Student loan payments: get advice and actual numbers here Forum

[Flips88]

Checking in.

Debt: $260k (sticker T14)
Salary: $160k
Payment plan: currently standard 10-year.

I'm looking at SoFi refinancing and the options they have and was wondering if anyone had input on what's the most advisable one to choose.

Current estimated payments: $3k/month. First month payment is only $2,200 for some reason?

SoFi estimates:
10-year fixed: $2.7k/month
15-year fixed: $2.1k/month
10-year variable: $2.5k/month
15-year variable: $1.8k/month

[Old Gregg]

do 10 year variable

[dixiecupdrinking]

I'm pretty sure that for most LRAPs, if you're in BigGov for 10 years, PAYE will help more than the LRAP because the salaries are pretty high. At Yale, I'm almost sure that's true. Once you hit $90K, which happens pretty early if you're in D.C., you're getting zero LRAP help.

Haven't thought about it that much though, and you can usually do both I think.

I don't really follow. Most LRAPs now require that you enroll in IBR. Then whatever your payment is under the IBR plan, the LRAP covers for you, up to some cap. They're not at all mutually exclusive. (Maybe you can elect PAYE instead of IBR, but that doesn't change the calculus.)

[Elston Gunn]

I'm pretty sure that for most LRAPs, if you're in BigGov for 10 years, PAYE will help more than the LRAP because the salaries are pretty high. At Yale, I'm almost sure that's true. Once you hit $90K, which happens pretty early if you're in D.C., you're getting zero LRAP help.

Haven't thought about it that much though, and you can usually do both I think.

I don't really follow. Most LRAPs now require that you enroll in IBR. Then whatever your payment is under the IBR plan, the LRAP covers for you, up to some cap. They're not at all mutually exclusive. (Maybe you can elect PAYE instead of IBR, but that doesn't change the calculus.)

Right. I'm not sure that's true with all, but probably it is. What I mean is that PAYE is doing most of the work if you're in BigFed, not your LRAP. But I don't know what the income phaseouts are like at other schools.

[patogordo]

don't you get 10 year forgiveness though

[Elston Gunn]

don't you get 10 year forgiveness though

Once you make >$90k, you're not getting any help from Yale. I assume it's similar other places. You'll get your 10 year forgiveness, but from the feds, not your school.

EDIT: I guess there are caveats I haven't bothered to understand about martial status, kids and assets that might affect the bright line there, but it's close enough I think.

[patogordo]

don't you get 10 year forgiveness though

Once you make >$90k, you're not getting any help from Yale. I assume it's similar other places. You'll get your 10 year forgiveness, but from the feds, not your school.

why does that matter?

[Elston Gunn]

don't you get 10 year forgiveness though

Once you make >$90k, you're not getting any help from Yale. I assume it's similar other places. You'll get your 10 year forgiveness, but from the feds, not your school.

why does that matter?

It doesn't. Just saying you're not going to get the right numbers only calculating what you get from the LRAP, but maybe I wasn't understanding Tiago.

[Tiago Splitter]

I guess my point was that a lot of people will choose to use PAYE rather than the standard 10 year repayment because under PAYE they'll pay less out of pocket and will get the remainder forgiven after ten years anyway. But at least at CLS you're expected to pay a certain amount before LRAP kicks in, and in some cases this amount is close to what you'll owe on PAYE.

In other words, someone making 80k might be expected to pay 3k a month on a $270k loan balance if they're doing a ten year payment. Say LRAP pays 2k so they have to pay a thousand bucks a month. But under PAYE they only have to pay like $480 a month, so they do that instead in order to save $520 a month. In the latter scenario the school doesn't toss in any LRAP money (because they only give you money after you've contributed your $1000) but the student is still better off.

The above would happen for someone using the traditional LRAP at CLS but things might be different elsewhere.

[Elston Gunn]

I guess my point was that a lot of people will choose to use PAYE rather than the standard 10 year repayment because under PAYE they'll pay less out of pocket and will get the remainder forgiven after ten years anyway. But at least at CLS you're expected to pay a certain amount before LRAP kicks in, and in some cases this amount is close to what you'll owe on PAYE.

In other words, someone making 80k might be expected to pay 3k a month on a $270k loan balance if they're doing a ten year payment. Say LRAP pays 2k so they have to pay a thousand bucks a month. But under PAYE they only have to pay like $480 a month, so they do that instead in order to save $520 a month. In the latter scenario the school doesn't toss in any LRAP money (because they only give you money after you've contributed your $1000) but the student is still better off.

The above would happen for someone using the traditional LRAP at CLS but things might be different elsewhere.

Oh, I get it now. That's a good point. I didn't realize the LRAPs were structured that way.

[dixiecupdrinking]

I guess my point was that a lot of people will choose to use PAYE rather than the standard 10 year repayment because under PAYE they'll pay less out of pocket and will get the remainder forgiven after ten years anyway. But at least at CLS you're expected to pay a certain amount before LRAP kicks in, and in some cases this amount is close to what you'll owe on PAYE.

