Celebrating 10 years! 2007-2017

Me and My wife paid $7500 in student loan interest last year

What a complete waste of money! And the federal loans got a jdslug01/24/18
If you can’t pay down the principal, every penny paid is j qdllc01/24/18
Agreed! The private loans are having the principal reduced a jdslug01/24/18
And lawmakers whine and moan about the student loan interest dupednontraditional01/24/18
Someone has to pay for Trump's corporate welfare package dea triplesix01/24/18
The irony is that the interest on student loans is deducted jdcumlaude01/24/18
There is a cap of 2.5K per person. beat12301/25/18
Paid 14k in interest last year. But most of that was interes dietcoke01/24/18
You are paying 4k per month....to the principle? Do you live cocolawyer01/25/18
I did that while doing foreign language doc review and livin triplesix01/25/18
$474, but only because they were still using old unemploymen fettywap01/24/18
Just under $10k for spouse and me. I never touch principal ibrslave01/24/18
At least all of you are making an effort to repay, as I did. caj11101/24/18
how did he get his private loans discharged? gladigotaphdinstead01/25/18
I would do anything I could to avoid paying but haven’t fo jdslug01/24/18
Paid about 32k to Naviant last year. I’ve never qualif notiers01/25/18
Agreed on that one. Even if your income is low enough to qu caj11101/25/18
I just file separately from spouse who makes bank. I also p david6198301/25/18
nice theft! dietcoke01/25/18
And in 15 years, be prepared to be hit with a sizeable tax b caj11101/25/18
I doubt there will be a tax bomb. There isn't for govt wor david6198301/25/18
Maybe your situation is different, if you're a government wo caj11101/25/18
"25 years from the day you took the loans out." I thought triplesix01/25/18
The math varies, but odds are the tax liability on what’s qdllc01/25/18
"The math varies, but odds are the tax liability on what’s caj11101/25/18
That's why I'm socking away a nice nest egg so ill have plen david6198301/25/18
You are assuming that younger generations would unilaterally triplesix01/26/18
We're paying close to $900 a month on the 10 year repayment gladigotaphdinstead01/25/18
"Me and My wife," and not "My wife and I" is how a JDU poast aknas01/25/18
I paid $14,400.00 in interest this past year...nothing towar cocolawyer01/25/18
Yep, just shows how poor the conversation is about forgivene perkinwarbeck01/25/18
Many people who have loans are making north of 50k, why shou triplesix01/25/18
You think people making 60k a year are not living hand to mo cocolawyer01/25/18
I think the issue with the far far left is that, even if Ber shikes01/27/18
There should be a limit on how much you have to pay back. So fettywap01/25/18
yes it is depressing. i paid mine off about three years afte lawst01/25/18
We're in the same boat. Wife and I pay ~$3200/month in priva shikes01/26/18
Last year I paid about 12k to interest and 13k to principal. birdbirdbird01/27/18
Take away the future by making them pay for the principal as jdslug01/27/18

jdslug (Jan 24, 2018 - 10:09 am)

What a complete waste of money! And the federal loans got a higher balance but that's okay because of REPAYE.

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qdllc (Jan 24, 2018 - 10:21 am)

If you can’t pay down the principal, every penny paid is just running down a black hole.

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jdslug (Jan 24, 2018 - 11:12 am)

Agreed! The private loans are having the principal reduced and there is nothing to do but pay the federal loans or else I hear they can do bad things.

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dupednontraditional (Jan 24, 2018 - 11:23 am)

And lawmakers whine and moan about the student loan interest deduction, when (1) its only $2500, and (2) it may phase out some depending on OP’s joint income. Just goes to show that our various fearless leaders never had any real access to money problems.

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triplesix (Jan 24, 2018 - 11:25 am)

Someone has to pay for Trump's corporate welfare package dear.

Thank you for your service!

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jdcumlaude (Jan 24, 2018 - 11:31 am)

The irony is that the interest on student loans is deducted from your AGI...which is the basis for your loan repayment calculation....so the more you pay one year...the less you pay the next....then you pay more the subsequent year...and then less again.

This is all based on the fallacy that pay increases substantially from year to year....but click monkey pay is fixed and inconsistent....and for many grads the loan payments will never actually touch the interest

i need to break 14k per year in payments just to pay down the interest

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beat123 (Jan 25, 2018 - 10:32 am)

There is a cap of 2.5K per person.

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dietcoke (Jan 24, 2018 - 12:32 pm)

Paid 14k in interest last year. But most of that was interest accrued during law school.

70k in loans left to go. Slicing about 4k/mo off principle.

Pretty depressing. I can't imagine what kind of life I'd have right now debt free. Probably dating a model.

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cocolawyer (Jan 25, 2018 - 2:32 pm)

You are paying 4k per month....to the principle? Do you live at home? Do you make 25k per month? That would be like a $5k per month payment. That seems impossible.

