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 » Mon Jun 20, 2016 4:26 pm

You only have to certify every 12 months, so you don't have to recertify based on your wife's income changing. But I don't see how you would change the household size without having to submit income. I haven't done the math but I would imagine you want to continue filing singly, so I doubt the change in household number would even help.

imalreadyamember?
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Re: Student loan payments: Actual numbers

Postby imalreadyamember? » Mon Jun 20, 2016 5:01 pm

A. Nony Mouse wrote:You only have to certify every 12 months, so you don't have to recertify based on your wife's income changing. But I don't see how you would change the household size without having to submit income. I haven't done the math but I would imagine you want to continue filing singly, so I doubt the change in household number would even help.


According to http://educatedrisk.org/analysis/family-size-ibr-paye-applications posted above, I guess you can have a household of 2 even when filing at the single rate. It seems like we should take advantage of that but I'm not sure if the savings would be worth the change in her salary or whether she could change it somehow without going through a re-application. She'll have a new job (lower salary again) in September so maybe just doing it then is best?

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JenDarby
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Re: Student loan payments: Actual numbers

Postby JenDarby » Mon Jun 20, 2016 5:12 pm

Can some IBR/PAYE train people update us with numbers as far as how much as been paid over what time and what your loan balance was at graduation versus your balance now?

There should be some people a couple years out (or more) by now.

bern victim
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Re: Student loan payments: Actual numbers

Postby bern victim » Mon Jun 20, 2016 5:45 pm

JenDarby wrote:Can some IBR/PAYE train people update us with numbers as far as how much as been paid over what time and what your loan balance was at graduation versus your balance now?

There should be some people a couple years out (or more) by now.

sorry, the whole point of that PAYE life is not to look

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JenDarby
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Re: Student loan payments: Actual numbers

Postby JenDarby » Mon Jun 20, 2016 5:51 pm

bern victim wrote:
JenDarby wrote:Can some IBR/PAYE train people update us with numbers as far as how much as been paid over what time and what your loan balance was at graduation versus your balance now?

There should be some people a couple years out (or more) by now.

sorry, the whole point of that PAYE life is not to look

c'mom, there's some masochistic PAYE person in here

even if I was on PAYE there's no chance I could resist checking. it's not like having refi'd it's a party after 2 years to look

bern victim
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Re: Student loan payments: Actual numbers

Postby bern victim » Mon Jun 20, 2016 5:53 pm

i'm not looking. probably at like 500k by now. don't care.

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Tiago Splitter
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Re: Student loan payments: Actual numbers

Postby Tiago Splitter » Mon Jun 20, 2016 5:53 pm

JenDarby wrote:
bern victim wrote:
JenDarby wrote:Can some IBR/PAYE train people update us with numbers as far as how much as been paid over what time and what your loan balance was at graduation versus your balance now?

There should be some people a couple years out (or more) by now.

sorry, the whole point of that PAYE life is not to look

c'mom, there's some masochistic PAYE person in here

even if I was on PAYE there's no chance I could resist checking. it's not like having refi'd it's a party after 2 years to look

I can assure you that resisting checking is not difficult

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JohannDeMann
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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Mon Jun 20, 2016 6:31 pm

its too hard for me to determine my debt levels and how theyve changed because of kind of complicated situations. i borrowed around 225K (i think) at various times (some loans are almost 10 years old now). ive paid around $2,750 total on my debt in ~34 months of repayment. total debt is now $262k.

Anonymous User
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Re: Student loan payments: Actual numbers

Postby Anonymous User » Mon Jun 20, 2016 6:32 pm

JohannDeMann wrote:its too hard for me to determine my debt levels and how theyve changed because of kind of complicated situations. i borrowed around 225K (i think) at various times (some loans are almost 10 years old now). ive paid around $2,750 total on my debt in ~34 months of repayment. total debt is now $262k.


Are you doing PAYE with biglaw?

