Student loan payments: Actual numbers

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Anonymous User
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Re: Student loan payments: Actual numbers

Postby Anonymous User » Tue Dec 01, 2015 5:33 pm

Seeking some advice:

2013 grad. Started with just over 200k in loans. Currently at 160k, having not attempted to pay them down too aggressively. Made the mistake of refinancing half my loans right after I started (the 7.9% ones). So I have roughly about 85k at 4.5, variable, 20k at 5.0, and 55k at 6.8.

I'm in biglaw, about to be making 185k; SO makes 50k with no debt (We're not married, but will likely get married in the next 2 years). No kids, yet. 40k combined in 401ks. 25k in emergency fund savings. 25k in savings toward a down payment. Credit score just shy of 800.

We live in a very high COL area and rent, about 2500/mo., but are likely to move to a lower COL area in the next year. I will have to leave biglaw when I move, and will be looking to go in-house or midlaw. Salary at either will be around 130k. SO's salary will stay the same. So say 180k joint income in a much lower cost of living area.

We'd like to buy a house in the next 2 years or so. I feel like the prudent move is to refinance with First Republic for their 2.75% flat-rate for 10 years and make the minimum payments while we save for the house. Is there anything I'm missing?

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AVBucks4239
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Re: Student loan payments: Actual numbers

Postby AVBucks4239 » Tue Dec 01, 2015 5:54 pm

Anonymous User wrote:Seeking some advice:

2013 grad. Started with just over 200k in loans. Currently at 160k, having not attempted to pay them down too aggressively. Made the mistake of refinancing half my loans right after I started (the 7.9% ones). So I have roughly about 85k at 4.5, variable, 20k at 5.0, and 55k at 6.8.

I'm in biglaw, about to be making 185k; SO makes 50k with no debt (We're not married, but will likely get married in the next 2 years). No kids, yet. 40k combined in 401ks. 25k in emergency fund savings. 25k in savings toward a down payment. Credit score just shy of 800.

We live in a very high COL area and rent, about 2500/mo., but are likely to move to a lower COL area in the next year. I will have to leave biglaw when I move, and will be looking to go in-house or midlaw. Salary at either will be around 130k. SO's salary will stay the same. So say 180k joint income in a much lower cost of living area.

We'd like to buy a house in the next 2 years or so. I feel like the prudent move is to refinance with First Republic for their 2.75% flat-rate for 10 years and make the minimum payments while we save for the house. Is there anything I'm missing?

Even with this high of a joint income, the biggest red flag I see in qualifying for a mortgage is going to be your back end debt/income ratio (i.e., your projected monthly payments towards debt divided by your projected monthly income).

Add up all projected monthly debt payments (including projected mortgage payment, any car payments, student loan payments, etc.) and divide that by your gross monthly income. If this number is close to 40% (i.e., around $6,000 based on your projected joint income) then you're not assured of qualifying for the loan. If it's more than 45% then I think there's a decent probability you won't qualify for the loan.

So if your number is close to 40% then I think your best way to combat this would be to refinance all of your loans for a longer term. This would reduce the monthly payment amount and thus reduce your back end debt/income ratio. Yes, you'd have a little higher interest rate on your student loans, but you have to bite the bullet on that if you want to buy a house. Then once you buy the house, wait six months or so and refinance for a shorter term that brings the interest rate back down.

TL;DR:

(1) Calculate projected back end debt/income ratio if you refinance at 10 years;
(2) If lower than 40%, save for a down payment and go ahead and refinance;
(3) If higher than 40%, then try to refinance your loans for longer terms to reduce back end debt/income ratio.

And if you do choose to refi all loans, pay the minimum on those and save up for a 20% down payment. Should lock you in with a better interest rate on your mortgage, which will probably even out the higher interest on your longer term student loans.


Another PAYE sidenote: if you're looking to buy a house shortly after school, PAYE is probably the best way possible to reduce your debt/income ratio and allow you to qualify for a loan.

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JenDarby
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Re: Student loan payments: Actual numbers

Postby JenDarby » Tue Dec 01, 2015 6:00 pm

How would PAYE reduce your debt/income ratio if your debt is contantly climbing? Since refinancing, my credit score has gone from a 798 to an 814 in around 7 months, with no other changes in my overall credit profile other than my loan balance steadily decreasing. I would assume both of these things are beneficial to purchasing a home anytime soon.