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triplesix (Jan 25, 2018 - 4:46 pm)

I did that while doing foreign language doc review and living in a big city. It is doable if you are living like a student.

Also, he is in big law.

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fettywap (Jan 24, 2018 - 1:28 pm)

$474, but only because they were still using old unemployment numbers. Don't want to know what it goes up to this year.

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ibrslave (Jan 24, 2018 - 2:03 pm)

Just under $10k for spouse and me. I never touch principal on PSLF plan but am paying down principal on private loans. God help me if they take it away PSLF over the next few years!

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caj111 (Jan 24, 2018 - 8:41 pm)

At least all of you are making an effort to repay, as I did. Did you see the other thread about the Above the Law editor who, despite having a BigLaw job, had his private loans discharged after 11 years, then went on to get married, have a child and buy a house? I never made the kind of dazzlingly high salaries that the law schools proudly touted their graduates as making, but I made plenty of sacrifices and did what I had to do pay my loans, private and public. The student loan industry is corrupt, ruthless and still badly in need of reform, for sure, but not $1 of student loans was forced on anyone. Everybody made the choice to borrow and should understand the concept that a loan is something you repay.

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gladigotaphdinstead (Jan 25, 2018 - 1:10 pm)

how did he get his private loans discharged?

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jdslug (Jan 24, 2018 - 8:46 pm)

I would do anything I could to avoid paying but haven’t found anything to do other than to pay.

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notiers (Jan 25, 2018 - 9:11 am)

Paid about 32k to Naviant last year.

I’ve never qualified for the tax break. Always “earned too much.”

If the government wanted to stimulate the economy - they would let people pay for student loans (Fed and Private) with pre tax dollars and not tax that portion of income. Young people would dump the money right back into the economy.

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caj111 (Jan 25, 2018 - 10:37 am)

Agreed on that one. Even if your income is low enough to qualify for the tax break, you can't deduct more than $ 2500, nor can it ever be an itemized deductions, if you deduct enough to itemize. There was a bill in a Congressional committee last year to broaden the student loan deduction - as much as triple the amount of deductible interest and expand the income range under which people could deduct - but it went nowhere, unfortunately.

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david61983 (Jan 25, 2018 - 10:49 am)

I just file separately from spouse who makes bank. I also put $18k into my 401k each year. It makes my monthly payment almost zero on IBR but the balance goes up like 10k each year. I honestly don't care about the loans anymore. Only 15 years left on the clock.

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dietcoke (Jan 25, 2018 - 11:34 am)

nice theft!

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caj111 (Jan 25, 2018 - 12:06 pm)

And in 15 years, be prepared to be hit with a sizeable tax bill on the loans that weren't paid. If you can't pay the money or at least set up some kind of payment plan to do so, the IRS without hesitation will take what is in your 401k. Granted the amount owed to the IRS will be far less than the loan balances, but when it comes to collecting, the IRS makes Sallie Mae and their various collection agencies look like Santa Claus.

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david61983 (Jan 25, 2018 - 1:12 pm)

I doubt there will be a tax bomb. There isn't for govt workers getting forgiveness and most of them make good money. It's the private sector employees who are hurting.

Also, almost all of the money that I could be using to pay loans is being invested. If I get at least a 7.5% return which is the interest rate on my loans am I really taking a risk?

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caj111 (Jan 25, 2018 - 1:20 pm)

Maybe your situation is different, if you're a government worker and the loans get forgiven under certain public service exemptions, but generally speaking, loan principal that is forgiven becomes taxable income.

If you're getting a better return on your investments than the loan interest rate, you are essentially financing your investments with your loans but they are still loans that have to be repaid or you are otherwise taxed on the unpaid principal, 25 years from the day you took the loans out. No such thing as borrowing your way to prosperity.

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triplesix (Jan 25, 2018 - 1:55 pm)

"25 years from the day you took the loans out."

I thought it was 25 years from first payment date...

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qdllc (Jan 25, 2018 - 2:22 pm)

The math varies, but odds are the tax liability on what’s forgiven will not exceed the original loan amount. Add in that there are ways to mitigate how much is assessed based on what assets you have at the time of assessment. Simply put, there’s little incentive to pay down the loan if you can’t pay it off entirely. Indeed, you may end up paying more that way.

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caj111 (Jan 25, 2018 - 6:48 pm)

"The math varies, but odds are the tax liability on what’s forgiven will not exceed the original loan amount." Yes, that is true, but it can still be a sizeable amount of money and furthermore, if you think the student loan collection agencies are ruthless in their tactics, you don't know what the IRS is like. Income Based Repayment does not exist in the IRS's world and they can take just about anything from you, except for child support payments. The IRS also 10 years to collect any unpaid taxes.

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david61983 (Jan 25, 2018 - 8:05 pm)

That's why I'm socking away a nice nest egg so ill have plenty to pay the tax bomb if it still exists. I doubt it will though. There is no tax bomb for PSLF and the boomers will not be in power 10+ years from now when that time comes.

