito » Tue Apr 25, 2017 1:43 am

JenDarby wrote:really regretting my refi considering I could have stuck it out on PAYE for 23 more years (where I'd currently be paying almost my monthly refi amount, but of course in the next 8 years could hopefully make a significantly lower income and lower my monthly payments!) with the hopes of having zero assets in my mid 50s and ensuring no tax bomb

:lol:

bjohnsobf
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Re: Student loan payments: Actual numbers

Postby bjohnsobf » Wed Apr 26, 2017 5:07 pm

Sounds like trump is proposing to fuck all us income based PSLFers out of a 401k deduction
Last edited by bjohnsobf on Wed Apr 26, 2017 6:07 pm, edited 1 time in total.

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SmokeytheBear
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Re: Student loan payments: Actual numbers

Postby SmokeytheBear » Wed Apr 26, 2017 5:13 pm

So funny! HAHAHA! I saw the stats the other day in the Times about how nelnet has had complaints against them go up like six fold since last year and I thought "huh, I've always found it to be quite easy."

First Republic funded my loan payoff today on most of my loan groups. Nelent totally butchered it, applying the payments across the board rather than to the loan groups AS WAS SPECIFIED ON THE CHECK THAT FIRST REPUBLIC EMAILED TO ME SO I COULD VERIFY. I called Nelnet and asked them why it wasn't applied to the groups as specified.

"I don't know. I didn't do it myself."

"Can you fix it?"

"I cannot. But I will put in the request. It will take 7-10 business days."

HAHAHAHA.

170orDie
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Re: Student loan payments: Actual numbers

Postby 170orDie » Wed Apr 26, 2017 6:41 pm

Question for all of you going through debt repayment. I'm currently a 0L deciding between schools. Assuming I get BL salary(i know, i know, never safe to assume), for the sake of calculation for my future.

I am looking at around 230,405 in loans (LS loans + ~40k in UG loans) averaged at about 6.1% interest.
Based on the loans calculator on studentloans.gov, and assuming a 160k adjustable gross income, payments are estimated to be 2529/month for the standard plan.

What does QOL look like in this scenario? I'm planning on living on the west coast, so assuming maybe 2000-2500 for rent/mortgage. Also assuming, putting in the reasonable amount for retirement savings (401k, ira, etc). I'm trying to get a sense for what this type of debt looks like in the real life. It seems that 160k gross will net me around 105k after income taxes and FICA.

Does anyone have similar debt that can give me some advice?

Pokemon
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Re: Student loan payments: Actual numbers

Postby Pokemon » Wed Apr 26, 2017 6:45 pm

170orDie wrote:Question for all of you going through debt repayment. I'm currently a 0L deciding between schools. Assuming I get BL salary(i know, i know, never safe to assume), for the sake of calculation for my future.

I am looking at around 230,405 in loans (LS loans + ~40k in UG loans) averaged at about 6.1% interest.
Based on the loans calculator on studentloans.gov, and assuming a 160k adjustable gross income, payments are estimated to be 2529/month for the standard plan.

What does QOL look like in this scenario? I'm planning on living on the west coast, so assuming maybe 2000-2500 for rent/mortgage. Also assuming, putting in the reasonable amount for retirement savings (401k, ira, etc). I'm trying to get a sense for what this type of debt looks like in the real life. It seems that 160k gross will net me around 105k after income taxes and FICA.

Does anyone have similar debt that can give me some advice?


Hmm salaries are like 180k. also, your loan level will be higher because of unexpected living expenses, interest while in school and loan fees to get those loans in first place. I have a similar debt load and it is pretty stressful but actual advice would depend on whether you would repaye or refinance.

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Desert Fox
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Re: Student loan payments: Actual numbers

Postby Desert Fox » Wed Apr 26, 2017 6:48 pm

170orDie wrote:Question for all of you going through debt repayment. I'm currently a 0L deciding between schools. Assuming I get BL salary(i know, i know, never safe to assume), for the sake of calculation for my future.

I am looking at around 230,405 in loans (LS loans + ~40k in UG loans) averaged at about 6.1% interest.
Based on the loans calculator on studentloans.gov, and assuming a 160k adjustable gross income, payments are estimated to be 2529/month for the standard plan.

What does QOL look like in this scenario? I'm planning on living on the west coast, so assuming maybe 2000-2500 for rent/mortgage. Also assuming, putting in the reasonable amount for retirement savings (401k, ira, etc). I'm trying to get a sense for what this type of debt looks like in the real life. It seems that 160k gross will net me around 105k after income taxes and FICA.

Does anyone have similar debt that can give me some advice?


