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i agree with you on that regarding near-term outlook. but i mentioned 2012-2016 which presumably the poster i quoted had been paying their student loans aggressively.
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Federal loan repayment options. Which one did you choose?
Started by danicuhmae
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i agree with you on that regarding near-term outlook. but i mentioned 2012-2016 which presumably the poster i quoted had been paying their student loans aggressively.
Correct, looking at it now, a bad move but having those loans gone still gives relief. Many were not expecting those returns.
Guaranteed returns will always trump unknown market performance.
Whatever gains I could have made from a bull market would have been obliterated by the lifestyle creep of buying a nice house in a nice neighboorhood, nice car, eating out every week, expensive vacations, etc. None of which would have made me any happier.
Most people that end up in huge amount of debts don’t have an investing problem, they have a spending problem.
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How can you put a price on a peace of mind?
Yeah and you can’t post all those fancy things on Facebook! What your FB friends don’t realize is....you have $300 k mountain of debt that will take you 25 years to pay off. Being fake just to get likes.
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Never Has So Few Owned So Much
Sorry and sure. However, the part you omitted which is relevant to me was 30 years (over 5-10 years, 6% might be better than the best returns honestly for the risk profile). Over a 30 year time horizon, no, I choose to spend instead. My reasoning is this, over the course of a lifetime, we experience at least one or two hyperinflationary events who wipe out savers. Ever stop to think why no one wants to go before 1985 in terms of investment gains? That's because everyone got wiped out at the end of the Ford administration and dying in Carter's. Saving is fine, there's nothing morally wrong with it, but from a financial perspective, most people including this board tend to plan with currency as a static measure, not a dynamic one. This leads to problems. For instance, if you had actually won in the 1950s and 1960s expansion to the numbers the FatFire (so $80k passive in present tense) people recommend, you would have been wiped out around 1979-1982 with the inflation rapidly outpacing your savings and dividend returns unless you were in the miraculous 3% whose portfolios did not collapse during that time from inflation or recession. And that's before the Reagan recession in his late term. There were only three or four types (not mutually exclusive) of rich who survived that incident keeping the same standard of living:
1. Working rich - Those who already worked even if their assets could support them passively as they could wait out the storms using their salaries without having to get out of assets.
2. Scrooges - Those who weren't in the market in the first place (so people who had gilt insurance or something to that effect as a pensioning system with COLA).
3. Capitalists - Those whose assets were tied in their own business and could not escape, so they went full speed ahead (and even then, most of this class fell during Reagan's term)
There's quite a bit of good portfolio theory about the business cycle, speculation, and the cycle of real estate just being beyond most people's apparent time horizon for people to remember and thus get burned. The damning one for me was one of my colleagues at the U doing a real estate study on who owned property at the most expensive areas in town, tracking down every single household and descendant, and then seeing what happened. The idea of old rich, where wealth is preserved from generation to generation, only happens in the superwealthy, and for most, the families grow and decline in equal measure, unless they are of certain backgrounds that prioritize intergenerational wealth (which I am from a household that is that way). For the rest of us including my own household, there is pretty much no way that my household would be able to be recession proof as the means that our household gains income is through services, and services is something that can be curtailed at any given time pending budget. Service is not food and it is not goods that have time horizons in that respect.
My wife and I were in the same modern finance classes together, so we do understand what the idea of early retirement means, and what eventually happens to almost all of them in terms of losing it all when they could have been productive instead. Think Fire is a new concept, try reading Cannadine's The Decline and Fall of the British Aristocracy. Even better, consider Spengler's The Decline of the West. History is cyclical, and the ones who manage to survive know that its not about prospering or winning, it's about making it to the next cycle. Although we have enough assets that if we stopped working immediately today, we could technically live off our assets in FatFire without even changing anything (no sale, no financial tricks, no loss of consumption), but we keep working because in these cycles of antisaving, you want to be part of the system that is kept than be someone that can be victimized easily. (As well, because we feel that no one saves for retirement, the democracy we live in will find some way to take from those who save due to the tyranny of the majority against the saving minority, but that's part of the government we signed up for). We work because we want to, but also as insurance against days where not being like everyone else is going to matter even more.
In the end, it's never been about saving money for me, it's about living well within my means. Just because we have major assets doesn't change our consumption behavior, and honestly, we don't even care if the money gets confiscated. My parents and grandparents instilled that in me walking away from a place where they had real assets, but the political and religious sentiments were extremely hostile to my ethnic group. I own money, money and possessions shall never own me nor determine my behavior, that's what having real money is all about. I'm not even in the game for keeps anymore, which is worth far more to me than any gain I could have.
So, 6% in the future 30 years isn't good enough. Getting a living wage that satisfies my needs and wants is good enough, and who knows whether the rate to do that would be -6%, 6%, 60%, or the Venezuelan 60 billion percent, I just want my fair share, but I don't think that the opportunity cost is worth it for 30 years, and I actually don't think the banks have it right either.
