How fast can you REALLY pay your loans? Forum

[Old Gregg]

I can and do beat 2.93% on my investments with my eyes closed. At 7% you are hard pressed to find anything that beats unless you actively manage your investments to a certain level. At 2.93%, you're an idiot if you can't. Sorry for being blunt.

[09042014]

I can and do beat 2.93% on my investments with my eyes closed. At 7% you are hard pressed to find anything that beats unless you actively manage your investments to a certain level. At 2.93%, you're an idiot if you can't. Sorry for being blunt.

What are you doing? I don't have the balls to do anything other than just throw my money in Vangaurd 500.

[t-14orbust]

How does SoFi work exactly?

[thsmthcrmnl]

Darien Rowayton is some random bank in Connecticut that's even cheaper than SoFi.

[Old Gregg]

Darien Rowayton is some random bank in Connecticut that's even cheaper than SoFi.

Yes, but ceiling on the variable is atrocious, almost predatory.

[09042014]

Darien Rowayton is some random bank in Connecticut that's even cheaper than SoFi.

Yes, but ceiling on the variable is atrocious, almost predatory.

You can pay .25% extra have it limited to 9%. I'm going to compare with Sofi and see which gives me a better rate.

[thesealocust]

I can and do beat 2.93% on my investments with my eyes closed. At 7% you are hard pressed to find anything that beats unless you actively manage your investments to a certain level. At 2.93%, you're an idiot if you can't. Sorry for being blunt.

What are you doing? I don't have the balls to do anything other than just throw my money in Vangaurd 500.

Congratulations, your expected return is higher than 2.93% (there will obviously be substantial variation over time, but the dividend payments from an S&P 500 index fund come damn close to 2% on their own even before the appreciation of the stocks the fund holds)

The key to high investment returns is being able to give up obtaining them in a certain time frame. If you need an X% return within a specific and small number of years, that will be hard or impossible. If you're willing to invest and let it ride, just by stocks, chill, and earn money.

[09042014]

I can and do beat 2.93% on my investments with my eyes closed. At 7% you are hard pressed to find anything that beats unless you actively manage your investments to a certain level. At 2.93%, you're an idiot if you can't. Sorry for being blunt.

What are you doing? I don't have the balls to do anything other than just throw my money in Vangaurd 500.

Congratulations, your expected return is higher than 2.93% (there will obviously be substantial variation over time, but the dividend payments from an S&P 500 index fund come damn close to 2% on their own even before the appreciation of the stocks the fund holds)

The key to high investment returns is being able to give up obtaining them in a certain time frame. If you need an X% return within a specific and small number of years, that will be hard or impossible. If you're willing to invest and let it ride, just by stocks, chill, and earn money.

Well, that's the problem with variable rate student loans over a ten year period with rocky job outcomes. I do sort of need the money now.

[Big Shrimpin]

Is there a settled consensus on what happens with ur sofi loanz when u get shitcanned from biglaw after 4-5 years?

Cuz if it doesn't involve killself, I'll consider sofi.

Also like idea of buying like df mentioned.

Fuck me for putting myself in this situation.

[09042014]

Is there a settled consensus on what happens with ur sofi loanz when u get shitcanned from biglaw after 4-5 years?

You need to keep paying them right?

[thsmthcrmnl]

Darien Rowayton is some random bank in Connecticut that's even cheaper than SoFi.

Yes, but ceiling on the variable is atrocious, almost predatory.

You can pay .25% extra have it limited to 9%. I'm going to compare with Sofi and see which gives me a better rate.

They threw in the cap for free on mine. I didn't even ask.

[thsmthcrmnl]

Also, since I realized I sound like a shill, I would encourage anyone considering DRB to look at its laughable Yelp reviews. (I myself have found the bank to be fine.)

[Elston Gunn]

Is there a settled consensus on what happens with ur sofi loanz when u get shitcanned from biglaw after 4-5 years?

You need to keep paying them right?

Don't know the details but there's some kind of forebearance period if you actually lose your job (rather than just exiting to something lower-paying).

[middlemarch]

Another start-up, Common Bond, offers a 5.99% fixed APR 10-year loan. My understanding is that everyone who qualifies for the loan gets the same rate (so it's not a "as-low-as X%" deal). Could be worth checking out. One catch is that you had to have attended one of their approved schools, basically T20 for JDs.

[Anonymous User]

If you're working in CA or similar markets, is it possible pay 80k in loans a year for possibly the first year or so?

Take-home in CA is 108k.
I plan on living like a law student for another year at 28k a year + tax refund, if necessary.
I used to make 22k after taxes before law school so this seems doable.

Anybody done this with biglaw? Am I missing any factors?

[Anonymous User]

What would it take for you to do 5k a month?

98k is

8k a month.

(1650 Rent)

(400 Utilities)

(100 for metro)

= 5860 and that's without spending a dime on anything else.

(2000 food, drinks, and entertainment)

(1000 random spending)

= 2860 is a pretty good realistic number.

$3k /month on food, drinks, entertainment, and random spending, on top of a $2050 /month apartment (including utilities) is a little outrageous. I mean it sounds like a pretty awesome lifestyle (and I wouldn't blame you for living it), but isn't definitely not the bare essentials I want to pay my loans down/save money attitude. I lived in DC, and you can make live okay (without roommates) for around $25k /year, especially if you're willing to live in the suburbs. You can live really well for roughly $3k /month, or $36k /year. Even in the latter scenario, you'd have $62k /year that you could either invest or throw into your loans. Even factoring in a nice vacation and some other lavish expenses, you could easily have $50k /year leftover.

