Student loan payments: Actual numbers

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A. Nony Mouse
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Re: Student loan payments: Actual numbers

Postby A. Nony Mouse » Fri Dec 06, 2013 2:08 pm

hiima3L wrote:I figured this thread was as good as any.

According to my loan provider, it's time to re-certify my IBR status. I filled out the form they sent and submitted proof of change in income.

But a few of my co-workers said they didn't have to do this, even with a change in income (we all have the same income change, so our circumstances are similar). And they also said they you don't need to submit proof of a change in income until you do your taxes.

Any input would be appreciated.

How long have you been on IBR and when did you originally verify your income? I think you might have to re-verify every 12 months - I signed on November after graduation, then voluntarily sent my taxes in the following Jan/Feb (because it lowered my income/payments), then I think the following tax season (Jan/Feb) they made me re-verify. But it would probably have been the previous November if I hadn't verified in the meantime. Your co-workers may have done what I did, and therefore their re-verification happens to coincide with doing taxes?

so ambivalent
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Re: Student loan payments: Actual numbers

Postby so ambivalent » Fri Dec 06, 2013 2:14 pm

sorry if i contributed to this getting off topic earlier by posting as someone who hadn't graduated. since i'm pretty sure about my debt, i figured it might be helpful to 0Ls.

but i have a question--mostly for people who already graduated and are in repayment---regarding where to prioritize a cash infusion. a relative died this year and left me about $25,000. i was planning on using some of it for the bar app and course (no firm job lined up to pay for it). but that should be less than $5000.
I have about $60,000 in law school debt (all stafford loans, 2 years unsubsidized and 1 year while they still subsidized, and no fed plus). and $20,000 in undergrad (consolidated stafford at 6% interest or so).
so, to people who graduated, do you wish you'd taken out fewer loans? or repaid the ones you already had? or saved the money to avoid consumer loans (like payments on a car you might need to buy after graduation or moving expenses)?
i am pretty debt-averse but i also worked really hard to save up so that i have a financial cushion for big ticket emergency things (like family death plane tickets or illness).
also i do intend to get public interest loan forgiveness and do IBR, so am hoping to have everything forgiven eventually. no dependents.

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mickey0004
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Re: Student loan payments: Actual numbers

Postby mickey0004 » Fri Dec 06, 2013 3:03 pm

Debt: $130k, $150k with interest

Payments: Putting $5-6,000 in every month.

Plan is to pay it off in 2 years. No 401k/IRA, no savings, but I do have a 3 month emergency fund. I will probably add more to the emergency fund after 6 months in big law. I also maxed out my federal tax deductions so I get more take home pay. I rather owe the government money at the end of the year than have that 7.9% hanging over my head.

Income: $160k

About myself: Non-nyc big law. Do not underestimate the power of low cost of living. Didn't go to NYC for big law solely for the loan repayment reason.

schweitziro
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Re: Student loan payments: Actual numbers

Postby schweitziro » Fri Dec 06, 2013 5:01 pm

Q: On forbearance, if you have a job can you not opt to take the 6 months? If not, why not save up a shit ton those 6 months and do a massive dump on your loan's principal?

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Fri Dec 06, 2013 5:24 pm

mickey0004 wrote:Debt: $130k, $150k with interest

Payments: Putting $5-6,000 in every month.

Plan is to pay it off in 2 years. No 401k/IRA, no savings, but I do have a 3 month emergency fund. I will probably add more to the emergency fund after 6 months in big law. I also maxed out my federal tax deductions so I get more take home pay. I rather owe the government money at the end of the year than have that 7.9% hanging over my head.

Income: $160k

About myself: Non-nyc big law. Do not underestimate the power of low cost of living. Didn't go to NYC for big law solely for the loan repayment reason.



Nice. Low COL market? Sometimes I wish I had chosen the slower pace of a non-NYC office and lived more cheaply to pay the loans down faster.

But then again, MFH is just so much fucking fun.

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A. Nony Mouse
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Re: Student loan payments: Actual numbers

Postby A. Nony Mouse » Fri Dec 06, 2013 6:26 pm

schweitziro wrote:Q: On forbearance, if you have a job can you not opt to take the 6 months? If not, why not save up a shit ton those 6 months and do a massive dump on your loan's principal?

