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How long should it take me to pay off loans?
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Date: February 6th, 2010 10:09 PM Author: Vivacious ceo kitty cat Relevant stats:
Debt: $130,000 (almost all federal, no credit card debt). Currently on 10-year repay plan, payments ~$1500/month Salary: BIGLAW (160k) City: New York Rent: $2400/month Family: Single. Dating. Savings: Almost 0 in cash, some retirement from working before law school
Other relevant info is that I don't trust my firm not to lay my ass off at any minute, so I can't sink all my extra cash into student loan payments. I need to build up a nest egg in case I end up out on my ass in 6 months.
I am willing to economize, but I also don't want to live in a hole, wear shit clothes and never leave my apartment either.
How long is it going to take me to make this happen? |
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Date: February 6th, 2010 10:11 PM Author: translucent comical place of business 30 years (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14037814) |
Date: February 6th, 2010 10:10 PM Author: lake jewess scourge upon the earth jesus, get a roommate
consolidate that shit out to 30 years |
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Date: February 6th, 2010 10:22 PM Author: wonderful selfie He doesn't even need a roommate. A livable 1br or studio in brooklyn or queens is around $1500. Could add nearly $1000 per month to his monthly loan payment just by moving. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14037890) |
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Date: February 6th, 2010 10:15 PM Author: Chest-beating garrison Put at least $10K in savings, get a roommate, pay it off in 5-6 years so it's gone before you leave the firm and you won't have to worry so much about raking in a big salary in your next gig. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14037843) |
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Date: February 6th, 2010 10:17 PM Author: Concupiscible indirect expression 30. it seems pretty obvious to me that you shouldn't pay off your loans right away. at the very least, investing money in low-risk investments has a liquidity advantage. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14037854) |
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Date: February 6th, 2010 10:19 PM Author: translucent comical place of business ya dude you should be able to top 6.8% long term (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14037863) |
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Date: February 6th, 2010 10:20 PM Author: Concupiscible indirect expression past performance != future performance, but i'd rather have my money in an index fund than in loan repayments. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14037873) |
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Date: February 6th, 2010 10:23 PM Author: wonderful selfie A guaranteed 6.8% after tax return is almost unbeatable for an unsophisticated investor like a recent law grad who works 50+ hour weeks. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14037901) |
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Date: February 6th, 2010 10:35 PM Author: Vivacious ceo kitty cat Dudes, my goal is to pay off my loans so I can leave this shit job and go do something I don't hate.
The rent is a little high, but I worked for a few years before law school, and I feel like I've aged out of the place where it's cool to have a roommate. That's why my rent is a little higher, too. I don't want to have to explain to a chick who I want to fuck why I'm an almost 30 year old lawyer who lives like a college student. |
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Date: February 6th, 2010 10:42 PM Author: Fluffy pearl nowag so after taxes you're pulling in around 100k, with bonus. minus 30k for your rent puts you at 70, let's say you try to save 1.5k a month, and put another 1k in retirement, that's down to 40k. food/going out, let's say 10k a year, that's 30k. clothes, travel, misc, let's say another 10k, so now you've got about 20k a year to pay down loans. you can either live somewhere cheaper, put less towards savings (which is a bad idea) or not fund your IRA (also a bad idea), or just resign yourself to having these loans outstanding for 10+ years (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038064) |
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Date: February 6th, 2010 10:57 PM Author: translucent comical place of business $2400 is an incredible amount to pay for rent. You could mortgage a $400K house at 6% for that. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038211) |
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Date: February 6th, 2010 11:01 PM Author: Fluffy pearl nowag this ain't some basement in texas kid, this is new york. $2400 is a 600 square foot small 1br (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038254) |
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Date: February 6th, 2010 11:02 PM Author: wine hairless location mental disorder He knows that. He's just being a prick. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038261) |
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Date: February 6th, 2010 11:00 PM Author: wine hairless location mental disorder I'm going to try to pay off my ~170K in 3ish years. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038238) |
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Date: February 6th, 2010 11:06 PM Author: Dashing Bearded Useless Brakes WLRK? (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038288) |
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Date: February 6th, 2010 11:10 PM Author: wine hairless location mental disorder No. Regular biglaw firm. Doesn't seem all that hard if you live frugally. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038321) |
