Student loan payments: get advice and actual numbers here Forum

[Anonymous User]

Quick Q: 3L about to graduate and start biglaw in the fall. Planning to refinance in the next couple of months. When I do, can I take out a bit more than my payoff amount--i.e. I want to have an extra thousand or so to play w/ before work starts. Can I do this, or when you refinance are you taking out exactly your payoff amount for the original loan?

[zot1]

Quick Q: 3L about to graduate and start biglaw in the fall. Planning to refinance in the next couple of months. When I do, can I take out a bit more than my payoff amount--i.e. I want to have an extra thousand or so to play w/ before work starts. Can I do this, or when you refinance are you taking out exactly your payoff amount for the original loan?

You are refinancing an existing loan.

[Anonymous User]

Save as much as you can as fast as you can so you can gtfo of big law

Fair enough. I guess I'll just have to wait and see how much biglaw drudgery I can reasonably tolerate. As of now I'd love to try and survive for 5 years while aggressively paying down my debt and then exit in house. If I can last longer than that and build up a nice nest egg then I will try that. If I don't last as long I'd like then I can rely on LIPP (though I guess your point is valid here because I could live more comfortably if I have money saved up at this point). Is that an unreasonable approach?

It's really difficult to decide which path to take because I have no idea how long I will last in biglaw. I suppose I might try saving up money at first until I am more comfortable with my apparent biglaw lifespan, then use that saved money to chip away at the loans if I survive, or leave biglaw and have decent savings built up.

My bad, I didn't realize you were planning to have a roommate. In that case, your numbers may be more accurate.

I don't know specifically about health insurance for biglaw, but when I've read the biglaw threads, it's pretty clear that the amount is higher than what you have here.

Also, if you really want to keep a tight budget, you should actually budget food. I've struggled to make this work myself because eating out is way too much fun.

I'll definitely try to budget food since I too am bad about cooking at home. I don't imagine working biglaw will result in a changed attitude towards cooking, but these loans breathing down my neck might.

[zot1]

I mean, you could be right. But, I have loans too and make less money than you will. However, having fun is way too tempting, specially when you have a long day at work. And my days are not as long as you will.

A universal truth: it's hard to work so hard to make money and not spend it.

[gk101]

I mean, you could be right. But, I have loans too and make less money than you will. However, having fun is way too tempting, specially when you have a long day at work. And my days are not as long as you will.

A universal truth: it's hard to work so hard to make money and not spend it.

Yup. I was looking at my credit card spending for the past year and there is a really strong correlation between months where I billed 230+ hours and the highest spending months

[jess]

.

[Anonymous User]

Graduating in a few weeks, here is my info:

Debt: 121k. All fed student loans with various rates, averaging at 6.3%
Payments: About $1,360/month under standard 10 year plan
Income: 160K

Important info: NYC Biglaw. Currently living very cheaply in an outer-borough for 400/month with roommates.

My current plan: Stay living in the super cheap apartment as long as possible. I really don't mind it and the commute isnt TOO bad (about 50 minutes door to door). Max out 401k. Pay at least 3k towards my loans per month, focusing on high interest rate loans first. Save whatever I have left until I have a decent emergency fund of about 25k, then increase my monthly loan payments even higher to maybe 4k.

If anyone has any suggestions or improvements I can make to this i'm all ears.

[gk101]

Graduating in a few weeks, here is my info:

Debt: 121k. All fed student loans with various rates, averaging at 6.3%
Payments: About $1,360/month under standard 10 year plan
Income: 160K

Important info: NYC Biglaw. Currently living very cheaply in an outer-borough for 400/month with roommates.

My current plan: Stay living in the super cheap apartment as long as possible. I really don't mind it and the commute isnt TOO bad (about 50 minutes door to door). Max out 401k. Pay at least 3k towards my loans per month, focusing on high interest rate loans first. Save whatever I have left until I have a decent emergency fund of about 25k, then increase my monthly loan payments even higher to maybe 4k.

If anyone has any suggestions or improvements I can make to this i'm all ears.

feasible with your debt load. Just be aware that your expenses will likely be higher than what you are budgeting for right now

Also, does that 121k include interest that has accumulated over the last 3 years. If not, add another 10k or so to that balance

[raptors_delight]

I just applied to switch from IBR to REPAYE today. I'm reading on reddit that the switch takes months and months. I have to recertify for IBR by 6/27. Do I still need to recertify if I just submitted the REPAYE app that made me log on to the IRS website? If so, will recertifying fuck up (or confuse fedloans) my REPAYE switch?

My application for REPAYE was processed by MyFedLoan in less than three weeks. That was an initial IDR application, though—not an application to switch from one plan to another—so YMMV.

[Anonymous User]

Graduating in a few weeks, here is my info:

Debt: 121k. All fed student loans with various rates, averaging at 6.3%
Payments: About $1,360/month under standard 10 year plan
Income: 160K

Important info: NYC Biglaw. Currently living very cheaply in an outer-borough for 400/month with roommates.

