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CommonBond is now offering interest rates for student loan refinancings at 2.65%: https://commonbond.co/refinance-loan

I dug a little deeper and learned that this is only if you choose the 5 year repayment plan, but the 10 year repayment plan offers something just as competitive (2.66%). Obviously, it's variable.

Clearly, people beginning to realize that there's a huge market to be had in charging interest far less than the government. Senior associates working in blglaw were enjoying the same perks back before 2009 when Chase, Citi, BofA and other major banks offered to refinance student loans on the cheap.

Fingers crossed for low rates a year from now

2014 wrote:Fingers crossed for low rates a year from now

People here are singularly focused on how fed rates and LIBOR will influence their student loan variable rates, but so much more will happen to the economy: the dollar will be stronger, bank savings account interest rates will jump, and many asset classes will depreciate (think stocks, real estate, etc.). So while borrowers might be paying more out of pocket per month on their loans, they will realize savings in other ways.

should you still do this even if you have $200k-$250k of federal loans?

I think for a lot of people the peace of mind that comes with PSLF, PAYE, etc. is worth the extra interest for fed loans.

But as we saw with that budget proposal last year, its not much peace of mind.

I guess I would consider doing this with part of my loan balance if I was secure in a biglaw job.

glitched wrote:should you still do this even if you have $200k-$250k of federal loans?

If your loans are that high, it is imperative that you do this.

Winter is Coming wrote:I think for a lot of people the peace of mind that comes with PSLF, PAYE, etc. is worth the extra interest for fed loans.

But as we saw with that budget proposal last year, its not much peace of mind.

I guess I would consider doing this with part of my loan balance if I was secure in a biglaw job.

I'm not sure what the peace of mind is with PAYE (or its red-headed stepchild, IBR). It's very shortsighted to just view these programs as loan forgiveness. When you add in the numbers you're paying, assuming you're in a high paying legal job, in addition to the tax bomb (for which there appears to be no political intertia in removing), you're actually paying more via those programs than you would with these.

And even aside from that, people are being risk averse for bullshit reasons. If you get fired, yes you can get a forbearance on your fed loans (but not forever and the interest will continue to accrue... so that's not good), but all that money you'll have saved going through SoFi/CommonBond/etc. will allow you to pay off your loans relatively quickly. Embedded in all of this is the assumption that you're actually saving the money that would otherwise go toward interest and not blowing it on coke and hookers.

zweitbester wrote:

Winter is Coming wrote:I think for a lot of people the peace of mind that comes with PSLF, PAYE, etc. is worth the extra interest for fed loans.

But as we saw with that budget proposal last year, its not much peace of mind.

I guess I would consider doing this with part of my loan balance if I was secure in a biglaw job.

I'm not sure what the peace of mind is with PAYE (or its red-headed stepchild, IBR). It's very shortsighted to just view these programs as loan forgiveness. When you add in the numbers you're paying, assuming you're in a high paying legal job, in addition to the tax bomb (for which there appears to be no political intertia in removing), you're actually paying more via those programs than you would with these.

And even aside from that, people are being risk averse for bullshit reasons. If you get fired, yes you can get a forbearance on your fed loans (but not forever and the interest will continue to accrue... so that's not good), but all that money you'll have saved going through SoFi/CommonBond/etc. will allow you to pay off your loans relatively quickly. Embedded in all of this is the assumption that you're actually saving the money that would otherwise go toward interest and not blowing it on coke and hookers.

Haha fair point. I'm an 0L, so having a "high paying legal job" is a pipe dream anyway. Will have to reevaluate in 2+ years.

How long before your biglaw start date can you generally start a refi program? Getting married next summer, and my fiancee is getting a nice payment from a dogbite (when she was a kid) this year. I'm thinking that + wedding money would let me start paying the refi'ed loan a few months before I actually start working, but technically I won't be working yet so idk if that would fly.

BuckinghamB wrote:How long before your biglaw start date can you generally start a refi program? Getting married next summer, and my fiancee is getting a nice payment from a dogbite (when she was a kid) this year. I'm thinking that + wedding money would let me start paying the refi'ed loan a few months before I actually start working, but technically I won't be working yet so idk if that would fly.

I don't think SoFi will lend to you until you're licensed and have a regular paycheck.

philosoraptor wrote:

BuckinghamB wrote:How long before your biglaw start date can you generally start a refi program? Getting married next summer, and my fiancee is getting a nice payment from a dogbite (when she was a kid) this year. I'm thinking that + wedding money would let me start paying the refi'ed loan a few months before I actually start working, but technically I won't be working yet so idk if that would fly.

I don't think SoFi will lend to you until you're licensed and have a regular paycheck.

Damn. Oh well. Thanks for the info

Winter is Coming wrote:

zweitbester wrote:

Winter is Coming wrote:I think for a lot of people the peace of mind that comes with PSLF, PAYE, etc. is worth the extra interest for fed loans.

But as we saw with that budget proposal last year, its not much peace of mind.

I guess I would consider doing this with part of my loan balance if I was secure in a biglaw job.

I'm not sure what the peace of mind is with PAYE (or its red-headed stepchild, IBR). It's very shortsighted to just view these programs as loan forgiveness. When you add in the numbers you're paying, assuming you're in a high paying legal job, in addition to the tax bomb (for which there appears to be no political intertia in removing), you're actually paying more via those programs than you would with these.

And even aside from that, people are being risk averse for bullshit reasons. If you get fired, yes you can get a forbearance on your fed loans (but not forever and the interest will continue to accrue... so that's not good), but all that money you'll have saved going through SoFi/CommonBond/etc. will allow you to pay off your loans relatively quickly. Embedded in all of this is the assumption that you're actually saving the money that would otherwise go toward interest and not blowing it on coke and hookers.

Haha fair point. I'm an 0L, so having a "high paying legal job" is a pipe dream anyway. Will have to reevaluate in 2+ years.

As a 0L, probably a good idea not to post in this forum.

philosoraptor wrote:

BuckinghamB wrote:How long before your biglaw start date can you generally start a refi program? Getting married next summer, and my fiancee is getting a nice payment from a dogbite (when she was a kid) this year. I'm thinking that + wedding money would let me start paying the refi'ed loan a few months before I actually start working, but technically I won't be working yet so idk if that would fly.

I don't think SoFi will lend to you until you're licensed and have a regular paycheck.

They will accept you without a license, but your interest rate will be higher.

Any chance they let 2l SAs refinance?

zweitbester wrote:

philosoraptor wrote:

BuckinghamB wrote:How long before your biglaw start date can you generally start a refi program? Getting married next summer, and my fiancee is getting a nice payment from a dogbite (when she was a kid) this year. I'm thinking that + wedding money would let me start paying the refi'ed loan a few months before I actually start working, but technically I won't be working yet so idk if that would fly.

I don't think SoFi will lend to you until you're licensed and have a regular paycheck.

They will accept you without a license, but your interest rate will be higher.

It seems that this doesn't matter for SoFi, but it does for CommonBond?

Thanks for posting. Do you have to be a graduate or can you refinance with a 2L SA?

Pikappraider wrote:Thanks for posting. Do you have to be a graduate or can you refinance with a 2L SA?

Also interested in the answer to this.