Student loan payments: get advice and actual numbers here Forum

[Old Gregg]

Just refinanced $75,000 in GradPlus loans with SoFi. Went from 7.9% to 4.24% (variable). Pretty pleased.

When your credit improves, be sure to try to refinance with them. You should qualify for below 2% interest over time.

[Big Shrimpin]

Just refinanced $75,000 in GradPlus loans with SoFi. Went from 7.9% to 4.24% (variable). Pretty pleased.

What are the pros/cons with SoFi? What's the catch here?

Check out the biglaw bonus thread. We talked about it there iirc.

Link to specific spot of discussion? or are you going to make me go through 17 pages of posts?

You'll make a great senior associate.

[Anonymous User]

Just refinanced $75,000 in GradPlus loans with SoFi. Went from 7.9% to 4.24% (variable). Pretty pleased.

When your credit improves, be sure to try to refinance with them. You should qualify for below 2% interest over time.

Thanks - but I don't think they go below 2.xx. If/when I improve a bit (above 760 or so), I'll look at a bank/CU. SoFi was almost 2% better than the rate I was given by my bank, and my credit is fairly strong.

I have credit card/medical debt, and maxed out on Stafford/other loans, so I'm pretty happy with the rate I got.

[Big Shrimpin]

What happens to LIBOR if the fed raises rates?

I'm a patent litigator with rudimentary understanding of finance so explain to me like I'm 5.

Tytyty

[Old Gregg]

Just refinanced $75,000 in GradPlus loans with SoFi. Went from 7.9% to 4.24% (variable). Pretty pleased.

When your credit improves, be sure to try to refinance with them. You should qualify for below 2% interest over time.

Thanks - but I don't think they go below 2.xx. If/when I improve a bit (above 760 or so), I'll look at a bank/CU. SoFi was almost 2% better than the rate I was given by my bank, and my credit is fairly strong.

I have credit card/medical debt, and maxed out on Stafford/other loans, so I'm pretty happy with the rate I got.

I meant below 3%. Not hard to get.

[Old Gregg]

What happens to LIBOR if the fed raises rates?

I'm a patent litigator with rudimentary understanding of finance so explain to me like I'm 5.

Tytyty

It'll go up, but Fed isn't going to raise rates for a long time. The "tapering" you're hearing about is the scaling back of the Fed's bond buying program. There's still an ass ton of crap to unwind since the financial crisis, and raising rates will be the last thing the Fed does before stuff returns to normal (though this bit is my opinion).

[Big Shrimpin]

What happens to LIBOR if the fed raises rates?

I'm a patent litigator with rudimentary understanding of finance so explain to me like I'm 5.

Tytyty

It'll go up, but Fed isn't going to raise rates for a long time. The "tapering" you're hearing about is the scaling back of the Fed's bond buying program. There's still an ass ton of crap to unwind since the financial crisis, and raising rates will be the last thing the Fed does before stuff returns to normal (though this bit is my opinion).

Gotcha. And tapering won't change LIBOR?

[Old Gregg]

What happens to LIBOR if the fed raises rates?

I'm a patent litigator with rudimentary understanding of finance so explain to me like I'm 5.

Tytyty

It'll go up, but Fed isn't going to raise rates for a long time. The "tapering" you're hearing about is the scaling back of the Fed's bond buying program. There's still an ass ton of crap to unwind since the financial crisis, and raising rates will be the last thing the Fed does before stuff returns to normal (though this bit is my opinion).

Gotcha. And tapering won't change LIBOR?

Very unlikely.

[Old Gregg]

FYI

[Old Gregg]

FOMC highlights:

Exceptionally low rates until jobless rate falls well past 6.5%
‘Further measured steps’ possible on tapering
MBS buys cut by $5B
Treasury buys cut by $5B
Interest rates held at 0-0.25%, as expected
Rosengren dissents, says move is premature

[Pokemon]

For all of you mentioning SoFI... what happens if you refinance with them, lose biglaw job, and want to switch to IBR?

[dixiecupdrinking]

For all of you mentioning SoFI... what happens if you refinance with them, lose biglaw job, and want to switch to IBR?

you're SOL. This is a real downside.

