Student loan payments: Actual numbers

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Tue Dec 17, 2013 9:00 pm

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


When your credit improves, be sure to try to refinance with them. You should qualify for below 2% interest over time.

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Tue Dec 17, 2013 9:11 pm

mickey0004 wrote:
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?


You'll make a great senior associate.

Anonymous User
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Re: Student loan payments: Actual numbers

Postby Anonymous User » Tue Dec 17, 2013 9:17 pm

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


When your credit improves, be sure to try to refinance with them. You should qualify for below 2% interest over time.


Thanks - but I don't think they go below 2.xx. If/when I improve a bit (above 760 or so), I'll look at a bank/CU. SoFi was almost 2% better than the rate I was given by my bank, and my credit is fairly strong.

I have credit card/medical debt, and maxed out on Stafford/other loans, so I'm pretty happy with the rate I got.

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Tue Dec 17, 2013 9:52 pm

What happens to LIBOR if the fed raises rates?

I'm a patent litigator with rudimentary understanding of finance so explain to me like I'm 5.

Tytyty

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Tue Dec 17, 2013 10:29 pm

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


When your credit improves, be sure to try to refinance with them. You should qualify for below 2% interest over time.


Thanks - but I don't think they go below 2.xx. If/when I improve a bit (above 760 or so), I'll look at a bank/CU. SoFi was almost 2% better than the rate I was given by my bank, and my credit is fairly strong.

I have credit card/medical debt, and maxed out on Stafford/other loans, so I'm pretty happy with the rate I got.


I meant below 3%. Not hard to get.

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Tue Dec 17, 2013 10:31 pm

Big Shrimpin wrote:What happens to LIBOR if the fed raises rates?

I'm a patent litigator with rudimentary understanding of finance so explain to me like I'm 5.

Tytyty


It'll go up, but Fed isn't going to raise rates for a long time. The "tapering" you're hearing about is the scaling back of the Fed's bond buying program. There's still an ass ton of crap to unwind since the financial crisis, and raising rates will be the last thing the Fed does before stuff returns to normal (though this bit is my opinion).

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Tue Dec 17, 2013 11:05 pm

zweitbester wrote:
Big Shrimpin wrote:What happens to LIBOR if the fed raises rates?

I'm a patent litigator with rudimentary understanding of finance so explain to me like I'm 5.

Tytyty


It'll go up, but Fed isn't going to raise rates for a long time. The "tapering" you're hearing about is the scaling back of the Fed's bond buying program. There's still an ass ton of crap to unwind since the financial crisis, and raising rates will be the last thing the Fed does before stuff returns to normal (though this bit is my opinion).


Gotcha. And tapering won't change LIBOR?

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Tue Dec 17, 2013 11:53 pm

Big Shrimpin wrote:
zweitbester wrote:
Big Shrimpin wrote:What happens to LIBOR if the fed raises rates?

I'm a patent litigator with rudimentary understanding of finance so explain to me like I'm 5.

Tytyty


It'll go up, but Fed isn't going to raise rates for a long time. The "tapering" you're hearing about is the scaling back of the Fed's bond buying program. There's still an ass ton of crap to unwind since the financial crisis, and raising rates will be the last thing the Fed does before stuff returns to normal (though this bit is my opinion).


Gotcha. And tapering won't change LIBOR?


Very unlikely.

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Tue Dec 17, 2013 11:54 pm

FYI

Image

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Wed Dec 18, 2013 3:14 pm

FOMC highlights:

Exceptionally low rates until jobless rate falls well past 6.5%
‘Further measured steps’ possible on tapering
MBS buys cut by $5B
Treasury buys cut by $5B
Interest rates held at 0-0.25%, as expected
Rosengren dissents, says move is premature

Pokemon
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Re: Student loan payments: Actual numbers

Postby Pokemon » Wed Dec 18, 2013 4:34 pm

For all of you mentioning SoFI... what happens if you refinance with them, lose biglaw job, and want to switch to IBR?

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Re: Student loan payments: Actual numbers

Postby dixiecupdrinking » Wed Dec 18, 2013 7:29 pm

Pokemon wrote:For all of you mentioning SoFI... what happens if you refinance with them, lose biglaw job, and want to switch to IBR?
you're SOL. This is a real downside.

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Wed Dec 18, 2013 9:43 pm

dixiecupdrinking wrote:
Pokemon wrote:For all of you mentioning SoFI... what happens if you refinance with them, lose biglaw job, and want to switch to IBR?
you're SOL. This is a real downside.


Yeah major reason I'm not doing it. Esp if I go public sector at some point.

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Re: Student loan payments: Actual numbers

Postby Pokemon » Thu Dec 19, 2013 2:29 am

And obviously SoFI refinancing does not make them dischargeable in bk, right?

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Re: Student loan payments: Actual numbers

Postby gk101 » Thu Dec 19, 2013 9:41 am

Big Shrimpin wrote:
dixiecupdrinking wrote:
Pokemon wrote:For all of you mentioning SoFI... what happens if you refinance with them, lose biglaw job, and want to switch to IBR?
you're SOL. This is a real downside.


