Loan question

[nafcillin]

1) what year did you or will you graduate?
2) how much do you have in loans for pharm school plus undergrad?
3) if you are out of school, how much have you paid off?
4) what is your interest rate?

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[All4MyDaughter]

1) what year did you or will you graduate?
2) how much do you have in loans for pharm school plus undergrad?
3) if you are out of school, how much have you paid off?
4) what is your interest rate?

1. 2011
2. 185K after all the interest was added
3. I signed up for IBR since I did a residency. My payment is about $450/month. Since I started working in July 2012, I have made my regular payments + an extra payment of 10K. I'm getting ready to make another large lump sum payment (amount TBD).
4. 6.8 on the Staffords and a little higher (can't remember) on the Grad Plus.

 

[RxQueen2010]

1) 2010
2) $90k
3) Paid $86k so far, balance $4k left to go (yay!)
4) 5.425% (currently, after discounts)

 

[nafcillin]

How did you pay so much??

 

[nafcillin]

1) what year did you or will you graduate?
2) how much do you have in loans for pharm school plus undergrad?
3) if you are out of school, how much have you paid off?
4) what is your interest rate?

1) 2007
2) 158k
3) down to around 100k
4) 4.5%

 

[Momus]

How did you pay so much??

45k/year is not so much, use your brain. I know people working only 40h/week paid 75k/year living at home.

 

[Carboxide]

1. 2014
2. Projected total will be ~170k
3. N/A
4. 6.8% Stafford (no more subsidized for me...) and I'm honestly not sure on Grad+

 

[rxlea]

1. 2014
2. Projected with interest: ~ 110-130K. Actual amount will depend on PhD grants offered for next year (hopefully end up with 110K!)
3. Plan on paying 25K a year
4. 6.8%

 

[type b pharmD]

1) what year did you or will you graduate?
2) how much do you have in loans for pharm school plus undergrad?
3) if you are out of school, how much have you paid off?
4) what is your interest rate?

1. 2013
2. ~275k with interest.... had no in state option and unfortunately incurred some substantial medical and family related expenses
3. N/a
4. ~7.6% weighted avg

 

[rutgerspharmd]

1) what year did you or will you graduate?
2) how much do you have in loans for pharm school plus undergrad?
3) if you are out of school, how much have you paid off?
4) what is your interest rate?

1. 2008
2. 60k
3. down to 15k
4. 5.5% weighted average

 

[Notecard]

1) 2015
2) 8k subdized, projected 15-20k unsubsidized
3) Planning on paying it off in less than a year
4) 3.4% for sub

For the unsubsidized loan it will be at whatever the federal interest rate for the 2014-2015 school year is.

 

[confettiflyer]

1) what year did you or will you graduate?
2) how much do you have in loans for pharm school plus undergrad?
3) if you are out of school, how much have you paid off?
4) what is your interest rate?

1) 2012
2) $230,000-ish
3) Negatively amortizing
4) Ranges from 2.8% for undergrad loans to 6.8-8.6% for Staffords and GradPLUS used for Rx school.

Epic amounts of good times in undergrad + pharm school? Priceless.

 

[Corpseman]

1) what year did you or will you graduate?
2) how much do you have in loans for pharm school plus undergrad?
3) if you are out of school, how much have you paid off?
4) what is your interest rate?

1. 2016
2. None
3. n/a
4. n/a

 

[g40631]

1. 2011
2. 85k including federal subsidized/unsubsidized Stafford loans. Undergrad I had a full ride scholarship.
3. I have it down to about 60k one year later.
4. 6.55 % Can get it lowered using automated payments from 6.8% I highly recommend it.

 

[BMBiology]

< 120 k
Paid it off in 3 years

Also saved enough money for a nice car and 20% down payment for a house. It's not difficult. You just have to prioritize (making more money than most pharmacists helped as well). Work hard now and then have your money work for you.

There's a proposal in congress that would get rid of IBR, PAYE and loan forgiveness: http://www.bloomberg.com/news/2012-...ection-targeted-for-overhaul-in-congress.html

It would not surprise me if they scale back these programs and only apply them to undergrad loans, and not graduate loans. The government used to subsidize graduate stafford loans but not anymore. The saving went to undergrad loans.

