Loan payoff : Big payment vs. Monthly Payment

[trailerpark]

They both have the same fixed rate, anyone lower than 3.5?

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[Dred Pirate]

They both have the same fixed rate, anyone lower than 3.5?

1.7%


but don't ask when I graduated

 

[trailerpark]

What I lose the perks of a federal loan like forbearance or deferment and stuff like that if I refinance?

 

[68quebec]

To be honest, I don't have any experience on student loan. But if I put it as home mortgage with current loan rate, it should be in similar term (for example, 250k with 6.9% 15 years FIXED, wait, student loan doesn't work this way..yeah I know but let's just do it this way)

Anyways, my best advice is, pay as much as you can more frequently. I highly recommend pay bi-monthly instead of q month. the reason is, instead of making 12 monthly payments, 26 bi-monthly payment will payoff principal much quicker.

Obviously, you should avoid accumulating student debt at any cost (or go to school wherever CHEAPER!! reputation only matters when the price comes to equivalent)

 

[pezdispenser]

Maximum rates of 9 and 18 percent!?

That's just the cap if you choose the variable rate. Because the rate varies with the 3-month LIBOR currently at 0.25%, plus a margin.

It might be better to go with the fixed rate, but then you only get low 3.5-4.5% rates with the 5 or 10 year terms and the monthly payment would be very high if you have >$100k in loans.

 

[trailerpark]

Well the government already has me on a 10 year plan anyway.

 

[N974]

What I lose the perks of a federal loan like forbearance or deferment and stuff like that if I refinance?

Yes. Probably the biggest (and maybe only?) reason not to refinance. I'm not sure what happens to the inability to write off the loans in bankruptcy. Is that only when under the federal program?

 

[pezdispenser]

Well the government already has me on a 10 year plan anyway.

I think you should post in this other student loan refi thread: http://forums.studentdoctor.net/threads/social-finance-inc-student-loan-refinancing.1077630/

Looks like people were able to get 3.5% fixed x 5 years with Darien Rowayton Bank. On a $50k balance, that would save you around $1,500 in interest per year, so I think it's worth doing if you're going to attack your loans to get them paid off quickly.

 

[awval999]

What I lose the perks of a federal loan like forbearance or deferment and stuff like that if I refinance?

SoFi will allow you to forebear if you have documented unemployment.

 

[trailmix86]

I'm a P3 and I'm probably going to be graduating with close to 300K in debts. I plan to pay the minimum and spread it out as long as I can. This is because you don't really know what's going to happen in the future. I want to be able to enjoy life while I'm still young (no offense to those you are optimistic about paying off their loans as soon as possible). I also think that the money you used to pay off your loans can be invested elsewhere. There's more chance for return in investment in other areas than paying off loans because you're worried the interest will accrue.

 

[BMBiology]

^^ with 300 k in student loans, you would have a hard time paying it off on a pharmacist salary anyways so might as well drag it as long as you can.

The big question is who you will marry and if your debt is something that would make him think twice. There is already talks about making it mandatory to take your spouse's income into consideration when calculating your monthly repayment. If he is successful and doesn't have much student loans left, he would in essence will be paying for your student loans.

I can understand the idea of living it up while you are still young but I would never do it on a credit card or student loan. You are basically borrowing from your future self. By then when you have a mortgage and a family, money is even more essential. Something to think about.

 

[trailerpark]

Your life is ruined with 300k in student loans.

 

[trailmix86]

^^ with 300 k in student loans, you would have a hard time paying it off on a pharmacist salary anyways so might as well drag it as long as you can.

The big question is who you will marry and if your debt is something that would make him think twice. There is already talks about making it mandatory to take your spouse's income into consideration when calculating your monthly repayment. If he is successful and doesn't have much student loans left, he would in essence will be paying for your student loans.

I can understand the idea of living it up while you are still young but I would never do it on a credit card or student loan. You are basically borrowing from your future self. By then when you have a mortgage and a family, money is even more essential. Something to think about.

Thank you for your honest opinion. I am already married and my husband knows everything about my loan situation. We have a payment plan for my student loans, and with our income combined, it should be not be an issue.