Most people graduating law school don't start work until Sept/Oct/Nov after graduation, because of taking the bar and when firms/employers want you to start. So you're not going to save up enough to make a difference (plus a lot of people need money to pay for moving expenses or to pay off the cc debt you incurred while not working studying for the bar).

schweitziro
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Re: Student loan payments: Actual numbers

Postby schweitziro » Fri Dec 06, 2013 6:47 pm

A. Nony Mouse wrote:
schweitziro wrote:Q: On forbearance, if you have a job can you not opt to take the 6 months? If not, why not save up a shit ton those 6 months and do a massive dump on your loan's principal?

Most people graduating law school don't start work until Sept/Oct/Nov after graduation, because of taking the bar and when firms/employers want you to start. So you're not going to save up enough to make a difference (plus a lot of people need money to pay for moving expenses or to pay off the cc debt you incurred while not working studying for the bar).


Good point.

Anonymous User
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Re: Student loan payments: Actual numbers

Postby Anonymous User » Fri Dec 06, 2013 9:22 pm

My data point:
LSAT scores: 157, 164, 163, 171.

I got in MVP after getting 171. In fact all the bottom half of T14 gave me admission tickets except California

A. Nony Mouse wrote:Schools also say they they consider all LSAT scores and engage in holistic review of applications, which are statements generally contradicted by TLS/LSN, so people don't really trust what school websites say.
Last edited by Anonymous User on Fri Dec 06, 2013 9:44 pm, edited 1 time in total.

Anonymous User
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Re: Student loan payments: Actual numbers

Postby Anonymous User » Fri Dec 06, 2013 9:25 pm

Lucky guy!

Anonymous User wrote:My data point:
LSAT scores: 157, 164, 163, 171.

I got in MVP after getting 171. In fact all the bottom half of T14 gave me admission tickets except California.

A. Nony Mouse wrote:Schools also say they they consider all LSAT scores and engage in holistic review of applications, which are statements generally contradicted by TLS/LSN, so people don't really trust what school websites say.

Void
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Re: Student loan payments: Actual numbers

Postby Void » Fri Dec 06, 2013 10:05 pm

Anonymous User wrote:My data point:
LSAT scores: 157, 164, 163, 171.

I got in MVP after getting 171. In fact all the bottom half of T14 gave me admission tickets except California

A. Nony Mouse wrote:Schools also say they they consider all LSAT scores and engage in holistic review of applications, which are statements generally contradicted by TLS/LSN, so people don't really trust what school websites say.


I think you're in the wrong thread, homie.

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worldtraveler
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Re: Student loan payments: Actual numbers

Postby worldtraveler » Sat Dec 07, 2013 3:23 pm

Anonymous User wrote:My data point:
LSAT scores: 157, 164, 163, 171.

I got in MVP after getting 171. In fact all the bottom half of T14 gave me admission tickets except California

A. Nony Mouse wrote:Schools also say they they consider all LSAT scores and engage in holistic review of applications, which are statements generally contradicted by TLS/LSN, so people don't really trust what school websites say.


You just proved her point. Schools say they consider all LSAT scores but only considered your highest one for admission.

royilae
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Re: Student loan payments: Actual numbers

Postby royilae » Sat Dec 07, 2013 5:46 pm

Big Shrimpin wrote:
mickey0004 wrote:Debt: $130k, $150k with interest

Payments: Putting $5-6,000 in every month.

Plan is to pay it off in 2 years. No 401k/IRA, no savings, but I do have a 3 month emergency fund. I will probably add more to the emergency fund after 6 months in big law. I also maxed out my federal tax deductions so I get more take home pay. I rather owe the government money at the end of the year than have that 7.9% hanging over my head.

Income: $160k

About myself: Non-nyc big law. Do not underestimate the power of low cost of living. Didn't go to NYC for big law solely for the loan repayment reason.



Nice. Low COL market? Sometimes I wish I had chosen the slower pace of a non-NYC office and lived more cheaply to pay the loans down faster.