You shouldn't really be concerned making it work on biglaw salary. You'll be fine. You'll live well even. But what happens if you don't get big law. Or you do and hate it (like every sane person in biglaw does.)

How did you calculate 230K in debt? Unless you did a rigorous calculation accounting for interest, increases in tuition and col (seriously, my 3L was probably 10k more than 1L and my school raised rates lower than competitors), origination fees, etc. etc. I thought I'd hit 210-225k. Instead I ended up with 264k.

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SmokeytheBear
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Re: Student loan payments: Actual numbers

Postby SmokeytheBear » Wed Apr 26, 2017 6:51 pm

170orDie wrote:Question for all of you going through debt repayment. I'm currently a 0L deciding between schools. Assuming I get BL salary(i know, i know, never safe to assume), for the sake of calculation for my future.

I am looking at around 230,405 in loans (LS loans + ~40k in UG loans) averaged at about 6.1% interest.
Based on the loans calculator on studentloans.gov, and assuming a 160k adjustable gross income, payments are estimated to be 2529/month for the standard plan.

What does QOL look like in this scenario? I'm planning on living on the west coast, so assuming maybe 2000-2500 for rent/mortgage. Also assuming, putting in the reasonable amount for retirement savings (401k, ira, etc). I'm trying to get a sense for what this type of debt looks like in the real life. It seems that 160k gross will net me around 105k after income taxes and FICA.

Does anyone have similar debt that can give me some advice?


I had a similar debt load upon graduation and matriculation into big law. I lived (and have lived) on a total life budget of around $4500 a month with the rest going to servicing loans. I don't drive a BMW. I don't eat out every meal. I do eat out and drink often. I do go on nice vacations twice a year with several weekend trips a year. I live in a nice part of LA. I find it fine to manage. You've just gotta figure out what your budget is and stick to it. If you do indeed get biglaw money, you'll be fine.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Wed Apr 26, 2017 6:56 pm

Desert Fox wrote:
170orDie wrote:Question for all of you going through debt repayment. I'm currently a 0L deciding between schools. Assuming I get BL salary(i know, i know, never safe to assume), for the sake of calculation for my future.

I am looking at around 230,405 in loans (LS loans + ~40k in UG loans) averaged at about 6.1% interest.
Based on the loans calculator on studentloans.gov, and assuming a 160k adjustable gross income, payments are estimated to be 2529/month for the standard plan.

What does QOL look like in this scenario? I'm planning on living on the west coast, so assuming maybe 2000-2500 for rent/mortgage. Also assuming, putting in the reasonable amount for retirement savings (401k, ira, etc). I'm trying to get a sense for what this type of debt looks like in the real life. It seems that 160k gross will net me around 105k after income taxes and FICA.

Does anyone have similar debt that can give me some advice?


You shouldn't really be concerned making it work on biglaw salary. You'll be fine. You'll live well even. But what happens if you don't get big law. Or you do and hate it (like every sane person in biglaw does.)

How did you calculate 230K in debt? Unless you did a rigorous calculation accounting for interest, increases in tuition and col (seriously, my 3L was probably 10k more than 1L and my school raised rates lower than competitors), origination fees, etc. etc. I thought I'd hit 210-225k. Instead I ended up with 264k.



it was definitely not an immensely rigorous calculation. I took the numbers from the estimated COL given by the school. which includes disbursement fees. However, i did not account for increased tuition, and im not sure if the debt calculator automatically factors in interest accrued or not.

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beepboopbeep
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Re: Student loan payments: Actual numbers

Postby beepboopbeep » Wed Apr 26, 2017 8:28 pm

SmokeytheBear wrote:
170orDie wrote:Question for all of you going through debt repayment. I'm currently a 0L deciding between schools. Assuming I get BL salary(i know, i know, never safe to assume), for the sake of calculation for my future.

I am looking at around 230,405 in loans (LS loans + ~40k in UG loans) averaged at about 6.1% interest.
Based on the loans calculator on studentloans.gov, and assuming a 160k adjustable gross income, payments are estimated to be 2529/month for the standard plan.

What does QOL look like in this scenario? I'm planning on living on the west coast, so assuming maybe 2000-2500 for rent/mortgage. Also assuming, putting in the reasonable amount for retirement savings (401k, ira, etc). I'm trying to get a sense for what this type of debt looks like in the real life. It seems that 160k gross will net me around 105k after income taxes and FICA.

Does anyone have similar debt that can give me some advice?


I had a similar debt load upon graduation and matriculation into big law. I lived (and have lived) on a total life budget of around $4500 a month with the rest going to servicing loans. I don't drive a BMW. I don't eat out every meal. I do eat out and drink often. I do go on nice vacations twice a year with several weekend trips a year. I live in a nice part of LA. I find it fine to manage. You've just gotta figure out what your budget is and stick to it. If you do indeed get biglaw money, you'll be fine.


