Student loan payments: get advice and actual numbers here Forum

[Danger Zone]

With the numbers people are usually talking about ITT, I consider that amount of interest difference negligible, but it's up to OP. The only cost to refinancing anymore is the hit to your credit for a hard inquiry which also is pretty negligible, since most places seem not to charge origination fees on refis anymore. So I don't think it makes a big difference either way.

[JenDarby]

With that little debt, it really doesn't matter if you plan to pay it off in the next year or two. The amount of interest paid would be negligible over such a short time.

disagree

assuming good credit, the poster can probably get ~2.5% down from the current 6.05%. on two year terms he would pay ~$1,050 in interest on the refinanced loans and about ~$2,570 on the non refinanced loans

and the best part about refinancing is it would give the freedom to pay off on a longer term considering the interest savings. there's no risk to losing federal protections at that debt level so refinancing ASAP is the best option

also, PSA, this site is very helpful in comparing interest paid on different loans:

http://www.finaid.org/calculators/scrip ... arison.cgi

[SemperLegal]

Lot of changes in my first post graduatiom year, but I'm now stablized at:

Total Debt: $100k
Monthly payment: $1700
Lender: First Republic
Terms: 1.95% fixed, 5 year (interest refund if paid in 4)
Additional Stips: $3500 in interest free checking, payments through DD

Took about a year of refiancing, credit history, and aggressive payoffs to qualify. Plus i had to personally take over wife's debts.

[Anonymous User]

Debt: about $205,000
Payments: about $450/month, but my school's LRAP is 100% for my income, so actually $0
Income: About $45k
Plan: IBR (required for my school's LRAP)
Important info: I was already poor when I went to law school. I had a moderate scholarship, but school was in an expensive city, and my family was unable to assist with any costs outside of the occasional small loan (read: $100 for groceries when loans didn't stretch to the next disbursement)
I had personal revolving debt when I got to law school, which plateaued during law school (loans covered my minimums, but only with austere lifestyle choices). That personal debt made life difficult, especially because I worked pub int jobs both summers, so had to live the summer months on just $5k minus taxes. Would have been easier if I'd gone for BigLaw summer positions (or split summers)
Bonus points: working in public interest (LRAP and PSLF eligible), will very likely pay very little of my total loan balance before it goes away

[Johann]

Debt: about $205,000
Payments: about $450/month, but my school's LRAP is 100% for my income, so actually $0
Income: About $45k
Plan: IBR (required for my school's LRAP)
Important info: I was already poor when I went to law school. I had a moderate scholarship, but school was in an expensive city, and my family was unable to assist with any costs outside of the occasional small loan (read: $100 for groceries when loans didn't stretch to the next disbursement)
I had personal revolving debt when I got to law school, which plateaued during law school (loans covered my minimums, but only with austere lifestyle choices). That personal debt made life difficult, especially because I worked pub int jobs both summers, so had to live the summer months on just $5k minus taxes. Would have been easier if I'd gone for BigLaw summer positions (or split summers)
Bonus points: working in public interest (LRAP and PSLF eligible), will very likely pay very little of my total loan balance before it goes away

Thank you for your service. Best to just forget about the debt assuming you have the personal debt under control. 10 years comes sooner than you think.

[zot1]

I'm on PSLF, and I just try to never think about my loans because the assumption is that they will eventually go away. Now if things change, and they might, I'll worry about my loans then.

[Anonymous User]

With that little debt, it really doesn't matter if you plan to pay it off in the next year or two. The amount of interest paid would be negligible over such a short time.

disagree

assuming good credit, the poster can probably get ~2.5% down from the current 6.05%. on two year terms he would pay ~$1,050 in interest on the refinanced loans and about ~$2,570 on the non refinanced loans

and the best part about refinancing is it would give the freedom to pay off on a longer term considering the interest savings. there's no risk to losing federal protections at that debt level so refinancing ASAP is the best option

okay this is what I thought. I want to hoard cash and max out my 401k. I don't feel any great need to pay down my debt aggressively fast, since it's an amount that is serviceable with a normal job.

[gr8scOtt!]

nevermind.

[Anonymous User]

Debt: about $205,000
Payments: about $450/month, but my school's LRAP is 100% for my income, so actually $0
Income: About $45k
Plan: IBR (required for my school's LRAP)
Important info: I was already poor when I went to law school. I had a moderate scholarship, but school was in an expensive city, and my family was unable to assist with any costs outside of the occasional small loan (read: $100 for groceries when loans didn't stretch to the next disbursement)
I had personal revolving debt when I got to law school, which plateaued during law school (loans covered my minimums, but only with austere lifestyle choices). That personal debt made life difficult, especially because I worked pub int jobs both summers, so had to live the summer months on just $5k minus taxes. Would have been easier if I'd gone for BigLaw summer positions (or split summers)
Bonus points: working in public interest (LRAP and PSLF eligible), will very likely pay very little of my total loan balance before it goes away

Thank you for your service. Best to just forget about the debt assuming you have the personal debt under control. 10 years comes sooner than you think.