Don't borrow more than you actually need. I know people who used their student loan to buy a nice car and to take a vacation. Big mistake. They ended up paying a lot of interest and are heavily in debt. Even with a pharmacist's salary, it is difficult paying > 200 k + 6.8% interest. Just the interest alone would crush you.

 

[mustang sally]

1. 2012
2. 179k
3. About $1700 so far, w00t!
4. 6.8-8.6%, yuck.

 

[nafcillin]

45k/year is not so much, use your brain. I know people working only 40h/week paid 75k/year living at home.

Rude

 

[owlegrad]

Rude

I agree. Unnecessary and uncalled for.

 

[Momus]

Rude

Oh, I am so glad you caught that!

 

[IWantTheGenetic]

1) 2009
2) $145K
3) Down to $35K
4) 6.8%

 

[nafcillin]

Oh, I am so glad you caught that!

Big surprise you work graveyard shifts. Doesn't seem like you play well with others

 

[awval999]

1. 2010
2. $120K
3. $25K paid off ($95K remaining)
4. Wt Avg. = ~6%

I have the following assets:
$25K in cash (emergency fund)
$48K in 401k

I will say the following, some can go balls to the wall and pay off the loans with every spare dollar and have $20 bucks in a coffee can, but for me, personally, I have to have that large cash cushion, and I have to max out the 401k.

The cash cushion because I like my options to be open if I lose my job, want to change jobs, get married, being able to sleep easily, etc.

The 401k because I hate paying taxes and I like the tax-deferral.

 

[All4MyDaughter]

I will say the following, some can go balls to the wall and pay off the loans with every spare dollar and have $20 bucks in a coffee can, but for me, personally, I have to have that large cash cushion, and I have to max out the 401k.

The cash cushion because I like my options to be open if I lose my job, want to change jobs, get married, being able to sleep easily, etc.

The 401k because I hate paying taxes and I like the tax-deferral.

Emergency fund and retirement savings are important. I don't have a 401K yet (been working for myself and haven't set anything up), but will be maxing out our other retirement accounts. Plus putting some (not a ton) of money into the kids' college funds. And we have a large emergency fund. In fact, at our last "checkup," our financial advisor told us it was too large and we needed to use some of it to pay down my loan balance.

A lot of the folks who paid off their loans in a short time were fortunate enough to be able to live with parents and minimize expenses. That approach doesn't work for all of us.

 

[Digsbe]

1) 2016
2) Roughly 240k after the interest is tacked on after I graduate.
3) Still in school
4) About 7.0% I take out the 6.8% Stafford loan and a much less from a 7.9% Grad PLUS loan.

 

[SHC1984]

1. 2010
2. $120K
3. $25K paid off ($95K remaining)
4. Wt Avg. = ~6%

I have the following assets:
$25K in cash (emergency fund)
$48K in 401k

I will say the following, some can go balls to the wall and pay off the loans with every spare dollar and have $20 bucks in a coffee can, but for me, personally, I have to have that large cash cushion, and I have to max out the 401k.

The cash cushion because I like my options to be open if I lose my job, want to change jobs, get married, being able to sleep easily, etc.

The 401k because I hate paying taxes and I like the tax-deferral.

I agree with maxing out your 401K and ROTH IRA before anything else period....but is a large emergency fund really needed???

I mean chances are there will be no emergencies...but if you really had an unexpected expense pop up you can just put it on your credit card.

You have 20+ days to pay off the balance of your credit card before interest start adding up...so just charge it and pay it off before the interest starts adding up.

I just got my credit card paid off with all the Christmas money I got. Wish I could have used that money on something better though but oh well.

 

[Digsbe]

I agree with maxing out your 401K and ROTH IRA before anything else period....but is a large emergency fund really needed???

I mean chances are there will be no emergencies...but if you really had an unexpected expense pop up you can just put it on your credit card.

You have 20+ days to pay off the balance of your credit card before interest start adding up...so just charge it and pay it off before the interest starts adding up.

