You are so stupid and your pathetic name calling. It's not throwing away money, you have to pay off the dang loan regardless if it is zero or nine percent.DisappointedSummer wrote: ↑Sun Apr 09, 2023 9:47 amThis guy is a known troll - mods should ban him. Paying off loans at 0% interest is quite literally throwing away money. If you want to pay for a fake peace of mind then go ahead. You can also just let it sit in a HYSA getting 4% interest risk-free. If someone offered you a free loan and let you keep 4% interest would you take it? That’s basically the situation with the moratorium.
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Re: Student loan payments: get advice and actual numbers here
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Re: Student loan payments: get advice and actual numbers here
Didn't you once admit that you were sitting on money and saving it rather than paying off your loans right away?sparty99 wrote: ↑Wed Apr 12, 2023 5:44 pmYou are so stupid and your pathetic name calling. It's not throwing away money, you have to pay off the dang loan regardless if it is zero or nine percent.DisappointedSummer wrote: ↑Sun Apr 09, 2023 9:47 amThis guy is a known troll - mods should ban him. Paying off loans at 0% interest is quite literally throwing away money. If you want to pay for a fake peace of mind then go ahead. You can also just let it sit in a HYSA getting 4% interest risk-free. If someone offered you a free loan and let you keep 4% interest would you take it? That’s basically the situation with the moratorium.
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Re: Student loan payments: get advice and actual numbers here
It is throwing away money, because you could be investing that money in something with a positive rate of return. You are forgoing that return as long as the loan interest rate is 0%.
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Re: Student loan payments: get advice and actual numbers here
And you are not taking into consideration risk, which includes you investing the money and it decreasing. Not to mention repayment could start in September or earlier. Might as well start chipping at the debt.
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Re: Student loan payments: get advice and actual numbers here
Bad bad bad take. First off, there are HYSA offering good returns right now, I'm getting over 4%. Secondly, not paying loans right now creates interest free liquidity in case an emergency did come up. Third, assuming eligibility for the 10k in forgiveness and that it gets reinstated, that goes towards your highest interest rate loans, which in theory would be the first ones to target with extra loans payments. By saving the cash in a HYSA now and waiting for that all to shake out, you literally get paid to have flexibility and wait and see what the best loan payment plan is when they are restarted (and can put any lump sum payments towards the proper loans).sparty99 wrote: ↑Thu Apr 13, 2023 12:23 amAnd you are not taking into consideration risk, which includes you investing the money and it decreasing. Not to mention repayment could start in September or earlier. Might as well start chipping at the debt.
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Re: Student loan payments: get advice and actual numbers here
I am taking risk into consideration. First, there are virtually risk-free investments that have a positive rate of return. Second, even if that weren't true, timing the market is always bad.
In which case paying it off then, not now, is the move.Not to mention repayment could start in September or earlier. Might as well start chipping at the debt.
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Re: Student loan payments: get advice and actual numbers here
Everyone’s feeding the troll, but this does show how simple personal finance/loan repayments can be. Generally speaking you have three options:
Option A: pay off loan at X% interest
Option B: put money in HYSA earning (4)% interest
Option C: invest money in a broad mutual fund like VTSAX to earn a historical (7-9)% return in the long run
Options A and B are risk free while C can result in short term losses (negative return). Because A and B both carry 0 risk, it’s an apples to apples comparison. Which number is bigger? If you can earn more for having money sit in a HYSA than it’ll cost you in loans, you should put it in a risk free, FDIC-ensured HYSA Every. Single. Time.
Unless you’re special like sparty. Protip: do the exact opposite of what he tells you.
Option A: pay off loan at X% interest
Option B: put money in HYSA earning (4)% interest
Option C: invest money in a broad mutual fund like VTSAX to earn a historical (7-9)% return in the long run
Options A and B are risk free while C can result in short term losses (negative return). Because A and B both carry 0 risk, it’s an apples to apples comparison. Which number is bigger? If you can earn more for having money sit in a HYSA than it’ll cost you in loans, you should put it in a risk free, FDIC-ensured HYSA Every. Single. Time.