Thanks! I have a cool job, doing interesting law, at least.
It almost feels like if the debt were a more normal number ($90,000 or so) it would actually be more stressful in a specific way. With a number as high as mine, it's a bit surreal to me, so my brain is just like wtf who cares, add another $100k to it if you want (obviously am not doing this, just making a point). Personal credit is handled and being paid, will take a few years, but I'm on it. Recently announced federal hiring freeze maaay impact some of my next step options, but we will see.

[LoganCouture]

What's the soonest people can refi? I see First Republic requires 24 months in the industry - could one count prior paralegal employment and/or SA experience?

[bk1]

What's the soonest people can refi? I see First Republic requires 24 months in the industry - could one count prior paralegal employment and/or SA experience?

FR has very stringent standards (if not the most stringent standards among student loan refiers). You can probably refi right after starting work with the other refiers (SoFi/DRB/etc), depending on your other factors. Also, FR's work requirement is not a hard requirement. You can get around it if your other factors outweigh it (e.g., liquidity, DTI ratio, co-signer, etc).

[waldorf]

Just want to thank everyone who has posted. Seeing everyone's actual numbers has been incredibly helpful and has made me much more debt-averse. It's easy to sign off on huge loans when you don't know the actual numbers of what you'll be paying back. Thanks everyone!

[Beachbum89]

What's the soonest people can refi? I see First Republic requires 24 months in the industry - could one count prior paralegal employment and/or SA experience?

I refinanced at First Republic a little over seven months after starting my job. As others have said, they will look at summer associate experience, liquidity, and debt to income. The vibe I got when applying was that as long as my liquidity and debt to income were acceptable, my limited industry experience wouldn't prevent me from getting approved. Message me if you want more information and I can put you in touch with my contact at the bank.

[LaLiLuLeLo]

I refinanced with First Republic maybe...2? 3? Months after starting. It was more a liquidity problem that forced me to even wait that long.

[pumpkinmann]

Same as above, refinanced about 3 months after starting recently, barely made it in before the interest rate hike. Their key concern seemed to be liquidity (needed around 10% of the loan amount), although they did wait until I had heard about the bar. $250k is a lot of debt, but totally manageable on a 2.95% 10 year term. I'm not even go to try and pay it off early now. I'd definitely recommend first republic for those that it is an option for. Happy to answer any other questions.

[JenDarby]

The domestic/international ATM fee reimbursements help mitigate the requirement of maintaining a checking account with FRB (assuming you don't have that benefit elsewhere, which I did not).

I will still probably pay my loans off before the end of my 10 year term (as I would like to pay less than the ~25k interest during that period), but at least I am less pressured.

I'll likely look into a mortgage with FRB in the next few months too and see if they can compete at all with USAA.

[ekg212]

Debt: about $205,000
Payments: about $450/month, but my school's LRAP is 100% for my income, so actually $0
Income: About $45k
Plan: IBR (required for my school's LRAP)
Important info: I was already poor when I went to law school. I had a moderate scholarship, but school was in an expensive city, and my family was unable to assist with any costs outside of the occasional small loan (read: $100 for groceries when loans didn't stretch to the next disbursement)
I had personal revolving debt when I got to law school, which plateaued during law school (loans covered my minimums, but only with austere lifestyle choices). That personal debt made life difficult, especially because I worked pub int jobs both summers, so had to live the summer months on just $5k minus taxes. Would have been easier if I'd gone for BigLaw summer positions (or split summers)
Bonus points: working in public interest (LRAP and PSLF eligible), will very likely pay very little of my total loan balance before it goes away

This is super helpful - in a similar situation, lots of UG loans/no parental assistance in life in general so some personal debt to cover the expenses of being an adult (did not know root canals cost so much, holy hell)... basically terrified because I'll have to choose big law to pay it off or hope I can make it in PI and am worried I won't make it in either...

Where did you go to school and did you have a hard time finding a job? Sorry if that's not kosher to ask.

[Anonymous User]

Debt: about $205,000
Payments: about $450/month, but my school's LRAP is 100% for my income, so actually $0
Income: About $45k
Plan: IBR (required for my school's LRAP)
Important info: I was already poor when I went to law school. I had a moderate scholarship, but school was in an expensive city, and my family was unable to assist with any costs outside of the occasional small loan (read: $100 for groceries when loans didn't stretch to the next disbursement)
I had personal revolving debt when I got to law school, which plateaued during law school (loans covered my minimums, but only with austere lifestyle choices). That personal debt made life difficult, especially because I worked pub int jobs both summers, so had to live the summer months on just $5k minus taxes. Would have been easier if I'd gone for BigLaw summer positions (or split summers)
Bonus points: working in public interest (LRAP and PSLF eligible), will very likely pay very little of my total loan balance before it goes away

This is super helpful - in a similar situation, lots of UG loans/no parental assistance in life in general so some personal debt to cover the expenses of being an adult (did not know root canals cost so much, holy hell)... basically terrified because I'll have to choose big law to pay it off or hope I can make it in PI and am worried I won't make it in either...

Where did you go to school and did you have a hard time finding a job? Sorry if that's not kosher to ask.