Also, with IBR don't you have to actually ask for forgiveness? I don't think it's automatic after 25 years and theoretically one could just stay on it forever.

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triplesix (Jan 26, 2018 - 12:35 pm)

You are assuming that younger generations would unilaterally favor forgiveness for people who on average make more money than them.

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gladigotaphdinstead (Jan 25, 2018 - 1:10 pm)

We're paying close to $900 a month on the 10 year repayment plan for my wife's fed loans. no private loans

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aknas (Jan 25, 2018 - 1:35 pm)

"Me and My wife," and not "My wife and I" is how a JDU poaster communicates to all other JDU loosers.

After all, me are a law school graduate. Me don't take no sh1t from nobody. Me don't care whom you are.

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cocolawyer (Jan 25, 2018 - 2:35 pm)

I paid $14,400.00 in interest this past year...nothing toward the principle. Hurray me?

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perkinwarbeck (Jan 25, 2018 - 3:40 pm)

Yep, just shows how poor the conversation is about forgiveness. People make it sound like a handout without considering how much the former student has already paid back when compared to the principal initially loaned out, and how much of the forgiveness is just the government forgoing interest payments.

The government makes money hand over fist with this program. They should decide whether they're trying to provide access or raise revenue, and structure the interest rates and forgiveness programs accordingly. I would probably try to design the program to break even or run at a small loss.

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triplesix (Jan 25, 2018 - 4:50 pm)

Many people who have loans are making north of 50k, why should general public subsidize education of middle and upper middle class while the rest of work force is living hand to mouth?

Also, many people make substantially more than 50K while on PLSF or IBR. Why are you surprised that general public is hostile to the idea of forgiveness?

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cocolawyer (Jan 25, 2018 - 5:23 pm)

You think people making 60k a year are not living hand to mouth? If you get paid that in the bay area you are living in subsidized housing.

55 Million Americans have student loan debt. This is a generational issue. Of course boomers who went to law school for 3k per year are like "these lazy entitled...blah blah blah." Of course conservatives (generalizing here) who are not educated go "those liberal elites" because for the most part they can barely read are going to hate it.

Most millennials however are in favor of no interest, bankruptcy, or total forgiveness ...a vast majority. Generation X are generally split by liberal versus conservative. Where as Boomers are almost unilaterally "screw them." But Boomers are awful human beings so....

Its time we elect a far far far far left candidate and a far far far left congress even for one term, to completely dismantle the student loan machine.

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shikes (Jan 27, 2018 - 11:24 am)

I think the issue with the far far left is that, even if Bernie was elected, what he would do is cap the interest at 6%, increase deduction to 5k or something, and then allow for forgiveness, but then tax me at 50%. I'd lose out big time. As much as I would love a "reset" candidate, I doubt it happens. I would gladly agree to increase my taxes if they wiped my debt, but I'm not sure if there would ever be a candidate bold enough to wipe it all, or if they did, I doubt it passes Congress.

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fettywap (Jan 25, 2018 - 5:16 pm)

There should be a limit on how much you have to pay back. Someone who borrows $60,000 when their income is $0 to go to school should not have to end up owing or paying back 5 times what they borrowed.

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lawst (Jan 25, 2018 - 6:19 pm)

yes it is depressing. i paid mine off about three years after law school, but still managed to pay a decent amount of interest and the principal, while nowhere near as bad as some of the worst cases, was still sizable. I'm making decent money now, and that should improve again soon, but I could have been making this much or more as a programmer, without wasting a lot of money on law school and losing out on three years of income. Oh well. Live and learn!

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shikes (Jan 26, 2018 - 9:32 pm)

We're in the same boat. Wife and I pay ~$3200/month in private+IBR. Privates are paid off in 2024 (haha), federals will be forever. About half a million in total loans. Monopoly money really. Doubt tax bomb is around, but if it is I'll get the original amount due, then 10 year repayment plan with IRS I guess.

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birdbirdbird (Jan 27, 2018 - 8:04 am)

Last year I paid about 12k to interest and 13k to principal. This year I’ve already thrown away 16k (goodbye hard earned profits).

It is modern day slavery. Give unknowable kids an ungodly amount of loans and then take their future via interest. And where does most of that go? To dumb ass administers who jack off in their law school office all day. I don’t mind my loans for cost of living—at least I got housing, food, drinks, and a good time from that.

The only way out of the matrix is to pay it off ASAP. Unfortunately I’ve still got 125k to go.

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jdslug (Jan 27, 2018 - 10:17 am)

Take away the future by making them pay for the principal as well. The cost is a rip off- high mark up. Why did it cost so much money- it was old fashioned education a desk with a teacher in front of the room. Why is the price quadruple what a public college costs? Do public colleges operate at a loss? I was in and out at law school. I spent at most 15 hours there a week. That’s 60 a month and 600 a year for 40,000$? What does that come to— 65$ an hour! That is outrageous.

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