Unless you’re special like sparty. Protip: do the exact opposite of what he tells you.
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Re: Student loan payments: get advice and actual numbers here
I'm the troll, but you are the bafoon who posts about having to work with people who went to lower rank law schools and your username is "disappointed summer." More like disappointed human if you ask me!DisappointedSummer wrote: ↑Thu Apr 13, 2023 5:33 amEveryone’s feeding the troll, but this does show how simple personal finance/loan repayments can be. Generally speaking you have three options:
Option A: pay off loan at X% interest
Option B: put money in HYSA earning (4)% interest
Option C: invest money in a broad mutual fund like VTSAX to earn a historical (7-9)% return in the long run
Options A and B are risk free while C can result in short term losses (negative return). Because A and B both carry 0 risk, it’s an apples to apples comparison. Which number is bigger? If you can earn more for having money sit in a HYSA than it’ll cost you in loans, you should put it in a risk free, FDIC-ensured HYSA Every. Single. Time.
Unless you’re special like sparty. Protip: do the exact opposite of what he tells you.
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Re: Student loan payments: get advice and actual numbers here
The only one I’m disappointed in is your fifth grade math teacher
EDIT: And third grade English teacher.
EDIT: And third grade English teacher.
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Re: Student loan payments: get advice and actual numbers here
If this was a pure number issue, you would not have the debt in the first place. Secondly, 4% on a $1,000 a month payment is not significant. Meanwhile, by September they can be 4 to 6 months into payments and $4,000 to $6,000 less debt. There is also freedom of having no loans and the peace of mind it brings and doors it can open. The rich rules over the poor, and the borrower is slave to the lender.Wubbles wrote: ↑Thu Apr 13, 2023 12:56 amBad bad bad take. First off, there are HYSA offering good returns right now, I'm getting over 4%. Secondly, not paying loans right now creates interest free liquidity in case an emergency did come up. Third, assuming eligibility for the 10k in forgiveness and that it gets reinstated, that goes towards your highest interest rate loans, which in theory would be the first ones to target with extra loans payments. By saving the cash in a HYSA now and waiting for that all to shake out, you literally get paid to have flexibility and wait and see what the best loan payment plan is when they are restarted (and can put any lump sum payments towards the proper loans).sparty99 wrote: ↑Thu Apr 13, 2023 12:23 amAnd you are not taking into consideration risk, which includes you investing the money and it decreasing. Not to mention repayment could start in September or earlier. Might as well start chipping at the debt.
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Re: Student loan payments: get advice and actual numbers here
Just stop replying to my posts, okay? I have no interest in talking to a loser who thinks their s#!+ smells like roses and acts like they are better than everyone else because they went to a higher ranked law school or had good grades. You sound pathetic to me. I'll be ignoring all posts from you, so don't waste your time responding. You can return to posting about how great you are and should stop worrying about me and my posts.DisappointedSummer wrote: ↑Thu Apr 13, 2023 10:40 amThe only one I’m disappointed in is your fifth grade math teacher
EDIT: And third grade English teacher.
