Loan question

[pharmacy7424]

Have private loans:
10k at 4.2%
5k at 3.2%

(also federal loan 120k @ ~5.7%, but not relavent to this question)

I am able to borrow an extra 15k in gradplus loans this term, at 6.4% I am wondering if it is worthwhile to take out the federal loans to pay back the private loans immediately.

Obviously this is a higher interest rate, but it comes with the better benefits of the federal repayment plans over time.

I am not planning on doing IBR/PSLF, but it would be nice to have as a backup should my employment dry up.

How can I figure out if this is a good idea?

---

Members don't see this ad.

 

[Dred Pirate]

for 15k - that is a typical rob Peter to pay Paul - don't do it - keep the interest rate as low as possible - when you start working you should be able to pay 15k off in the first year.

 

[rxgolfer]

Those rates are so low id pay those off last. In fact id pay minimum and max out your employee stock purchasing plan. How to figure it out? Make a excel spread sheet and do math. But just by looking at your low rates, I'd pay minimum and invest elsewhere.

 

[confettiflyer]

Ordinarily i'd recommend taking out the grad plus loan, but with rates that low and PSLF uncertain for students after 2015...I'd say just tackle them early in your career.

 

[pharmacy7424]

Ordinarily i'd recommend taking out the grad plus loan, but with rates that low and PSLF uncertain for students after 2015...I'd say just tackle them early in your career.

Why would you ordinarily recommend taking out the plus loan?

 

[confettiflyer]

Why would you ordinarily recommend taking out the plus loan?

Because those graduating/graduated pre-2015 have a more solid basis for relying on IBR/PSLF than those graduating post-2015. So my recommendation is to hedge your bets.

 

[pharmacy7424]

Because those graduating/graduated pre-2015 have a more solid basis for relying on IBR/PSLF than those graduating post-2015. So my recommendation is to hedge your bets.

Pardon my ignorance, but don't understand. What changes post 2015?

 

[xiphoid2010]

woot! Just hit the submit on the pay-off amount. The end. ~$90k, took 2 years 9 months and 11 days after the end of residency.

 

[JanuviaGrl]

woot! Just hit the submit on the pay-off amount. The end. ~$90k, took 2 years 9 months and 11 days after the end of residency.

Awesome!!! Congratulations!!

 

[Dred Pirate]

woot! Just hit the submit on the pay-off amount. The end. ~$90k, took 2 years 9 months and 11 days after the end of residency.

damn - that was nice and fast?

You live the damsey rice and beans diet while living in someone's basement for no rent? jealous

 

[xiphoid2010]

damn - that was nice and fast?

You live the damsey rice and beans diet while living in someone's basement for no rent? jealous

I'm done with mine, but my wife still has just a bit over $50k left, down from almost $140k. Doube down on her payment, we should be done with hers in about 9 months.

Things that helped with paying off:
(1l Married a classmate, dual pharmacist income
(2) moved to Texas
(3) increases income becoming a DOP
(4) moderately frugal living

Things that delayed paying off:
(1) engagement and wedding expenses
(2) had 2 kid, ouch!
(3) $60k down payment/cost to buy the house
(4) bought a small SUV and then a minivan due to having kids

 

[Bbed]

so you are saying....get married but don't have kids? lol

 

[Momus]

Kids cost around $300k to raise from 1 -> 18. If you plan to help them out for 4 years of college, add on another $200-400k.

Kids cost around $300k to raise from 1 -> 18. If you plan to help them out for 4 years of college, add on another $200(state)/400k(private).

 

[xiphoid2010]

so you are saying....get married but don't have kids? lol

Having kids naturally put a world of hurt on your wallet.

Getting married may or may not help with finances. The down sides:
(1) "marriage tax penalty" marrying someone with similar income.
(2) engagement rings are a huge rip off on a otherwise worthless piece of carbon
(3) Wedding... Whenelse do people pay $20k+ to stress s themselves out?

So the cheapest financial arrangement for 2 pharmacists is likely cohabitation, don't marry, but pool resources. After all, you can do everything, have kids, buy houses, etc. as partners without being married. However, the cultural expectations and security needs are such that most girls would never find that acceptable. It comes down to if she's a good girl, someone who you can see taking on the world with you, then you accept reality and buy that piece of overpriced carbon.

 

[Jibby321]

I paid the first $100.00 on mine! 3 years until I graduate after this semester!

 

[Dred Pirate]

I'm done with mine, but my wife still has just a bit over $50k left, down from almost $140k. Doube down on her payment, we should be done with hers in about 9 months.

Things that helped with paying off:
(1l Married a classmate, dual pharmacist income
(2) moved to Texas
(3) increases income becoming a DOP
(4) moderately frugal living

Things that delayed paying off:
(1) engagement and wedding expenses
(2) had 2 kid, ouch!
(3) $60k down payment/cost to buy the house
(4) bought a small SUV and then a minivan due to having kids

things that have hurt me in paying off

1 - one wedding
2. a spendaholic now ex-wife (even though she made 140k
2. one divorce
3 - three years later - another ring and wedding
4. lots of travel each year - you only live one

 

[Jibby321]

things that have hurt me in paying off

1 - one wedding
2. a spendaholic now ex-wife (even though she made 140k
2. one divorce
3 - three years later - another ring and wedding
4. lots of travel each year - you only live one

YOLO!¡!¡

 

[Momus]

Kids cost around $300k to raise from 1 -> 18. If you plan to help them out for 4 years of college, add on another $200-400k.

things that have hurt me in paying off

1 - one wedding
2. a spendaholic now ex-wife (even though she made 140k
2. one divorce
3 - three years later - another ring and wedding
4. lots of travel each year - you only live one

You got lucky. It is good that she makes 140k, imagine if she doesn't work/stay at home mom and you got a divorce, more $$$ to her - alimony/child support.

 

[jasonkido]

Or maybe if he became stay at home dad and got a divorce then more money to him lol

 

[Dred Pirate]

Or maybe if he became stay at home dad and got a divorce then more money to him lol

are you a tool?

 

[jasonkido]

Didn't mean it to be personal. I was just saying if a husband divorces and he wasn't the bread winner then the wife will have to pay.

 

[Dred Pirate]

You got lucky. It is good that she makes 140k, imagine if she doesn't work/stay at home mom and you got a divorce, more $$$ to her - alimony/child support.

no kids -thank the Lord - put hey -chaulk it up to experience. if at first you fail - try try again