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Thread on Paying Back Student Loans
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Date: May 27th, 2012 10:49 AM Author: Frozen Wonderful Telephone Mother I saved some advice someone posted a year or two ago that will really help you get a jump on loans right out of school.
1. Pay minimums only, then make extra payments separately which must be accompanied with a letter stating that the amount is to be applied to PRINCIPAL ONLY and specify which loan, choosing the one with the higher interest rate.
2. In order to lower minimums, enroll in IBR with your income based on previous year agi. This will enable you to allocate more money toward principal on the highest interest debt, saving you a boatload. If you have subsidized loans they will be interest free for two years to the extent minimums do not cover it. Save another boatload.
3. When IBR no longer takes effect enroll in 25 yr plan instead of 10, enabling you to again allocate more money to principal on the highest interest debt. |
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Date: May 27th, 2012 12:10 PM Author: Twisted Circlehead they let you do 1? (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775353) |
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Date: May 27th, 2012 12:14 PM Author: Frozen Wonderful Telephone Mother Why wouldn't they? (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775369) |
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Date: May 27th, 2012 1:28 PM Author: Twisted Circlehead i don't know man, i guess they do. i never knew you could. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775692) |
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Date: May 27th, 2012 12:12 PM Author: Spectacular abode sallie mae's online system lets you choose what loans to put your extra $$ towards. i wiped dem high interest loans out mad quick
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Date: May 27th, 2012 12:14 PM Author: Frozen Wonderful Telephone Mother Yea, but do they let you specify whether it goes back to the principle or the interest on the loan? (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775368) |
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Date: May 27th, 2012 12:19 PM Author: Concupiscible yarmulke this is relevant to my interests.. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775391) |
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Date: May 27th, 2012 12:21 PM Author: Thirsty slippery orchestra pit i didn't really get what you were saying but i googled it and saw the below. banks are shady motherfucking faggots.
"I started with a 72-month, $23,468 auto loan in March 2003. I've paid $400 every month to the present date, although the required payment is only $325 a month. I just found out that the extra money is not going to principal, but it adds time until my next payment is due, which the bank says is in August 2005." |
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Date: May 27th, 2012 12:25 PM Author: khaki jap resort Why hasn't Obama's consumer protection agency saved us? (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775415) |
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Date: October 21st, 2012 11:56 AM Author: Lilac hospital cuck 180 (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21843738) |
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Date: May 27th, 2012 12:26 PM Author: Frozen Wonderful Telephone Mother Sallie Mae does the same thing. This link explains prepayment well:
http://www.finaid.org/loans/prepayment.phtml
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Date: May 27th, 2012 1:32 PM Author: Umber Appetizing Love Of Her Life Church Building hm this may be true w/ sallie mae but not the myfedloan stuff (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775706) |
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Date: October 18th, 2012 8:24 PM Author: Rough-skinned drab national boltzmann It seems like it knocks down the interest the same as applying to principle does.
So, letting them move your "next" date back doesn't really hurt you if you continue making your payments ever month. And if you ever get laid off pwned, you'll have built up a period with no payments due.
Am I wrong here? |
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Date: October 19th, 2012 5:06 PM Author: Frozen Wonderful Telephone Mother It doesn't "hurt you" but it doesn't help you in the way that prepayment is supposed to. You want to knock down the principle as fast as possible. Interest is the killer.
IF you get laid off, you can immediately go into financial hardship deferrment. I believe interest keeps running though. So ya, I can see prepaying 3 months or so in advance to give yourself some cushion.