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Re: Student loan payments: get advice and actual numbers here
Or they can save the $4-6000 and pay it off when payments start up again. What on earth material difference does it make?sparty99 wrote: ↑Thu Apr 13, 2023 10:47 amIf this was a pure number issue, you would not have the debt in the first place. Secondly, 4% on a $1,000 a month payment is not significant. Meanwhile, by September they can be 4 to 6 months into payments and $4,000 to $6,000 less debt. There is also freedom of having no loans and the peace of mind it brings and doors it can open. The rich rules over the poor, and the borrower is slave to the lender.Wubbles wrote: ↑Thu Apr 13, 2023 12:56 amBad bad bad take. First off, there are HYSA offering good returns right now, I'm getting over 4%. Secondly, not paying loans right now creates interest free liquidity in case an emergency did come up. Third, assuming eligibility for the 10k in forgiveness and that it gets reinstated, that goes towards your highest interest rate loans, which in theory would be the first ones to target with extra loans payments. By saving the cash in a HYSA now and waiting for that all to shake out, you literally get paid to have flexibility and wait and see what the best loan payment plan is when they are restarted (and can put any lump sum payments towards the proper loans).sparty99 wrote: ↑Thu Apr 13, 2023 12:23 amAnd you are not taking into consideration risk, which includes you investing the money and it decreasing. Not to mention repayment could start in September or earlier. Might as well start chipping at the debt.
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Re: Student loan payments: get advice and actual numbers here
Also like, the risk by paying off 0% interest loans now is that you end up paying loans that might otherwise be forgiven or that might otherwise have their repayment date delayed yet again. There's also just an inherent value to holding extra cash at 0%, it's free. If you pay off the loans right now like a buffoon and then need 5k in cash quickly, the loan you can get on the open market will be substantially worse than 0%nixy wrote: ↑Thu Apr 13, 2023 11:19 amOr they can save the $4-6000 and pay it off when payments start up again. What on earth material difference does it make?sparty99 wrote: ↑Thu Apr 13, 2023 10:47 amIf this was a pure number issue, you would not have the debt in the first place. Secondly, 4% on a $1,000 a month payment is not significant. Meanwhile, by September they can be 4 to 6 months into payments and $4,000 to $6,000 less debt. There is also freedom of having no loans and the peace of mind it brings and doors it can open. The rich rules over the poor, and the borrower is slave to the lender.Wubbles wrote: ↑Thu Apr 13, 2023 12:56 amBad bad bad take. First off, there are HYSA offering good returns right now, I'm getting over 4%. Secondly, not paying loans right now creates interest free liquidity in case an emergency did come up. Third, assuming eligibility for the 10k in forgiveness and that it gets reinstated, that goes towards your highest interest rate loans, which in theory would be the first ones to target with extra loans payments. By saving the cash in a HYSA now and waiting for that all to shake out, you literally get paid to have flexibility and wait and see what the best loan payment plan is when they are restarted (and can put any lump sum payments towards the proper loans).sparty99 wrote: ↑Thu Apr 13, 2023 12:23 amAnd you are not taking into consideration risk, which includes you investing the money and it decreasing. Not to mention repayment could start in September or earlier. Might as well start chipping at the debt.
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Re: Student loan payments: get advice and actual numbers here
You are just acting like the loan never needs to be repayed. Aint nothing free here. And you keep talking about loan forgiveness, that is only $10,000. This person had 45k in debt. And the Supreme Court will deny the forgiveness. And 5,000 emergencies don't really just happen out of the blue. If there Is an emergency you take from your already existing savings or pause payments.Wubbles wrote: ↑Thu Apr 13, 2023 11:58 amAlso like, the risk by paying off 0% interest loans now is that you end up paying loans that might otherwise be forgiven or that might otherwise have their repayment date delayed yet again. There's also just an inherent value to holding extra cash at 0%, it's free. If you pay off the loans right now like a buffoon and then need 5k in cash quickly, the loan you can get on the open market will be substantially worse than 0%nixy wrote: ↑Thu Apr 13, 2023 11:19 amOr they can save the $4-6000 and pay it off when payments start up again. What on earth material difference does it make?sparty99 wrote: ↑Thu Apr 13, 2023 10:47 amIf this was a pure number issue, you would not have the debt in the first place. Secondly, 4% on a $1,000 a month payment is not significant. Meanwhile, by September they can be 4 to 6 months into payments and $4,000 to $6,000 less debt. There is also freedom of having no loans and the peace of mind it brings and doors it can open. The rich rules over the poor, and the borrower is slave to the lender.Wubbles wrote: ↑Thu Apr 13, 2023 12:56 amBad bad bad take. First off, there are HYSA offering good returns right now, I'm getting over 4%. Secondly, not paying loans right now creates interest free liquidity in case an emergency did come up. Third, assuming eligibility for the 10k in forgiveness and that it gets reinstated, that goes towards your highest interest rate loans, which in theory would be the first ones to target with extra loans payments. By saving the cash in a HYSA now and waiting for that all to shake out, you literally get paid to have flexibility and wait and see what the best loan payment plan is when they are restarted (and can put any lump sum payments towards the proper loans).sparty99 wrote: ↑Thu Apr 13, 2023 12:23 amAnd you are not taking into consideration risk, which includes you investing the money and it decreasing. Not to mention repayment could start in September or earlier. Might as well start chipping at the debt.