Where can you get a safe 3% interest?

I'm using 3% because that was the Sofi refinance rate. The only way you get a "safe" return is to let your money sit for at least 10 years, then historically, you can get 7% in the stock market.

Historically, it's a more than 7% for any 25 year period after the great depression. It's been about 10% for large cap stocks and 12% for small cap stocks across a 25 year average. There's more volatility when looking at a 10 year period, but 7% is still really low... FWIW, just last year my portfolio saw a 45% gain, and this year looks like it's going to be about the same. You can make a lot of money right now with the way the market's been going (hint: invest heavily in healthcare).

[hdunlop]

3K a month. Jesus.

[bertrussell]

What would it take for you to do 5k a month?

98k is

8k a month.

(1650 Rent)

(400 Utilities)

(100 for metro)

= 5860 and that's without spending a dime on anything else.

(2000 food, drinks, and entertainment)

(1000 random spending)

= 2860 is a pretty good realistic number.

$2000 food, drinks, and ent? $1000 random spending? Hahaha I'm just gonna leave this here http://www.mrmoneymustache.com . Max your employer's 401k match then pour everything else into that loan.

[hous]

Right at 50k in student loans and will make 70k pre-tax, which is probably around 45k post tax (I'm really not sure since I never worked full time, does this sound about right?). I expect to have no more than $850 in total monthly living expenses ($300 for food, $200 for HOA assessments, $20 for water, $60 for elec., $70 for car insurance, and $200 for gas). My fiancé doesn't have a mortgage and my car is paid off so that helps tremendously.

This would allow me to put $35k towards my loans barring major unexpected expenses. So I hope to pay mine off within two years. It will totally suck putting more than half of my total income towards student loans especially considering I don't have to give up nearly that much. I have to keep reminding myself that the difference between paying off my loans within two years and ten years is over $15k.

Got to pay them loans off ASAP, that interest they generate for their investors is unreal if you sit on them.

[hous]

What would it take for you to do 5k a month?

98k is

8k a month.

(1650 Rent)

(400 Utilities)

(100 for metro)

= 5860 and that's without spending a dime on anything else.

(2000 food, drinks, and entertainment)

(1000 random spending)
= 2860 is a pretty good realistic number.

This is why people that make 6-figures live paycheck to paycheck. Spending 2k a month on food, drink, and entertainment is insane, even in DC.

[jd20132013]

That's a relief--that number took me aback.

What's a realistic number for someone who isn't trying to impress anyone in DC (not necessarily saying that user is, I don't know him/her, just saying that that's the only way I personally could spend that much money a month)

[hous]

That's a relief--that number took me aback.

What's a realistic number for someone who isn't trying to impress anyone in DC (not necessarily saying that user is, I don't know him/her, just saying that that's the only way I personally could spend that much money a month)

I don't live in DC, but my fiancé and I cook in a lot. Good quality foods, not microwaved or frozen dishes. I can't imagine the price of a steak or salmon is much more expensive at a supermarket in DC to warrant a drastic uptick in market prices.

I buy fresh meats when they are on sale (something good is always on sale) and cook w/e we feel like. We had fresh ribeyes, baked potatoes and frozen string beans tonight and it cost us a whooping $15 dollars for 2 dinners and 2 lunches. That's about as pricey as our dinners get. The ribeyes were buy one get one, they do this sale atleast once every two weeks. Tomorrow is an asian inspired salmon fillet dish with asparagus and quinoa. This will run us the same and provide 2 dinners and 2 lunches.

Other nights we may just do a pasta with shrimp or scallops. This runs even less and provides more meals. Cooking in saves so much money but its much easier to do when you live with someone.

[dixiecupdrinking]

If you're working in CA or similar markets, is it possible pay 80k in loans a year for possibly the first year or so?

Take-home in CA is 108k.
I plan on living like a law student for another year at 28k a year + tax refund, if necessary.
I used to make 22k after taxes before law school so this seems doable.

Anybody done this with biglaw? Am I missing any factors?

If you've found a way to live on 22k in the same city, then why not, I guess. 108 sounds high for CA take-home, though.

[echooo23]

If you're working in CA or similar markets, is it possible pay 80k in loans a year for possibly the first year or so?

Take-home in CA is 108k.
I plan on living like a law student for another year at 28k a year + tax refund, if necessary.
I used to make 22k after taxes before law school so this seems doable.

Anybody done this with biglaw? Am I missing any factors?

If you've found a way to live on 22k in the same city, then why not, I guess. 108 sounds high for CA take-home, though.

Can anyone confirm 108k take-home in CA?

[Law Student 2848]

What would it take for you to do 5k a month?

98k is

8k a month.

(1650 Rent)

(400 Utilities)

(100 for metro)

= 5860 and that's without spending a dime on anything else.

(2000 food, drinks, and entertainment)

(1000 random spending)

= 2860 is a pretty good realistic number.

$2,000 per month on food, drinks and entertainment? WTF do you do on weekends? $400 for that would be plenty...