Student loan payments: get advice and actual numbers here Forum

(On Campus Interviews, Summer Associate positions, Firm Reviews, Tips, ...)
Forum rules
Anonymous Posting

Anonymous posting is only appropriate when you are revealing sensitive employment related information about a firm, job, etc. You may anonymously respond on topic to these threads. Unacceptable uses include: harassing another user, joking around, testing the feature, or other things that are more appropriate in the lounge.

Failure to follow these rules will get you outed, warned, or banned.
sparty99

Gold
Posts: 1899
Joined: Sat Dec 11, 2010 8:41 pm

Re: Student loan payments: get advice and actual numbers here

Post by sparty99 » Wed Apr 12, 2023 5:44 pm

DisappointedSummer wrote:
Sun Apr 09, 2023 9:47 am
This 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.
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.

nixy

Gold
Posts: 4446
Joined: Fri Feb 16, 2018 8:58 am

Re: Student loan payments: get advice and actual numbers here

Post by nixy » Wed Apr 12, 2023 8:11 pm

sparty99 wrote:
Wed Apr 12, 2023 5:44 pm
DisappointedSummer wrote:
Sun Apr 09, 2023 9:47 am
This 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.
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.
Didn't you once admit that you were sitting on money and saving it rather than paying off your loans right away?

aegor

Bronze
Posts: 121
Joined: Sat Mar 22, 2014 5:29 pm

Re: Student loan payments: get advice and actual numbers here

Post by aegor » Wed Apr 12, 2023 11:13 pm

sparty99 wrote:
Wed Apr 12, 2023 5:44 pm
It's not throwing away money, you have to pay off the dang loan regardless if it is zero or nine percent.
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%.

sparty99

Gold
Posts: 1899
Joined: Sat Dec 11, 2010 8:41 pm

Re: Student loan payments: get advice and actual numbers here

Post by sparty99 » Thu Apr 13, 2023 12:23 am

aegor wrote:
Wed Apr 12, 2023 11:13 pm
sparty99 wrote:
Wed Apr 12, 2023 5:44 pm
It's not throwing away money, you have to pay off the dang loan regardless if it is zero or nine percent.
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%.
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.

Wubbles

Bronze
Posts: 448
Joined: Tue Feb 20, 2018 5:55 pm

Re: Student loan payments: get advice and actual numbers here

Post by Wubbles » Thu Apr 13, 2023 12:56 am

sparty99 wrote:
Thu Apr 13, 2023 12:23 am
aegor wrote:
Wed Apr 12, 2023 11:13 pm
sparty99 wrote:
Wed Apr 12, 2023 5:44 pm
It's not throwing away money, you have to pay off the dang loan regardless if it is zero or nine percent.
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%.
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.
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).

Want to continue reading?

Register now to search topics and post comments!

Absolutely FREE!


Anonymous User
Posts: 428115
Joined: Tue Aug 11, 2009 9:32 am

Re: Student loan payments: get advice and actual numbers here

Post by Anonymous User » Thu Apr 13, 2023 1:06 am

sparty99 wrote:
Thu Apr 13, 2023 12:23 am
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.
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.

Not to mention repayment could start in September or earlier. Might as well start chipping at the debt.
In which case paying it off then, not now, is the move.

DisappointedSummer

New
Posts: 16
Joined: Fri Sep 16, 2022 4:35 pm

Re: Student loan payments: get advice and actual numbers here

Post by DisappointedSummer » Thu Apr 13, 2023 5:33 am

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.

Antetrust

New
Posts: 76
Joined: Sat Apr 30, 2022 10:10 am

Re: Student loan payments: get advice and actual numbers here

Post by Antetrust » Thu Apr 13, 2023 7:53 am

sparty99 wrote:
Wed Apr 12, 2023 5:44 pm
You are so stupid and your pathetic name calling.
LOL :D

sparty99

Gold
Posts: 1899
Joined: Sat Dec 11, 2010 8:41 pm

Re: Student loan payments: get advice and actual numbers here

Post by sparty99 » Thu Apr 13, 2023 10:33 am

DisappointedSummer wrote:
Thu Apr 13, 2023 5:33 am
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.
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!

Want to continue reading?

Register for access!

Did I mention it was FREE ?