Yeah major reason I'm not doing it. Esp if I go public sector at some point.


I was thinking about going with SoFi for only my 7.9% loans (about 75k). The remaining loans are at about 5.5% and I can leave them with the federal loan servicer I have now. That way if I get shitcanned for some reason, I am not totally SOL. Any thoughts?

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Thu Dec 19, 2013 10:47 am

Actually a pretty shrewd approach. Although I can neither confirm nor deny that it'll work.

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gk101
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Re: Student loan payments: Actual numbers

Postby gk101 » Thu Dec 19, 2013 4:53 pm

Big Shrimpin wrote:Actually a pretty shrewd approach. Although I can neither confirm nor deny that it'll work.


With my luck I will get shitcanned the moment I hit accept

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Re: Student loan payments: Actual numbers

Postby dixiecupdrinking » Fri Dec 20, 2013 9:19 am

gk101 wrote:
Big Shrimpin wrote:
dixiecupdrinking wrote:
Pokemon wrote:For all of you mentioning SoFI... what happens if you refinance with them, lose biglaw job, and want to switch to IBR?
you're SOL. This is a real downside.


Yeah major reason I'm not doing it. Esp if I go public sector at some point.


I was thinking about going with SoFi for only my 7.9% loans (about 75k). The remaining loans are at about 5.5% and I can leave them with the federal loan servicer I have now. That way if I get shitcanned for some reason, I am not totally SOL. Any thoughts?

That is what I would do if I were to go SoFi. It's not worth the downside risk on the lower interest loans (and the fixed rate SoFi loans aren't really any cheaper than your 5.5% loans). But for GradPLUS it's a pretty huge discount.

I think it's a no-brainer if you are confident you're not going into the government or public interest anytime soon, especially e.g. if you're a corporate associate.

logan
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Re: Student loan payments: Actual numbers

Postby logan » Fri Dec 20, 2013 12:19 pm

Anyone have any familiarity with refinancing through Darien Rowayton Bank (http://drbank.com/student_loan_information.html) as opposed to SoFi?

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Fri Dec 20, 2013 12:33 pm

You "oh shit I might get fired" guys are being the exact kind of risk-averse that makes lawyers annoying (no offense). On SoFi, your monthly payments will be less than $1.5k a month (unless you're in the $200k range of debt), your interest will be around 2.9%, and you will be on a 10 year repayment plan, so each of those $1.5k payments will pack so much more punch than your typical payment on a grad plus loan.

If you work in big law, are you seriously telling me you won't be able to find a job that let's you make $1.5k in monthly payments in the event you get shitcanned? If you believe that, you are being way too pessimistic.

I'm not trying to criticize or be rude. I'm trying to help understand that that extra 5.5% interest is just shoving money down the toilet... money that could be used for so many better things.

Edit: Can also almost guarantee you that if you're in big law, you will be making at least $100k in 10 years (assuming you don't go into government or PI work--if either of those figure in your plans, I might stay away from SoFi then).

Edit 2: And if you can't find another job after 5 years of SoFi-ing it up and working in big law, you can use all that cash money you saved up to basically payoff the loans (assuming you didn't use the freed up cash on stupid things like coke and hookers).

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Fri Dec 20, 2013 5:02 pm

Just redid the app.

10 year fixed at 5.7% and variable at 3.4%.

I'm close to pulling the trigger.

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ExBiglawAssociate
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Re: Student loan payments: Actual numbers

Postby ExBiglawAssociate » Fri Dec 20, 2013 5:10 pm

Big Shrimpin wrote:Just redid the app.

10 year fixed at 5.7% and variable at 3.4%.

I'm close to pulling the trigger.


3.4 is muy bueno. I would go for it, broheim.

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Fri Dec 20, 2013 5:16 pm

Big Shrimpin wrote:Just redid the app.

10 year fixed at 5.7% and variable at 3.4%.

I'm close to pulling the trigger.


Dude what the fuck are you waiting for

Are you including the auto pay discount?

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Fri Dec 20, 2013 5:55 pm

zweitbester wrote:
Big Shrimpin wrote:Just redid the app.

10 year fixed at 5.7% and variable at 3.4%.

I'm close to pulling the trigger.


Dude what the fuck are you waiting for

Are you including the auto pay discount?


Iono, guess not.

Dat possibility of getting canned doe...

meg5096
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Re: Student loan payments: Actual numbers

Postby meg5096 » Sat Dec 21, 2013 12:27 pm

Big Shrimpin wrote:
zweitbester wrote:
Big Shrimpin wrote:Just redid the app.

10 year fixed at 5.7% and variable at 3.4%.

I'm close to pulling the trigger.


Dude what the fuck are you waiting for

Are you including the auto pay discount?


Iono, guess not.

Dat possibility of getting canned doe...


Looking into this as well. Mind sharing your general creditworthiness as to how they came up with those rates for you?




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