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

Postby A. Nony Mouse » Mon Jun 20, 2016 6:33 pm

I avoid looking at all costs. To the extent I've had to look, I'm pretty sure my debt has gone up since graduation.

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JohannDeMann
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Re: Student loan payments: Actual numbers

Postby JohannDeMann » Mon Jun 20, 2016 6:39 pm

Anonymous User wrote:
JohannDeMann wrote:its too hard for me to determine my debt levels and how theyve changed because of kind of complicated situations. i borrowed around 225K (i think) at various times (some loans are almost 10 years old now). ive paid around $2,750 total on my debt in ~34 months of repayment. total debt is now $262k.


Are you doing PAYE with biglaw?


i am now. but not all the repayment months were while in biglaw.

mushybrain
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Re: Student loan payments: Actual numbers

Postby mushybrain » Mon Jun 20, 2016 6:42 pm

I just looked while confirming which repayment plan I'm on, and I can confirm the amount has gone up since graduation. Which is no surprise given that my monthly required payment is like $130.

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Mlk&Ckies
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Re: Student loan payments: Actual numbers

Postby Mlk&Ckies » Mon Jun 20, 2016 8:49 pm

JenDarby wrote:
bern victim wrote:
JenDarby wrote:Can some IBR/PAYE train people update us with numbers as far as how much as been paid over what time and what your loan balance was at graduation versus your balance now?

There should be some people a couple years out (or more) by now.

sorry, the whole point of that PAYE life is not to look

c'mom, there's some masochistic PAYE person in here

even if I was on PAYE there's no chance I could resist checking. it's not like having refi'd it's a party after 2 years to look


How many years do you think you have left? Also, when did you feel comfortable refi'ing? I'm thinking anything sooner than first year would make me feel nauseous worrying about how I'd pay for it if I don't land on my feet after biglaw.

Anonymous User
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Re: Student loan payments: Actual numbers

Postby Anonymous User » Mon Jun 20, 2016 9:03 pm

JenDarby wrote:Can some IBR/PAYE train people update us with numbers as far as how much as been paid over what time and what your loan balance was at graduation versus your balance now?

There should be some people a couple years out (or more) by now.


On repaye, so paying 10% of income and my debt has gone from 255 to 257 over the last few months. Before that I was doing paye but was overpaying to lower the debt a bit (I lowered it from 265 to 255 in a year and a half.

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JenDarby
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Re: Student loan payments: Actual numbers

Postby JenDarby » Mon Jun 20, 2016 9:51 pm

Mlk&Ckies wrote:
JenDarby wrote:c'mom, there's some masochistic PAYE person in here

even if I was on PAYE there's no chance I could resist checking. it's not like having refi'd it's a party after 2 years to look

How many years do you think you have left? Also, when did you feel comfortable refi'ing? I'm thinking anything sooner than first year would make me feel nauseous worrying about how I'd pay for it if I don't land on my feet after biglaw.

I refi'd in March of 2015 after graduating in 2014. I made solidly less than biglaw, and didn't expect to make that kind of money, but I had enough job security that I felt comfortable I could service my refi'd debt for 10 years. I also didn't have any intention of ending up in a PSLF job.

Hard to say what I would have done in biglaw. I probably would have waited until I felt confident I could make it a few years and/or had exit options. In the meantime, I'd save the money I would have otherwise used to aggressively pay down my debt.

It's possible that I would have been better off on PAYE or REPAYE. I'm saving less money now than if I hadn't refi'd. OTOH I should be debt free in 8.5 years (unless I re-refi for a longer term and lower rate) and I'm still building savings. I guess we will see in a few years.

