Student loan payments: Actual numbers

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Mlk&Ckies
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Re: Student loan payments: Actual numbers

Postby Mlk&Ckies » Fri Apr 29, 2016 1:06 am

JohannDeMann wrote:
Tiago Splitter wrote:If it makes you guys feel any better I signed up for PAYE in like November and it hasn't been a problem.


I did this too.

Also, I don't think you can apply while you're still enrolled in school so your app might get kicked back a couple times.



Some rep came to do our exit counseling and said we could apply now, and I got some email (but of course can't find it now) encouraging me to apply early. I'll report back if it gets kicked, but since we're graduating in like two weeks it won't be that big of an issue.

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JohannDeMann
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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Fri Apr 29, 2016 1:11 am

Yeah they probably have fixed this theN. I graduated a while ago.

Anonymous User
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Re: Student loan payments: Actual numbers

Postby Anonymous User » Fri Apr 29, 2016 2:25 am

Debt: 95k
Income: 85k
Rent: $1k

3L graduating soon. Is there any reason for me not to refinance and get a better interest rate?

Also what is the most I could reasonably pay down each month? I'll be in Texas, so low COL.

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El Pollito
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Re: Student loan payments: Actual numbers

Postby El Pollito » Fri Apr 29, 2016 6:38 am

A. Nony Mouse wrote:
jessuf wrote:I just applied to switch from IBR to REPAYE today. I'm reading on reddit that the switch takes months and months. I have to recertify for IBR by 6/27. Do I still need to recertify if I just submitted the REPAYE app that made me log on to the IRS website? If so, will recertifying fuck up (or confuse fedloans) my REPAYE switch?

You just have to recertify a year after your last recertification, and since you'd have to submit your income info for them to calculate your REPAYE payment, I'm pretty sure that will give you another 12 months and you won't need to do so in June.

Also, they processed my switch from IBR to REPAYE in about 3-4 weeks.

could someone tell my dumbass why i'd want REPAYE? does it affect me if i'm planning to pay it off pretty fast?

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Fri Apr 29, 2016 6:42 am

Anonymous User wrote:Debt: 95k
Income: 85k
Rent: $1k

3L graduating soon. Is there any reason for me not to refinance and get a better interest rate?

Also what is the most I could reasonably pay down each month? I'll be in Texas, so low COL.


The reasons not to refinance are the same as for anyone - you lose federal protection. How secure is your job? Also, the rates you might get with your income to debt ratio may not be ideal. My income is 80, debt was 75, and I applied to SoFi and some of the other refinancers and didn't get any offers for a fixed rate that made it worth it. My average interest is about 6.2%, and the best fixed rate I saw was slightly below 5%. May depend on your credit, but mine is about 770.

But, regardless of refinance, with that modest debt load and decent income you can pay it down quick. My rent is also 1K, and I pay down approximately $3,200/month. I started work in September 2015, and my goal is to be debt free by September 2017. I won't have much in the way of savings, but can't wait to be debt free.

ballouttacontrol
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Re: Student loan payments: Actual numbers

Postby ballouttacontrol » Fri Apr 29, 2016 6:50 am

El Pollito wrote:
A. Nony Mouse wrote:
jessuf wrote:I just applied to switch from IBR to REPAYE today. I'm reading on reddit that the switch takes months and months. I have to recertify for IBR by 6/27. Do I still need to recertify if I just submitted the REPAYE app that made me log on to the IRS website? If so, will recertifying fuck up (or confuse fedloans) my REPAYE switch?

You just have to recertify a year after your last recertification, and since you'd have to submit your income info for them to calculate your REPAYE payment, I'm pretty sure that will give you another 12 months and you won't need to do so in June.