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Date: February 6th, 2010 11:14 PM Author: Fluffy pearl nowag how much is your rent? how much you saving/putting into your ira? (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038360) |
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Date: February 6th, 2010 11:16 PM Author: wine hairless location mental disorder 1300/month. Haven't thought much about the ira. I really just want to get rid of my loans as quickly as possible. 3 years for mine, 2 for my wife's. 5 years, we're free. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038380) |
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Date: February 6th, 2010 11:19 PM Author: Fluffy pearl nowag you live in an outer borough? (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038405) |
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Date: February 6th, 2010 11:27 PM Author: wine hairless location mental disorder Subsidized place in Manhattan. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038477) |
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Date: February 6th, 2010 11:28 PM Author: Dashing Bearded Useless Brakes how does that shit work? Was it in your family or something? (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038490) |
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Date: February 6th, 2010 11:31 PM Author: wine hairless location mental disorder School. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038536) |
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Date: February 6th, 2010 11:35 PM Author: Dashing Bearded Useless Brakes is your SO planning on staying in school indefinitely? (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038570) |
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Date: February 6th, 2010 11:37 PM Author: wine hairless location mental disorder She has 2 1/2 more years (then what is likely to be a long, financially unrewarding residency). (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038596) |
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Date: February 6th, 2010 11:42 PM Author: wonderful selfie doctors are so damn hot. ones with rich families are even better. WHERE and HOW did you find this woman? (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038667) |
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Date: February 7th, 2010 12:48 AM Author: wine hairless location mental disorder College, dude. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14039346) |
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Date: February 6th, 2010 11:20 PM Author: supple pearly station LOL @ three years. Have fun having $10,000 in savings when ur fired. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038420) |
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Date: February 6th, 2010 11:27 PM Author: wine hairless location mental disorder Not all that worried about it (even if it happens).
1)My wife will be working by then. 2)My parents do pretty well and would never let us go under. 3)Her parents (and doting, extremely wealthy grandparents) also do well, and would give/loan us as much money as we needed. 4)As I said, our costs are low. Rent is 1300, cable/internet is 100, power is 50. Food is maybe 10K a year. |
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Date: February 6th, 2010 11:30 PM Author: supple pearly station you really want to be 30 years old with only $10k to your name? I dont get why people obsess over paying off loans with good interest rates. Not to mention, once you start the job, the paychecks dont seem anywhere near as big as you first thought they would be. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038516) |
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Date: February 6th, 2010 11:31 PM Author: wine hairless location mental disorder 8.5% is a good interest rate? (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038530) |
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Date: February 6th, 2010 11:32 PM Author: wonderful selfie if you know what your firm's paying now, you can figure out how much money you'll have and budget accordingly a year in advance. whether you're on the job or not doesn't change anything. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038549) |
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Date: February 6th, 2010 11:30 PM Author: wonderful selfie If the $1300 rent is in NYC, where?
And if it was just your parents, how well would they have to be doing for you to rely on them as a safety net? Mine are retired with at least 20 years ahead of them and they have a net worth of around $2M. I don't know if that's enough for me to expect an emergency loan when I get fired. |
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Date: February 6th, 2010 11:33 PM Author: wine hairless location mental disorder I dunno, they're probably worth 5-6 mill, and still working. Father is something of a tightwad, but he's always been generous when it's needed. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038560) |
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Date: February 6th, 2010 11:36 PM Author: translucent comical place of business Your parents made you take out loans for law school with $2 million? Ouch. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038579) |
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Date: February 6th, 2010 11:38 PM Author: wine hairless location mental disorder Mine did as well. Stepmother's baleful influence is to blame. No big deal, as long as I don't get laid off (which is always possible). (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038610) |
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Date: February 6th, 2010 11:38 PM Author: wonderful selfie Well, they loaned me the amount the financial aid office told them to contribute outright. I should have asked for more, but I'm a beta and they'd just retired when I started. (http://www.autoadmit.com/thread.php?thread_id=1214579&forum_id=2#14038612) |