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El Pollito
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Re: Student loan payments: Actual numbers

Postby El Pollito » Mon Jun 20, 2016 10:19 pm

4bearance 4lyfe

ballouttacontrol
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Re: Student loan payments: Actual numbers

Postby ballouttacontrol » Mon Jun 20, 2016 10:23 pm

I am very much looking forward to paying practically nothing under repaye for like 2 yrs of biglaw and then a couple years later going solo and reducing my AGI back down to the poverty level and paying absolutely nothing until the ever more liberal government either removes the tax bomb or just cancels student debt

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JenDarby
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Re: Student loan payments: Actual numbers

Postby JenDarby » Mon Jun 20, 2016 10:31 pm

ballouttacontrol wrote:I am very much looking forward to paying practically nothing under repaye for like 2 yrs of biglaw and then a couple years later going solo and reducing my AGI back down to the poverty level and paying absolutely nothing until the ever more liberal government either removes the tax bomb or just cancels student debt

lol I didn't realize someone could surpass Johann PAYE optimism, but adding in 2 yrs BL > 2 yrs ??? > solo with anything other than actual poverty as the likely outcome and you've done it

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AVBucks4239
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Re: Student loan payments: Actual numbers

Postby AVBucks4239 » Tue Jun 21, 2016 4:06 pm

JenDarby wrote:Can some IBR/PAYE train people update us with numbers as far as how much as been paid over what time and what your loan balance was at graduation versus your balance now?

There should be some people a couple years out (or more) by now.

I'll bite.

Debt at graduation in May of 2014 was approximately $143,000. I got a job in my hometown in Ohio and make about $50,000/year.

After six months of forbearance, total paid towards my loans over eighteen months is $5,643.81. This should be lower but I went through a three month kick where I was really throwing everything I could at the loans (including my entire tax return one year...sigh). My payment right now is $194/month (this could be lower, but my AGI is higher than I'd like because I need cash to pay for my wedding next spring). Based on my current savings ($12k to 401k this year, $2,250 to HSA), my payment next year should be $136/month.

Current debt is at $149,382, but I have yet to get my 50% reimbursement of unpaid accrued interest. So my technical balance is probably in the $147,000 range.

Meanwhile, I have approximately $9,000 in savings (six months of expenses), will have $16,000 in 401k by end of year (this should be higher, but wedding plus I bought a house last year), $1,000 in traditional IRA, $3,350 in HSA, and probably $2,000 in checking. In short: I'll have saved approximately 30% of my earnings during my first two years of work.

My now GF's income will become part of my REPAYE calculation for payments in 2018. She's on board with the whole saving thing (our goal is retire by 45). So next year we should be earning about $115,000 gross, contributing $36k to 401ks, $6,500 to HSAs, then hopefully some leftover to traditional IRAs. This is going to leave me with about a $350 payment.

Add in the interest subsidy and my loan is going up about $3,000 per year. Then my GF will have kids, earn less, my student loan payments will go down, and we will continue to save as much as humanly possible so we pay as little towards my loan as possible.

Also, I have no current plan for the tax liability because I'm about 75% certain the government will wipe out the "tax bomb." But who knows. That's 25 years away.

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JenDarby
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Re: Student loan payments: Actual numbers

Postby JenDarby » Tue Jun 21, 2016 4:18 pm

^ very helpful information, thanks for contributing!

the studentloans.gov repayment estimator seems much improved. It obviously doesn't factor everything in, but playing around with the numbers is still more helpful than I recall

https://studentloans.gov/myDirectLoan/m ... tor.action

zot1
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Re: Student loan payments: Actual numbers

Postby zot1 » Tue Jun 21, 2016 4:46 pm

I refuse to look. I enjoy being depression-free.

Ignoring this debt is the only way to make it through the next 9 years and 7 months.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Tue Jun 21, 2016 6:03 pm

Mlk&Ckies wrote:
JenDarby wrote:
bern victim wrote:
JenDarby wrote:Can some IBR/PAYE train people update us with numbers as far as how much as been paid over what time and what your loan balance was at graduation versus your balance now?

