Student loan payments: get advice and actual numbers here

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bk1

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

Postby bk1 » Fri Dec 29, 2017 4:59 pm

JenDarby wrote:
jrthor10 wrote:
Johann wrote:
SmokeytheBear wrote:I'm sure I can google this, but I'm also sure one of my co-conspirators on here has already done more work than googling:

What is the best savings rate right now and from whom? I got something in the mail from Discover about 1.3%. I feel like someone recently said something about Capital One? Also, any good signup bonuses?

Looking to drop in about $25,000.

I got 1.3 at capital one 360 right now. Minimum 10k deposit. I looked and researched just last week on nerd wallet and shit there are some smaller banks with slightly better rates but this was overall best I could find that was also super easy.


I use Goldman Sachs 1.40 and I find their interface pretty easy to use, although I don't think they have a mobile app FWIW.

If you can drop 25k into Discover you get a $200 bonus at 1.3%, and there's no minimum length you even have to keep the money there. They only do a soft pull so no credit risk. I just did it and got the bonus a day later. Makes it better than 1.4

I can't recall the code but if you google "discover savings tiered bonus" you'll find it

Also if you have 25k: Ally has a no penalty 11 month CD at 1.75%, but no deposit bonus.

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JenDarby

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

Postby JenDarby » Fri Dec 29, 2017 5:00 pm

bk1 wrote:
JenDarby wrote:
jrthor10 wrote:
Johann wrote:
SmokeytheBear wrote:I'm sure I can google this, but I'm also sure one of my co-conspirators on here has already done more work than googling:

What is the best savings rate right now and from whom? I got something in the mail from Discover about 1.3%. I feel like someone recently said something about Capital One? Also, any good signup bonuses?

Looking to drop in about $25,000.

I got 1.3 at capital one 360 right now. Minimum 10k deposit. I looked and researched just last week on nerd wallet and shit there are some smaller banks with slightly better rates but this was overall best I could find that was also super easy.


I use Goldman Sachs 1.40 and I find their interface pretty easy to use, although I don't think they have a mobile app FWIW.

If you can drop 25k into Discover you get a $200 bonus at 1.3%, and there's no minimum length you even have to keep the money there. They only do a soft pull so no credit risk. I just did it and got the bonus a day later. Makes it better than 1.4

I can't recall the code but if you google "discover savings tiered bonus" you'll find it

Also if you have 25k: Ally has a no penalty 11 month CD at 1.75%, but no deposit bonus.

do discover then move to ally
Last edited by JenDarby on Mon Jan 29, 2018 10:18 pm, edited 2 times in total.

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SmokeytheBear

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

Postby SmokeytheBear » Fri Dec 29, 2017 5:26 pm

JenDarby wrote:
jrthor10 wrote:
Johann wrote:
SmokeytheBear wrote:I'm sure I can google this, but I'm also sure one of my co-conspirators on here has already done more work than googling:

What is the best savings rate right now and from whom? I got something in the mail from Discover about 1.3%. I feel like someone recently said something about Capital One? Also, any good signup bonuses?

Looking to drop in about $25,000.

I got 1.3 at capital one 360 right now. Minimum 10k deposit. I looked and researched just last week on nerd wallet and shit there are some smaller banks with slightly better rates but this was overall best I could find that was also super easy.


I use Goldman Sachs 1.40 and I find their interface pretty easy to use, although I don't think they have a mobile app FWIW.

If you can drop 25k into Discover you get a $200 bonus at 1.3%, and there's no minimum length you even have to keep the money there. They only do a soft pull so no credit risk. I just did it and got the bonus a day later. Makes it better than 1.4

I can't recall the code but if you google "discover savings tiered bonus" you'll find it


Yeah got the promo email from them the other day and figured that was the best option. Thanks for confirming!

bk1

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

Postby bk1 » Sat Dec 30, 2017 2:24 am

JenDarby wrote:do discover then move to ally

TITCR

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

Postby FF55 » Sun Dec 31, 2017 8:00 pm

Here goes - would love advice on how to proceed:

Debt at graduation in 2014: $225k
Debt as of Dec 2017: $90k
Interest rates: avg ~6.5% (5-7.65% range)
Payments: $875/month
Income: $195k
Savings: $55k (30k in stocks/index funds, 25k in emergency bank acct)
Notes: Below-market "biglaw" in ultra-high COL area; lateraled from another below-market firm after 2nd year; very niche practice area. Expenses have fluctuated a bit due to housing costs, but currently pretty low ($900/mo rent, $875/mo loan payment, ~$800/mo everything else).