I just got my credit card paid off with all the Christmas money I got. Wish I could have used that money on something better though but oh well.

It's recommended that you should have enough in savings to live on for 3-6 months. What if something happens that will cost more than what your credit limit will allow? Plus, high charges with a high credit card interest rate isn't the wisest decision. I think it's a good idea to save a sizable amount for emergencies and put it into an account that will earn you interest.

 

[BMBiology]

The 401k because I hate paying taxes and I like the tax-deferral.

I also agree with putting money in your 401 k. I maxed out this year at 17 k and with company matches and gain this year, it is a nice amount. My strategy is first to pay back the student loan since 6.8% is way too high and it is a guarantee return. Then, max out my 401 k and do a backdoor Roth IRA. You can always borrow from your 401 k and take whatever amount of money you have invested in your Roth IRA in case of emergency. Whatever is left after living cost is saved.

 

[SHC1984]

45k/year is not so much, use your brain. I know people working only 40h/week paid 75k/year living at home.

This is true. Why would it ever take more than 2 to 3 years to pay off your student loans?

 

[SHC1984]

It's recommended that you should have enough in savings to live on for 3-6 months. What if something happens that will cost more than what your credit limit will allow? Plus, high charges with a high credit card interest rate isn't the wisest decision. I think it's a good idea to save a sizable amount for emergencies and put it into an account that will earn you interest.

Good point. Well I have a Visa that's 15K, American Express that's 6K, PNC that's 2K, Chase that's 6K, Macy's that's 6K, Belks that's 1.5K, Victoria Secret that's 2K, Bebe that's 5K and Neiman Marcus that's 10K.

I currently have ZERO BALANCE on ALL these cards. I don't owe anything right now.

Do you think this is enough or should I still build up an emergency fund?

What do you think BMBiology?

 

[All4MyDaughter]

It's recommended that you should have enough in savings to live on for 3-6 months. What if something happens that will cost more than what your credit limit will allow? Plus, high charges with a high credit card interest rate isn't the wisest decision. I think it's a good idea to save a sizable amount for emergencies and put it into an account that will earn you interest.

You are right on. Any financial planner worth their salt will tell you that you need a cash emergency fund. Charging up credit cards and borrowing from retirement accounts are not a good strategy. You can't pay your mortgage with a credit card! I suppose one could take a cash advance for that, but those interest rates are even higher.

Just a few months ago, our furnace went out. $5000 to replace the unit. Was really glad we had that emergency fund. My husband and I are still haggling about how much we are going to keep in our emergency fund vs how much we'll send to the student loan people, but I am thinking we need a solid 6 months of salary banked. We have two young kids, a mortgage and routine medical expenses. I'd rather have too much in my emergency fund than too little.

 

[owlegrad]

This is true. Why would it ever take more than 2 to 3 years to pay off your student loans?

Unemployment? Medical expenses? Children?

 

[All4MyDaughter]

This is true. Why would it ever take more than 2 to 3 years to pay off your student loans?

People have families, mortgages and other expenses. I have several friends who are on the 10 year repayment plan and their payment is equivalent to one whole paycheck per month. Not everyone can devote half of their take home pay to loan payments. And it's still going to take 10 years to pay it off.

 

[All4MyDaughter]

Unemployment? Medical expenses? Children?

Those things are unlikely to happen. Just like emergencies.

 

[xiphoid2010]

1. 2010
2. $120K
3. $25K paid off ($95K remaining)
4. Wt Avg. = ~6%

I have the following assets:
$25K in cash (emergency fund)
$48K in 401k

I will say the following, some can go balls to the wall and pay off the loans with every spare dollar and have $20 bucks in a coffee can, but for me, personally, I have to have that large cash cushion, and I have to max out the 401k.

The cash cushion because I like my options to be open if I lose my job, want to change jobs, get married, being able to sleep easily, etc.

The 401k because I hate paying taxes and I like the tax-deferral.

2010, then 1 year as resident.
$90+$130k me and my wife
$160k left,
6.55%

I agree, paying off 6+ % non-tax deductible interest loans ASAP is generally a good idea but there are few caveats.