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Plan? lol...You should not be in 310,000 debt unless your able to make 200K+ a year.....it's ridiculous(not our fault). They have loaned out too much money so far. This will all collapse at some point...5-10 years there will be total chaos is my opinion. Whats going to happen when 50% or more are defaulting or paying like 100$ a month on IBR ? collapse....thats what. You cant get blood from a stone, and pharmacists are quickly becoming "stones" so to speak..We are losing our earnings potential and fast! So what would i do? while your credit is good, buy a new car (low end model please!) open up some credit cards for tough times, stash away your money, retain a loan lawyer...and sit tight. If you have private loans with super high interest you can never pay off, F*&* them for doing that to us.....stop payment immediately, wait 6-9 months, a loan lawyer can settle/negotiate the debt for 25 cents to 50 cents on the dollar, lump sum, done! yeah your credit will be tanked for a few years, but you have a new car, right? some credit? youll survive. Federal loans are a whole other animal....take a lower paying job and learn to enjoy life....the days of 6 figure salaries are ending fast. Learn to accept that and take what you can...
The only other option is to throw ALL your earnings at this debt for 10-15 years? and lets face it, we are not going to be around then. Now your out the window on all that money you COULD have had in your savings account to split the country to Europe or do whatever you need to do.
How is this not your fault as well?
Because of easy access to student loans, many pharmacy schools expanded. As a result, subpar students got accepted. If pharmacy schools didn’t expand, most of these subpar students would be washing test tubes for a living!
If anything, these students with their 2.5 GPA got a second chance at the expense of good students.
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There is a counterargument to be made with the reasoning that "a stupid person is too stupid to realize that they are stupid" (I can say that for certain about Great Mistakes, IL experiences and why military recruiting systems still work) and that schools take predatory advantage of that. That said, the state of affairs exists because too many people use too short a time-horizon to make a decision. I'm not so sure that even my privileged generation (2004) is going to do better than breakeven with an uneducated labor job financially for the average grad, let alone 2014 or today.
exactly - remember 2000? or 2008? Both times the stock market lost ~50% - **** can happen
OP i'm assuming you are a single individula like me. Okay def don't do the first one. Life can end fast. You might die in the next ten years (seriously) or why would you want money when you are old and can't enjoy it? What if you pay it all off then the government collapses or the pharmacy markets goes to crap? also you need to spend money NOW to attract your future wife / husband. Honestly if it were me in your shoes and I know you don't want to hear this but I would
do PAYE then inevitably default when I had a gap in employment. 300k+interest is just too much to ever realistically pay off. After defaulting I would prob move to a slow resturant in the Florida Keys and just work under the table and live the good stress free life. Look man you got scammed. A college degree just isn't worth what it used to be and sounds lik you got scammed twice.
Mathematically, it would be detrimental to ignore any loan with a high interest rate. As these are student loans, the interest rates are almost guaranteed to be 7%+. Regardless of how you do it, whether it's through your own wallet or some type of employer loan repayment system, you need to pay off the loans as quickly as possible.
You should also look into refinancing (IF it does not conflict with other repayment options), as these can often knock down the interest rates substantially.
You should also look into refinancing (IF it does not conflict with other repayment options), as these can often knock down the interest rates substantially.
Hey pal, don't go off on me, i started pharmacy in 2003, when times were good, by 2008 when i entered pharm school, i was committed. Market was not like today.....was still promising. I couldn't have known. And maybe he could have, either way, tuition being what it is, and loans being at 6 to 9 percent interest is not the way you should treat healthcare professionals. We are giving back to society in a big way right? The generations prior to ours had 1-3% fixed AND low cost of schooling. IT wasnt that long ago. They are lending too much money at TOO high interest and burying healthcare workers in debt. If thats not wrong i dont know what is. And dont start babbling about we signed the loans, so live with em. We wanted to be something and this is what it took to achieve that. And i was top of my class always (not that that matters), so dont hammer me about grades either. iv;e been in this field since 1997.....it was my life.
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Now this guy gets it! These loans were a total joke. When i saw the actual amount i would be in debt in 2008 when i started , THIS WAS EXACTLY MY PLAN. I NEVER planned on paying these off. and the market was good then too. Now that pharmacy has declined so badly that we wont have jobs anymore, i REALLY dont care. You could throw me in jail at this point, i honestly DO NOT CARE. And to think i have been in pharmacy since 1997 and a RPH since 2012. This was my life.....The rug pulled out from under me. and you too....all of us.
It depends, some of my friends got a once-in-a-lifetime deal when they signed on at Eckerd in 2004, got bought out by CVS, then walked out on the contract BEFORE working a day for CVS as the deal was only between Eckerd and CVS. Some of them work for CVS now with no repercussions from a $45k signon bonus.
The risk profile is still very, very high for this.
Maybe i'll pull it off, maybe not, only time will tell. best of luck.