Haven't refinanced because I hate biglaw and think about quitting/getting canned on a weekly basis, but I've kept powering through to try to pay down the debt while building modest savings. Current plan is try to stick it out another year and then go in-house, if possible, or leave law and start a business, but no family support or other means of income so likely need to maximize savings in the meantime.

Thoughts? Plow $$$ into remaining loans and hope the current savings holds up? 50/50 split between loans and savings?

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northwood

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

Postby northwood » Sun Dec 31, 2017 9:09 pm

How did you get your debt to drop that much by paying 875/ month??

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

Postby mvp99 » Sun Dec 31, 2017 10:17 pm

northwood wrote:How did you get your debt to drop that much by paying 875/ month??

BTC

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

Postby FF55 » Mon Jan 01, 2018 1:13 am

mvp99 wrote:
northwood wrote:How did you get your debt to drop that much by paying 875/ month??

BTC


I regularly pay way more than the minimum and have it applied to principal. I also changed my repayment plan ~9mos ago (previously $2.6k/month min) to lower the mandatory monthly so I can time large purchases/expenses without feeling too squeezed on the loans.

bk1

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

Postby bk1 » Mon Jan 01, 2018 2:40 am

FF55 wrote:ultra-high COL area

FF55 wrote:$900/mo rent

:?
FF55 wrote:would love advice on how to proceed:

Your savings are high enough and your debt low enough that you should refi imo. I'd max your retirement accounts as well if you're not already doing that.

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

Postby FF55 » Mon Jan 01, 2018 3:02 am

bk1 wrote:
FF55 wrote:ultra-high COL area

FF55 wrote:$900/mo rent

:?
FF55 wrote:would love advice on how to proceed:

Your savings are high enough and your debt low enough that you should refi imo. I'd max your retirement accounts as well if you're not already doing that.


Low rent = shared apartment with 3 roommates; lease ends soon and I expect rent will go up at least a couple hundred per person, possibly more. Was paying $2.7-3k nearby before finding the current place.

Been neglecting the retirement accounts but agree that's probably a good move.

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

Postby Johann » Mon Jan 01, 2018 1:43 pm

bk1 wrote:
FF55 wrote:ultra-high COL area

FF55 wrote:$900/mo rent

:?
FF55 wrote:would love advice on how to proceed:

Your savings are high enough and your debt low enough that you should refi imo. I'd max your retirement accounts as well if you're not already doing that.

yep, once your sub 6 figures, its time to refi. youd pay that off or come close to paying that off even if you got shitcanned.

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

Postby Anonymous User » Thu Jan 04, 2018 10:12 am

I know this is kind of off topic... but anyone got good stock tips? my firm is pretty good about making it easy for associates to invest in stock, and I prefer that to having someone manage my $. So with that said, what industries are gonna make the biggest moves in 2018? cannabis companies, especially some in Canada, are increasing market cap big time on projections alone.

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

Postby kyle1978 » Thu Jan 04, 2018 10:32 am

Anonymous User wrote:I know this is kind of off topic... but anyone got good stock tips? my firm is pretty good about making it easy for associates to invest in stock, and I prefer that to having someone manage my $. So with that said, what industries are gonna make the biggest moves in 2018? cannabis companies, especially some in Canada, are increasing market cap big time on projections alone.


Crypto currency

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

Postby Anonymous User » Thu Jan 04, 2018 1:15 pm

Sorry for posting anon, pure paranoia and self-consciousness about being identified. I’m thinking about my finances going forward and wanted to solicit TLS thoughts.

Debt at graduation: $207k ($92k to parents, which is a sweetheart loan but I do actually have to pay it back, and $115 in fed loans)
Interest rates: ~5.8% for the Feds, 2.5% for the family
Income: $195k (i.e. biglaw 1st year associate)
Savings: $10k (not counting some minor previous 401k contributions)
Other info: no credit card or other debt, job is in high COL major market, medium-term goal is to get enough for a home down payment.