I went to a T5 school. I don't think that I had a hard time finding "a" job, but it was a bit difficult to find a job that I really wanted. Ultimately, I found a great fellowship opportunity, and I think that I will not have too much trouble finding a good next job. If you want to talk more specifically, let me know and I will message you directly.

[Anonymous User]

Debt at graduation in 2015: 145k (147k capitalized on repayment in Oct 2015)
Interest rates: 6.7% (blended rate)

Debt at DRB refinance in 05/2015: 145k (DRB let me refi while I was still finishing 3L without making payments until Oct)
Payment and VARIABLE interest rate: ~2600/mo at 2.48% that gradually increased to 2.84% - 5yr term
Interest paid in 2015: 2.4k (incl capitalized interest)
Interest paid in 2016: 2.7k (Jan - Sep)

Debt at First Republic refinance in 09/2016: $119k
Payment and FIXED interest rate: ~2080/mo at 1.95% - 5yr term
Interest paid in 2016: $617 (Oct - Dec)

Total Interest Paid in 2016: $3.3k
Current Balance: $111k

Planning to pay off the First Republic refi 13 months early (possibly earlier) to collect the incentive interest rebate. Using Excel IRR function, my effective interest rate from 05/2015 - 08/2020 will be 1.7% (calculation includes the rebate).

[umichman]

As an incoming first year on cravath scale in chicago, what is a fair amount that I can expect to put toward loans each month if I'm living in Lincoln park and living frugally? Trying to kills loans asap

[bk1]

As an incoming first year on cravath scale in chicago, what is a fair amount that I can expect to put toward loans each month if I'm living in Lincoln park and living frugally? Trying to kills loans asap

Depends on what frugal means to you. 4-5k is likely feasible. More if you're very frugal.

[Anonymous User]

Debt: 135k (35k undergrad + 100k law school)
Payment: fixed 10 yr plan @ 1500 a month
Income: 60k

School LRAP covers ~1200 of the payment a month which is the law school portion and parents help with the UG portion. Since I'm in gov, I don't want to lose the protections on the bigger loans, but was thinking of refi soon for just the UG portion ( also I don't anticipate staying in gov for 10 years). Im able to make high payments despite my income, but since my income is low and LRAP amounts can change year to year I don't want to refi yet until the loans are at an amount I'm more comfortable with. When would y'all suggest I look to refi? Should I start with just the UG and do the rest later?

[Anonymous User]

Debt: about $205,000
Payments: about $450/month, but my school's LRAP is 100% for my income, so actually $0
Income: About $45k
Plan: IBR (required for my school's LRAP)
Important info: I was already poor when I went to law school. I had a moderate scholarship, but school was in an expensive city, and my family was unable to assist with any costs outside of the occasional small loan (read: $100 for groceries when loans didn't stretch to the next disbursement)
I had personal revolving debt when I got to law school, which plateaued during law school (loans covered my minimums, but only with austere lifestyle choices). That personal debt made life difficult, especially because I worked pub int jobs both summers, so had to live the summer months on just $5k minus taxes. Would have been easier if I'd gone for BigLaw summer positions (or split summers)
Bonus points: working in public interest (LRAP and PSLF eligible), will very likely pay very little of my total loan balance before it goes away

This is super helpful - in a similar situation, lots of UG loans/no parental assistance in life in general so some personal debt to cover the expenses of being an adult (did not know root canals cost so much, holy hell)... basically terrified because I'll have to choose big law to pay it off or hope I can make it in PI and am worried I won't make it in either...

Where did you go to school and did you have a hard time finding a job? Sorry if that's not kosher to ask.

I went to a T5 school. I don't think that I had a hard time finding "a" job, but it was a bit difficult to find a job that I really wanted. Ultimately, I found a great fellowship opportunity, and I think that I will not have too much trouble finding a good next job. If you want to talk more specifically, let me know and I will message you directly.

Thanks, I really appreciate it!

[anon3030]

Same as above, refinanced about 3 months after starting recently, barely made it in before the interest rate hike. Their key concern seemed to be liquidity (needed around 10% of the loan amount), although they did wait until I had heard about the bar. $250k is a lot of debt, but totally manageable on a 2.95% 10 year term. I'm not even go to try and pay it off early now. I'd definitely recommend first republic for those that it is an option for. Happy to answer any other questions.

So, if my debt will be $150, I only need around $15k in cash to refi with first republic? Does it consider cash/stocks in IRA accounts and 401ks as liquid?

[LaLiLuLeLo]

Same as above, refinanced about 3 months after starting recently, barely made it in before the interest rate hike. Their key concern seemed to be liquidity (needed around 10% of the loan amount), although they did wait until I had heard about the bar. $250k is a lot of debt, but totally manageable on a 2.95% 10 year term. I'm not even go to try and pay it off early now. I'd definitely recommend first republic for those that it is an option for. Happy to answer any other questions.

So, if my debt will be $150, I only need around $15k in cash to refi with first republic? Does it consider cash/stocks in IRA accounts and 401ks as liquid?

They wanted more from me even though I have a lower loan balance than you so it probably varies on the agent you work with. You can just call/start the process if you're curious or have questions like what assets are considered liquid. I think I did an informational call ~6 months before I actually refinanced.