 

[trailmix86]

Your life is ruined with 300k in student loans.

Wow, I guess you're speaking for all the doctors out there.

 

[trailerpark]

He's graduating with a pharmD not a residency in Dermatology or Radiology, or some surgical specialty, etc... Apples and oranges

 

[awval999]

Lol. $300k in student loans. For pharmacy. Hope you don't plan on the standard part time gig that the majority of female pharmacist want.

 

[trailerpark]

The majority of female pharmacists I know work full time and are the breadwinners.

 

[deleted390966]

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[Momus]

The majority of female pharmacists I know work full time and are the breadwinners.

So they like marrying a bunch of losers >_>; The majority of female pharmacists I know marry same income or spouses with better incomes.

 

[trailerpark]

Haha, a guy is a loser if he makes under 120k? Take it away Kanye.

 

[fauxden]

holy-shiz-the-bed, you have 300k in student loans ? I'm freaking blown away just thinking about that burden. I seriously feel sorry for you right now. With a 6.8% interest @ 10 years.... yeah a measly 3500/month... wow. That is suffocating. Can I ask how you pulled that off? What did you buy with all that sweet student loan money? Please tell me your husband/lover/wife is bringing home some seriously thick cut bacon?!?!

 

[deleted390966]

Oh please stop being surprised about the exorbitant and ridiculous cost of education in this country!

 

[fauxden]

Oh please stop being surprised about the exorbitant and ridiculous cost of education in this country! It's not uncommon for students to incur >$200k when there are schools that charge $40k per year!

If the school charges that much the student has the choice to NOT go there... I graduated with 42k in total debt in 2013. No scholarship, no family aid, etc etc. You want to complain about the gov't? Complain that they have made lending SOOOO easy. Easy money = schools charging whatever they want. When EVERY student can pony up the tuition cost via grants/loans then what incentive does the school have to NOT raise tuition? Everyone else is at fault; the school, the gov't, the parents, everyone except the student. Your little meme doesn't paint a complete picture (shocker).

 

[BMBiology]

Oh please stop being surprised about the exorbitant and ridiculous cost of education in this country! It's not uncommon for students to incur >$200k when there are schools that charge $40k per year!

In other countries, not everyone is given the opportunity to go to college. High school students have to take exams and if they don't get a certain score, their education is over. That is not how it is like here. A kid with a 2.2 high school GPA can borrow a load of money to attend an out of state, for-profit college of his choice. Someone has to pay for his foolish decision. Either he will or the tax payers will. You decide.

 

[68quebec]

I'm a P3 and I'm probably going to be graduating with close to 300K in debts. I plan to pay the minimum and spread it out as long as I can. This is because you don't really know what's going to happen in the future. I want to be able to enjoy life while I'm still young (no offense to those you are optimistic about paying off their loans as soon as possible). I also think that the money you used to pay off your loans can be invested elsewhere. There's more chance for return in investment in other areas than paying off loans because you're worried the interest will accrue.

O M G. please tell me you are just joking. Student loan of 300k is not what you really want to have in the life. I cannot image myself having 300k student loan and enjoying the life. how the hell did you even pull that much money? did you pay for your housing? or vacation? you can invest money once you are done with debt. Without being debt free, you cannot really invest.. (I'm talking about bad debt, which definitely include this fxxking student loan that you don't concern too much about).

You seriously need to go to financial workshop. Or meet counselor who is specialized for this. Call David Remsey, or whoever and ask opinion. You really don't know where you are at right now.

 

[trailmix86]

O M G. please tell me you are just joking. Student loan of 300k is not what you really want to have in the life. I cannot image myself having 300k student loan and enjoying the life. how the hell did you even pull that much money? did you pay for your housing? or vacation? you can invest money once you are done with debt. Without being debt free, you cannot really invest.. (I'm talking about bad debt, which definitely include this fxxking student loan that you don't concern too much about).

You seriously need to go to financial workshop. Or meet counselor who is specialized for this. Call David Remsey, or whoever and ask opinion. You really don't know where you are at right now.