In other words, someone making 80k might be expected to pay 3k a month on a $270k loan balance if they're doing a ten year payment. Say LRAP pays 2k so they have to pay a thousand bucks a month. But under PAYE they only have to pay like $480 a month, so they do that instead in order to save $520 a month. In the latter scenario the school doesn't toss in any LRAP money (because they only give you money after you've contributed your $1000) but the student is still better off.

The above would happen for someone using the traditional LRAP at CLS but things might be different elsewhere.

Oh, I get it now. That's a good point. I didn't realize the LRAPs were structured that way.

I really think that CLS's LRAP has probably been restructured in recent years to dovetail better than this with IBR. (Not PAYE just because people can't universally get on PAYE, i.e. if you have any pre-2007 loans.) What Tiago is describing is what these programs were like when I was applying in 2009-10, but I think they have pretty much all now incorporated the federal programs. So it doesn't matter whether you owe $270k on your balance; what matters is what your income is. And on $80k, you're definitely not paying $3k a month on IBR. Then, because the schools only have to pay the smaller monthly amount on your behalf that you owe under IBR instead of the regular ten-year repayment amount, they have raised income caps etc.

[Tiago Splitter]

Yes Columbia does have an IBR LRAP option that caps payments at the IBR amount. You pay nothing until your income is above 71k. This option is what a lot of people likely choose, but the option I mentioned earlier is actually true loan forgiveness in that Columbia is paying off your loans. On the IBR-dovetail you have to stay in PSLF-eligible employment for the full ten years; leave after nine and you will still have that 270k debt hanging over you (assuming you didn't pay down any principal).

The larger point is that for someone interested in coming out ahead financially and willing to do things to make that happen private sector work is likely to better help you reach that goal.

[v5junior]

Checking in.

Debt: $260k (sticker T14)
Salary: $160k
Payment plan: currently standard 10-year.

I'm looking at SoFi refinancing and the options they have and was wondering if anyone had input on what's the most advisable one to choose.

Current estimated payments: $3k/month. First month payment is only $2,200 for some reason?

SoFi estimates:
10-year fixed: $2.7k/month
15-year fixed: $2.1k/month
10-year variable: $2.5k/month
15-year variable: $1.8k/month

Are these estimates based on your credit? If so, would you mind sharing (roughly) your credit score, and the rates you were offered?

[Anonymous User]

Checking in. I graduated with about 160k in debt, 15k in cash and just got a job (thankfully) making about 90k in NYC. Currently planning on living at home with parents for the time being and avoiding paying for rent. Is refinancing with Sofi the way to go? Should I still aim for a 10 year variable rate repayment plan or is it worth it to try to pay off within 5 years since rent is not an issue? TIA

[Anonymous User]

Checking in.

Debt: $260k (sticker T14)
Salary: $160k
Payment plan: currently standard 10-year.

I'm looking at SoFi refinancing and the options they have and was wondering if anyone had input on what's the most advisable one to choose.

Current estimated payments: $3k/month. First month payment is only $2,200 for some reason?

SoFi estimates:
10-year fixed: $2.7k/month
15-year fixed: $2.1k/month
10-year variable: $2.5k/month
15-year variable: $1.8k/month

I had a similar debt load. The first month is low probably because not all of the loans are come into repayment at the same time, at least that was the case with mine.

Do the 10 year variable if you are looking to refinance. Keep in mind you are going to lose the protections that go along with keeping your loans federal, namely IBR, PAYE, long-term forbearance, etc. 260,000 is a lot of debt and even if you are throwing like 5k a month on them it's going to take you a solid 5-6 years to slay that dragon.

[JenDarby]

I finally submitted my Sofi application today.

How long did you guys wait to hear back regarding rates?

[Old Gregg]

Might be using SoFi for my mortgage

[so ambivalent]

Loan payments start next month so iIm checking in to see if standard repayment is the way to go.
debt: all federal loans, some subsidized, some unsubsidized
- law school: $75,011.70 that's $67,758,45 at the 6.8% stafford interest rate and $7,253.25 at the 6.41% fed plus interest rate)
- undergrad: $17,631, that's $4,778.99 at 2.371% and $12,852.01 at 6.75%
- total: $92,642.70 total
salary: $70,000/yr
Right now my servicer has me on the standard plan and I don't think graduated is a good deal since there are not significant pay raises in my smaller market (and super small firm). My cost of living are super low right now so paying almost $1000/mo in loans is totally doable, but I am wondering if there would be any sense in changing to extended payment (especially if might switch over to public interest later on and thereby qualify for loan forgiveness).
Also, does anyone know if loan forgiveness includes undergrad loans?

And what about consolidation? THere's no point in consolidating only my 2 undergrad loans but do people consolidate fed plus and stafford? what about consolidating undergrad and grad?

Also, I have an offer for JAG Army and they supposedly pay $65,000 on loan principal (it ends up being less cuz it gets taxed but still). It makes the whole thing very tempting especially when combined with that public interest loan forgiveness. Military salary sucks and won't get higher than $60,000 (but they pay for housing, medical etc). If you were in my situation and making the judgment purely on the numbers would JAG be the better financial option? Taking into account that they may just decide to scrap their loan help program and the fed govt may not honor public interest loan forgiveness once the govt realizes how much it's gonna cost them.