DisappointedSummer

New
Posts: 16
Joined: Fri Sep 16, 2022 4:35 pm

Re: Student loan payments: get advice and actual numbers here

Post by DisappointedSummer » Thu Apr 13, 2023 10:40 am

The only one I’m disappointed in is your fifth grade math teacher

EDIT: And third grade English teacher.

sparty99

Gold
Posts: 1899
Joined: Sat Dec 11, 2010 8:41 pm

Re: Student loan payments: get advice and actual numbers here

Post by sparty99 » Thu Apr 13, 2023 10:47 am

Wubbles wrote:
Thu Apr 13, 2023 12:56 am
sparty99 wrote:
Thu Apr 13, 2023 12:23 am
aegor wrote:
Wed Apr 12, 2023 11:13 pm
sparty99 wrote:
Wed Apr 12, 2023 5:44 pm
It's not throwing away money, you have to pay off the dang loan regardless if it is zero or nine percent.
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%.
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.
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).
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.

sparty99

Gold
Posts: 1899
Joined: Sat Dec 11, 2010 8:41 pm

Re: Student loan payments: get advice and actual numbers here

Post by sparty99 » Thu Apr 13, 2023 10:55 am

DisappointedSummer wrote:
Thu Apr 13, 2023 10:40 am
The only one I’m disappointed in is your fifth grade math teacher

EDIT: And third grade English teacher.
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.

nixy

Gold
Posts: 4446
Joined: Fri Feb 16, 2018 8:58 am

Re: Student loan payments: get advice and actual numbers here

Post by nixy » Thu Apr 13, 2023 11:19 am

sparty99 wrote:
Thu Apr 13, 2023 10:47 am
Wubbles wrote:
Thu Apr 13, 2023 12:56 am
sparty99 wrote:
Thu Apr 13, 2023 12:23 am
aegor wrote:
Wed Apr 12, 2023 11:13 pm
sparty99 wrote:
Wed Apr 12, 2023 5:44 pm
It's not throwing away money, you have to pay off the dang loan regardless if it is zero or nine percent.
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%.
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.
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).
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.
Or they can save the $4-6000 and pay it off when payments start up again. What on earth material difference does it make?

Register now!

Resources to assist law school applicants, students & graduates.

It's still FREE!


Wubbles

Bronze
Posts: 448
Joined: Tue Feb 20, 2018 5:55 pm

Re: Student loan payments: get advice and actual numbers here

Post by Wubbles » Thu Apr 13, 2023 11:58 am

nixy wrote:
Thu Apr 13, 2023 11:19 am
sparty99 wrote:
Thu Apr 13, 2023 10:47 am
Wubbles wrote:
Thu Apr 13, 2023 12:56 am
sparty99 wrote:
Thu Apr 13, 2023 12:23 am
aegor wrote:
Wed Apr 12, 2023 11:13 pm
sparty99 wrote:
Wed Apr 12, 2023 5:44 pm
It's not throwing away money, you have to pay off the dang loan regardless if it is zero or nine percent.
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%.
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.
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).
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.
Or they can save the $4-6000 and pay it off when payments start up again. What on earth material difference does it make?
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%

sparty99

Gold
Posts: 1899
Joined: Sat Dec 11, 2010 8:41 pm

Re: Student loan payments: get advice and actual numbers here

Post by sparty99 » Thu Apr 13, 2023 1:06 pm

Wubbles wrote:
Thu Apr 13, 2023 11:58 am
nixy wrote:
Thu Apr 13, 2023 11:19 am
sparty99 wrote:
Thu Apr 13, 2023 10:47 am
Wubbles wrote:
Thu Apr 13, 2023 12:56 am
sparty99 wrote:
Thu Apr 13, 2023 12:23 am
aegor wrote:
Wed Apr 12, 2023 11:13 pm
sparty99 wrote:
Wed Apr 12, 2023 5:44 pm
It's not throwing away money, you have to pay off the dang loan regardless if it is zero or nine percent.
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%.
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.
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).
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.
Or they can save the $4-6000 and pay it off when payments start up again. What on earth material difference does it make?
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%
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.

DisappointedSummer

New
Posts: 16
Joined: Fri Sep 16, 2022 4:35 pm

Re: Student loan payments: get advice and actual numbers here

Post by DisappointedSummer » Thu Apr 13, 2023 1:54 pm

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.

sparty99

Gold
Posts: 1899
Joined: Sat Dec 11, 2010 8:41 pm

Re: Student loan payments: get advice and actual numbers here

Post by sparty99 » Thu Apr 13, 2023 3:17 pm

sparty99 wrote:
Thu Apr 13, 2023 1:06 pm
Wubbles wrote:
Thu Apr 13, 2023 11:58 am
nixy wrote:
Thu Apr 13, 2023 11:19 am
sparty99 wrote:
Thu Apr 13, 2023 10:47 am
Wubbles wrote:
Thu Apr 13, 2023 12:56 am
sparty99 wrote:
Thu Apr 13, 2023 12:23 am
aegor wrote:
Wed Apr 12, 2023 11:13 pm

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%.
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.
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).
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.
Or they can save the $4-6000 and pay it off when payments start up again. What on earth material difference does it make?
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%
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.
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.

