Student loan payments: Actual numbers

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XxSpyKEx
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Re: Student loan payments: Actual numbers

Postby XxSpyKEx » Fri Aug 29, 2014 2:34 pm

zweitbester wrote:My general stance on these things is "refinance where you can get the lowest interest rate possible."


This makes sense, but I think you also have to factor in the loss of the safety net and other favorable repayment considerations (e.g. PLSF) when you have something like $250k in student loans. With that said, if you're sure that you're going to stay in private practice, I think your point re: refinancing, making min payments, and stashing the extra money for when you get shitcanned makes sense.

zweitbester wrote: Yeah, I get the general paranoia about getting shitcanned from biglaw, but I don't get the general paranoia that one wouldn't be able to earn at least $100,000 a year thereafter. That salary is more than enough to service this debt.


$100k /year with being merely 3 years out of law school sounds really high for most non-NYC markets. $100k /year sucks in NYC, especially if you're going to need to make student loan payments out of that ($100k is like $65k /year take home in NYC, at best).

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Fri Aug 29, 2014 2:38 pm

and other favorable repayment considerations (e.g. PLSF) when you have something like $250k in student loans. With that said, if you're sure that you're going to stay in private practice, I think your point re: refinancing, making min payments, and stashing the extra money for when you get shitcanned makes sense.


Agreed. If you have the option to PLSF, it changes the math entirely. Everyone's situation is different.

$100k /year with being merely 3 years out of law school sounds really high for most non-NYC markets. $100k /year sucks in NYC, especially if you're going to need to make student loan payments out of that ($100k is like $65k /year take home in NYC, at best).


I actually don't think so. If you have a decent biglaw pedigree, I don't envision it being difficult to score a job paying at least $100k in Chicago, Houston, LA, SF, DC or Boston (I'm including biglaw jobs). Some of those markets have COL rivaling NYC, but most don't.

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XxSpyKEx
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Re: Student loan payments: Actual numbers

Postby XxSpyKEx » Fri Aug 29, 2014 4:17 pm

zweitbester wrote:
$100k /year with being merely 3 years out of law school sounds really high for most non-NYC markets. $100k /year sucks in NYC, especially if you're going to need to make student loan payments out of that ($100k is like $65k /year take home in NYC, at best).


I actually don't think so. If you have a decent biglaw pedigree, I don't envision it being difficult to score a job paying at least $100k in Chicago, Houston, LA, SF, DC or Boston (I'm including biglaw jobs). Some of those markets have COL rivaling NYC, but most don't.


It depends on what you're able to get after biglaw. The biglaw spinoff firms def pay $100k+, but there aren't that many of them in cities like Chicago. And there are a TON of "great" biglaw lit attorneys (i.e. ones who didn't get shitcanned/asked to leave) looking to to lateral. Those firms will that take those "great" attorneys well before they take the ones that were shitcanned/asked to leave. If your wind up doing some bullshit like personal injury after biglaw (which happens), you're not likely to be making 6-figures after biglaw.

A lot of what your options look like after biglaw also depend on what the market looks like then. If your were an ex-biglaw associate looking for a job in 2009, you're odds of finding something good were pretty low. If you're a ex-corporate biglaw attorney now, then your odds of finding something reasonable are much better.

It doesn't take that much pedigree to get biglaw today (pretty much just need to be the average t14 grad, at best), so I wouldn't put too much value into getting biglaw (unless you also had some stellar creds)

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Fri Aug 29, 2014 4:26 pm

It doesn't take that much pedigree to get biglaw today (pretty much just need to be the average t14 grad, at best), so I wouldn't put too much value into getting biglaw (unless you also had some stellar creds)


You're living in a bubble. You say that it doesn't take much pedigree to get biglaw today, but then you say you need a degree from one of the nation's most prestigious law schools. Which is it going to be?

It's easy to think we're a time a dozen when we live and work in a world where we're surrounded by people with credentials very similar to ours. But the reality couldn't be further from the truth, especially with regard to law students who were able to obtain biglaw during the financial crisis.

Further to the point, the lateral market is super hot right now... for qualified candidates. I am aware of pedigreed attorneys who have been laid off even as close to a few months ago and who have been unable to find something. But that's been the strong exception to the rule and it's pretty easy to point to a fatal flaw for that.

Anyways, I'm not sure what we're arguing. You've done your analysis and rendered your risk tolerance accordingly, as have I. I'm not about to change it or even try, to be honest, and everyone is different. But that's the way I think.

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JenDarby
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Re: Student loan payments: Actual numbers

Postby JenDarby » Thu Sep 04, 2014 4:25 pm

zweit (or anyone else)!!

My Grad plus loans range in interest rates from 6.4-7.9%.