An emergency fund is the first thing to build up. 6.8% is nothing compared to 12+% creditcard interest if you get hit with a huge medical bill or lose your job.

My wife and I also plunk down $60k+ buying a home because of the ripe conditions and housing needs. Then there is the usual maxing out 401k + backdoor Roth IRA.

But have to say though that having a baby has been much larger drain on our resources than expected. My advice is to put that urge if you can.

 

[BMBiology]

Good point. Well I have a Visa that's 15K, American Express that's 6K, PNC that's 2K, Chase that's 6K, Macy's that's 6K, Belks that's 1.5K, Victoria Secret that's 2K, Bebe that's 5K and Neiman Marcus that's 10K.

I currently have ZERO BALANCE on ALL these cards. I don't owe anything right now.

Do you think this is enough or should I still build up an emergency fund?

What do you think BMBiology?

2K at Victoria Secret?

3-6 months of emergency fund is the standard BUT it also depends on your situation. If you have a kid and a mortgage, then you need 6 months. I didn't have any of those when I graduated from pharmacy school so I aggressively paid back my student loans. I didn't have anything to lose. If I got fired, I would just go back to living like a college student...no big deal.

I do have expensive taste when it comes to food but I also made some wise cuts:
(1) kept the internet but cancelled my cable....you can watch everything on the internet
(2) got a phone plan with internet, text but only 200 minutes on weekdays...who talks on the phone nowadays?

You will never get what you want if you don't ask for it. When my bank charged me overdraft fee because my money was in my saving account, I sent a nice email hinting that I would close my account. Not only did they waive the overdraft fee but they also gave me one year overdraft protection! I figure my deposit is worth more than $150 overdraft fee

I have said this before - if you are heavy in debt, live at home for at least 1-2 years (if possible). This will not only save you a lot of money but it will also save you a lot of time and stress. It would allow you to start a business or work more hours. Once your student loan is paid off, then invest your money and let your money work for it. It's the easiest way to make money but you need to free your money from your student loan debt first.

Lastly, don't count on the government for anything. They will give you something one day and take it away the next.

 

[Momus]

Big surprise you work graveyard shifts. Doesn't seem like you play well with others

Excellent deduction from someone who doesn't know basic math, you must be Sherlock Holmes! Oh, wait! You can't be...

I currently have ZERO BALANCE on ALL these cards. I don't owe anything right now.

Do you think this is enough or should I still build up an emergency fund?

Credit card is ok for very short term. But not ok for months of unemploment. You need at least 6 months of living expenses saved up. This fund has to be liquid enough and carry NO extra baggage when you use it (no interest, penalty, etc). Some people use salary, for me 6 mo salary is simply too large ($45k) when my monthly expense is only $1500 max, avg $1100 now, will be $3000 in the future. I have 8 mo expenses in the form of Ibond (tracks inflation), no penalty Ally high yield CD, and short term saving accounts. The rest of the money goes to stocks/bond allocation.

 

[SoylentGreen]

Good point. Well I have a Visa that's 15K, American Express that's 6K, PNC that's 2K, Chase that's 6K, Macy's that's 6K, Belks that's 1.5K, Victoria Secret that's 2K, Bebe that's 5K and Neiman Marcus that's 10K.

I currently have ZERO BALANCE on ALL these cards. I don't owe anything right now.

Do you think this is enough or should I still build up an emergency fund?

What do you think BMBiology?

If you start charging them up you will probably find your credit limits slashed, especially if your emergency involves losing your job. The creditors are paying attention and don't want to lose their money. There's no substitute for an emergency fund - unless you have family that will bail you out or something like that.

Having said that, I've barely saved anything because I want to pay down loans that charge interest ASAP. I know I'm taking a chance doing that.

Back to the original question,

1) 2011
2) 172K (inclusive of all debt not just student loans)
3) 26K
4) Ranging from 5.125% for direct loans to 7.75% for Grad Plus. Mostly Stafford Loans. The higher interest loans are paid off now.

I expect to pay off a lot more next year since I will be paying less interest, and I had to buy a new pair of everything and furnish a house after graduation, which was a one time deal.