But then again, MFH is just so much fucking fun.


What is MFH?

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mickey0004
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Re: Student loan payments: Actual numbers

Postby mickey0004 » Sat Dec 07, 2013 5:53 pm

MFH
royilae wrote:
Big Shrimpin wrote:
mickey0004 wrote:Debt: $130k, $150k with interest

Payments: Putting $5-6,000 in every month.

Plan is to pay it off in 2 years. No 401k/IRA, no savings, but I do have a 3 month emergency fund. I will probably add more to the emergency fund after 6 months in big law. I also maxed out my federal tax deductions so I get more take home pay. I rather owe the government money at the end of the year than have that 7.9% hanging over my head.

Income: $160k

About myself: Non-nyc big law. Do not underestimate the power of low cost of living. Didn't go to NYC for big law solely for the loan repayment reason.



Nice. Low COL market? Sometimes I wish I had chosen the slower pace of a non-NYC office and lived more cheaply to pay the loans down faster.

But then again, MFH is just so much fucking fun.


What is MFH?


MFH = Man-fucking-hattan

royilae
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Re: Student loan payments: Actual numbers

Postby royilae » Sat Dec 07, 2013 8:23 pm

mickey0004 wrote:
MFH = Man-fucking-hattan


Thanks for the clarification. I guess this is a thing for non-NYC natives :o

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Sun Dec 08, 2013 4:54 pm

royilae wrote:
mickey0004 wrote:
MFH = Man-fucking-hattan


Thanks for the clarification. I guess this is a thing for non-NYC natives :o


Eh, I'm in NYC. It's more of a TLS/XO meme.

Anonymous User
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Re: Student loan payments: Actual numbers

Postby Anonymous User » Mon Dec 09, 2013 4:18 pm

Debt: $197K (~$212K when I entered repayment a year ago). Paid sticker at T-14 with no assistance or prior savings. All federal loans.

Payments: $2,600/mo, which is rounded up slightly from my required payment under the standard 10-year plan. I did receive about $6k from my law school’s LRAP program for 2013, but due to salary increase I’m expecting this to go away or be reduced to next to nothing for 2014. This payment is almost exactly half of my take-home pay.

Income: currently $100K

About me: 2nd year associate in midlaw in a flyover city. The biggest shock I hadn’t quite mentally prepared for was the $20k in interest that accrued during law school and in the few months before repayment kicked in. I was aware this would happen, but the reality of it stings. It won’t be until sometime later in 2014 – almost 2 years into repayment – that I’ll have paid down into the actual principal I borrowed to attend school (~$189k). I’ve also calculated my daily interest rate to be in the neighborhood of $40/day (down a few dollars from a year ago). I’ve found that recognizing the amount of interest accruing every day has impacted the daily spending decisions I make – the result is that I spend a little less on coffee, lunches, drinks, etc.

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studebaker07
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Re: Student loan payments: Actual numbers

Postby studebaker07 » Wed Dec 11, 2013 12:00 pm

Debt: Just a scooch above $90K.
Payments: Started making payments at $900/month starting last year and just got approved for PAYE for payments of $20/month. Woo.
Income: $0 (for the moment)
Plan: See above.

More info: 2012 graduate that thought I could make payments under the extended repayment period (25 years instead of 10). That worked when I had a job and was living at home. Still am living at home and quit my job last month (long story, but worked for a solo attorney and wasn't happy. Those who are on the special graduate forum know what I'm talking about).

Started my own firm and actually have some regular client work that will hopefully bring in decent money every month while still allowing me to market extensively and build the practice. Have no idea what my take-home pay will be as a solo and its way too early to try and forecast average gross revenue for the next year. I'll just leave it at "I hope to make money real soon so I can start paying down these pesky loans".