[Big Shrimpin]

For all of you mentioning SoFI... what happens if you refinance with them, lose biglaw job, and want to switch to IBR?

you're SOL. This is a real downside.

Yeah major reason I'm not doing it. Esp if I go public sector at some point.

[Pokemon]

And obviously SoFI refinancing does not make them dischargeable in bk, right?

[gk101]

For all of you mentioning SoFI... what happens if you refinance with them, lose biglaw job, and want to switch to IBR?

you're SOL. This is a real downside.

Yeah major reason I'm not doing it. Esp if I go public sector at some point.

I was thinking about going with SoFi for only my 7.9% loans (about 75k). The remaining loans are at about 5.5% and I can leave them with the federal loan servicer I have now. That way if I get shitcanned for some reason, I am not totally SOL. Any thoughts?

[Big Shrimpin]

Actually a pretty shrewd approach. Although I can neither confirm nor deny that it'll work.

[gk101]

Actually a pretty shrewd approach. Although I can neither confirm nor deny that it'll work.

With my luck I will get shitcanned the moment I hit accept

[dixiecupdrinking]

For all of you mentioning SoFI... what happens if you refinance with them, lose biglaw job, and want to switch to IBR?

you're SOL. This is a real downside.

Yeah major reason I'm not doing it. Esp if I go public sector at some point.

I was thinking about going with SoFi for only my 7.9% loans (about 75k). The remaining loans are at about 5.5% and I can leave them with the federal loan servicer I have now. That way if I get shitcanned for some reason, I am not totally SOL. Any thoughts?

That is what I would do if I were to go SoFi. It's not worth the downside risk on the lower interest loans (and the fixed rate SoFi loans aren't really any cheaper than your 5.5% loans). But for GradPLUS it's a pretty huge discount.

I think it's a no-brainer if you are confident you're not going into the government or public interest anytime soon, especially e.g. if you're a corporate associate.

[logan]

Anyone have any familiarity with refinancing through Darien Rowayton Bank (http://drbank.com/student_loan_information.html) as opposed to SoFi?

[Old Gregg]

You "oh shit I might get fired" guys are being the exact kind of risk-averse that makes lawyers annoying (no offense). On SoFi, your monthly payments will be less than $1.5k a month (unless you're in the $200k range of debt), your interest will be around 2.9%, and you will be on a 10 year repayment plan, so each of those $1.5k payments will pack so much more punch than your typical payment on a grad plus loan.

If you work in big law, are you seriously telling me you won't be able to find a job that let's you make $1.5k in monthly payments in the event you get shitcanned? If you believe that, you are being way too pessimistic.

I'm not trying to criticize or be rude. I'm trying to help understand that that extra 5.5% interest is just shoving money down the toilet... money that could be used for so many better things.

Edit: Can also almost guarantee you that if you're in big law, you will be making at least $100k in 10 years (assuming you don't go into government or PI work--if either of those figure in your plans, I might stay away from SoFi then).

Edit 2: And if you can't find another job after 5 years of SoFi-ing it up and working in big law, you can use all that cash money you saved up to basically payoff the loans (assuming you didn't use the freed up cash on stupid things like coke and hookers).

[Big Shrimpin]

Just redid the app.

10 year fixed at 5.7% and variable at 3.4%.

I'm close to pulling the trigger.

[84651846190]

Just redid the app.

10 year fixed at 5.7% and variable at 3.4%.

I'm close to pulling the trigger.

3.4 is muy bueno. I would go for it, broheim.

[Old Gregg]

Just redid the app.

10 year fixed at 5.7% and variable at 3.4%.

I'm close to pulling the trigger.

Dude what the fuck are you waiting for

Are you including the auto pay discount?

[Big Shrimpin]

Just redid the app.

10 year fixed at 5.7% and variable at 3.4%.

I'm close to pulling the trigger.

Dude what the fuck are you waiting for

Are you including the auto pay discount?

Iono, guess not.

Dat possibility of getting canned doe...

[meg5096]

Just redid the app.

10 year fixed at 5.7% and variable at 3.4%.

I'm close to pulling the trigger.

Dude what the fuck are you waiting for

Are you including the auto pay discount?

Iono, guess not.

Dat possibility of getting canned doe...

Looking into this as well. Mind sharing your general creditworthiness as to how they came up with those rates for you?