I’ve been tracking the TLS hive-mind relatively loyally about finances, so am I right in thinking that the smart plan is: move into income-based repayment for initially smaller payments, work 6-12 months at the firm, make the minimum payments on my loans, create an emergency fund to cover 6 months worth of expenses, then refinance my fed loans? Because almost half my debt is to family, I assume my credit will appear better if I refinance, or somehow manage to get a mortgage, and if I fell on hard times my family wouldn’t break my kneecaps to keep the payments coming, so that’s a psychological relief. Half of it is left over from undergrad in any case. No idea where my career will go in the future (i.e. it’s not like I have some family business to eventually go to, and I have no idea how the whole biglaw/in-house/government/other??? professional path will shake out).

Thanks!

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JenDarby

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

Postby JenDarby » Thu Jan 04, 2018 3:29 pm

I'm guessing that while you do have to repay your family, in an emergency they would give some reprieve on making payments?

As far as the fed gov is concerned, you only have 115k in student loans. It's not a bad idea to go to PAYE/REPAYE while you get settled into biglaw. But OTOH, you absolutely will pay all those loans off if you maintain any semi high earning job. Unless you are fairly confident you might move to a gov position in the near future and also have access to LRAP through your school, I personally would probably just make moves to refinance to a lower fixed rate at some point in the near future. Trying out biglaw is never a bad idea though. Just to give you an idea, if you did a refi with FRB at 2.95%/15yrs you would be paying $791/month. Even better, if you could pay off that refi' loan within 4 years (which in big law would be no issue) then you would get $2,300 in paid interest (2% of the original loan balance) credited back to you. Of course, FRB is only available in specific areas (NY, Palm Beach, FL, SoCal, Portland. Greenwich), but other lenders (I think earnest and commonbond being most competitive right now) also have good rates.

So long story short, never bad to test the waters in biglaw with low income based repayments, but if you're at a point where you think you're going to continue to be a high earner, refinance to a lower rate. Without LRAP/PSLF, you most likely will not get any Gov forgiveness on 115k in loans that woild make 20-25 years of repayment a good option.
Last edited by JenDarby on Mon Jan 29, 2018 10:11 pm, edited 2 times in total.

bk1

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

Postby bk1 » Thu Jan 04, 2018 4:09 pm

Anonymous User wrote:I know this is kind of off topic... but anyone got good stock tips? my firm is pretty good about making it easy for associates to invest in stock, and I prefer that to having someone manage my $. So with that said, what industries are gonna make the biggest moves in 2018? cannabis companies, especially some in Canada, are increasing market cap big time on projections alone.

viewtopic.php?f=10&t=252975

Caveat: picking stocks is gambling.

bk1

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

Postby bk1 » Thu Jan 04, 2018 4:24 pm

Anonymous User wrote:Sorry for posting anon, pure paranoia and self-consciousness about being identified. I’m thinking about my finances going forward and wanted to solicit TLS thoughts.

First, credit is a means to an end (the end being lenders giving you $), not an end in and of itself. Refinancing, getting a mortgage, or anything else should be done on their own merits, regardless of whether they help your credit. There are obvious things that you can do to help your credit at no cost if you need it (get credit cards and pay them off), but if you already have credit cards and make payments on time for all your debts then your credit will be fine.

Second, I think the critical question is how financially secure your family is. If they will be fine regardless of whether you pay them back, then I think it makes sense to make riskier decisions with your finances that have a decent chance of paying off more in the long run (e.g., making low payments and putting the money you save into the market). If that 92k means a lot to them, however, then I would be more risk-averse with your finances and prioritize paying them back even if they would allow you to delay payments.

Generally, I agree with JD. Because your fed debt is only 115k you should (1) go on IBR/PAYE (even if you wanted to make larger payments, you might as well be on IBR/PAYE and make additional payments if you so choose), (2) build an e-fund, and (3) refi. If you can lock in a good, long-term refi (e.g., the First Republic one JD mentioned), you don't even need to necessarily wait (since the point of waiting would be to prioritize your e-fund and with a long-term refi, your payments will be low enough that you will be able to build an e-fund at a similar pace).