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Re: Student loan payments: get advice and actual numbers here
According to sparty’s “logic,” if someone gave you $1M earning 4% interest on the condition that you return the $1M in 10 years, you should just hand the money right back to them because it will have to get paid back eventually and you’re a slave for holding debt, and you can have less anxiety without a loan balance hanging over your head.
The rest of us are saying, keep the $1M as long as you can, store it somewhere safe, and pocket the risk-free 4% interest in the meantime. It’s quite literally free money.
Once you have wealth, thank the lil spartys of the world for making it possible. Their knee jerk, financially illiterate decisions grease the wheels of capitalism and allow sentient people to profit.
The rest of us are saying, keep the $1M as long as you can, store it somewhere safe, and pocket the risk-free 4% interest in the meantime. It’s quite literally free money.
Once you have wealth, thank the lil spartys of the world for making it possible. Their knee jerk, financially illiterate decisions grease the wheels of capitalism and allow sentient people to profit.
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Re: Student loan payments: get advice and actual numbers here
I don't know why, but that loser disappointed legal intern sent me a direct message as if I was going to read whatever he sent. He will stay on unread and can go back to being disappointed. I don't know why he is so obsessed with me.sparty99 wrote: ↑Thu Apr 13, 2023 1:06 pmYou are just acting like the loan never needs to be repayed. Aint nothing free here. And you keep talking about loan forgiveness, that is only $10,000. This person had 45k in debt. And the Supreme Court will deny the forgiveness. And 5,000 emergencies don't really just happen out of the blue. If there Is an emergency you take from your already existing savings or pause payments.Wubbles wrote: ↑Thu Apr 13, 2023 11:58 amAlso like, the risk by paying off 0% interest loans now is that you end up paying loans that might otherwise be forgiven or that might otherwise have their repayment date delayed yet again. There's also just an inherent value to holding extra cash at 0%, it's free. If you pay off the loans right now like a buffoon and then need 5k in cash quickly, the loan you can get on the open market will be substantially worse than 0%nixy wrote: ↑Thu Apr 13, 2023 11:19 amOr they can save the $4-6000 and pay it off when payments start up again. What on earth material difference does it make?sparty99 wrote: ↑Thu Apr 13, 2023 10:47 amIf this was a pure number issue, you would not have the debt in the first place. Secondly, 4% on a $1,000 a month payment is not significant. Meanwhile, by September they can be 4 to 6 months into payments and $4,000 to $6,000 less debt. There is also freedom of having no loans and the peace of mind it brings and doors it can open. The rich rules over the poor, and the borrower is slave to the lender.Wubbles wrote: ↑Thu Apr 13, 2023 12:56 amBad bad bad take. First off, there are HYSA offering good returns right now, I'm getting over 4%. Secondly, not paying loans right now creates interest free liquidity in case an emergency did come up. Third, assuming eligibility for the 10k in forgiveness and that it gets reinstated, that goes towards your highest interest rate loans, which in theory would be the first ones to target with extra loans payments. By saving the cash in a HYSA now and waiting for that all to shake out, you literally get paid to have flexibility and wait and see what the best loan payment plan is when they are restarted (and can put any lump sum payments towards the proper loans).
