LOAN repayment

[Stafocker]

Any advice on loans, consolidation, deferment etc?

I have 160k in loans, i've consolidated 3/4 of them at 2%, and 4% and have defered them for a year until June of 2008. My last year of loans, i still have in grace period, i'll probably defer them as soon as the grace period is up, but not sure if I should consolidate now or later because of flucuating interest rates. Currently my last year of loans are at 6.2%... yeah, that's about as bad as my mortgage rate (that's another thing i need advice, but not in this thread... for now).

I'm currently with Sallie Mae, who actually charges me a fee if i start repaying my freakin loans off... ???? is that legal? can I switch to another provider? what would be the penalties? How much are financial advisors? Any one with experience using one, would they be worth it even though I don't have much in the bank, but have a lot of debt in loans?

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[NatCh]

2% and 4% seem really minimal. I'm not sure what the best move for you is, but I also have heavy student debt and comfort myself with some sage words from my banker. She said that her physician clients have a fear of debt. For some reason we all want to pay off our loans as quickly as possible and are uncomfortable with owing money.

In contrast, her big-fish business clients have no such fear. Any time they come up with a new business idea they draft a business plan and are at her desk asking for more money. They realize that by borrowing a few million they stand to make many millions. They may pay a lot in interest but in turn they make money. Our student loans are cute in comparison. Feel any better?

Nat

 

[Stafocker]

2% and 4% seem really minimal. I'm not sure what the best move for you is, but I also have heavy student debt and comfort myself with some sage words from my banker. She said that her physician clients have a fear of debt. For some reason we all want to pay off our loans as quickly as possible and are uncomfortable with owing money.

In contrast, her big-fish business clients have no such fear. Any time they come up with a new business idea they draft a business plan and are at her desk asking for more money. They realize that by borrowing a few million they stand to make many millions. They may pay a lot in interest but in turn they make money. Our student loans are cute in comparison. Feel any better?

Nat

"cute"... haha... actually i do. thanks.

 

[NatCh]

Oh yeah, I consulted a Financial Adviser at the end of Residency. What a waste of time that was. All he ever tried to do was sell me different types of insurance.

If I had loans at 2% I'd just pay the minimum for the term of the loan, spend extra money elsewhere, and not give it a second thought. Even my personal savings account returns a higher percentage than that. Maybe open a money market account? Buy some Bruno Maglis or a Corvette with new cassette player or something?

 

[narkotiks]

2% and 4% seem really minimal. I'm not sure what the best move for you is, but I also have heavy student debt and comfort myself with some sage words from my banker. She said that her physician clients have a fear of debt. For some reason we all want to pay off our loans as quickly as possible and are uncomfortable with owing money.

In contrast, her big-fish business clients have no such fear. Any time they come up with a new business idea they draft a business plan and are at her desk asking for more money. They realize that by borrowing a few million they stand to make many millions. They may pay a lot in interest but in turn they make money. Our student loans are cute in comparison. Feel any better?

Nat

here is the differnce: if the big-fish go south, they can walk away with a bankruptcy. grad student loans a satisfied by either paying them off, or by dying. that is it. once you get crakin', a 2k/month payment is minimal when considering a 15-30k/month paycheck. just think of it as a cost of doing business, b/c with out the debt )or education) you couldn't do business!
pm me with your mortgage question...i might be able to help.

 

[efs]

With student loans at ~ 2.25% over 30 years, best bet is to just pay them off at the lowest possible monthly payment. No reason to put $2K/month towards student loans. Take the rest of the $$ and put it in an IRA or some other investment vehicle that brings back more than 2.25%. Better off in the long run.

Besides, it's kind of fun to think that my last student loan payment might be made with my first social security check. 🙂

 

[narkotiks]

With student loans at ~ 2.25% over 30 years, best bet is to just pay them off at the lowest possible monthly payment. No reason to put $2K/month towards student loans. Take the rest of the $$ and put it in an IRA or some other investment vehicle that brings back more than 2.25%. Better off in the long run.