There should be some people a couple years out (or more) by now.

sorry, the whole point of that PAYE life is not to look

c'mom, there's some masochistic PAYE person in here

even if I was on PAYE there's no chance I could resist checking. it's not like having refi'd it's a party after 2 years to look


How many years do you think you have left? Also, when did you feel comfortable refi'ing? I'm thinking anything sooner than first year would make me feel nauseous worrying about how I'd pay for it if I don't land on my feet after biglaw.


Another poster, but I paid off my loans in biglaw and I refi'd when I hit around 70k. You can always refi just a portion of your loans and keep the rest in federal.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Tue Jun 21, 2016 6:13 pm

Lets say you have 200k in loans exactly, biglaw market in TX. on PAYE/REPAYE 10% of your AGI? Lets say that is $1,100/month. Is it still worth it when a 10-year refi payoff is only like $2,200/month?

This may have been answered, but how many years would you need to be in biglaw where refi is the right choice if made early on?

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Tiago Splitter
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Re: Student loan payments: Actual numbers

Postby Tiago Splitter » Tue Jun 21, 2016 6:24 pm

Anonymous User wrote:Lets say you have 200k in loans exactly, biglaw market in TX. on PAYE/REPAYE 10% of your AGI? Lets say that is $1,100/month. Is it still worth it when a 10-year refi payoff is only like $2,200/month?

This may have been answered, but how many years would you need to be in biglaw where refi is the right choice if made early on?

Your first two years only require very small PAYE payments, because year 1 is based on your 2L summer income and year 2 is based off of your stub year income.

Your second question depends on how much you make (and the possibility of PSLF eligibility) after you leave biglaw. Refi would be a terrible decision for someone who goes four years and then exits into government. It's a great decision for someone who goes four years and then leaves to a 175k a year in-house exit option. The general rule is that if you expect to make good money in the private sector indefinitely you should refi. Mathematically you're always better off with a refi if you are just going to pay it all off anyway.

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

Postby A. Nony Mouse » Tue Jun 21, 2016 6:50 pm

AVBucks4239 wrote:
JenDarby wrote:Can some IBR/PAYE train people update us with numbers as far as how much as been paid over what time and what your loan balance was at graduation versus your balance now?

There should be some people a couple years out (or more) by now.

I'll bite.

Debt at graduation in May of 2014 was approximately $143,000. I got a job in my hometown in Ohio and make about $50,000/year.

After six months of forbearance, total paid towards my loans over eighteen months is $5,643.81. This should be lower but I went through a three month kick where I was really throwing everything I could at the loans (including my entire tax return one year...sigh). My payment right now is $194/month (this could be lower, but my AGI is higher than I'd like because I need cash to pay for my wedding next spring). Based on my current savings ($12k to 401k this year, $2,250 to HSA), my payment next year should be $136/month.

Current debt is at $149,382, but I have yet to get my 50% reimbursement of unpaid accrued interest. So my technical balance is probably in the $147,000 range.

Meanwhile, I have approximately $9,000 in savings (six months of expenses), will have $16,000 in 401k by end of year (this should be higher, but wedding plus I bought a house last year), $1,000 in traditional IRA, $3,350 in HSA, and probably $2,000 in checking. In short: I'll have saved approximately 30% of my earnings during my first two years of work.

My now GF's income will become part of my REPAYE calculation for payments in 2018. She's on board with the whole saving thing (our goal is retire by 45). So next year we should be earning about $115,000 gross, contributing $36k to 401ks, $6,500 to HSAs, then hopefully some leftover to traditional IRAs. This is going to leave me with about a $350 payment.

Add in the interest subsidy and my loan is going up about $3,000 per year. Then my GF will have kids, earn less, my student loan payments will go down, and we will continue to save as much as humanly possible so we pay as little towards my loan as possible.

Also, I have no current plan for the tax liability because I'm about 75% certain the government will wipe out the "tax bomb." But who knows. That's 25 years away.

Can you say more about how you plan to retire by 45 on your income and having kids? That's not intended to sound snotty, I'm pretty ignorant about this stuff except at the most general level.




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