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Re: Student loan payments: Actual numbers

Postby AVBucks4239 » Tue Dec 01, 2015 6:05 pm

JenDarby wrote:How would PAYE reduce your debt/income ratio if your debt is contantly climbing? Since refinancing, my credit score has gone from a 798 to an 814 in around 7 months, with no other changes in my overall credit profile other than my loan balance steadily decreasing. I would assume both of these things are beneficial to purchasing a home anytime soon.

Debt/income ratio is based on monthly debt payments and earnings, i.e., it's based on your monthly payment towards the debt, not the total debt amount.

PAYE reduces your monthly payment and thus reduces your debt/income ratio.

ETA: also, once you're that high with credit score (775+), variance in credit scores don't really matter. A person with a credit score of 800 will get the same interest rate as someone with an 814 credit score.

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Re: Student loan payments: Actual numbers

Postby JenDarby » Tue Dec 01, 2015 6:12 pm

AVBucks4239 wrote:
JenDarby wrote:How would PAYE reduce your debt/income ratio if your debt is contantly climbing? Since refinancing, my credit score has gone from a 798 to an 814 in around 7 months, with no other changes in my overall credit profile other than my loan balance steadily decreasing. I would assume both of these things are beneficial to purchasing a home anytime soon.

Debt/income ratio is based on monthly debt payments and earnings, i.e., it's based on your monthly payment towards the debt, not the total debt amount.

PAYE reduces your monthly payment and thus reduces your debt/income ratio.

ETA: also, once you're that high with credit score (775+), variance in credit scores don't really matter. A person with a credit score of 800 will get the same interest rate as someone with an 814 credit score.

So when buying a home it doesn't matter if your debt is 300k so long as your monthly payment is low? (I have not yet fully looked into buying a home).

I recognize variances in credit score don't matter so much once its "high", but its nice to have some wiggle room all the same.

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AVBucks4239
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Re: Student loan payments: Actual numbers

Postby AVBucks4239 » Tue Dec 01, 2015 6:23 pm

JenDarby wrote:So when buying a home it doesn't matter if your debt is 300k so long as your monthly payment is low? (I have not yet fully looked into buying a home).

Yes. They are worried about your monthly payment, not your total debt balance. I have $145k in loans and $50k income and qualified for a $121k mortgage quite easily because PAYE made my front and back end debt/income ratios much lower than required to qualify for a loan.

JenDarby wrote:I recognize variances in credit score don't matter so much once its "high", but its nice to have some wiggle room all the same.

Baring medical injury, you're basically home free with that high of a credit score. I wouldn't even bother checking your score anymore (just check credit to make sure some Nigerian prince hasn't taken out a car loan in your name).

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lacrossebrother
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Re: Student loan payments: Actual numbers

Postby lacrossebrother » Tue Dec 01, 2015 8:21 pm

just a word of caution for PAYE filers: don't submit a paystub; just use your last year's tax filings. Nelnet was adamant that they "must" only use "gross wages." I told them their application and the federal regs say they need to use AGI. They told me that the "purpose of PAYE" is to count all income, so therefore, unless they have a tax form, there's not even a reason to look at my deductions. :lol: :lol: :shock: They kept saying that that's not their policy --it's the DOE's :lol: I kept asking for some sort of policy where they said that, and they pointed to the application. But the application just fucking says that if your AGI is way different than last year's, submit one document per source of income like a paystub. So that's what they did. And my deductions are on there. And they ignored them.

So now I'm going through a re-review.
So dumb.

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Re: Student loan payments: Actual numbers

Postby Jessep » Tue Dec 01, 2015 10:27 pm

Anonymous User wrote:Seeking some advice:

2013 grad. Started with just over 200k in loans. Currently at 160k, having not attempted to pay them down too aggressively. Made the mistake of refinancing half my loans right after I started (the 7.9% ones). So I have roughly about 85k at 4.5, variable, 20k at 5.0, and 55k at 6.8.

I'm in biglaw, about to be making 185k; SO makes 50k with no debt (We're not married, but will likely get married in the next 2 years). No kids, yet. 40k combined in 401ks. 25k in emergency fund savings. 25k in savings toward a down payment. Credit score just shy of 800.

We live in a very high COL area and rent, about 2500/mo., but are likely to move to a lower COL area in the next year. I will have to leave biglaw when I move, and will be looking to go in-house or midlaw. Salary at either will be around 130k. SO's salary will stay the same. So say 180k joint income in a much lower cost of living area.