Am I better off making a big payment towards the 7.9% loan or paying off the total amount of my accrued interest on the grad plus loans?

Isn't there a compounding aspect which favors paying off the accrued interest? Or am I better off just paying down the higher interest rate loans?

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Big Shrimpin
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Re: Student loan payments: Actual numbers

Postby Big Shrimpin » Thu Sep 04, 2014 8:03 pm

Just finalized SoFi. 3.1%.

Here we gooooo.

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prezidentv8
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Re: Student loan payments: Actual numbers

Postby prezidentv8 » Thu Sep 04, 2014 8:19 pm

Big Shrimpin wrote:Just finalized SoFi. 3.1%.

Here we gooooo.


Bout to jump onto that bandwagon myself.

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el madrileno
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Re: Student loan payments: Actual numbers

Postby el madrileno » Thu Sep 04, 2014 8:22 pm

tagged

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wojo98
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Re: Student loan payments: Actual numbers

Postby wojo98 » Wed Sep 17, 2014 10:00 am

Taggin'

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sinfiery
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Re: Student loan payments: Actual numbers

Postby sinfiery » Wed Sep 17, 2014 3:09 pm

With NYC Biglaw, can you itemize your NY State and NYC taxes?


Is 160k--->96k already including that?

Fed_Atty
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Re: Student loan payments: Actual numbers

Postby Fed_Atty » Wed Sep 17, 2014 3:22 pm

sinfiery wrote:With NYC Biglaw, can you itemize your NY State and NYC taxes?


Is 160k--->96k already including that?


I am guessing that the majority of single posters that do not own their residence are taking the standard deduction as it is likely greater than what they would get for itemizing.

bdubs
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Re: Student loan payments: Actual numbers

Postby bdubs » Wed Sep 17, 2014 4:08 pm

To those who refi'ed: any advantage to doing everything at once or were the rates the same regardless? Thinking about doing a refi of only my 7.9% loans for now.

Also WSJ recently covered a new refi offer from Citizens Financial (2.3 var, 4.74 fixed), no idea if it's really that good or not but figured it was worth sharing.

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JenDarby
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Re: Student loan payments: Actual numbers

Postby JenDarby » Wed Sep 17, 2014 4:39 pm

bdubs wrote:To those who refi'ed: any advantage to doing everything at once or were the rates the same regardless? Thinking about doing a refi of only my 7.9% loans for now.

Also WSJ recently covered a new refi offer from Citizens Financial (2.3 var, 4.74 fixed), no idea if it's really that good or not but figured it was worth sharing.

I was strongly considering this as well. I figured I will actually call Sofi and speak to them about options.

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sinfiery
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Re: Student loan payments: Actual numbers

Postby sinfiery » Wed Sep 17, 2014 4:40 pm

NavyJAG1 wrote:
sinfiery wrote:With NYC Biglaw, can you itemize your NY State and NYC taxes?


Is 160k--->96k already including that?


I am guessing that the majority of single posters that do not own their residence are taking the standard deduction as it is likely greater than what they would get for itemizing.


Standard deduction is 6200 and NYC/State taxes are like 12k+ or something + all the other stuff you can likely deduct


But I am not sure if you can deduct NYC/State taxes

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Tiago Splitter
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Re: Student loan payments: Actual numbers

Postby Tiago Splitter » Wed Sep 17, 2014 4:47 pm

sinfiery wrote:
NavyJAG1 wrote:
sinfiery wrote:With NYC Biglaw, can you itemize your NY State and NYC taxes?


Is 160k--->96k already including that?


I am guessing that the majority of single posters that do not own their residence are taking the standard deduction as it is likely greater than what they would get for itemizing.


Standard deduction is 6200 and NYC/State taxes are like 12k+ or something + all the other stuff you can likely deduct


But I am not sure if you can deduct NYC/State taxes

You can if you itemize.

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horriblegb
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Re: Student loan payments: Actual numbers

Postby horriblegb » Wed Sep 17, 2014 6:16 pm

bdubs wrote:To those who refi'ed: any advantage to doing everything at once or were the rates the same regardless? Thinking about doing a refi of only my 7.9% loans for now.

Also WSJ recently covered a new refi offer from Citizens Financial (2.3 var, 4.74 fixed), no idea if it's really that good or not but figured it was worth sharing.


FWIW I did exactly what you are considering to do. It ended up working very well for me when I went through a rough patch, I still had the safety net.

I am taking my chances as far as that goes I suppose but I am pretty happy to still have some flexibility but to know that my larger loan in $ and interest is at a much lower percentage.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Sat Sep 20, 2014 7:41 pm

Is assuming an after-tax income of $9,300/month wildly optimistic for NYC?

