Student loan payments: get advice and actual numbers here Forum

[Foghornleghorn]

I'm looking at roughly $170k in debt at graduation. I think I'm going to take private loans to cover what I need above stafford (about $40k). Looking at rates it seems like I should get around 4% variable, and more importantly no upfront fees. Assuming I get a biglaw offer at the end of the summer, there's no real downside here, right? I figure i can aggressively pay the private loans off and paye/repaye the fed loans for the first two years just to be safe.

Can't tell if you are a 0L or a 2L. If you are the former, the plausibility of your biglaw assumption is entirely dependent on where you go to school.

[Anonymous User]

I'm looking at roughly $170k in debt at graduation. I think I'm going to take private loans to cover what I need above stafford (about $40k). Looking at rates it seems like I should get around 4% variable, and more importantly no upfront fees. Assuming I get a biglaw offer at the end of the summer, there's no real downside here, right? I figure i can aggressively pay the private loans off and paye/repaye the fed loans for the first two years just to be safe.

Can't tell if you are a 0L or a 2L. If you are the former, the plausibility of your biglaw assumption is entirely dependent on where you go to school.

2L with biglaw SA, generally 100% firm.

And nebby, discover loans and really good credit?

[Nebby]

I'm looking at roughly $170k in debt at graduation. I think I'm going to take private loans to cover what I need above stafford (about $40k). Looking at rates it seems like I should get around 4% variable, and more importantly no upfront fees. Assuming I get a biglaw offer at the end of the summer, there's no real downside here, right? I figure i can aggressively pay the private loans off and paye/repaye the fed loans for the first two years just to be safe.

Can't tell if you are a 0L or a 2L. If you are the former, the plausibility of your biglaw assumption is entirely dependent on where you go to school.

2L with biglaw SA, generally 100% firm.

And nebby, discover loans and really good credit?

I thought you were an 0L since you used future tense when obtaining your private loans.

[Anonymous User]

Yea, this is strictly to cover grad plus loans for 3L, which should be around $40k.

[Nebby]

Yea, this is strictly to cover grad plus loans for 3L, which should be around $40k.

Ah sounds like a sweet deal!

[Anonymous User]

**following**

[Anonymous User]

This may seem like an obvious question, but I can't seem to find the answer.

Say I have been on PAYE for 3 years, which has more or less left my student loan balance the same as when I entered repayment. In determining PAYE eligibility, is the relevant inquiry the standard repayment as it stands now over the remaining 7-year term of the loan? Or does is the standard repayment plan still based on a 10 year term? In other words, does being on PAYE "reset" the term of the standard repayment?

[Tiago Splitter]

This may seem like an obvious question, but I can't seem to find the answer.

Say I have been on PAYE for 3 years, which has more or less left my student loan balance the same as when I entered repayment. In determining PAYE eligibility, is the relevant inquiry the standard repayment as it stands now over the remaining 7-year term of the loan? Or does is the standard repayment plan still based on a 10 year term? In other words, does being on PAYE "reset" the term of the standard repayment?

It's always compared to the 10 year payment amount, but it won't matter for you because once you are accepted into PAYE you never lose eligibility.

[Nebby]

**following**

Doesn't work if you post anon

[ballouttacontrol]

**following**

Doesn't work if you post anon

Stop trying to get people to out themselves in sensitive posts bro

[Nebby]

**following**

Doesn't work if you post anon

Stop trying to get people to out themselves in sensitive posts bro

.....? I assumed this person posted ITT to follow the thread in their "View Posts" tab. It doesn't show up in there if you only post anon.

[JenDarby]

nebbs, he's joking

[Nebby]

nebbs, he's joking

Smdh I shouldn't post before coffee

[Danger Zone]

nebbs, he's joking

Smdh I shouldn't post before coffee

[Nebby]

nebbs, he's joking

Smdh I shouldn't post before coffee

I was going to preempt this joke but opted to see if someone could come up with a good one

[jackattack17]

TLS, it's been a while. I'm 18 or so months into repayment. Have about $50k left in grad plus and stafford loans left from ls, overall rate is about 6.5%. I work in government in a high COL city, salary about $90k now. I'm on the standard 10 year repayment plan, paying about $650/mo plus $50-$200 extra per month when i can manage it. I plan to remain in pi/govt indefinitely but that could change I suppose if and when my fiancé and i move. My agency has a repayment program but it's a competitive process and I'm certainly not counting on that, though I've applied.

My questions:
1. should i continue on my current repayment plan? or should i pay minimum payments for now, banking on 10 year forgiveness? can i even get lower payments, with my relatively low loan balance and high income?
2. should i refinance with sofi or something? there's a chance I'll get agency repayment help but that goes out the window if my loans are refinanced privately.
3. other things i should be thinking about?

Thanks

[Anonymous User]

TLS, it's been a while. I'm 18 or so months into repayment. Have about $50k left in grad plus and stafford loans left from ls, overall rate is about 6.5%. I work in government in a high COL city, salary about $90k now. I'm on the standard 10 year repayment plan, paying about $650/mo plus $50-$200 extra per month when i can manage it. I plan to remain in pi/govt indefinitely but that could change I suppose if and when my fiancé and i move. My agency has a repayment program but it's a competitive process and I'm certainly not counting on that, though I've applied.