My current plan: Stay living in the super cheap apartment as long as possible. I really don't mind it and the commute isnt TOO bad (about 50 minutes door to door). Max out 401k. Pay at least 3k towards my loans per month, focusing on high interest rate loans first. Save whatever I have left until I have a decent emergency fund of about 25k, then increase my monthly loan payments even higher to maybe 4k.

If anyone has any suggestions or improvements I can make to this i'm all ears.

feasible with your debt load. Just be aware that your expenses will likely be higher than what you are budgeting for right now

Also, does that 121k include interest that has accumulated over the last 3 years. If not, add another 10k or so to that balance

The loan figure does include interest. My principle is about 110K. And yea I didnt provide any estimates for expenses other than rent, so that "whatever is left" figure for the savings fund is going to vary widely. But I calculated that with adding expenses for food, healthcare, going-out etc I should still be able to save at least 1k/month.

[gk101]

I'm just saying, from experience, that whatever you are estimating will be your expenses each month, it will likely end up being higher. Also it makes more sense to save for an emergency fund before you start paying down 3k/month

[Danger Zone]

I just applied to switch from IBR to REPAYE today. I'm reading on reddit that the switch takes months and months. I have to recertify for IBR by 6/27. Do I still need to recertify if I just submitted the REPAYE app that made me log on to the IRS website? If so, will recertifying fuck up (or confuse fedloans) my REPAYE switch?

My application for REPAYE was processed by MyFedLoan in less than three weeks. That was an initial IDR application, though—not an application to switch from one plan to another—so YMMV.

Seconded, about three weeks for me too.

[ballouttacontrol]

as a graduating 3L, when I do I need to submit an application or wtv for REPAYE?

[Mr. Peanutbutter]

as a graduating 3L, when I do I need to submit an application or wtv for REPAYE?

I already submitted mine b/c of the horror stories I've heard about how long they take.

[A. Nony Mouse]

I just applied to switch from IBR to REPAYE today. I'm reading on reddit that the switch takes months and months. I have to recertify for IBR by 6/27. Do I still need to recertify if I just submitted the REPAYE app that made me log on to the IRS website? If so, will recertifying fuck up (or confuse fedloans) my REPAYE switch?

You just have to recertify a year after your last recertification, and since you'd have to submit your income info for them to calculate your REPAYE payment, I'm pretty sure that will give you another 12 months and you won't need to do so in June.

Also, they processed my switch from IBR to REPAYE in about 3-4 weeks.

[Anonymous User]

Debt: about $100k (but with $50-60k in savings)
Payments: about $1k/month (but refinanced at 2.75% fixed)
Income: $170k (market-paying second-year)

Plan: At this point I pay the minimum and save everything else. I absolutely hate this job and think about quitting on a hourly or even on-the-minute basis. For reference, I'm no K-JD and worked in corporate finance before law school.

Important info: I graduated with somewhere around $115k. When I was prepping for the LSAT, I told myself I wouldn't go if it would cost me much more than $100k in debt, and I had savings at the time. I passed on a CCN for a T14 with a decent scholarship. Corporate biglaw is a terrible, terrible job. Worse, in my opinion, than this forum makes it seem. Do not take the decision to go to law school lightly, and strongly consider working as a paralegal to figure out if you'd like it.

[Anonymous User]

Debt: about $100k (but with $50-60k in savings)
Payments: about $1k/month (but refinanced at 2.75% fixed)
Income: $170k (market-paying second-year)

Plan: At this point I pay the minimum and save everything else. I absolutely hate this job and think about quitting on a hourly or even on-the-minute basis. For reference, I'm no K-JD and worked in corporate finance before law school.

Important info: I graduated with somewhere around $115k. When I was prepping for the LSAT, I told myself I wouldn't go if it would cost me much more than $100k in debt, and I had savings at the time. I passed on a CCN for a T14 with a decent scholarship. Corporate biglaw is a terrible, terrible job. Worse, in my opinion, than this forum makes it seem. Do not take the decision to go to law school lightly, and strongly consider working as a paralegal to figure out if you'd like it.

Eh, I worked as a paralegal before law school for a litigation firm. I ended up going the corporate route (because you don't actually know what you will be doing after summers). It is still pretty rough. I am unsure the grass is greener on the litigation side, but they seem to complain less about it. In any case, I basically have to stick this out for 5 years to pay off my huge loan debt.

[Mr. Peanutbutter]

A wild FedLoans email appears!

Hello MLK&CKIES,

As you know, we recently received your request for an Income-Driven Repayment (IDR) plan. Thank you! We know that you are eager to have your payments recalculated. Your request is very important to us, and we are diligently working on all requests in the order in which they are received.

At this time, we are currently experiencing a high volume of IDR requests. We will send you information about your request as soon as possible. If you are unable to make your current payments, we will review your account in full to see if we can cover any outstanding amounts due when we review your request.

Remember - you can visit your online account at MyFedLoan.org any time to review your account status, check your paperless inbox, or submit requests. If your payments are past due and you need to postpone them while your IDR request is under review, we recommend that you request to postpone your payments for no more than 20 days in the future. This will ensure your request to postpone your payments does not interfere with the processing of your IDR request.

Thank you again for your patience as we work through this unexpectedly high volume of requests.