Besides, it's kind of fun to think that my last student loan payment might be made with my first social security check. 🙂

yeah, but...at 150k/year (check me on that, but at last look) a person cannot contribute to an IRA. the point is to provide relatively low income persons a chance to actually build a nest egg for retirement. yes, other vehicles would be smart, and one should have a diverse portfolio--no question about that! at 2.25%, your student loan will be the cheapest loan that you can find for that type of "principal". another reasonable approach would be to refi @ 2.25% and plan on keeping that intact for the life time of the note, barring some large influx of cash. with a tall earning potential like we have, pump a large portion of your dough into your home and/or practice. invest in yourself, not in some houlligan that thinks he or she is sufficiently able to provide a 10-15% return over a significant period of time, while not taking a large percentage of your earnings as a "hedge fund management fee". any advisor with sense will compare interest rates and advise to pay your higher notes off first, then, attack the lower ones.
there is more than one way to skin this cat, but if you can refi for that low percentage rate and not have wierd stipulations, i would jump all over it.

wo in deutschland bist du?? hast du eine militarische(?) Ferflichtung oder ein dienst wobei du deine Laeste zurueckzallen kanst?

 

[sadipagla]

I may sound really stupid but I wonder how are we supposed to pay for our loans when we are doing our residency? Residency pays just enough to live and pay daily expenses and if I am not mistaken, you can't defer student loans for more than a year.

Thanks.

 

[Stafocker]

I may sound really stupid but I wonder how are we supposed to pay for our loans when we are doing our residency? Residency pays just enough to live and pay daily expenses and if I am not mistaken, you can't defer student loans for more than a year.

Thanks.

it's a great question, and i'm just figuring it out now!!

You can defer your loans up to 3 years, but each year it you have to renew it and prove that you are in financial hardship. Most your student loans can be defered, except teh private ones.

I'm just barely making it... make sure to save when in school... do NOT splurge on aNYTHING! oh, and cut up your credit cards... they're the devil 😛

 

[NatCh]

I may sound really stupid but I wonder how are we supposed to pay for our loans when we are doing our residency? Residency pays just enough to live and pay daily expenses and if I am not mistaken, you can't defer student loans for more than a year.

Thanks.

That's where your 2nd job comes in. "How was your dinner? Would you like to see our dessert menu?"

I did not start repayment until after Residency.

 

[cool_vkb]

That's where your 2nd job comes in. "How was your dinner? Would you like to see our dessert menu?".

Continuation:

Mr.Patel are you enjoying the soup. By the way, i see that you are having some problem with your gait. Here's my card, apart from my 2nd job, in my 3rd job on weekends i do consulations for foot & ankle cases for very cheap price. do contact me.🙂 😀

 

[Stafocker]

Continuation:

Mr.Patel are you enjoying the soup. By the way, i see that you are having some problem with your gait. Here's my card, apart from my 2nd job, in my 3rd job on weekends i do consulations for foot & ankle cases for very cheap price. do contact me.🙂 😀

lol

 

[efs]

yeah, but...at 150k/year (check me on that, but at last look) a person cannot contribute to an IRA. the point is to provide relatively low income persons a chance to actually build a nest egg for retirement. yes, other vehicles would be smart, and one should have a diverse portfolio--no question about that! at 2.25%, your student loan will be the cheapest loan that you can find for that type of "principal". another reasonable approach would be to refi @ 2.25% and plan on keeping that intact for the life time of the note, barring some large influx of cash. with a tall earning potential like we have, pump a large portion of your dough into your home and/or practice. invest in yourself, not in some houlligan that thinks he or she is sufficiently able to provide a 10-15% return over a significant period of time, while not taking a large percentage of your earnings as a "hedge fund management fee". any advisor with sense will compare interest rates and advise to pay your higher notes off first, then, attack the lower ones.
there is more than one way to skin this cat, but if you can refi for that low percentage rate and not have wierd stipulations, i would jump all over it.

wo in deutschland bist du?? hast du eine militarische(?) Ferflichtung oder ein dienst wobei du deine Laeste zurueckzallen kanst?

You are right. For the IRA, married it is at $166K, with phase out starting at $156K. And $114K for single. This doesn't necessarily rule it out though. There are some ways around things. For a private practice you may give youself a salary under that cap, and reinvest other gains in the business. I would think at that point it would be worthwhile to get a professional for assistance with money management. (Not just one of these guys trying to sell everyone some lousy "Life Insurance" program.)


Ich spreche wenig Deutsch. Wohne und arbeite im Landstuhl seit Januar.

(US Army, I owe them some time in service in return for time spent in residency training. With another recent agreement, I now owe them a bit more time in return for some student loan repayment money. It is NOT the best deal for everyone, but in my situation it works out pretty well.)