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LaLiLuLeLo

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

Postby LaLiLuLeLo » Fri Jan 05, 2018 2:55 pm

I’ve been on an aggressive 2 year repayment plan. After year 1, I’m pretty pleased to see I’m on track (I thought I was spending way too much). I’ve been socking away the extra cash in my FRB account, just in case of an emergency. Two questions:

1. I’m maxing out my 401k and have a modest emergency fund. After bills, every extra dollar goes to loans. I know this may not be the “smartest” path, but I REALLY want to be debt free. With that in mind, should I be doing something different?

2. How does the FRB prepayment rebate work? I was planning on putting the exact amount in my account to pay off the loan and close the account, but I suppose the rebate may get deposited in that account after I pay the loan off.

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JenDarby

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

Postby JenDarby » Fri Jan 05, 2018 3:01 pm

^ I would not jump to close your account. I had to remind them multiple times to give me my one referral bonus, and they might not be as responsive if you no longer have an account with them.

I am aiming for full repayment by 01/21 at the latest for the repayment rebate. That being said, I am making some big lump sum payments when I can and maintaining a way too big E-fund (it's 8 months now and I have tons of job security) in a savings account/CD because I want to keep flexibility to quit/move. If you don't have any big life expenditures looming (home purchase, move, etc) then I personally don't see anything wrong with aggressively paying off your debt. You're maxing retirement savings and have an e-fund. You could nearly certainly make more in the market, so maybe also put some more money into the market and extend that timeline some (if you'll still be within the 2% rebate period).
Last edited by JenDarby on Mon Jan 29, 2018 10:10 pm, edited 2 times in total.

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Pokemon

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

Postby Pokemon » Fri Jan 05, 2018 6:37 pm

Finally met worth is in the negative five digits. Started at -270. I went Ibr to repaye once that was an option.

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

Postby barkschool » Fri Jan 05, 2018 8:57 pm

Pokemon wrote:Finally met worth is in the negative five digits. Started at -270. I went Ibr to repaye once that was an option.


Ur my hero

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

Postby bk1 » Fri Jan 05, 2018 11:02 pm

Pokemon wrote:Finally met worth is in the negative five digits. Started at -270. I went Ibr to repaye once that was an option.

Same numbers but refi rather than paye. Congrats brother.

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Pokemon

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

Postby Pokemon » Sat Jan 06, 2018 8:35 pm

bk1 wrote:
Pokemon wrote:Finally met worth is in the negative five digits. Started at -270. I went Ibr to repaye once that was an option.

Same numbers but refi rather than paye. Congrats brother.



Thanks man. Hoping to reaching 0 net worth this year.

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

Postby Anonymous User » Mon Jan 08, 2018 7:42 pm

Does anyone know how long FRB is taking to process refi apps received in 2017? I submitted during the holidays and haven’t heard a peep yet. I know they have an end of the year backlog, so just wanted to see if anyone had a recent decision timeline.

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

Postby SmokeytheBear » Tue Jan 09, 2018 2:54 pm

SmokeytheBear wrote:
JenDarby wrote:
jrthor10 wrote:
Johann wrote:
SmokeytheBear wrote:I'm sure I can google this, but I'm also sure one of my co-conspirators on here has already done more work than googling:

What is the best savings rate right now and from whom? I got something in the mail from Discover about 1.3%. I feel like someone recently said something about Capital One? Also, any good signup bonuses?

Looking to drop in about $25,000.

I got 1.3 at capital one 360 right now. Minimum 10k deposit. I looked and researched just last week on nerd wallet and shit there are some smaller banks with slightly better rates but this was overall best I could find that was also super easy.


I use Goldman Sachs 1.40 and I find their interface pretty easy to use, although I don't think they have a mobile app FWIW.

If you can drop 25k into Discover you get a $200 bonus at 1.3%, and there's no minimum length you even have to keep the money there. They only do a soft pull so no credit risk. I just did it and got the bonus a day later. Makes it better than 1.4

I can't recall the code but if you google "discover savings tiered bonus" you'll find it


Yeah got the promo email from them the other day and figured that was the best option. Thanks for confirming!


Just a heads up to those who want to do this, Discover dropped the $200 bonus in my account the same day the funds hit.



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