MAKE YOUR APPLICATIONS NOW FOLKS

[kay2016]

A wild FedLoans email appears!

Hello MLK&CKIES,

As you know, we recently received your request for an Income-Driven Repayment (IDR) plan. Thank you! We know that you are eager to have your payments recalculated. Your request is very important to us, and we are diligently working on all requests in the order in which they are received.

At this time, we are currently experiencing a high volume of IDR requests. We will send you information about your request as soon as possible. If you are unable to make your current payments, we will review your account in full to see if we can cover any outstanding amounts due when we review your request.

Remember - you can visit your online account at MyFedLoan.org any time to review your account status, check your paperless inbox, or submit requests. If your payments are past due and you need to postpone them while your IDR request is under review, we recommend that you request to postpone your payments for no more than 20 days in the future. This will ensure your request to postpone your payments does not interfere with the processing of your IDR request.

Thank you again for your patience as we work through this unexpectedly high volume of requests.

MAKE YOUR APPLICATIONS NOW FOLKS

I graduate in a couple weeks and so all my payments don't start for however long, do I need to go ahead and apply to PAYE? I think I saw something that said I couldn't yet apply but maybe not?

[t-14orbust]

Debt: about $100k (but with $50-60k in savings)
Payments: about $1k/month (but refinanced at 2.75% fixed)
Income: $170k (market-paying second-year)

Plan: At this point I pay the minimum and save everything else. I absolutely hate this job and think about quitting on a hourly or even on-the-minute basis. For reference, I'm no K-JD and worked in corporate finance before law school.

Important info: I graduated with somewhere around $115k. When I was prepping for the LSAT, I told myself I wouldn't go if it would cost me much more than $100k in debt, and I had savings at the time. I passed on a CCN for a T14 with a decent scholarship. Corporate biglaw is a terrible, terrible job. Worse, in my opinion, than this forum makes it seem. Do not take the decision to go to law school lightly, and strongly consider working as a paralegal to figure out if you'd like it.

can you PM me?

[Mr. Peanutbutter]

A wild FedLoans email appears!

Hello MLK&CKIES,

As you know, we recently received your request for an Income-Driven Repayment (IDR) plan. Thank you! We know that you are eager to have your payments recalculated. Your request is very important to us, and we are diligently working on all requests in the order in which they are received.

At this time, we are currently experiencing a high volume of IDR requests. We will send you information about your request as soon as possible. If you are unable to make your current payments, we will review your account in full to see if we can cover any outstanding amounts due when we review your request.

Remember - you can visit your online account at MyFedLoan.org any time to review your account status, check your paperless inbox, or submit requests. If your payments are past due and you need to postpone them while your IDR request is under review, we recommend that you request to postpone your payments for no more than 20 days in the future. This will ensure your request to postpone your payments does not interfere with the processing of your IDR request.

Thank you again for your patience as we work through this unexpectedly high volume of requests.

MAKE YOUR APPLICATIONS NOW FOLKS

I graduate in a couple weeks and so all my payments don't start for however long, do I need to go ahead and apply to PAYE? I think I saw something that said I couldn't yet apply but maybe not?

I'm also graduating in a few short weeks. You can (and should) apply now. Be sure to make whatever selection it is to keep your loans in deferral.

[Tiago Splitter]

If it makes you guys feel any better I signed up for PAYE in like November and it hasn't been a problem.

[mvp99]

Graduating in a few weeks, here is my info:

Debt: 121k. All fed student loans with various rates, averaging at 6.3%
Payments: About $1,360/month under standard 10 year plan
Income: 160K

Important info: NYC Biglaw. Currently living very cheaply in an outer-borough for 400/month with roommates.

My current plan: Stay living in the super cheap apartment as long as possible. I really don't mind it and the commute isnt TOO bad (about 50 minutes door to door). Max out 401k. Pay at least 3k towards my loans per month, focusing on high interest rate loans first. Save whatever I have left until I have a decent emergency fund of about 25k, then increase my monthly loan payments even higher to maybe 4k.

If anyone has any suggestions or improvements I can make to this i'm all ears.

How much is your rent? where do you live?

[Mr. Peanutbutter]

Graduating in a few weeks, here is my info:

Debt: 121k. All fed student loans with various rates, averaging at 6.3%
Payments: About $1,360/month under standard 10 year plan
Income: 160K

Important info: NYC Biglaw. Currently living very cheaply in an outer-borough for 400/month with roommates.

My current plan: Stay living in the super cheap apartment as long as possible. I really don't mind it and the commute isnt TOO bad (about 50 minutes door to door). Max out 401k. Pay at least 3k towards my loans per month, focusing on high interest rate loans first. Save whatever I have left until I have a decent emergency fund of about 25k, then increase my monthly loan payments even higher to maybe 4k.

If anyone has any suggestions or improvements I can make to this i'm all ears.

How much is your rent? where do you live?

$400/month. Somewhere in the outer-boroughs.

[Johann]

If it makes you guys feel any better I signed up for PAYE in like November and it hasn't been a problem.

I did this too.

Also, I don't think you can apply while you're still enrolled in school so your app might get kicked back a couple times.