Get unlimited access to all forums and topics

Register now!

I'm pretty sure I told you it's FREE...


Anonymous User
Posts: 428115
Joined: Tue Aug 11, 2009 9:32 am

Re: Student loan payments: get advice and actual numbers here

Post by Anonymous User » Thu Apr 13, 2023 3:27 pm

I can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?

Wubbles

Bronze
Posts: 448
Joined: Tue Feb 20, 2018 5:55 pm

Re: Student loan payments: get advice and actual numbers here

Post by Wubbles » Thu Apr 13, 2023 3:31 pm

Anonymous User wrote:
Thu Apr 13, 2023 3:27 pm
I can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
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.

sparty99

Gold
Posts: 1899
Joined: Sat Dec 11, 2010 8:41 pm

Re: Student loan payments: get advice and actual numbers here

Post by sparty99 » Thu Apr 13, 2023 3:48 pm

Anonymous User wrote:
Thu Apr 13, 2023 3:27 pm
I can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
How much is the debt and I'll let you know what you should do.

Anonymous User
Posts: 428115
Joined: Tue Aug 11, 2009 9:32 am

Re: Student loan payments: get advice and actual numbers here

Post by Anonymous User » Thu Apr 13, 2023 4:29 pm

sparty99 wrote:
Thu Apr 13, 2023 3:48 pm
Anonymous User wrote:
Thu Apr 13, 2023 3:27 pm
I can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
How much is the debt and I'll let you know what you should do.
It’s not amount-dependent. Paying it back is strictly the wrong choice until the interest rate is at least above 0%.

Unless you have some weird personal circumstance like a family member giving you $1M if you pay off the loan or something.

Communicate now with those who not only know what a legal education is, but can offer you worthy advice and commentary as you complete the three most educational, yet challenging years of your law related post graduate life.

Register now, it's still FREE!


sparty99

Gold
Posts: 1899
Joined: Sat Dec 11, 2010 8:41 pm

Re: Student loan payments: get advice and actual numbers here

Post by sparty99 » Thu Apr 13, 2023 5:02 pm

Anonymous User wrote:
Thu Apr 13, 2023 4:29 pm
sparty99 wrote:
Thu Apr 13, 2023 3:48 pm
Anonymous User wrote:
Thu Apr 13, 2023 3:27 pm
I can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
How much is the debt and I'll let you know what you should do.
It’s not amount-dependent. Paying it back is strictly the wrong choice until the interest rate is at least above 0%.

Unless you have some weird personal circumstance like a family member giving you $1M if you pay off the loan or something.
I was talking to OP, not person ANONYMOUS for no reason.

DisappointedSummer

New
Posts: 16
Joined: Fri Sep 16, 2022 4:35 pm

Re: Student loan payments: get advice and actual numbers here

Post by DisappointedSummer » Thu Apr 13, 2023 5:23 pm

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%).

nixy

Gold
Posts: 4446
Joined: Fri Feb 16, 2018 8:58 am

Re: Student loan payments: get advice and actual numbers here

Post by nixy » Thu Apr 13, 2023 6:06 pm

sparty99 wrote:
Thu Apr 13, 2023 3:48 pm
Anonymous User wrote:
Thu Apr 13, 2023 3:27 pm
I can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
How much is the debt and I'll let you know what you should do.
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?

Anonymous User
Posts: 428115
Joined: Tue Aug 11, 2009 9:32 am

Re: Student loan payments: get advice and actual numbers here

Post by Anonymous User » Thu Apr 13, 2023 7:06 pm

Wubbles wrote:
Thu Apr 13, 2023 3:31 pm
Anonymous User wrote:
Thu Apr 13, 2023 3:27 pm
I can eliminate my debt in a single payment with my clerkship signing bonus. Is it advisable to do so? Any obvious downsides?
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.
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?

Seriously? What are you waiting for?

Now there's a charge.
Just kidding ... it's still FREE!


Post Reply Post Anonymous Reply  

Return to “Legal Employment”