Student loan payments: get advice and actual numbers here Forum

[Mr. Peanutbutter]

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.

Some rep came to do our exit counseling and said we could apply now, and I got some email (but of course can't find it now) encouraging me to apply early. I'll report back if it gets kicked, but since we're graduating in like two weeks it won't be that big of an issue.

[Johann]

Yeah they probably have fixed this theN. I graduated a while ago.

[Anonymous User]

Debt: 95k
Income: 85k
Rent: $1k

3L graduating soon. Is there any reason for me not to refinance and get a better interest rate?

Also what is the most I could reasonably pay down each month? I'll be in Texas, so low COL.

[El Pollito]

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.

could someone tell my dumbass why i'd want REPAYE? does it affect me if i'm planning to pay it off pretty fast?

[Anonymous User]

Debt: 95k
Income: 85k
Rent: $1k

3L graduating soon. Is there any reason for me not to refinance and get a better interest rate?

Also what is the most I could reasonably pay down each month? I'll be in Texas, so low COL.

The reasons not to refinance are the same as for anyone - you lose federal protection. How secure is your job? Also, the rates you might get with your income to debt ratio may not be ideal. My income is 80, debt was 75, and I applied to SoFi and some of the other refinancers and didn't get any offers for a fixed rate that made it worth it. My average interest is about 6.2%, and the best fixed rate I saw was slightly below 5%. May depend on your credit, but mine is about 770.

But, regardless of refinance, with that modest debt load and decent income you can pay it down quick. My rent is also 1K, and I pay down approximately $3,200/month. I started work in September 2015, and my goal is to be debt free by September 2017. I won't have much in the way of savings, but can't wait to be debt free.

[ballouttacontrol]

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.

could someone tell my dumbass why i'd want REPAYE? does it affect me if i'm planning to pay it off pretty fast?

no difference if you are paying aggressively. (re)paye just allows you to lower your minimum payments to save more $. REPAYE also subsidizes 50% of unpaid interest if your minimum payments aren't enough to cover the interest on principal

[El Pollito]

i just repayed after i saw what i'd have to pay per month

[kay2016]

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.

Some rep came to do our exit counseling and said we could apply now, and I got some email (but of course can't find it now) encouraging me to apply early. I'll report back if it gets kicked, but since we're graduating in like two weeks it won't be that big of an issue.

I got an email to that extent too but when I went through it said something about not being able to apply yet.. I'll wait a week and then go ahead and try

[jess]

.

[Roundhill]

Will these assistance programs (Like IBR) still exist once Donald Trump is elected president? Serious question. My understanding is that even Obama has been trying to cut back on federal loan forgiveness in recent years. OL year looking to enter LS in the fall.

[Nekrowizard]

Will these assistance programs (Like IBR) still exist once Donald Trump is elected president?

Donald Trump will eliminate your loans with a wave of his mighty hand. Do not fear, brother, and BUILD WALL.

[Johann]

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.

could someone tell my dumbass why i'd want REPAYE? does it affect me if i'm planning to pay it off pretty fast?

no. didn't you get a sub 2% rate? Even I would lock that in.

My advice in here for biglawyers is PAYE or REPAYE as a way to tread water and confirm biglaw is what you want while you have low AGI tax returns that you can be a massive cash boon in the short term. You know what it entails. REPAYE isn't going to offer you anything since your last tax return is big and you aren't planning on leaving soon.

[Johann]

i just repayed after i saw what i'd have to pay per month

sorry just saw this after writing my last post. apparently you can get in on cash mountain. so then yes, repaye.

[Johann]

Will these assistance programs (Like IBR) still exist once Donald Trump is elected president? Serious question. My understanding is that even Obama has been trying to cut back on federal loan forgiveness in recent years. OL year looking to enter LS in the fall.

They'll exist as long as social security exists.

[dixiecupdrinking]

Will these assistance programs (Like IBR) still exist once Donald Trump is elected president? Serious question. My understanding is that even Obama has been trying to cut back on federal loan forgiveness in recent years. OL year looking to enter LS in the fall.

No one knows. Most likely scenario is probably that the programs get chipped away, especially for grad school, but existing borrowers get grandfathered. That's the trend so far. But yeah a radical congress and administration could go nuclear on it, who knows.

[bjohnsobf]

Given that trump and Cruz and the tea party want to shut down the dept of education I don't know who administers it. What happens to fedloan servicing I'm not sure if they are doe or a contract

[Mr. Peanutbutter]

Hey, guys! Did you know USDs are just fiat currency? Shouldn't we be doing all our financial planning knowing that there's a likelihood they could go away?

