Student Loans: Payment Options and Numbers

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JenDarby
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Student Loans: Payment Options and Numbers

Post by JenDarby » Fri Jan 26, 2018 12:26 pm

ITT we share our student loan debt/repayment plans/provide referral links
JenDarby wrote:Debt at graduation in 2014: 194k
Interest rates: 72k at 7.65%, 41k at 6.55%, 36k at 6.16%, 20.5k at 5.160% (returned some $$ after disbursement to avoid the fee)
Interest paid in 2014: 17.5k

Debt at refinance with CommonBond in 02/2015: 176k
Payment and VARIABLE interest rate: ~1,850/mo at 4.16% that gradually increased to 4.68% - 10yr term
Interest paid in 2015: 7.95k
Interest paid in 2016: 7.15k

Debt at refinance with FRB in 01/2017: 145k
Payment and FIXED interest rate: ~1,450/mo at 3.75% - 10yr term

Debt at modification with FRB in 10/2017: 136k
Payment and FIXED interest rate: ~975/mo at 2.95% - 15yr term (I'm getting aggressive with payments so should have just done 2.65% - 10yr option)
Interest paid in 2017: ~4.9k

Current balance (as of 1/2019): 90k
Interest paid in 2018: ~3.1k

I have made a couple lump sum payments
First Republic Bank certainly has the best rates if you live in a target area (primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland (Oregon), Boston, Palm Beach (Florida), Greenwich or New York City), have some cash liquidity, and a decent credit score. They also do require you maintain a checking count with a minimum balance of $3,500 (to avoid a fee) and direct deposit of (a portion) of your paycheck. Current rates are: 5 year at 1.95% APR / 7 year at 2.55% APR / 10 year at 3.35% APR /15 year at 3.95% APR

CommonBond, Earnest, SoFi, and DRB are also very good alternatives if you are not in a target area or do not qualify based on liquidity/credit score for FRB.

For any of these companies, a poster can provide you with a mutually beneficial referral link. Let me know if you want to be added to the list of available referrers.

FRB: JenDarby, DangerZone, bk1, SmokeytheBear

Income Based Repayment plans such as PAYE/REPAYE/IBR certainly should not be ignored either. Often times, these are a better alternative to refinancing, depending on your particular circumstances (employment, job security, debt level, future plans, etc).

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Danger Zone
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Re: Student Loans: Payment Options and Numbers

Post by Danger Zone » Fri Jan 26, 2018 12:49 pm

In for the misery 👍

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northwood
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Re: Student Loans: Payment Options and Numbers

Post by northwood » Sun Jan 28, 2018 5:27 pm

Rethinking what I should do:

Current law school debt: 138k. Graduated 2014
Other debt: 28k (will be paid off completely in 70 months)
Salary 67,500.00
Current plan IBR( minimum payment 750, currently pay 1,150.00)
Scale of 1-10 job security ( 1- about to get fired any day, 10 never will get fired): 7

Do I pay off the other loan fast( use the 400 extra a month and save for ibr tax bomb, refinance, or what? Don’t think
I’ll end up paying off the entire loan within the durstion of the ibr program.

Thanks

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northwood
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Re: Student Loans: Payment Options and Numbers

Post by northwood » Sun Jan 28, 2018 5:28 pm

Please don’t quote my post above. Thanks again

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bk1
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Re: Student Loans: Payment Options and Numbers

Post by bk1 » Sun Jan 28, 2018 10:09 pm

Danger Zone wrote:
Fri Jan 26, 2018 12:49 pm
In for the misery 👍

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barkschool
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Re: Student Loans: Payment Options and Numbers

Post by barkschool » Sun Jan 28, 2018 11:28 pm

.
Last edited by barkschool on Mon Jan 29, 2018 10:59 pm, edited 1 time in total.

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SmokeytheBear
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Re: Student Loans: Payment Options and Numbers

Post by SmokeytheBear » Mon Jan 29, 2018 11:50 am

Can't stop the FRB Mafia.