 

[nafcillin]

Momus - wtf is your problem. I was a math major you arrogant bastard. I want to know how someone paid so quickly bc I have had quite a few expenses and could not have possibly afforded it. Living at home and having no expenses is not the norm. Hence, why I wanted to know how the person did it.

Last post to you. Get over yourself

 

[nafcillin]

Unemployment? Medical expenses? Children?

Yeah why does everyone think this is so easy. I had medical expenses, wedding, now kids. I pay as much as possible every month

 

[Carboxide]

2K at Victoria Secret?

3-6 months of emergency fund is the standard BUT it also depends on your situation. If you have a kid and a mortgage, then you need 6 months. I didn't have any of those when I graduated from pharmacy school so I aggressively paid back my student loans. I didn't have anything to lose. If I got fired, I would just go back to living like a college student...no big deal.

I do have expensive taste when it comes to food but I also made some wise cuts:
(1) kept the internet but cancelled my cable....you can watch everything on the internet
(2) got a phone plan with internet, text but only 200 minutes on weekdays...who talks on the phone nowadays?

You will never get what you want if you don't ask for it. When my bank charged me overdraft fee because my money was in my saving account, I sent a nice email hinting that I would close my account. Not only did they waive the overdraft fee but they also gave me one year overdraft protection! I figure my deposit is worth more than $150 overdraft fee

I have said this before - if you are heavy in debt, live at home for at least 1-2 years (if possible). This will not only save you a lot of money but it will also save you a lot of time and stress. It would allow you to start a business or work more hours. Once your student loan is paid off, then invest your money and let your money work for it. It's the easiest way to make money but you need to free your money from your student loan debt first.

Lastly, don't count on the government for anything. They will give you something one day and take it away the next.

I cannot believe even one person who is old enough to graduate pharmacy school would even consider living at home. Be an adult. Grow up. Stop mooching off your parents. You can afford to pay rent, so DO IT.

What living at home really saves you is from ever having a girlfriend/boyfriend. I would NEVER date anyone who had a Pharm.D and still lived with their parents. Ew. Cut the apron strings.

 

[confettiflyer]

I cannot believe even one person who is old enough to graduate pharmacy school would even consider living at home. Be an adult. Grow up. Stop mooching off your parents. You can afford to pay rent, so DO IT.

What living at home really saves you is from ever having a girlfriend/boyfriend. I would NEVER date anyone who had a Pharm.D and still lived with their parents. Ew. Cut the apron strings.

Different strokes for different folks. I think moving home is respectable if all the right factors are in place. I often see this as an east vs. west thing, but if all parties are fine with it (and any resulting reduction in poon), it's a smart move financially that saves the whole family unit $$$.

I personally wouldn't do it...but I don't knock those who do.

 

[BMBiology]

I cannot believe even one person who is old enough to graduate pharmacy school would even consider living at home. Be an adult. Grow up. Stop mooching off your parents. You can afford to pay rent, so DO IT.

If it works for both parties, then why not? I actually think it is a mature and financially smart thing to do. Why pay 6.8% interest over 10 or 30 years when you can pay it off in a few years?

 

[BMBiology]

What living at home really saves you is from ever having a girlfriend/boyfriend. I would NEVER date anyone who had a Pharm.D and still lived with their parents. Ew. Cut the apron strings.

That's a lot better than dating someone who owes 250 k in student loans and has no real plan on paying it off. It's time to grown up and live within your salary.

 

[BMBiology]

Yeah why does everyone think this is so easy. I had medical expenses, wedding, now kids. I pay as much as possible every month

That's why I would not recommend pharmacy school for someone who's 30 or older. Salary has stagnant and benefits have been reduced. There's already a flood of new graduates. Can you imagine starting/raising a family when you are 250 k in debt?

 

[RxQueen2010]

How did you pay so much??

I don't live with my parents and they don't help me financially. I accepted a job a week or so before graduation and started working as a graduate intern right away. I was licensed a few weeks later and started making loan payments with my first paycheck. I rent a house with my boyfriend in a low cost of living area. We don't have kids or home maintenance expenses. He has an older car and I bought a new car this summer, both of which get great gas mileage. He has student loans too, but he's on IBR and his balance will be forgiven after 10 years thanks to PSLF. We budget to keep our expenses low while still being able to enjoy our lives. My student loans will be paid off after 32 months, which is 4 months sooner than I originally planned. I highly recommend using Mint or a similar budgeting tool!