All things considered, I think I'm pretty lucky. Tried to limit my debt exposure during school by living at home, working part time during school, and skimping on everything that I possibly could.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Sat Dec 14, 2013 10:39 pm

Debt: $280,000 in federal loans, consolidated at 6.25% (full cost of attendance, including supplemental loans for an unexpected medical expense during law school). $15,000 bar study loan with Sallie Mae at a ridiculous 12.5%, but I'm refinancing to about 6% (to pay for everything from graduation until my job started a few weeks ago).
Plan: PAYE, eventually PSLF, law school's very generous LRAP.
Payments: $300/month to Sallie Mae, which I'm paying a lot faster than that. I also owe $310/month to the feds, 100% of which is paid by my law school's LRAP as long as I remain under $75,000 salary. So basically, I just pay Sallie Mae, and I'm paying it as quickly as possible.
Income: $50,000 in PI

I went to law school planning to do PI (and I had a PI backup plan, going back to my pre-law school nonprofit job, which is also PSLF eligible). I specifically chose my law school because of its generous LRAP. I got more scholarship money from a slightly higher-ranked law school with a less-good LRAP, and I turned it down because it would actually have been more expensive in the long run. I took out the full cost of attendance and preserved some savings I had before law school because to me, borrowing $280k put me in the same position as borrowing $150k or even $50k. With LRAP, as long as my income stays under $75k (which it will if I stay in my current job, given the payscale), my entire legal education is free, and all I end up paying off, ever, is my bar loan. So my bottom line advice is that if you want PI, commit to it wholeheartedly, and when evaluating schools, don't look at how much scholarship money they're offering you, calculate how much you'll actually end up paying off after LRAP, PAYE/IBR, and PSLF.

linkx13
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Re: Student loan payments: Actual numbers

Postby linkx13 » Sat Dec 14, 2013 11:44 pm

Anonymous User wrote:Debt: $280,000 in federal loans, consolidated at 6.25% (full cost of attendance, including supplemental loans for an unexpected medical expense during law school). $15,000 bar study loan with Sallie Mae at a ridiculous 12.5%, but I'm refinancing to about 6% (to pay for everything from graduation until my job started a few weeks ago).
Plan: PAYE, eventually PSLF, law school's very generous LRAP.
Payments: $300/month to Sallie Mae, which I'm paying a lot faster than that. I also owe $310/month to the feds, 100% of which is paid by my law school's LRAP as long as I remain under $75,000 salary. So basically, I just pay Sallie Mae, and I'm paying it as quickly as possible.
Income: $50,000 in PI

I went to law school planning to do PI (and I had a PI backup plan, going back to my pre-law school nonprofit job, which is also PSLF eligible). I specifically chose my law school because of its generous LRAP. I got more scholarship money from a slightly higher-ranked law school with a less-good LRAP, and I turned it down because it would actually have been more expensive in the long run. I took out the full cost of attendance and preserved some savings I had before law school because to me, borrowing $280k put me in the same position as borrowing $150k or even $50k. With LRAP, as long as my income stays under $75k (which it will if I stay in my current job, given the payscale), my entire legal education is free, and all I end up paying off, ever, is my bar loan. So my bottom line advice is that if you want PI, commit to it wholeheartedly, and when evaluating schools, don't look at how much scholarship money they're offering you, calculate how much you'll actually end up paying off after LRAP, PAYE/IBR, and PSLF.


since you're anonymous do you mind saying the two schools you chose between? I'm assuming the 75k cap means GLUC or Duke? I ask because your situation is exactly where I'd like to find myself upon graduating.

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Bronx Bum
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Re: Student loan payments: Actual numbers

Postby Bronx Bum » Mon Dec 16, 2013 3:48 pm

Anonymous User wrote:Debt: $280,000 in federal loans, consolidated at 6.25% (full cost of attendance, including supplemental loans for an unexpected medical expense during law school). $15,000 bar study loan with Sallie Mae at a ridiculous 12.5%, but I'm refinancing to about 6% (to pay for everything from graduation until my job started a few weeks ago).
Plan: PAYE, eventually PSLF, law school's very generous LRAP.
Payments: $300/month to Sallie Mae, which I'm paying a lot faster than that. I also owe $310/month to the feds, 100% of which is paid by my law school's LRAP as long as I remain under $75,000 salary. So basically, I just pay Sallie Mae, and I'm paying it as quickly as possible.
Income: $50,000 in PI