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DOT
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Re: Student Loans: Payment Options and Numbers

Post by DOT » Mon Jan 29, 2018 1:19 pm

In


Still months/years away from refinancing, but hoping to at least make a dent in some of my loans this year.

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Johannes
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Re: Student Loans: Payment Options and Numbers

Post by Johannes » Mon Jan 29, 2018 11:35 pm

northwood wrote:
Sun Jan 28, 2018 5:28 pm
Please don’t quote my post above. Thanks again
stop paying more than the min IBR and put that to your other debt.
Invest some extra discretionary money. Max your pretax 401k and hsa contribution if you can fornlower payments. Switch to PAYE. 750 is a really high payment on IBR.

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bk1
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Re: Student Loans: Payment Options and Numbers

Post by bk1 » Fri Feb 02, 2018 12:50 pm

Republicans and the WSJ are coming for you johann:


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JenDarby
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Re: Student Loans: Payment Options and Numbers

Post by JenDarby » Fri Feb 02, 2018 10:18 pm

Johannes wrote:
Mon Jan 29, 2018 11:35 pm
northwood wrote:
Sun Jan 28, 2018 5:28 pm
Please don’t quote my post above. Thanks again
stop paying more than the min IBR and put that to your other debt.
Invest some extra discretionary money. Max your pretax 401k and hsa contribution if you can fornlower payments. Switch to PAYE. 750 is a really high payment on IBR.
agree 100%

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Johannes
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Re: Student Loans: Payment Options and Numbers

Post by Johannes » Sat Feb 03, 2018 1:01 pm

bk1 wrote:
Fri Feb 02, 2018 12:50 pm
Republicans and the WSJ are coming for you johann
They been saying that for years now. And what my response always is - the people in debt will just default and govt will get less. So it’s kinda stuck and there is no good enough solution that will come close to getting the necessary votes even in a R R R legislature/pres.

Kodokushiest
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Re: Student Loans: Payment Options and Numbers

Post by Kodokushiest » Sat Feb 03, 2018 1:35 pm

Johannes wrote:
Sat Feb 03, 2018 1:01 pm
bk1 wrote:
Fri Feb 02, 2018 12:50 pm
Republicans and the WSJ are coming for you johann
They been saying that for years now. And what my response always is - the people in debt will just default and govt will get less. So it’s kinda stuck and there is no good enough solution that will come close to getting the necessary votes even in a R R R legislature/pres.
I think they could somewhat safely extend the obligation out to 30 years and increase the monthly payments as a percentage of discretionary income. I don't think that many people will be willing to wreck their lives to avoid that incremental increase.

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Nebby
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Re: Student Loans: Payment Options and Numbers

Post by Nebby » Sat Feb 03, 2018 4:58 pm

Kodokushiest wrote:
Sat Feb 03, 2018 1:35 pm
Johannes wrote:
Sat Feb 03, 2018 1:01 pm
bk1 wrote:
Fri Feb 02, 2018 12:50 pm
Republicans and the WSJ are coming for you johann
They been saying that for years now. And what my response always is - the people in debt will just default and govt will get less. So it’s kinda stuck and there is no good enough solution that will come close to getting the necessary votes even in a R R R legislature/pres.
I think they could somewhat safely extend the obligation out to 30 years and increase the monthly payments as a percentage of discretionary income. I don't think that many people will be willing to wreck their lives to avoid that incremental increase.
That would be bad economic policy because that's less money going directly into the economy.