We'd like to buy a house in the next 2 years or so. I feel like the prudent move is to refinance with First Republic for their 2.75% flat-rate for 10 years and make the minimum payments while we save for the house. Is there anything I'm missing?

Why not go with the 15 year term at 3.5%? The rate is still great and it provides you with a lot more flexibility on payments. This should help out your debt/income ratio when you apply for a mortgage and overall flexibility to absorb future costs like children, etc.

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Re: Student loan payments: Actual numbers

Postby bjohnsobf » Wed Dec 02, 2015 10:20 am

2014 grad - 140k debt

I just recertified my AGI with fedloan servicing, with 2014 tax return AGI they didn't have a problem with it. They didn't ask for any paystubs. My first year was with 2013 tax returns. On PAYE I haven't paid a dime to loans yet, but I went Fed out of school riding out PSLF. I have 15 of 120 qualifying 0$ payments as of right now. About to start increasing my TSP as much as I can to keep my AGI down. Really hope Ted Cruz doesn't shut this down. FWIW I've been reading this thread a long time since its inception probably... Johann probably saved me a lot of money a month or so after I graduated.

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Re: Student loan payments: Actual numbers

Postby JenDarby » Wed Dec 02, 2015 10:33 am

bjohnsobf wrote:2014 grad - 140k debt

I just recertified my AGI with fedloan servicing, with 2014 tax return AGI they didn't have a problem with it. They didn't ask for any paystubs. My first year was with 2013 tax returns. On PAYE I haven't paid a dime to loans yet, but I went Fed out of school riding out PSLF. I have 15 of 120 qualifying 0$ payments as of right now. About to start increasing my TSP as much as I can to keep my AGI down. Really hope Ted Cruz doesn't shut this down. FWIW I've been reading this thread a long time since its inception probably... Johann probably saved me a lot of money a month or so after I graduated.

As a fed pslf person this is a no brainer. Loans are truly Monopoly money for you.

It only really gets tricky when you have a high income.

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lacrossebrother
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Re: Student loan payments: Actual numbers

Postby lacrossebrother » Wed Dec 02, 2015 10:37 am

bjohnsobf wrote:2014 grad - 140k debt

I just recertified my AGI with fedloan servicing, with 2014 tax return AGI they didn't have a problem with it. They didn't ask for any paystubs. My first year was with 2013 tax returns. On PAYE I haven't paid a dime to loans yet, but I went Fed out of school riding out PSLF. I have 15 of 120 qualifying 0$ payments as of right now. About to start increasing my TSP as much as I can to keep my AGI down. Really hope Ted Cruz doesn't shut this down. FWIW I've been reading this thread a long time since its inception probably... Johann probably saved me a lot of money a month or so after I graduated.

Ya, this is what I now realized. I totally fucked up by providing a paystub.

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Re: Student loan payments: Actual numbers

Postby Danger Zone » Wed Dec 02, 2015 12:04 pm

Tiago Splitter wrote:
BmoreOrLess wrote:
AVBucks4239 wrote:(1) You can contribute to an IRA up until the time you pay your taxes, so don't rush contributing in December. Think about and research it until April.


Not tax advise, use your own research, consult a professional, etc. But if I remember correctly you might be able to file your return before the contribution; you just have to make the contribution for the prior year (people fuck this up all the time) by April 15 (or whatever the filing deadline is). Again, I have no idea if this is currently the case because I haven't looked at the IRS publications in a while so this is not current advise and do your own research, but I believe you could do that in the past.

This is correct. You can pull a Ned Flanders and file on January 1st with a deduction for an IRA contribution without actually putting the money in your IRA until April 15.

I fucking love this thread. Totally doing this. Thanks for the great advice as always guys.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Wed Dec 02, 2015 3:27 pm

Jessep wrote:
Anonymous User wrote:Seeking some advice:

2013 grad. Started with just over 200k in loans. Currently at 160k, having not attempted to pay them down too aggressively. Made the mistake of refinancing half my loans right after I started (the 7.9% ones). So I have roughly about 85k at 4.5, variable, 20k at 5.0, and 55k at 6.8.

I'm in biglaw, about to be making 185k; SO makes 50k with no debt (We're not married, but will likely get married in the next 2 years). No kids, yet. 40k combined in 401ks. 25k in emergency fund savings. 25k in savings toward a down payment. Credit score just shy of 800.