 

[Digsbe]

Good point. Well I have a Visa that's 15K, American Express that's 6K, PNC that's 2K, Chase that's 6K, Macy's that's 6K, Belks that's 1.5K, Victoria Secret that's 2K, Bebe that's 5K and Neiman Marcus that's 10K.

I currently have ZERO BALANCE on ALL these cards. I don't owe anything right now.

Do you think this is enough or should I still build up an emergency fund?

What do you think BMBiology?

I would still build up a fund so you won't have to rely on cards. Although, when I got accepted to pharmacy school I applied and was approved for a credit card that had an introductory no interest period. I put a lot of my fees on it and then paid it off before interest kicked in on my account. I do try to keep enough money in my bank account though to where I can make my car payment and other payments for at least 3 months. It's ultimately up to you though. It's good that you have no credit card debt.

You are right on. Any financial planner worth their salt will tell you that you need a cash emergency fund. Charging up credit cards and borrowing from retirement accounts are not a good strategy. You can't pay your mortgage with a credit card! I suppose one could take a cash advance for that, but those interest rates are even higher.

Just a few months ago, our furnace went out. $5000 to replace the unit. Was really glad we had that emergency fund. My husband and I are still haggling about how much we are going to keep in our emergency fund vs how much we'll send to the student loan people, but I am thinking we need a solid 6 months of salary banked. We have two young kids, a mortgage and routine medical expenses. I'd rather have too much in my emergency fund than too little.

With kids I think it's especially important to have at least 6 months saved up. My goal is to have a job lined up before I graduate (hopefully a residency). If I don't do a residency and start working I think I'll probably make high student loan payments during the 6 month post-grad grace period (I may be wrong, but I don't think the interest compounds onto the loan until then). After that I would put money into a savings account little by little until I have 6 months worth of living expenses banked. My parents raised me to save money and had a very similar savings plan that you do. They had a savings account and tried to keep at least 6 months worth of money there just in case something happened. As a kid we did have some financial hardships and the savings really did help my family. You never know when your car breaks down and needs a few hundred/thousands in repairs, when an important appliance goes out or if someone has a medical emergency.

 

[confettiflyer]

There's a proposal in congress that would get rid of IBR, PAYE and loan forgiveness: http://www.bloomberg.com/news/2012-...ection-targeted-for-overhaul-in-congress.html

I just noticed this. You're really really really bad at finding/summarizing stuff.

Updated info for you: Summary | Text

The bill is HR 6674 and has been referred to committee, the article you linked (that I linked to weeks ago in another thread) is out of date.

Cliff notes:

1) IBR is not eliminated. In fact, the whole damn bill is one big IBR/ICR scheme for EVERYONE.

2) Only applies to new loans

(i) No Public Service Loan Forgiveness.--A loan made under this
part shall not be eligible for the public service loan forgiveness
program under section 455(m).

3) Existing forgiveness loans and programs REMAIN IN PLACE for those who start borrowing before 7/1/2014 or through 2019 for those caught in transition. CCRA 2007 is NOT repealed, only the statutory power to lend money under the old programs as of the dates provided is changed and those repayment terms dictated in the proposed law.

You're welcome.

 

[BMBiology]

^^ and a week later, the bill changes. Who knows what is going to happen. This just shows you not to depend on the government to keep its words.

 

[owlegrad]

^^ and a week later, the bill changes. Who knows what is going to happen. This just shows you not to depend on the government to keep its words.

I suspect you are not interested in having a reasonable discussion about this.

 

[All4MyDaughter]

^^ and a week later, the bill changes. Who knows what is going to happen. This just shows you not to depend on the government to keep its words.

What are you talking about? Of course there will be changes. No bill passes both houses of Congress without modification. I don't think you understand the legislative process.

I personally give this bill a slim chance of making it out of committee. Most bills never do.