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Date: May 27th, 2012 1:30 PM Author: Umber Appetizing Love Of Her Life Church Building u dont need to do 1... any amount u pay over interest will go to principal.. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775698) |
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Date: May 27th, 2012 1:33 PM Author: Frozen Wonderful Telephone Mother Incorrect, look at the finaid link posted above. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775708) |
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Date: May 27th, 2012 1:37 PM Author: Umber Appetizing Love Of Her Life Church Building i saw it. might be true of private lenders but the myfedloan stuff specifically says that any amount u pay over interest goes to principal, and all my loans are w them so (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775725) |
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Date: May 27th, 2012 4:05 PM Author: Big Shitlib Box Office I've never had to do #1 for any of my three servicers (Sallie Mae, FedLoan, and one other). For my accounts, I had automatic payment set up and any additional online payment automatically went to principal. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20776214) |
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Date: October 19th, 2012 12:57 AM Author: translucent school Subject: PSA Regarding step 2, I think technically you are defrauding the government by listing your income that way because for your first year of repayment (and sometimes your second), you are required to submit an "Alternative Documentation of Income" that accurately reflects your current income (not the $0 you made last year in law school). See Section 5 of the attached form: http://loanconsolidation.ed.gov/forms/adoi.pdf (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21827178) |
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Date: October 19th, 2012 9:42 AM Author: heady queen of the night Wrong. The regs say something like your lender MAY request alternative documentation. There is nothing requiring you to do so. MAKE sallie mae accept your AGI. Gotta play hardball. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21828542) |
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Date: October 19th, 2012 5:07 PM Author: Frozen Wonderful Telephone Mother CR. I had the regulation in front of me last night. AGI is the law. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21831493) |
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Date: October 23rd, 2012 1:36 PM Author: translucent school All my loans are with FedLoan Servicing, not Sallie Mae, and the form explicitly tells you to submit alternative documentation in the first year of repayment. In fact, I'm up for annual IBR reevaluation and again they've sent me the same form. I don't know what form Sallie Mae is using on you, but the form I linked to is straightfoward. In any event, if your lender REQUESTS alternative documentation, as FedLoan Servicing does, what do you propose to do? Pretend you don't have a job that pays more than last year's ridiculously low AGI? I'm not interested in lying to the government, but you can start your legal career any way you like! (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21863427) |
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Date: October 23rd, 2012 1:47 PM Author: heady queen of the night I would send them the original standard IBR form along with your signed tax return and just see if they accept it. This is not even remotely dishonest and the form is all over the place so it wouldn't even seem like a weird thing to do. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21863528) |
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Date: October 23rd, 2012 2:08 PM Author: translucent school fair enough. however, i don't think the government is above auditing you on shit like this years later, and "no one asked me for alternative documentation" is IMO not going to be a sufficient response when the form that at least *I* received tells you to submit alterative documentation if you're currently employed and your income has changed. trying to assert equitable estoppel against the government is rarely a winning strategy. they get their money back, with interest. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21863705) |
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Date: October 23rd, 2012 2:16 PM Author: heady queen of the night No, it is not conceivable that you would get in trouble because you provided and they knowingly accepted your AGI, which is right there in the damn statute as the default method for ibr calculation. This is regardless of whether they did or did not mail you some bullshit form that asked for alternative documentation. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21863781) |
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Date: October 23rd, 2012 2:41 PM Author: translucent school Whatever, it's conceivable, if unlikely. In any event, I expect to be asked to submit alternative documentation as I was before. I'll get back on that. I don't know how many people you've exactly surveyed to conclude in your post below that you've NEVER heard of a lender putting their foot down and requesting it. It seems like an obvious thing to ask of recent grads who are starting often high-paying jobs. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21863999) |
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Date: October 23rd, 2012 2:45 PM Author: heady queen of the night No surveys, but I have paid close attention to the issue and read many postings online by people on the issue. I would not be surprised at all if things start going that way though, I agree with you that it does seem like a bit of a loophole that could be closed. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21864025) |
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Date: October 19th, 2012 9:41 AM Author: heady queen of the night Haha, I am the one who wrote this originally. Good to see that it's helping people.
To the people above, you definitely have to write a letter and nail those assholes down. They will not simply do what is in your best interests automatically. Your online payments will NOT go to principal. Even when you write a letter, they will sometimes not do it right. Gotta keep a tight leash on them mofos. |
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Date: October 19th, 2012 5:18 PM Author: buff whorehouse I have a form "exception payment" letter that I use where I just fill in the payment amount, and I am very express on exactly how they are to handle the payment.
My highest rate loan is now only 5.5% |
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Date: October 19th, 2012 5:21 PM Author: Frozen Wonderful Telephone Mother Hey will you go into more detail about how much you owed, and how long you stayed on IBR? Seems to me that the max scenario if you have biglaw is around ~18 months.. BUT you can stay on IBR and just keep making higher payments.
Also, what do you have to say this faggot below talking about "Alternate Income" form? did you have to do that?
http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21827149 |
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Date: October 23rd, 2012 1:46 PM Author: heady queen of the night As I mentioned above, he is wrong. You are not required by law to do that. However, I think that a lender could probably demand it from you. Your goal is to get them to accept your AGI, which they are in the habit of doing thus far. If you submit your AGI, which involves including a signed tax return, and they accept it, you have not lied at all and there is no problem.