We live in a very high COL area and rent, about 2500/mo., but are likely to move to a lower COL area in the next year. I will have to leave biglaw when I move, and will be looking to go in-house or midlaw. Salary at either will be around 130k. SO's salary will stay the same. So say 180k joint income in a much lower cost of living area.

We'd like to buy a house in the next 2 years or so. I feel like the prudent move is to refinance with First Republic for their 2.75% flat-rate for 10 years and make the minimum payments while we save for the house. Is there anything I'm missing?

Why not go with the 15 year term at 3.5%? The rate is still great and it provides you with a lot more flexibility on payments. This should help out your debt/income ratio when you apply for a mortgage and overall flexibility to absorb future costs like children, etc.


Thanks for the thoughts, all. I think I'm going to do the 15 instead. It doesn't look like our debt-to-income will go over 40% regardless, but I like the idea of greater flexibility. Much appreciated!

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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Fri Dec 04, 2015 8:28 pm

lacrossebrother wrote:
bjohnsobf wrote:2014 grad - 140k debt

I just recertified my AGI with fedloan servicing, with 2014 tax return AGI they didn't have a problem with it. They didn't ask for any paystubs. My first year was with 2013 tax returns. On PAYE I haven't paid a dime to loans yet, but I went Fed out of school riding out PSLF. I have 15 of 120 qualifying 0$ payments as of right now. About to start increasing my TSP as much as I can to keep my AGI down. Really hope Ted Cruz doesn't shut this down. FWIW I've been reading this thread a long time since its inception probably... Johann probably saved me a lot of money a month or so after I graduated.

Ya, this is what I now realized. I totally fucked up by providing a paystub.


maybe try to recertify with a 2015 tax return in february. something else you could do right now is just take the 3 month forbearance or whatever. tell them you cant make the payments due to an emergency and are having cash flow issues. see if you can get a 3 loan forbearance (ive done this before without providing a reason - just said i was broke) and then segue that into recertifying or something.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Fri Dec 04, 2015 10:57 pm

Considering I'm a financially illiterate millennial KJD, I thought I'd consult TLS for some loan repayment advice. I'm a 3L graduating in May and will be working in non-NY biglaw that pays NY market. ($160K + NY Bonuses).

Principal Debt at Graduation (Undergrad + Law School): $182,000
Outstanding Interest (Which will Capitalize): $12,000
Total Debt: $194,000-ish

Most of my loans are around 5-6% interest, with a few subsidized loans (smaller amounts) at 3-4% and a few Grad Plus loans (hefty loans) around 7-8%.

I'm leaning towards refinancing with SoFi, DRB, or CommonBond, but wondering if I'm missing something or if there is a better option for me. I'm familiar with PAYE, but not looking forward to a massive tax bomb, so I'm more inclined to just pay it off rather aggressively.

If it matters at all, my long-term significant other will be graduating from a doctorate program in a few years with $250,000+ in debt, and we plan to get engaged in the next year. I'm guessing she'll do PAYE with loan forgiveness for public service, but unsure how it'll affect me, if at all.

TYIA.

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Re: Student loan payments: Actual numbers

Postby AVBucks4239 » Mon Dec 07, 2015 10:39 am

Anonymous User wrote:Considering I'm a financially illiterate millennial KJD, I thought I'd consult TLS for some loan repayment advice. I'm a 3L graduating in May and will be working in non-NY biglaw that pays NY market. ($160K + NY Bonuses).

Principal Debt at Graduation (Undergrad + Law School): $182,000
Outstanding Interest (Which will Capitalize): $12,000
Total Debt: $194,000-ish

Most of my loans are around 5-6% interest, with a few subsidized loans (smaller amounts) at 3-4% and a few Grad Plus loans (hefty loans) around 7-8%.

I'm leaning towards refinancing with SoFi, DRB, or CommonBond, but wondering if I'm missing something or if there is a better option for me. I'm familiar with PAYE, but not looking forward to a massive tax bomb, so I'm more inclined to just pay it off rather aggressively.

If it matters at all, my long-term significant other will be graduating from a doctorate program in a few years with $250,000+ in debt, and we plan to get engaged in the next year. I'm guessing she'll do PAYE with loan forgiveness for public service, but unsure how it'll affect me, if at all.

TYIA.

(1) Don't start anything ever with "considering I'm a ... millennial LOL."