Kodokushiest
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Re: Student Loans: Payment Options and Numbers

Post by Kodokushiest » Sat Feb 03, 2018 5:20 pm

Nebby wrote:
Sat Feb 03, 2018 4:58 pm
Kodokushiest wrote:
Sat Feb 03, 2018 1:35 pm
Johannes wrote:
Sat Feb 03, 2018 1:01 pm
bk1 wrote:
Fri Feb 02, 2018 12:50 pm
Republicans and the WSJ are coming for you johann
They been saying that for years now. And what my response always is - the people in debt will just default and govt will get less. So it’s kinda stuck and there is no good enough solution that will come close to getting the necessary votes even in a R R R legislature/pres.
I think they could somewhat safely extend the obligation out to 30 years and increase the monthly payments as a percentage of discretionary income. I don't think that many people will be willing to wreck their lives to avoid that incremental increase.
That would be bad economic policy because that's less money going directly into the economy.
Not if you replace it with a cash payout to everyone with JDs/other degrees, instead of one targeting only those who went into massive debt.

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ohhhhhello
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Re: Student Loans: Payment Options and Numbers

Post by ohhhhhello » Sat Feb 03, 2018 6:04 pm

Putting in 80k toward loan repayment this year. Hoping to wipe away debt of ~200k after 3 years or so. Interest rates average 6.5%. I did not refinance because I am planning to pay off quickly and I want to retain as much flexibility with repayment as possible. Was this a mistake?
Last edited by ohhhhhello on Sun Apr 22, 2018 3:01 pm, edited 1 time in total.

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Johannes
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Re: Student Loans: Payment Options and Numbers

Post by Johannes » Sat Feb 03, 2018 11:53 pm

Just trying to build out some knowledge and discussion here because I'm not interested in discussing the pros and cons of policy here except to the extent it focuses on the chances of PAYE/IBR changing. Any momentum to changing PAYE/IBR should def be monitored in here as very relevant, but those articles have been around for a long time without leading to any change. Also remember, Trump is for a shorter forgiveness period (15 years) and only slightly higher rate (12.5), so again, this is an issue, like healthcare and unlike taxes, where there is no R or D consensus. Most importantly, getting the numbers to work, is very hard also like healthcare, which is why I think the inertia is in place to just let it be and I don't believe anyone really wants to touch this right now.

Just a reminder that Taxx Cuts and Jobs Act is pro-friendly to PAYE and IBR. Max 401k contributions went up in 2018 to 18.5k. the increase in the standard deduction also helps those on IBR by reducing someones AGI even further even if their income remained the same. Finally, federal poverty level rose in 2018 and will rise again in 2019, which is what discretionary income is based. All of these changes will mean if your income remained stagnant, you should be making lower monthly IBR payments.

Finally, this does not even consider the lower tax rate of TCJA, which means people have more effective income with the same salary and can thus defer more income by contribute more to their 401k/HSAs. This creates a nice little positive reinforcement feedback loop for those who were not maxing 401k/HSA. Ie, With the same income, because you pay less money to tax, you can defer that money you would have paid to tax in 2017 in your 2018 401k and thus lower your monthly IBR bill, which creates more money for you that you don't need that you can defer in your 401k/HSA.

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bk1
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Re: Student Loans: Payment Options and Numbers

Post by bk1 » Sun Feb 04, 2018 12:02 am

Johannes wrote:
Sat Feb 03, 2018 11:53 pm
Just trying to build out some knowledge and discussion here because I'm not interested in discussing the pros and cons of policy here except to the extent it focuses on the chances of PAYE/IBR changing.
I was just fucking with you, not posting something as serious discussion (I didn't even read the whole thing until after I posted it).

I don't think Trump's position on things is all that close to relevant (since he readily defers to the morons who populate both his administration and congress). e.g., if Betsy Devos wants to screw over PAYE/IBR, Trump isn't going to stand in her way.

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Johannes
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Re: Student Loans: Payment Options and Numbers

Post by Johannes » Sun Feb 04, 2018 12:06 am

bk1 wrote:
Sun Feb 04, 2018 12:02 am
Johannes wrote:
Sat Feb 03, 2018 11:53 pm
Just trying to build out some knowledge and discussion here because I'm not interested in discussing the pros and cons of policy here except to the extent it focuses on the chances of PAYE/IBR changing.
I was just fucking with you, not posting something as serious discussion (I didn't even read the whole thing until after I posted it).