I had Sallie Mae and here is what I did. Instead of falling into the trap of using their online system, I went and got the standard government IBR form. I filled it out and sent it to them along with my previous year tax return. I then mailed it to them and faxed it to them. You can fax the hell out of them until they take it. I think I did it every other day or so for a couple weeks.
Again, I think it is possible that some lender at some point might actually put their foot down and refuse to take anything but alternative documentation. I have not heard of a single instance of this happening yet. |
Date: May 27th, 2012 12:08 PM Author: Frozen Wonderful Telephone Mother (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775350) |
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Date: May 27th, 2012 1:17 PM Author: diverse infuriating garrison selfie 1. COp that BIGGOV Job. 2. COnsolidate your 180K of Fed Loans. 3. Enroll in IBR. 4. Pay 0 dollars in payments for the first 12 payments as it is based on your prior years AGI on ur 1040. 5. Pay 0 the following year in payments as the amount u made is less than 15gs from your government start date in sept, which your agi is based off of in your new taxes. 6. Defer the maximum Federal alotted amount into your 401k (17gs) 7. In year 3 begin to make payments of around 100-300 a month. 8. After 7 years of payments amounting to approx 25 gs to 32 gs in total, your entire principal of 180k plus whatever interest you have accrued (approx 50gs) is forgiven. 9. Profit as you paid 30 gs for lawschool and (hopefully) undergrad and have rock solid job security, 40 hr work weeks, free medical, dental and health club reimbursement, over 170,000 in your 401k and a pension that you are vested in. |
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Date: May 27th, 2012 1:36 PM Author: Frozen Wonderful Telephone Mother My God that is awesome (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775721) |
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Date: May 27th, 2012 1:40 PM Author: Umber Appetizing Love Of Her Life Church Building actually u would pay zero if ur school has decent LRAP. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20775732) |
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Date: May 27th, 2012 4:09 PM Author: provocative philosopher-king temple (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20776231) |
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Date: May 27th, 2012 4:33 PM Author: haunting heaven trump supporter (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20776360) |
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Date: May 27th, 2012 4:44 PM Author: haunting heaven trump supporter (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#20776414) |
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Date: October 18th, 2012 5:56 PM Author: Walnut underhanded giraffe theater stage This is so credited. I am on step 4 now. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21823229) |
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Date: October 18th, 2012 6:03 PM Author: aromatic wagecucks Obama's America. Strive for proledom working for the fucking govt. killself. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21823284) |
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Date: October 19th, 2012 1:52 AM Author: Boyish Garnet Toaster Gunner (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21827496) |
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Date: October 19th, 2012 9:36 AM Author: heady queen of the night TITCR (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21828519) |
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Date: October 19th, 2012 8:54 PM Author: Olive Menage btf, non biglaw bros need to be able to buy shit to actually have a working economy. it's the lay the of the land now. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21832964) |
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Date: October 18th, 2012 8:30 PM Author: Multi-colored cumskin this is what i do now. but i'll note that it's hard to max 17g's into your TSP. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21824421) |
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Date: October 19th, 2012 12:54 AM Author: translucent school Subject: have fun with that Regarding step 4 (and possibly step 5), I think technically you are defrauding the government by listing your income that way because for your first year of repayment (and sometimes your second), you are required to submit an "Alternative Documentation of Income" that accurately reflects your current income (not the $0 you made last year in law school). See Section 5 of the attached form: http://loanconsolidation.ed.gov/forms/adoi.pdf (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21827149) |
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Date: October 19th, 2012 5:13 PM Author: Frozen Wonderful Telephone Mother Thats only if you consolidate loans.