(2) Sign up at your local public library (probably the most underrated thing in modern society) and read books from the 332 section. A good starting point would be "I Will Teach You to Be Rich." Informative, entertaining, will teach you the basics. He also has a good chapter on index funds. Once you have your mind around that, read Common Sense on Investing. Then maybe a few other classics--Richest Man in Babylon, Millionaire Next Door, etc., and you'll be good.

(3) I'd read the last 5-6 pages of this thread. A lot of people posted a variation of your question (PAYE or refinance/accellerated payoff?) and there were some good discussions arguing both sides. I'll quote my post as to why I think PAYE (for at least a stub year) is your best bet:

AVBucks4239 wrote:
Anonymous User wrote:Haha this forum is hilarious. I was the dude who did the refi. The biglaw world is a small one once you are in it. When you start at a good firm, moving to another firm after 2-3 years is not uncommon. At the firm I am at - I haven't heard of anyone being "fired" because of poor work product. I have heard of them moving to different firms in town because their work product was not all that great. In any case, It is highly unlikely I ever make little enough to gain any subsidy on my loans (though I haven't fully looked into this PAYE thing?). In any case, the longest repayment plan I was going to do was 10 years with my federal - and yes, I am saving lots of dollars by doing this refi - not just an insignificant amount. This was not a spur of the moment decision - I spoke with many attorneys around the firm including a couple senior associates I was close with over the summer. While this forum is hating hard, it wasn't "idiotic" by any means

But see viewtopic.php?f=10&t=257218

Plus it's pretty obvious that you don't know how PAYE works. The money you're theoretically saving in interest is a mathematical straw man used to rationalize what is almost certainly a mathematically poor decision.

What JDM is basically referring to is called the "Doctor's Loophole" (http://whitecoatinvestor.com/the-doctor ... -and-pslf/)--these programs were designed to assist people taking public sector jobs, but they disproportionately benefit high income earners with graduate degrees. You can and should take advantage of that.

Just to illustrate this and play out JDM and my logic (in case those new to the thread are curious for a stupidly long read)...

You said your debt is $211k at 4.5% interest for 7 years. That means you'll pay $247,000 towards your loans in seven years. That's basically $35,000 post-tax income per year, which is at least a third (and probably closer to 38-40%) of your take home pay.

You've presumably refinanced from federal loans at a standard ten year repayment with 6.8(ish)% interest. If you'd have done that you would have paid $294,000 towards your loans. That's $47,000 more than if you refinanced (or $4,700 per year), thus theoretically saving you $47,000. But this plan had benefits...your payment would have been lower, freeing up cash flow (about $500 per month) that you could have done anything with. And most importantly you would have had the security net that federal loans provide.

But there's a third option. You could have paid as little on your loans as possible (basically zero in your stub year), maxed all available retirement accounts, and managed the student loan balance by enrolling in PAYE and taking advantage of deductions and subsidies.

Your savings could go something like this:

-Max 401k ($18,000)
-Max Roth IRA ($5,500; not tax deductible but a great investment vehicle);
-Max HSA (around $3,000 or $6,000 if you have a spouse);
-Contribute to 529 plans (basically save for kid's school and let the market compound over time).

In your stub year you would have a payment of close to zero and would increase cash flow by $3,000 per month (Ally account? Money market account? Do what you want).

After stub year, and assuming you get your AGI down to $135,000 (I bet you could get it lower), your payment would be around $900/month. Your loan accrues $14,000 in interest per year, you pay $11,000, and government subsidizes remaining half of unpaid interest. So your loan balance is going up about $1,500 per year while you sock away $23,500 in retirement accounts, $3,250 in HSA, and maybe some in 529s. And on top of that, you've increase cash flow by $2,000 per month. Let's assume you are conservative so you just throw half of that in an Ally account and spend the rest (so $12,000 per year saved).

By the end of 7 years, assuming 7% returns in all your accounts (minus the Ally 1% savings account), you have

-Paid $75,600 towards your loans
-Loan balance has increased to $221,000
-$195,000 in your 401k
-$60,000 in your Roth IRA
-$35,000 in your HSA
-$91,000 in Ally account ($1,500 x 12 for stub year and $12,000/year in other years + 1% interest).

So your net worth after all this $381,000. And this is a conservative estimate because I bet you could get more creative with AGI and pay even less towards your loans and free up even more cash flow. More importantly, you're never going to get these contribution years back. You should be maxing them while you can and letting compound interest work for you.

I get that you could theoretically still save for retirement and pay down your loans at the same time, but that's walking a tightrope. PAYE provides a great opportunity for you to start building your net worth while your student loans don't get out of control.