Also, they processed my switch from IBR to REPAYE in about 3-4 weeks.

could someone tell my dumbass why i'd want REPAYE? does it affect me if i'm planning to pay it off pretty fast?


no difference if you are paying aggressively. (re)paye just allows you to lower your minimum payments to save more $. REPAYE also subsidizes 50% of unpaid interest if your minimum payments aren't enough to cover the interest on principal

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El Pollito
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Re: Student loan payments: Actual numbers

Postby El Pollito » Fri Apr 29, 2016 6:57 am

i just repayed after i saw what i'd have to pay per month

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kay2016
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Re: Student loan payments: Actual numbers

Postby kay2016 » Fri Apr 29, 2016 12:22 pm

Mlk&Ckies wrote:
JohannDeMann wrote:
Tiago Splitter wrote:If it makes you guys feel any better I signed up for PAYE in like November and it hasn't been a problem.


I did this too.

Also, I don't think you can apply while you're still enrolled in school so your app might get kicked back a couple times.



Some rep came to do our exit counseling and said we could apply now, and I got some email (but of course can't find it now) encouraging me to apply early. I'll report back if it gets kicked, but since we're graduating in like two weeks it won't be that big of an issue.


I got an email to that extent too but when I went through it said something about not being able to apply yet.. I'll wait a week and then go ahead and try

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jessuf
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Re: Student loan payments: Actual numbers

Postby jessuf » Fri Apr 29, 2016 2:42 pm

A. Nony Mouse wrote:
jessuf wrote:I just applied to switch from IBR to REPAYE today. I'm reading on reddit that the switch takes months and months. I have to recertify for IBR by 6/27. Do I still need to recertify if I just submitted the REPAYE app that made me log on to the IRS website? If so, will recertifying fuck up (or confuse fedloans) my REPAYE switch?

You just have to recertify a year after your last recertification, and since you'd have to submit your income info for them to calculate your REPAYE payment, I'm pretty sure that will give you another 12 months and you won't need to do so in June.

Also, they processed my switch from IBR to REPAYE in about 3-4 weeks.

Okay thanks. Hopefully my payment won't be changed until my LRAP starts

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Roundhill
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Re: Student loan payments: Actual numbers

Postby Roundhill » Fri Apr 29, 2016 4:17 pm

Will these assistance programs (Like IBR) still exist once Donald Trump is elected president? Serious question. My understanding is that even Obama has been trying to cut back on federal loan forgiveness in recent years. OL year looking to enter LS in the fall.
Last edited by Roundhill on Fri Apr 29, 2016 4:22 pm, edited 2 times in total.

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Nekrowizard
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Re: Student loan payments: Actual numbers

Postby Nekrowizard » Fri Apr 29, 2016 4:20 pm

Roundhill wrote:Will these assistance programs (Like IBR) still exist once Donald Trump is elected president?

Donald Trump will eliminate your loans with a wave of his mighty hand. Do not fear, brother, and BUILD WALL.

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JohannDeMann
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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Fri Apr 29, 2016 4:27 pm

El Pollito wrote:
A. Nony Mouse wrote:
jessuf wrote:I just applied to switch from IBR to REPAYE today. I'm reading on reddit that the switch takes months and months. I have to recertify for IBR by 6/27. Do I still need to recertify if I just submitted the REPAYE app that made me log on to the IRS website? If so, will recertifying fuck up (or confuse fedloans) my REPAYE switch?

You just have to recertify a year after your last recertification, and since you'd have to submit your income info for them to calculate your REPAYE payment, I'm pretty sure that will give you another 12 months and you won't need to do so in June.

Also, they processed my switch from IBR to REPAYE in about 3-4 weeks.

could someone tell my dumbass why i'd want REPAYE? does it affect me if i'm planning to pay it off pretty fast?


no. didn't you get a sub 2% rate? Even I would lock that in.

My advice in here for biglawyers is PAYE or REPAYE as a way to tread water and confirm biglaw is what you want while you have low AGI tax returns that you can be a massive cash boon in the short term. You know what it entails. REPAYE isn't going to offer you anything since your last tax return is big and you aren't planning on leaving soon.

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JohannDeMann
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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Fri Apr 29, 2016 4:28 pm

El Pollito wrote:i just repayed after i saw what i'd have to pay per month


sorry just saw this after writing my last post. apparently you can get in on cash mountain. so then yes, repaye.

