Student loan payments: get advice and actual numbers here

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LazyLASA
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Re: Student loan payments: get advice and actual numbers here

Postby LazyLASA » Sat Feb 03, 2018 11:39 am

You can still see the rates...Click on the "2" after 1.95%. They went up for everything that wasn't the 5 year loan.

Anonymous User
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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Mon Feb 12, 2018 7:08 pm

I posted in this thread two years ago - near the beginning of my repayment journey. May 2015 graduate with $83k total. I just finished paying them off. I never refinanced because I didn’t feel the rate reduction was worth the risk of losing the federal loan protections. Best of luck to all of you in your repayment journey - you can do it!

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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Tue Feb 13, 2018 4:30 am

Anonymous User wrote:I posted in this thread two years ago - near the beginning of my repayment journey. May 2015 graduate with $83k total. I just finished paying them off. I never refinanced because I didn’t feel the rate reduction was worth the risk of losing the federal loan protections. Best of luck to all of you in your repayment journey - you can do it!


+1. Almost the same situation except I graduated with 101k.

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Johann
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Re: Student loan payments: get advice and actual numbers here

Postby Johann » Tue Feb 13, 2018 9:31 am

while im sure it feels good to be done paying loans, you missed out on about 40-50k of stock market gains (each). something to always keep in mind in being smart about diversification.

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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Tue Feb 13, 2018 10:16 am

Class of 2016

CommonBond Hybrid - first 5 years is a fixed 3.83% and then its variable after that
Debt: about $235,000
Payments: payment plan is $2,350 (I pay 3k -3.5k a month
Income: 190k
Plan: Standard
I plan to throw all bonuses at this and anticipate having it paid off in five years (six years from graduation). I still manage to max out 401k, HSA, and put a little in my brokerage account and savings account every month. Still, it hurts seeing so much of my take home pay going to the loan monster every month... Once bitcoin goes to 25k, I'll be a millionaire though so who cares anyways, amirite!?

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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Tue Feb 13, 2018 11:48 am

So I have been unable to (quickly) find this info online so I am hoping y'all can help. I recently received a biglaw offer to begin following my clerkship. I just recertified by IBR last month and it was based on my clerk salary. Do I have an obligation to update my salary info when I start the gig or do I wait until I recertify next year?

ETA: this Q&A at pp. 13-14 seems to suggest no.
https://studentaid.ed.gov/sa/sites/default/files/income-driven-repayment-q-and-a.pdf

ETA (again): further reading the above Q&A leads me to:
46.What happens if my income changes significantly before the annual date when I’m
required to recertify my income?
If your income has significantly decreased or increased, you may (but are not required to) ask your
servicer to recalculate your current monthly payment amount at any time. You can do this by submitting a
new Income-Driven Repayment Plan Request and checking the box to indicate that you are requesting a
recalculation due to a change in your circumstances. You will be required to provide documentation of
your current income.

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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Tue Feb 20, 2018 12:54 am

Hoping to get some advice from some of the great advisors in here tailored to my situation.

Debt at Graduation (2015): $270K
Debt Now: $250K
Refi: 20-year/5.35% Fixed/$1700 per mo
Income: $210k per year

I live in Bay Area/NYC and work in biglaw. I imagine staying in biglaw for another year but hopefully not much more. Currently looking at in-house positions. I expect to take a pay cut then. SO makes about $130K working for a middle-stage startup. We have about $80K in savings and another $125K in 401ks. Recently started investing with $10K in Betterment/Wealthfront. Hoping to increase that somewhat.

I have been very risk adverse, having as much debt as I do, and hoping to eventually buy a house, likely in a high COL area. I like having the flexibility of a low monthly payment and paying excess so I can continue saving for a down payment.

Considering refi-ing now and had been pretty set on it but am getting a bit spooked thinking about losing IBR/PAYE opportunities down the road. Any idea on what I should do? I'm also considering FRB, which would presumably have better rates.

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Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Tue Feb 20, 2018 4:16 am

Johann wrote:while im sure it feels good to be done paying loans, you missed out on about 40-50k of stock market gains (each). something to always keep in mind in being smart about diversification.


Along those lines, I'm a 2013 grad who diversified (not particularly carefully/thoughtfully). I have a medium amount of loans remaining, refi-ed at around 4% avg interest that I'm on track to pay off a couple years ahead of schedule.

My annualized return on my cash/bonds/stocks non-retirement savings has been about 8%. My annualized return on my downpayment in my home (measured in equity gained through principal payments + home appreciation) has been about 50%.

I don't think I timed any of my investments particularly well (and have been conservative, in part, because my cash/bonds/stocks savings include my e-fund)--but obviously did ok in both still, in part because the past ~5 years have been pretty good years for investing in either stock/bonds or real estate.

Judge as you will. I suspect that had I focused on just paying off my loans, the opportunity cost would have been buying my home (easily my best investment for both pecuniary and non-pecuniary reasons). No matter how you spin it, though, paying off my loans ahead of schedule has been, by a significant margin, my worst "investment."

It's also my only guaranteed "rate of return," so I don't have any regrets. I see my loans as, effectively, being a guaranteed medium-term investment with no accompanying liquidity advantage--which is partially why I still have loans left (but less than had I just paid the minimum). As I see it, paying off a 10-year loan @ 4% interest early is, effectively, like buying a 10-year CD that does not allow you to cash out early (or a [x]-year CD if you have [x] years left on your loan). That's a way better interest rate than any CDs I currently have access to -- but I'm also not generally looking to load my portfolio with zero-liquidity medium-term CDs.




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