My questions:
1. should i continue on my current repayment plan? or should i pay minimum payments for now, banking on 10 year forgiveness? can i even get lower payments, with my relatively low loan balance and high income?
2. should i refinance with sofi or something? there's a chance I'll get agency repayment help but that goes out the window if my loans are refinanced privately.
3. other things i should be thinking about?

Thanks

It's a risk-reward question. And it's basically impossible to answer well without knowing how competitive your agency's repayment program is, or what your reasonable chances are of getting it--or, for that matter, what it entails (does it require a full 10-year commitment to get any, or does it pay some of your loans off as you go regardless of how long you stay at your agency?).

Assuming you have some shot of getting the repayment program and/or you think there's a decent shot you'll stay at the agency for long enough to get the Gov's generic 10-year forgiveness, I'd probably pay minimum payments and put the extra money into either a high-yield savings account or some reasonable conservative mutual funds. Although you probably won't get a 6.5% return from those investments, the 2-5% that you'll earn will reduce the cost of not repaying your loans more quickly. But whether it makes more sense to pay your loans a little more quickly, or to save that extra money in the event you fall out of some loan assistance program, really depends on the reasonable likelihood of each. If you're 99% not going to stay in your loan assistance program, then you'd be a fool to not continue what you're currently doing, for example.

[Anonymous User]

At risk of sounding like a complete jackass, I'll post an update too.

I'm about 9 months into repayment. Used my first bonus (small but it was something) to pay off my highest rate PLUS loan. Have about $65k of Stafford and private loans left; overall rate is also around 6.5%. I'm more or less working big law in a low COL city. Only real "big thing" I've done is gotten a new car to replace the aging hunk that got me through law school.

I'm not living the glamorous NYC biglaw lifestyle that everyone else on this form seems to be, but I'm making good progress. I just keep telling myself that in a few years I'll be scot-free with a good income.

[jackattack17]

TLS, it's been a while. I'm 18 or so months into repayment. Have about $50k left in grad plus and stafford loans left from ls, overall rate is about 6.5%. I work in government in a high COL city, salary about $90k now. I'm on the standard 10 year repayment plan, paying about $650/mo plus $50-$200 extra per month when i can manage it. I plan to remain in pi/govt indefinitely but that could change I suppose if and when my fiancé and i move. My agency has a repayment program but it's a competitive process and I'm certainly not counting on that, though I've applied.

My questions:
1. should i continue on my current repayment plan? or should i pay minimum payments for now, banking on 10 year forgiveness? can i even get lower payments, with my relatively low loan balance and high income?
2. should i refinance with sofi or something? there's a chance I'll get agency repayment help but that goes out the window if my loans are refinanced privately.
3. other things i should be thinking about?

Thanks

It's a risk-reward question. And it's basically impossible to answer well without knowing how competitive your agency's repayment program is, or what your reasonable chances are of getting it--or, for that matter, what it entails (does it require a full 10-year commitment to get any, or does it pay some of your loans off as you go regardless of how long you stay at your agency?).

Assuming you have some shot of getting the repayment program and/or you think there's a decent shot you'll stay at the agency for long enough to get the Gov's generic 10-year forgiveness, I'd probably pay minimum payments and put the extra money into either a high-yield savings account or some reasonable conservative mutual funds. Although you probably won't get a 6.5% return from those investments, the 2-5% that you'll earn will reduce the cost of not repaying your loans more quickly. But whether it makes more sense to pay your loans a little more quickly, or to save that extra money in the event you fall out of some loan assistance program, really depends on the reasonable likelihood of each. If you're 99% not going to stay in your loan assistance program, then you'd be a fool to not continue what you're currently doing, for example.

The program is fairly competitive, or so I've heard, so I think my chances are pretty low of getting in (maybe 10-25%?). If i were to get it, agency would match my annual payments up to $6k. I would need to sign a service agreement, but it's only 3 years.

[BrokenMouse]

Debt - $0 (scholarship)
Payments - $0 (live in parents' basement).
others - $1500-2000 to help parents pay for things since i live with them
-----------------------------------------------------------------------------
income - $TBA. About to get an offer from my current employer.

[Danger Zone]

Debt - $0 (scholarship)
Payments - $0 (live in parents' basement)
others - $1000-1500 help with parents payment
-----------------------------------------------------------------------------
income - $TBA. About to get an offer from my current employer.

Very helpful, ty for your contribution

Edited to show BrokenMouse is the idiot poster above.

[JenDarby]

Debt - $0 (scholarship)
Payments - $0 (live in parents' basement)
others - $1000-1500 help with parents payment
-----------------------------------------------------------------------------
income - $TBA. About to get an offer from my current employer.

Very helpful, ty for your contribution

pretty sure this is where outing for anon abuse is most appropriate

[suralin]

agreed

[cannibal ox]

Shocking.

[anonnymouse]

NY to 180 means you'll have about $1k/mo extra to throw at loans (or add to the tax bomb insurance fund if you are JohanDumbass). Or 1 extra mottle or bauble per month.