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JohannDeMann
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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Fri Apr 29, 2016 4:29 pm

Roundhill wrote:Will these assistance programs (Like IBR) still exist once Donald Trump is elected president? Serious question. My understanding is that even Obama has been trying to cut back on federal loan forgiveness in recent years. OL year looking to enter LS in the fall.


They'll exist as long as social security exists.

dixiecupdrinking
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Re: Student loan payments: Actual numbers

Postby dixiecupdrinking » Fri Apr 29, 2016 4:53 pm

Roundhill wrote:Will these assistance programs (Like IBR) still exist once Donald Trump is elected president? Serious question. My understanding is that even Obama has been trying to cut back on federal loan forgiveness in recent years. OL year looking to enter LS in the fall.

No one knows. Most likely scenario is probably that the programs get chipped away, especially for grad school, but existing borrowers get grandfathered. That's the trend so far. But yeah a radical congress and administration could go nuclear on it, who knows.

bjohnsobf
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Re: Student loan payments: Actual numbers

Postby bjohnsobf » Fri Apr 29, 2016 5:35 pm

Given that trump and Cruz and the tea party want to shut down the dept of education I don't know who administers it. What happens to fedloan servicing I'm not sure if they are doe or a contract

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Mlk&Ckies
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Re: Student loan payments: Actual numbers

Postby Mlk&Ckies » Fri Apr 29, 2016 5:41 pm

Hey, guys! Did you know USDs are just fiat currency? Shouldn't we be doing all our financial planning knowing that there's a likelihood they could go away?

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JohannDeMann
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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Fri Apr 29, 2016 6:02 pm

dixiecupdrinking wrote:
Roundhill wrote:Will these assistance programs (Like IBR) still exist once Donald Trump is elected president? Serious question. My understanding is that even Obama has been trying to cut back on federal loan forgiveness in recent years. OL year looking to enter LS in the fall.

No one knows. Most likely scenario is probably that the programs get chipped away, especially for grad school, but existing borrowers get grandfathered. That's the trend so far. But yeah a radical congress and administration could go nuclear on it, who knows.


No. The trend is complete student loan debt forgiveness. Every program has been progressively better for a borrower of 200k. This shit of saying the programs will be chipped away ignores the last 20 years of student debt. Here's a brief history:

Students have to get student loans from private party lenders (e.g. banks) that are not dischargeable in bankruptcy. No payment plans other than default where the bank can collect its default judgment on your assets.
Students can get student loans through the government that are not dischargeable in bankruptcy. Income based repayment plans starting at 15% of income for 25 years.
Students can get student laons through govt that are non dischargeable in bankruptcy. Income based repayment plans start at 10% for 20 years. 10% for govt/501c3 workers for 10 years; no tax bomb.
Courts started discharging some student loans that were originally not dischargeable in bankruptcy.
Obama short circuited the courts and discharged some non-dischargeable student loans.
Next???
Bills have been proposed that would allow govt debtors to refi using lower interest rates and keeping fed protections
Eliminate tax bomb on 20 year PAYE and REPAYE
A dude running campaigning to represent his party in the presidential election has a major component of his platform built on removing student loan debt.

Can't wait for the next scary piece of legislation these guys pass!!!

dixiecupdrinking
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Re: Student loan payments: Actual numbers

Postby dixiecupdrinking » Fri Apr 29, 2016 6:28 pm

You're ignoring that Obama had proposed a cap for PSLF that would have rendered it all but useless for grad school borrowers, and that REPAYE makes it so that you can't file married-separately and extends the forgiveness to 25 years for grad borrowers. There are clear efforts to make the program less appealing to older borrowers.

I doubt they will pull the rug out from under people who borrowed under old rules, but no one is passing these rules with lawyers and doctors making six figures as the intended beneficiaries, and no one will shed a tear if they get cut out in the future.

mvp99
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Re: Student loan payments: Actual numbers

Postby mvp99 » Fri Apr 29, 2016 6:49 pm

dixiecupdrinking wrote:You're ignoring that Obama had proposed a cap for PSLF that would have rendered it all but useless for grad school borrowers, and that REPAYE makes it so that you can't file married-separately and extends the forgiveness to 25 years for grad borrowers. There are clear efforts to make the program less appealing to older borrowers.