The worst case scenario is that you start making too much money and thus have to pay back your loans. But by that point you'd have built up a substantial net worth and it wouldn't be an issue.

And I haven't even got to the security that federal loans provide. You could be laid off, you could get sick, something might happen...all of that is taken care of if you're on federal loans.

JenDarby likely has a solid counterargument to all the nonsense I just wrote. But at worst you should probably do PAYE in your stub year, save up like $50,000, let the gov't subsidize the growing interest (thus reducing your interest rate on federal loans in half), and then have at it if you want to pay back your loans. Refinancing out the gate is just generally not wise in what I'd say is 90% of circumstances.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Mon Dec 07, 2015 4:42 pm

Status: 3L
Job: working NYC biglaw next year
student loan amount: 111,000 or so at 5.4%
rent: 5,000 (s/o is covering the majority of our rent)
under standard 10 year payment plan: I am supposed to pay 900 towards my loans. that would be 10,800 for the year.

Plan for next year:
1. hoping to save: 22,00 for the year.
2. going to contribute 5,500 towards roth IRa.
3. setting a monthly expense budget of 1,200 a month for food, entertainment.

Based on my interest rate, I am not going to refinance--it doesn't make any sense for me to do so. I am looking for advice on how to approach my situation. I am debt adverse and I am wondering if it would make sense to pay 30,000 (2,500 a month) toward my loans. If i take that aggressive path, I would pay my loans off within 3.5 years. Are there opportunities that I am missing by taking this path?

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Re: Student loan payments: Actual numbers

Postby jessuf » Tue Dec 08, 2015 8:26 pm

So will PAYE never be expanded to IBR people like me? I have to start repayment in a few months.

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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Wed Dec 09, 2015 1:43 am

Jessuf wrote:So will PAYE never be expanded to IBR people like me? I have to start repayment in a few months.


off the top of my head december 15 or sometime next week its expanded.

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Re: Student loan payments: Actual numbers

Postby jessuf » Wed Dec 09, 2015 1:55 am

JohannDeMann wrote:
Jessuf wrote:So will PAYE never be expanded to IBR people like me? I have to start repayment in a few months.


off the top of my head december 15 or sometime next week its expanded.

Oh weird, nothing but old articles popped up when i searched. Thanks.

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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Wed Dec 09, 2015 2:01 am

Jessuf wrote:
JohannDeMann wrote:
Jessuf wrote:So will PAYE never be expanded to IBR people like me? I have to start repayment in a few months.


off the top of my head december 15 or sometime next week its expanded.

Oh weird, nothing but old articles popped up when i searched. Thanks.


http://www.usnews.com/education/blogs/s ... yment-plan

DOE has until end of 2015 to issue the official stuff. i think i made the stuff up about next week in my head. but id imagine nothing happening after holidays so probably still coming next week.

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Re: Student loan payments: Actual numbers

Postby El Pollito » Wed Dec 09, 2015 2:05 am

is there any reason for me to switch from IBR to newPAYE if i plan to pay everything off?

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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Thu Dec 10, 2015 3:44 am

El Pollito wrote:is there any reason for me to switch from IBR to newPAYE if i plan to pay everything off?


i think newPAYE pays some of your interest that you dont pay [50% to be exact]. so maybe.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Thu Dec 10, 2015 9:39 am

This is admittedly a stupid question but here goes. I am currently a 3L. My SO and I would like to start making interest payments on my law school loans in January so we can stem the bleeding a little bit before I graduate in May. All 8 of my law school student loans are serviced by Great Lakes. Unfortunately I'm having a hard time figuring out what our monthly interest payment would be on these loans. There's no monthly billing statement on my Great Lakes account because none of the loans have entered repayment yet. When I try to go make a payment, it just gives me the option to pay off all the accrued interest to date (which is just shy of $5,000 on all my law school loans combined). Can someone help me figure out how I calculate the monthly interest payment on each loan?

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Thu Dec 10, 2015 10:44 am

Big law 2012 grad here. 275k in debt. Took advantage of what people talked about above with the payments of zero for year 1 (but 12 qualifying payments, not that it really matters outside of gov work). Leaving this summer for clerkships. Hoping to go to AUSA after that but if not back to big law and likely some large salaries.

AT ANY RATE, question is: should I switch to PAYE when it becomes available or is this new version either capping the forgiveness amounts or doing something else that would discourage me from switching off IBR after 3 years on it? Thanks.




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