I don't think Trump's position on things is all that close to relevant (since he readily defers to the morons who populate both his administration and congress). e.g., if Betsy Devos wants to screw over PAYE/IBR, Trump isn't going to stand in her way.
I know. I appreciated your link. Was trying to say nebby and the koda responses were tangents. There is also plenty of room itt for shitting on people who are capable of refi-ing that don't when their 200k debt grows to 300k levels, get reneged on/repayment plan yanked by a Trump tweet, etc.

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bk1
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Re: Student Loans: Payment Options and Numbers

Post by bk1 » Sun Feb 04, 2018 12:08 am

Johannes wrote:
Sun Feb 04, 2018 12:06 am
bk1 wrote:
Sun Feb 04, 2018 12:02 am
Johannes wrote:
Sat Feb 03, 2018 11:53 pm
Just trying to build out some knowledge and discussion here because I'm not interested in discussing the pros and cons of policy here except to the extent it focuses on the chances of PAYE/IBR changing.
I was just fucking with you, not posting something as serious discussion (I didn't even read the whole thing until after I posted it).

I don't think Trump's position on things is all that close to relevant (since he readily defers to the morons who populate both his administration and congress). e.g., if Betsy Devos wants to screw over PAYE/IBR, Trump isn't going to stand in her way.
I know. I appreciated your link. Was trying to say nebby and the koda responses were tangents. There is also plenty of room itt for shitting on people who are capable of refi-ing that don't when their 200k debt grows to 300k levels, get reneged on/repayment plan yanked by a Trump tweet, etc.
Oh yea. Whether it's good or bad policy is not going to necessarily drive what happens (even under a different administration).

cfcm
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Re: Student Loans: Payment Options and Numbers

Post by cfcm » Sun Feb 04, 2018 9:13 am

bk1 wrote:
Fri Feb 02, 2018 12:50 pm
Republicans and the WSJ are coming for you johann:
Even the Pope is getting involved.

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Toni
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Re: Student Loans: Payment Options and Numbers

Post by Toni » Tue Feb 13, 2018 2:08 pm

Out of curiosity does anyone here get to write off student loan interest on their taxes? I don’t ― this is so totally unfair.

During the elections the politicians all said they understood the problem and promised to help. So far, zero.

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JenDarby
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Re: Student Loans: Payment Options and Numbers

Post by JenDarby » Tue Feb 13, 2018 2:28 pm

Toni wrote:
Tue Feb 13, 2018 2:08 pm
Out of curiosity does anyone here get to write off student loan interest on their taxes? I don’t ― this is so totally unfair.

During the elections the politicians all said they understood the problem and promised to help. So far, zero.
like many (most?), I did my stub year and then never again. and lol at the amount of student interest I’ve paid over the years

though, thanks to my re-refi plus subsequent modification and additional payments, I should be at ONLY ~3k Interest paid for 2018

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Nony
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Re: Student Loans: Payment Options and Numbers

Post by Nony » Tue Feb 13, 2018 4:22 pm

Toni wrote:
Tue Feb 13, 2018 2:08 pm
Out of curiosity does anyone here get to write off student loan interest on their taxes? I don’t ― this is so totally unfair.

During the elections the politicians all said they understood the problem and promised to help. So far, zero.
Why is it so unfair?

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RespondeatInferior
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Re: Student Loans: Payment Options and Numbers

Post by RespondeatInferior » Tue Feb 13, 2018 6:23 pm

Graduated: 2015
Current debt: 175k
Other debt: 60k on my mortgage (355 per month).
Salary: 50k at a 501(c)(3) non-profit
Current plan: Minimum PAYE payments for PSLF, maxing out my tax-deferred 403(b) contribution of $18,500, I put the max of $2,600 into my flexible spending account, $1,800 a year for tax-exempt health insurance premiums. Drops my reported taxable income to a bit over 27k, I pay a small handful of change towards PAYE.

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