Show me where it says you have to consolidate under IBR. |
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Date: October 23rd, 2012 1:30 PM Author: translucent school WHERE are you getting that it only applies to consolidated loans? Just because I happened to link to a copy of the form that is on a consolidation site? READ THE FORM. It applies to all of the federal loans listed at the top, not only consolidated ones. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21863380) |
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Date: October 21st, 2012 11:59 AM Author: Lilac hospital cuck (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21843758) |
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Date: October 21st, 2012 12:13 PM Author: Amethyst Indian Lodge i am doing bigfed and am putting everything into repaying loans: no guarantee that forgiveness shit will actually be there in 10 years and, to be frank, im not sure i want to stay in this fucking paper pushing job that long (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21843839) |
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Date: October 18th, 2012 5:50 PM Author: Frozen Wonderful Telephone Mother (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21823180) |
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Date: October 18th, 2012 5:52 PM Author: burgundy address ape > 2012 > Paying your student loans |
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Date: October 18th, 2012 6:16 PM Author: arrogant stirring dingle berry stead Easy way to pay student loans: I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. The potential with this is endless! This is what I do, autoadmit.com (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21823370) |
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Date: October 18th, 2012 6:40 PM Author: Walnut underhanded giraffe theater stage DESCRIBE the possibility for advancement (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21823561) |
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Date: October 18th, 2012 6:53 PM Author: elite ticket booth knife 1. Pay the minimum every month
2. Wait for Student Loan Forgiveness Act
3. ???
4. Profit |
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Date: October 18th, 2012 8:07 PM Author: Frozen Wonderful Telephone Mother This actually might be pretty credited. I was thinking about this shit on the commute home from work.
Schools are so fucking deplorable that they will keep raising tuition every year by 8-9%. Within a few years, student loan debt is going to cripple this country. |
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Date: October 19th, 2012 1:12 AM Author: demanding market sandwich I said this in another thread and was lambasted. I agree 100%. Glad someone sees it my way. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21827299) |
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Date: October 19th, 2012 12:58 AM Author: burgundy address ape cr (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21827194) |
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Date: October 19th, 2012 8:34 AM Author: Thriller Water Buffalo forgiveness will be tied to salary. if you'r ein biglaw, it won't help you. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21828314) |
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Date: October 19th, 2012 9:38 AM Author: Indecent slap-happy plaza candlestick maker cr
At MOST it will forgive based on the "average" amount of debt, which even with tuition increases and the recession is still at 28k. |
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Date: October 19th, 2012 9:46 AM Author: heady queen of the night First of all, I don't think anything necessarily needs to happen now that we have IBR. We may get nothing.
Second, I would expect that the most we would see is an expansion of the current programs. Maybe PSLF applies to private sector or something like that. However, it may apply only to people going forward while those of us already graduated are just left in the dust. |
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Date: October 19th, 2012 9:45 AM Author: Razzle senate genital piercing Seriously, why is this not the credited answer. We have seen time and time again that those who were irresponsible get "bailed-out" and there is no incentive to do the "right" thing and pay more then minimums. At some point this will become like mortgages and substantial help will be offered, or like private CC debt and will accept pennies on the dollar for full settlement (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21828553) |
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Date: October 19th, 2012 9:06 PM Author: vibrant light people who are hurt I can't believe you think private mortgage owners and private CC debt ever got relief. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21833033) |
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Date: October 23rd, 2012 1:37 PM Author: saffron son of senegal dragon It's hard to hold an 18 year old responsible for "chasing your dreams of international women's studies" when they were strategically brainwashed by big education to "go to college, find your passion, and the money will follow." (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21863435) |
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Date: October 19th, 2012 1:55 AM Author: Curious Coldplay Fan Ladyboy hm ... weird that diesel isn't in this thread (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21827505) |
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Date: October 19th, 2012 4:56 PM Author: frum turdskin (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21831403) |
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Date: October 19th, 2012 5:07 PM Author: frum turdskin (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21831507) |
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Date: October 19th, 2012 5:13 PM Author: frum turdskin (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21831562) |
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Date: October 21st, 2012 12:15 PM Author: insanely creepy fuchsia masturbator Don't rely on IBR. Romney is gonna kneecap that shit. (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21843854) |
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Date: October 23rd, 2012 1:36 PM Author: Walnut underhanded giraffe theater stage Oh yeah? Romney is going to eliminate IBR and ICR and make all the lawyers making less than 50K/year up their payments from $300/mo to $1750/mo? (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21863426) |
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Date: October 23rd, 2012 1:37 PM Author: provocative philosopher-king temple eliminate both IBR and ICR? no way (http://www.autoadmit.com/thread.php?thread_id=1957734&forum_id=2#21863433) |
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Date: October 23rd, 2012 1:38 PM Author: territorial obsidian athletic conference parlour 1. Cop PSLF
2. Vote for Obama
3. Profit |