I went to law school planning to do PI (and I had a PI backup plan, going back to my pre-law school nonprofit job, which is also PSLF eligible). I specifically chose my law school because of its generous LRAP. I got more scholarship money from a slightly higher-ranked law school with a less-good LRAP, and I turned it down because it would actually have been more expensive in the long run. I took out the full cost of attendance and preserved some savings I had before law school because to me, borrowing $280k put me in the same position as borrowing $150k or even $50k. With LRAP, as long as my income stays under $75k (which it will if I stay in my current job, given the payscale), my entire legal education is free, and all I end up paying off, ever, is my bar loan. So my bottom line advice is that if you want PI, commit to it wholeheartedly, and when evaluating schools, don't look at how much scholarship money they're offering you, calculate how much you'll actually end up paying off after LRAP, PAYE/IBR, and PSLF.


PI=Personal injury?

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A. Nony Mouse
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Re: Student loan payments: Actual numbers

Postby A. Nony Mouse » Mon Dec 16, 2013 10:31 pm

Bronx Bum wrote:
Anonymous User wrote:Debt: $280,000 in federal loans, consolidated at 6.25% (full cost of attendance, including supplemental loans for an unexpected medical expense during law school). $15,000 bar study loan with Sallie Mae at a ridiculous 12.5%, but I'm refinancing to about 6% (to pay for everything from graduation until my job started a few weeks ago).
Plan: PAYE, eventually PSLF, law school's very generous LRAP.
Payments: $300/month to Sallie Mae, which I'm paying a lot faster than that. I also owe $310/month to the feds, 100% of which is paid by my law school's LRAP as long as I remain under $75,000 salary. So basically, I just pay Sallie Mae, and I'm paying it as quickly as possible.
Income: $50,000 in PI

I went to law school planning to do PI (and I had a PI backup plan, going back to my pre-law school nonprofit job, which is also PSLF eligible). I specifically chose my law school because of its generous LRAP. I got more scholarship money from a slightly higher-ranked law school with a less-good LRAP, and I turned it down because it would actually have been more expensive in the long run. I took out the full cost of attendance and preserved some savings I had before law school because to me, borrowing $280k put me in the same position as borrowing $150k or even $50k. With LRAP, as long as my income stays under $75k (which it will if I stay in my current job, given the payscale), my entire legal education is free, and all I end up paying off, ever, is my bar loan. So my bottom line advice is that if you want PI, commit to it wholeheartedly, and when evaluating schools, don't look at how much scholarship money they're offering you, calculate how much you'll actually end up paying off after LRAP, PAYE/IBR, and PSLF.


PI=Personal injury?

Given the reference to PSLF, I'm going to assume public interest.

Anonymous User
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Re: Student loan payments: Actual numbers

Postby Anonymous User » Tue Dec 17, 2013 8:20 pm

Just refinanced $75,000 in GradPlus loans with SoFi. Went from 7.9% to 4.24% (variable). Pretty pleased.

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mickey0004
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Re: Student loan payments: Actual numbers

Postby mickey0004 » Tue Dec 17, 2013 8:34 pm

Anonymous User wrote:Just refinanced $75,000 in GradPlus loans with SoFi. Went from 7.9% to 4.24% (variable). Pretty pleased.


What are the pros/cons with SoFi? What's the catch here?

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Tue Dec 17, 2013 8:39 pm

mickey0004 wrote:
Anonymous User wrote:Just refinanced $75,000 in GradPlus loans with SoFi. Went from 7.9% to 4.24% (variable). Pretty pleased.


What are the pros/cons with SoFi? What's the catch here?


Check out the biglaw bonus thread. We talked about it there iirc.

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mickey0004
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Re: Student loan payments: Actual numbers

Postby mickey0004 » Tue Dec 17, 2013 8:42 pm

Big Shrimpin wrote:
mickey0004 wrote:
Anonymous User wrote:Just refinanced $75,000 in GradPlus loans with SoFi. Went from 7.9% to 4.24% (variable). Pretty pleased.


What are the pros/cons with SoFi? What's the catch here?


Check out the biglaw bonus thread. We talked about it there iirc.


Link to specific spot of discussion? or are you going to make me go through 17 pages of posts?




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