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Old Gregg
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Re: Student loan payments: Actual numbers

Postby Old Gregg » Sat Sep 20, 2014 7:46 pm

Anonymous User wrote:Is assuming an after-tax income of $9,300/month wildly optimistic for NYC?


Off of $160k? Holy shit yes. You're looking at mid-$6k if you live in one of the five burroughs.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Sat Sep 20, 2014 8:13 pm

zweitbester wrote:
Anonymous User wrote:Is assuming an after-tax income of $9,300/month wildly optimistic for NYC?


Off of $160k? Holy shit yes. You're looking at mid-$6k if you live in one of the five burroughs.


That's an effective tax rate of more than 50%. I don't believe you.
I was thinking $8500 might be more closer to reality.
Last edited by Anonymous User on Sat Sep 20, 2014 8:41 pm, edited 1 time in total.

brazleton
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Re: Student loan payments: Actual numbers

Postby brazleton » Sat Sep 20, 2014 8:27 pm

zweitbester wrote:
Anonymous User wrote:Is assuming an after-tax income of $9,300/month wildly optimistic for NYC?


Off of $160k? Holy shit yes. You're looking at mid-$6k if you live in one of the five burroughs.


Uh. No.

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gk101
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Re: Student loan payments: Actual numbers

Postby gk101 » Sat Sep 20, 2014 9:38 pm

zweitbester wrote:
Anonymous User wrote:Is assuming an after-tax income of $9,300/month wildly optimistic for NYC?


Off of $160k? Holy shit yes. You're looking at mid-$6k if you live in one of the five burroughs.

I think its closer to 8k/month

anonnymouse
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Re: Student loan payments: Actual numbers

Postby anonnymouse » Sun Sep 21, 2014 1:05 pm

gk101 wrote:
zweitbester wrote:
Anonymous User wrote:Is assuming an after-tax income of $9,300/month wildly optimistic for NYC?


Off of $160k? Holy shit yes. You're looking at mid-$6k if you live in one of the five burroughs.

I think its closer to 8k/month

According to --LinkRemoved-- which includes Federal, State, and City taxes, the monthly take-home for a single individual in NYC is slightly above $7800.

Adding in bonus puts average monthly take-home above $8000 but for calculating regular expenses, it's probably not prudent to factor in once/year bonus payments.

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XxSpyKEx
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Re: Student loan payments: Actual numbers

Postby XxSpyKEx » Sun Sep 21, 2014 6:00 pm

anonnymouse wrote:
gk101 wrote:
zweitbester wrote:
Anonymous User wrote:Is assuming an after-tax income of $9,300/month wildly optimistic for NYC?


Off of $160k? Holy shit yes. You're looking at mid-$6k if you live in one of the five burroughs.

I think its closer to 8k/month

According to --LinkRemoved-- which includes Federal, State, and City taxes, the monthly take-home for a single individual in NYC is slightly above $7800.

Adding in bonus puts average monthly take-home above $8000 but for calculating regular expenses, it's probably not prudent to factor in once/year bonus payments.


I think you're screwing up your deductions (or something). $7800 per month comes out to merely $93,600 on a $160k /year salary, not even including additional withholding such as health insurance. That's not correct. It's most like $8,400-8,500 per month with only taking out taxes for a single person (including one allowance for yourself). After you take out additional withholding, such as health insurance and what not, it'll probably be closer to $8100-8200 per month.

anonnymouse
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Re: Student loan payments: Actual numbers

Postby anonnymouse » Sun Sep 21, 2014 8:07 pm

XxSpyKEx wrote:I think you're screwing up your deductions (or something). $7800 per month comes out to merely $93,600 on a $160k /year salary, not even including additional withholding such as health insurance. That's not correct. It's most like $8,400-8,500 per month with only taking out taxes for a single person (including one allowance for yourself). After you take out additional withholding, such as health insurance and what not, it'll probably be closer to $8100-8200 per month.

Yeah I put no withholdings/allowances into the calculator.

However, if you're taking out health insurance, remember that that's coming off your top line and reducing your take-home. It's just not reduced dollar-for-dollar.

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Re: Student loan payments: Actual numbers

Postby Anonymous User » Mon Sep 22, 2014 11:23 pm

Tiago Splitter wrote:
sinfiery wrote:
NavyJAG1 wrote:
sinfiery wrote:With NYC Biglaw, can you itemize your NY State and NYC taxes?


Is 160k--->96k already including that?


I am guessing that the majority of single posters that do not own their residence are taking the standard deduction as it is likely greater than what they would get for itemizing.


Standard deduction is 6200 and NYC/State taxes are like 12k+ or something + all the other stuff you can likely deduct


But I am not sure if you can deduct NYC/State taxes

You can if you itemize.


if you are in AMT, in reality you don't get to deduct your state taxes on your fed return.




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