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Re: Student loan payments: get advice and actual numbers here
I can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
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Re: Student loan payments: get advice and actual numbers here
Congrats! Assuming they're federal student loans that are currently paused, best course of action is to put it into a HYSA for the meantime and then pay it off when they start back up if paying it off is your preferred course of action. Downsides to paying right now would be (1) forgoing the 10k in forgiveness if eligible, (2) forgoing interest (or market if investing, but more risky) in the meantime, (3) forgoing added financial flexibility and liquidity, (4) forgoing the potential upside of further moratoriums on interest accruing.Anonymous User wrote: ↑Thu Apr 13, 2023 3:27 pmI can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
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Re: Student loan payments: get advice and actual numbers here
How much is the debt and I'll let you know what you should do.Anonymous User wrote: ↑Thu Apr 13, 2023 3:27 pmI can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
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Re: Student loan payments: get advice and actual numbers here
It’s not amount-dependent. Paying it back is strictly the wrong choice until the interest rate is at least above 0%.sparty99 wrote: ↑Thu Apr 13, 2023 3:48 pmHow much is the debt and I'll let you know what you should do.Anonymous User wrote: ↑Thu Apr 13, 2023 3:27 pmI can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
Unless you have some weird personal circumstance like a family member giving you $1M if you pay off the loan or something.
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Re: Student loan payments: get advice and actual numbers here
I was talking to OP, not person ANONYMOUS for no reason.Anonymous User wrote: ↑Thu Apr 13, 2023 4:29 pmIt’s not amount-dependent. Paying it back is strictly the wrong choice until the interest rate is at least above 0%.sparty99 wrote: ↑Thu Apr 13, 2023 3:48 pmHow much is the debt and I'll let you know what you should do.Anonymous User wrote: ↑Thu Apr 13, 2023 3:27 pmI can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
Unless you have some weird personal circumstance like a family member giving you $1M if you pay off the loan or something.
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Re: Student loan payments: get advice and actual numbers here
Uh oh, troll angry. Listen to everyone in this thread not named “sparty” - he doesn’t have your best interests at heart.
Do not pay off any more than the minimal amount on your loans until the interest rate is greater than or equal to the amount you’d earn in a HYSA (currently around 3-4%).
Do not pay off any more than the minimal amount on your loans until the interest rate is greater than or equal to the amount you’d earn in a HYSA (currently around 3-4%).
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Re: Student loan payments: get advice and actual numbers here
Why should the amount matter, sparty, if he can afford to pay it off in one fell swoop? Isn’t that what anyone who can get out from under the burden of debt should do?sparty99 wrote: ↑Thu Apr 13, 2023 3:48 pmHow much is the debt and I'll let you know what you should do.Anonymous User wrote: ↑Thu Apr 13, 2023 3:27 pmI can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
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Re: Student loan payments: get advice and actual numbers here
Thank you. These are all great reasons to not pay it off ASAP. Question, however -- if I paid off the loan (~$60K), would I be able to write it off my taxes? Or, how much of it could I write off my taxes?Wubbles wrote: ↑Thu Apr 13, 2023 3:31 pmCongrats! Assuming they're federal student loans that are currently paused, best course of action is to put it into a HYSA for the meantime and then pay it off when they start back up if paying it off is your preferred course of action. Downsides to paying right now would be (1) forgoing the 10k in forgiveness if eligible, (2) forgoing interest (or market if investing, but more risky) in the meantime, (3) forgoing added financial flexibility and liquidity, (4) forgoing the potential upside of further moratoriums on interest accruing.Anonymous User wrote: ↑Thu Apr 13, 2023 3:27 pmI can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
Seriously? What are you waiting for?
Now there's a charge.
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