[Johann]

Will these assistance programs (Like IBR) still exist once Donald Trump is elected president? Serious question. My understanding is that even Obama has been trying to cut back on federal loan forgiveness in recent years. OL year looking to enter LS in the fall.

No one knows. Most likely scenario is probably that the programs get chipped away, especially for grad school, but existing borrowers get grandfathered. That's the trend so far. But yeah a radical congress and administration could go nuclear on it, who knows.

No. The trend is complete student loan debt forgiveness. Every program has been progressively better for a borrower of 200k. This shit of saying the programs will be chipped away ignores the last 20 years of student debt. Here's a brief history:

Students have to get student loans from private party lenders (e.g. banks) that are not dischargeable in bankruptcy. No payment plans other than default where the bank can collect its default judgment on your assets.
Students can get student loans through the government that are not dischargeable in bankruptcy. Income based repayment plans starting at 15% of income for 25 years.
Students can get student laons through govt that are non dischargeable in bankruptcy. Income based repayment plans start at 10% for 20 years. 10% for govt/501c3 workers for 10 years; no tax bomb.
Courts started discharging some student loans that were originally not dischargeable in bankruptcy.
Obama short circuited the courts and discharged some non-dischargeable student loans.
Next???
Bills have been proposed that would allow govt debtors to refi using lower interest rates and keeping fed protections
Eliminate tax bomb on 20 year PAYE and REPAYE
A dude running campaigning to represent his party in the presidential election has a major component of his platform built on removing student loan debt.

Can't wait for the next scary piece of legislation these guys pass!!!

[dixiecupdrinking]

You're ignoring that Obama had proposed a cap for PSLF that would have rendered it all but useless for grad school borrowers, and that REPAYE makes it so that you can't file married-separately and extends the forgiveness to 25 years for grad borrowers. There are clear efforts to make the program less appealing to older borrowers.

I doubt they will pull the rug out from under people who borrowed under old rules, but no one is passing these rules with lawyers and doctors making six figures as the intended beneficiaries, and no one will shed a tear if they get cut out in the future.

[mvp99]

You're ignoring that Obama had proposed a cap for PSLF that would have rendered it all but useless for grad school borrowers, and that REPAYE makes it so that you can't file married-separately and extends the forgiveness to 25 years for grad borrowers. There are clear efforts to make the program less appealing to older borrowers.

I doubt they will pull the rug out from under people who borrowed under old rules, but no one is passing these rules with lawyers and doctors making six figures as the intended beneficiaries, and no one will shed a tear if they get cut out in the future.

the whole system sucks.. our generation (people born after 1985 really) is screwed... most of us will never be able to afford a decent house and our kids wont be able to go to college

[JenDarby]

(I think)

[jess]

.

[Mr. Peanutbutter]

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.

Some rep came to do our exit counseling and said we could apply now, and I got some email (but of course can't find it now) encouraging me to apply early. I'll report back if it gets kicked, but since we're graduating in like two weeks it won't be that big of an issue.

I got an email to that extent too but when I went through it said something about not being able to apply yet.. I'll wait a week and then go ahead and try

Just got my cert email from paye (wtf why are they emailing me at 3 am?) and I was approved. WOOOOO at paying $160/month for my first year in big law.

[El Pollito]

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.

could someone tell my dumbass why i'd want REPAYE? does it affect me if i'm planning to pay it off pretty fast?

no. didn't you get a sub 2% rate? Even I would lock that in.

My advice in here for biglawyers is PAYE or REPAYE as a way to tread water and confirm biglaw is what you want while you have low AGI tax returns that you can be a massive cash boon in the short term. You know what it entails. REPAYE isn't going to offer you anything since your last tax return is big and you aren't planning on leaving soon.

yes but i need to have like 15 - 20K in the bank and of course i put it all to loans, so I've got a while before I can do it. my parents offered me the money but i feel weird involving them so i said no. i figured i'd repaye since it apparently subsidizes more interest than IBR unless I can't read, which is quite possible given the last few months at work.

[Johann]

yes but i need to have like 15 - 20K in the bank and of course i put it all to loans, so I've got a while before I can do it. my parents offered me the money but i feel weird involving them so i said no. i figured i'd repaye since it apparently subsidizes more interest than IBR unless I can't read, which is quite possible given the last few months at work.

yeah repaye > ibr across the board.