This is basically me too. QOL feels pretty good, having grown up lower-/low-middle class. I do live in a sorta-shitty (not, like, gang shitty, but like definitely working class) part of LA, but pay $1400ish rent for a house rather than an apartment. I basically never worry if I can afford anything, which is a pretty sick feeling compared to worrying about being able to buy food and stuff. I have a bit less in loans than question-OP, so at this pace should have them paid off in 3-4y presuming no shitcan.

I think question-OP's tax estimates are wrong for CA at least. At 180k salary, my takehome is closer to 108k, almost on the nose. Maybe just not calculating for insurance and stuff.

Honestly tho, like--

--It's less a question of whether you make enough money to enjoy making money and more about whether you have time, but that's a big digression from the point of the thread

Also agreed w/ others that the even bigger worry is not getting biglaw

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Re: Student loan payments: Actual numbers

Postby courtneylove » Wed Apr 26, 2017 9:05 pm

I'm four years out and did not get biglaw. Through a combo of scholarships and savings I only took out about $100k in loans to attend my T6, so last year when I got a significant raise at my JD-preferred job I started paying it down.

Current loan balance 87k
Salary is about 75k
I was doing $300-500/month on IBR, then making windfall payments every few months
Just approved for a CB refi, 10 year fixed at 4.5%, and monthly will be around $940
Also pay about $1600/mo in mortgage + home costs. (Parents paid deposit on my condo)

I will forever be kicking myself for not taking a full ride at a lower ranked school. But I missed the biglaw ship so... who knows how I would feel if I were enjoying that 4th year biglaw cash.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Wed May 03, 2017 10:33 am

Anonymous User wrote:How does PSLF work when switching plans? I spent 2 years on IBR working for the government (PSLF eligible). I jumped into practice and switched to REPAYE. Considering going back into government on REPAYE and then ultimately getting married. Once my partner and I get married, IBR becomes the cheaper option because only I have debt. So my question is... do my PSLF payments count equally under all plans? I.e, will 2 years on IBR, plus 2 years on REPAYE, followed by 6 years on IBR all count towards the 10-year (120) PSFL requirements?


Any PSFL experts that can answer this? Just got an offer to go back into government and I'm accepting. Right now I'm on REPAYE, but made payments under IBR for two years before going private.

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Nebby
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Re: Student loan payments: Actual numbers

Postby Nebby » Wed May 03, 2017 10:40 am

Anonymous User wrote:I.e, will 2 years on IBR, plus 2 years on REPAYE, followed by 6 years on IBR all count towards the 10-year (120) PSFL requirements?

Yes.

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grand inquisitor
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Re: Student loan payments: Actual numbers

Postby grand inquisitor » Wed May 03, 2017 10:42 am

yea i think if you dig into the definition of "qualifying payment" under pslf it is any payment on an approved repayment plan

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Johann
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Re: Student loan payments: Actual numbers

Postby Johann » Wed May 03, 2017 10:47 am

Correct. Any payment counts but you have to be at the gov/non profit for all 10 years of payments so you'll make over 10 years of Payments if you left for a little while.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Wed May 03, 2017 10:55 am

Johann wrote:Correct. Any payment counts but you have to be at the gov/non profit for all 10 years of payments so you'll make over 10 years of Payments if you left for a little while.


Right, so I'd have 8 more years of payments since I have 2 years with the government and 1.5 years in private practice (3.5 total, but only 2 PSLF eligible).

Thanks everyone!!

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Nebby
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Re: Student loan payments: Actual numbers

Postby Nebby » Wed May 03, 2017 11:11 am

Anonymous User wrote:
Johann wrote:Correct. Any payment counts but you have to be at the gov/non profit for all 10 years of payments so you'll make over 10 years of Payments if you left for a little while.


Right, so I'd have 8 more years of payments since I have 2 years with the government and 1.5 years in private practice (3.5 total, but only 2 PSLF eligible).

Thanks everyone!!

Yep.

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Nebby
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Re: Student loan payments: Actual numbers

Postby Nebby » Wed May 03, 2017 11:12 am

PAYE doesn't calculate spouse's payment (so long as you file married but separately) and REPAYE calculates spouse's income regardless of how you file taxes, right?

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Johann
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Re: Student loan payments: Actual numbers

Postby Johann » Wed May 03, 2017 11:54 am

Nebby wrote:PAYE doesn't calculate spouse's payment (so long as you file married but separately) and REPAYE calculates spouse's income regardless of how you file taxes, right?


You have the option of filing jointly or separetely taxes for PAYE. You MUST file joint taxes for Repaye.




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