I doubt they will pull the rug out from under people who borrowed under old rules, but no one is passing these rules with lawyers and doctors making six figures as the intended beneficiaries, and no one will shed a tear if they get cut out in the future.

the whole system sucks.. our generation (people born after 1985 really) is screwed... most of us will never be able to afford a decent house and our kids wont be able to go to college

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JenDarby
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Re: Student loan payments: Actual numbers

Postby JenDarby » Fri Apr 29, 2016 8:21 pm

:lol: :lol: (I think)

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jessuf
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Re: Student loan payments: Actual numbers

Postby jessuf » Fri Apr 29, 2016 8:27 pm

Um wow that was fast. Just got this e-mail:

JESSICA,

We processed your request for a repayment plan that calculates your monthly payment amount based on your income. We sent you a letter detailing:

Your new plan (if you are approved)

or

Your other options (if we are unable to make the change)



But of course the contents of this letter can't be e-mailed to me or posted in the messages portal. Also my account page still shows IBR and no indication of future changes, so maybe they rejected me from REPAYE?

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Mlk&Ckies
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Re: Student loan payments: Actual numbers

Postby Mlk&Ckies » Sat Apr 30, 2016 3:57 am

kay2016 wrote:
Mlk&Ckies wrote:
JohannDeMann wrote:
Tiago Splitter wrote:If it makes you guys feel any better I signed up for PAYE in like November and it hasn't been a problem.


I did this too.

Also, I don't think you can apply while you're still enrolled in school so your app might get kicked back a couple times.



Some rep came to do our exit counseling and said we could apply now, and I got some email (but of course can't find it now) encouraging me to apply early. I'll report back if it gets kicked, but since we're graduating in like two weeks it won't be that big of an issue.


I got an email to that extent too but when I went through it said something about not being able to apply yet.. I'll wait a week and then go ahead and try


Just got my cert email from paye (wtf why are they emailing me at 3 am?) and I was approved. WOOOOO at paying $160/month for my first year in big law.

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El Pollito
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Re: Student loan payments: Actual numbers

Postby El Pollito » Sat Apr 30, 2016 4:25 am

JohannDeMann wrote:
El Pollito wrote:
A. Nony Mouse wrote:
jessuf wrote:I just applied to switch from IBR to REPAYE today. I'm reading on reddit that the switch takes months and months. I have to recertify for IBR by 6/27. Do I still need to recertify if I just submitted the REPAYE app that made me log on to the IRS website? If so, will recertifying fuck up (or confuse fedloans) my REPAYE switch?

You just have to recertify a year after your last recertification, and since you'd have to submit your income info for them to calculate your REPAYE payment, I'm pretty sure that will give you another 12 months and you won't need to do so in June.

Also, they processed my switch from IBR to REPAYE in about 3-4 weeks.

could someone tell my dumbass why i'd want REPAYE? does it affect me if i'm planning to pay it off pretty fast?


no. didn't you get a sub 2% rate? Even I would lock that in.

My advice in here for biglawyers is PAYE or REPAYE as a way to tread water and confirm biglaw is what you want while you have low AGI tax returns that you can be a massive cash boon in the short term. You know what it entails. REPAYE isn't going to offer you anything since your last tax return is big and you aren't planning on leaving soon.

yes but i need to have like 15 - 20K in the bank and of course i put it all to loans, so I've got a while before I can do it. my parents offered me the money but i feel weird involving them so i said no. i figured i'd repaye since it apparently subsidizes more interest than IBR unless I can't read, which is quite possible given the last few months at work.

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JohannDeMann
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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Sat Apr 30, 2016 4:27 am

El Pollito wrote:yes but i need to have like 15 - 20K in the bank and of course i put it all to loans, so I've got a while before I can do it. my parents offered me the money but i feel weird involving them so i said no. i figured i'd repaye since it apparently subsidizes more interest than IBR unless I can't read, which is quite possible given the last few months at work.


yeah repaye > ibr across the board.




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