Thanks for the advice. I'll look into it. There are many students in my boat. The reason why I accumulated all these loans is because I got my bachelor's degree, which was about 35K. Then I went to a 6-years pharmacy program (~45K/year). Yes, some people have to take out money to pay for housing. My rent is only $325+utilities/month. I don't think I'm spend-thrift, I just needed to take out enough money to cover my expenses.

I'm not trying to make light of this, I just have to work hard and try to pay it off rather than going bankrupted. Students who are thinking about going to pharmacy school, try to stay away from taking out loans as much as you can.

 

[trailmix86]

Oh please stop being surprised about the exorbitant and ridiculous cost of education in this country! It's not uncommon for students to incur >$200k when there are schools that charge $40k per year!

PhoenixFire, thank you for posting this.

 

[deleted390966]

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[BMBiology]

You forgot there are the SAT and good GPA here. If you think public colleges don't have entrance requirements, you're wrong. Maybe you're referring to community college.

In Europe, you pass high school classes with decent grades & pass college entrance exams = you can have access to ANY university you want. Suppose you don't pass college entrance exam = you'll take a year off to retake it, or enter a lower university. Also, entering professional school is a joke. Their entrance exam is a joke (compared to the MCAT here); there are also no interviews, LORs, ECs - all those crap. Their physicians still make comparable salaries to American ones - minus the loan burden!


You can choose NOT to go to 70% of colleges and 95% of graduate schools in the US, then. (Only Texas colleges costs ~$10k/year but good luck getting in without Texas residency). What is the point of having "top ranked" universities that are inaccessible to the majority of the population? Top Germany universities are on-par with Ivy Leagues and cost NOTHING. British ones consistently rank in the top ten but cost 1/5 of the costs here.
Sure, you can argue that "you can take out loans," but then how easy is it to pay back those loans if a person is not making a physician's salary?

Where do these countries get the money to pay for their tuition? It has to come from the tax payers right?

The problem is that everyone here thinks education is always a good thing so everyone is given the opportunity to go to college. But yet, we don't want to pay for it by paying more taxes. So we pass the cost on the students.

The solution is simple: limit who gets to go to college or increase taxes. Highly qualified students = lower interest rate. Interest rate is not cheap but where are you going to get 250 k loan with no asset?

 

[fauxden]

You forgot there are the SAT and good GPA here. If you think public colleges don't have entrance requirements, you're wrong. Maybe you're referring to community college.

But even if what you say is true (a 2.2 GPA student can "attend an out of state, for-profit college of his choice"), then it's even worse: as long as you have a pulse and $$$, they'll accept you. Look what happens to Pharmacy: the result is you're tons in debt with an uncertain future.

In Europe, you pass high school classes with decent grades & pass college entrance exams = you can have access to ANY university you want. Suppose you don't pass college entrance exam = you'll take a year off to retake it, or enter a lower university. Also, entering professional school is a joke. Their entrance exam is a joke (compared to the MCAT here); there are also no interviews, LORs, ECs - all those crap. Their physicians still make comparable salaries to American ones - minus the loan burden!


You can choose NOT to go to 70% of colleges and 95% of graduate schools in the US, then. (Only Texas colleges costs ~$10k/year but good luck getting in without Texas residency). What is the point of having "top ranked" universities that are inaccessible to the majority of the population? Top Germany universities are on-par with Ivy Leagues and cost NOTHING. British ones consistently rank in the top ten but cost 1/5 of the costs here.
Sure, you can argue that "you can take out loans," but then how easy is it to pay back those loans if a person is not making a physician's salary?

Oh give me a break. Just post another meme and be done with it.

Do you seriously think you can compare the tuition costs as if they are isolated entities, across countries, with no accounting of taxes, cost of living, etc, blah, etc...?

And to say that tuition at <10k/year is some kind of anomaly to Texas is untrue, for undergrad at least.

 

[SClENCE]

I would pay very aggressively every month.

 

[SClENCE]

I view college as a business investment. Many people go to college to pursue their dream and study art, dance, or even German polka music. Once they graduate, they are surprised when they cannot find a job or pay off their student loans. It's really quite amusing hearing them put the blame on the college and the economy. In reality, they just made a poor investment when choosing their field of study.