[Big Shrimpin]

I finally submitted my Sofi application today.

How long did you guys wait to hear back regarding rates?

Takes a little bit - I just kept calling to harass.

Also takes some time after you sign to finalize.

But DAT 3.1% was TOTALLY worth it.

[hoepner33]

Loan payments start next month so iIm checking in to see if standard repayment is the way to go.
debt: all federal loans, some subsidized, some unsubsidized
- law school: $75,011.70 that's $67,758,45 at the 6.8% stafford interest rate and $7,253.25 at the 6.41% fed plus interest rate)
- undergrad: $17,631, that's $4,778.99 at 2.371% and $12,852.01 at 6.75%
- total: $92,642.70 total
salary: $70,000/yr
Right now my servicer has me on the standard plan and I don't think graduated is a good deal since there are not significant pay raises in my smaller market (and super small firm). My cost of living are super low right now so paying almost $1000/mo in loans is totally doable, but I am wondering if there would be any sense in changing to extended payment (especially if might switch over to public interest later on and thereby qualify for loan forgiveness).
Also, does anyone know if loan forgiveness includes undergrad loans?

And what about consolidation? THere's no point in consolidating only my 2 undergrad loans but do people consolidate fed plus and stafford? what about consolidating undergrad and grad?

Also, I have an offer for JAG Army and they supposedly pay $65,000 on loan principal (it ends up being less cuz it gets taxed but still). It makes the whole thing very tempting especially when combined with that public interest loan forgiveness. Military salary sucks and won't get higher than $60,000 (but they pay for housing, medical etc). If you were in my situation and making the judgment purely on the numbers would JAG be the better financial option? Taking into account that they may just decide to scrap their loan help program and the fed govt may not honor public interest loan forgiveness once the govt realizes how much it's gonna cost them.

You are wrong on JAG salaries. Look at my previous post but you are only looking at base pay which is probably only 2/3 of a Soldiers monetary compensation. I would expect to be earning 90,000 three years in with more possible depending on your location.

[84651846190]

Might be using SoFi for my mortgage

Curious how this works: Would they take over on your mortgage (taking a superior interest in your property) or would they take subject to the existing mortgage?

[JenDarby]

I finally submitted my Sofi application today.

How long did you guys wait to hear back regarding rates?

Takes a little bit - I just kept calling to harass.

Also takes some time after you sign to finalize.

But DAT 3.1% was TOTALLY worth it.

Did you do 10 year variable? I'm hoping for a rate around there.

[tennactitans]

Loan payments start next month so iIm checking in to see if standard repayment is the way to go.
debt: all federal loans, some subsidized, some unsubsidized
- law school: $75,011.70 that's $67,758,45 at the 6.8% stafford interest rate and $7,253.25 at the 6.41% fed plus interest rate)
- undergrad: $17,631, that's $4,778.99 at 2.371% and $12,852.01 at 6.75%
- total: $92,642.70 total
salary: $70,000/yr
Right now my servicer has me on the standard plan and I don't think graduated is a good deal since there are not significant pay raises in my smaller market (and super small firm). My cost of living are super low right now so paying almost $1000/mo in loans is totally doable, but I am wondering if there would be any sense in changing to extended payment (especially if might switch over to public interest later on and thereby qualify for loan forgiveness).
Also, does anyone know if loan forgiveness includes undergrad loans?

And what about consolidation? THere's no point in consolidating only my 2 undergrad loans but do people consolidate fed plus and stafford? what about consolidating undergrad and grad?

Also, I have an offer for JAG Army and they supposedly pay $65,000 on loan principal (it ends up being less cuz it gets taxed but still). It makes the whole thing very tempting especially when combined with that public interest loan forgiveness. Military salary sucks and won't get higher than $60,000 (but they pay for housing, medical etc). If you were in my situation and making the judgment purely on the numbers would JAG be the better financial option? Taking into account that they may just decide to scrap their loan help program and the fed govt may not honor public interest loan forgiveness once the govt realizes how much it's gonna cost them.

If you've got the nuts to join the military - do it. JAGs live cake lives, and officers make a healthy salary. Based on your previous statements regarding your career aspirations, I'd say the military side isn't a bad idea. Go Navy, though. Army blows.

-0L/Active duty/Work closely with JAG

[Big Shrimpin]

I finally submitted my Sofi application today.

How long did you guys wait to hear back regarding rates?

Takes a little bit - I just kept calling to harass.

Also takes some time after you sign to finalize.

But DAT 3.1% was TOTALLY worth it.

Did you do 10 year variable? I'm hoping for a rate around there.

Yes I did.

So nice to not have to pay almost 3x more in interest.

Instant savings.

[beachbum]

Anyone have experience with Commonbond? I'm looking for 5 years fixed, and they've given me a much better rate than Sofi. (Just want to make sure they're legit.)