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*Official student loan pay off thread*

Home Student Loan Management *Official student loan pay off thread*

  • NaOH NaOH 
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    Status: Pharmacist, Spouse
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    Splash Refinancing Bonus

    .

    "Don't fear failure - not failure, but low aim, is the crime.
    In great attempts it is glorious even to fail."

    #53656 Reply
    Liked by adventure
    Avatar ginmqi 
    Participant
    Status: Physician
    Posts: 103
    Joined: 01/20/2016

    Awesome to hear all the great stories.

    My details:

    Debt: 320k

    Interest: 6.8 (will refi soon)

    Income: 360k (locum full time only), less this year as I just graduated

    Plan to pay off in 3-4 years if possible. Insane to hear a psych guy pay off 300k+ in 7months….

     

    I also play a bit of the credit card churning game. Anyone have any good ideas on ways to pay off student loans while getting credit card rewards? Unfortunately MOST servicers do not allow credit card payments for loans….but apparently some have been able to use CC to buy gift of college “debit” cards for $500 a pop and that can be used to pay off the loans.

     

    edit: Answered my own question after some Googling. For those who are interested in how to use credit cards to pay off loans and get miles/points rewarded, look at this post: https://www.reddit.com/r/churning/comments/640mgv/guide_to_paying_student_loans_with_credit_cards/

    Also look at this page right side to see current credit card offers. https://www.reddit.com/r/churning/

     

    My thought is this: You’re already good with money by being a WCI reader and you will spend 100k+ for loans anyway….why not get rewarded in the process by taking advantage of all the perks these credit card companies/airlines have to offer?

     

    Just for example, 100,000 points through Chase is worth $1500 in travel rewards ($1/point)….at many people who owe 300,000+ that’s lot of rewards to be picked up. Might as well put in a bit more work and then treat yourself and your family to a nice vacation afterwards!

    #53669 Reply
    Liked by Zaphod, hatton1
    Avatar PNWskindoc 
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    Status: Physician
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    Joined: 01/10/2016

    Great to see that this thread is still alive. I thought I’d update my progress as the OP. I graduated last year with 370kish but didn’t get serious with repayment until December of last year. Was able to refinance again with commonbond from 3.3 to 2.59% on a 5 year variable. I’m currently down to 288k. Hope to be done my 2020. Keep up the good work everybody!

    #53678 Reply
    Liked by Zaphod, hatton1, ginmqi
    hatton1 hatton1 
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    Status: Physician
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    Joined: 01/11/2016

    I just found this thread.  Congrats to all on your road to financial independence.

    #53682 Reply
    Liked by ginmqi
    Avatar PNWskindoc 
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    Status: Physician
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    Maybe I’m reading this incorrectly but it seems to me that if you follow the advice of buying those college gift cards at a fee of $5.95 for a value of $500, your effective cost is 1.19% and when most credit cards will only pay you 1% back, it seems to be a losing proposition? Unless I’m missing something ?

    #53771 Reply
    Liked by ginmqi
    DMFA DMFA 
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    Status: Physician
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    Joined: 06/24/2016

    Maybe I’m reading this incorrectly but it seems to me that if you follow the advice of buying those college gift cards at a fee of $5.95 for a value of $500, your effective cost is 1.19% and when most credit cards will only pay you 1% back, it seems to be a losing proposition? Unless I’m missing something ?

    Click to expand…

    Sign-up bonuses. Plus most CCs give you rewards worth more than 1%. Chase for instance is worth 1.5% if you book the travel through them. There are also flat 2% cash back cards.

    "I like money." - Frito Pendejo (Idiocracy)

    [Not a financial professional (yet), lawyer, or employee of The White Coat Investor]

    #53790 Reply
    Liked by ginmqi
    Avatar spyder1985 
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    Status: Physician
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    Joined: 09/10/2016

    honestly wouldn’t have tried to pay them off this quickly without this forum ill be starting my 3rd year out of residency

    my details: 275k debt refinanced to 4%, live in a major city high rent

    income:275k

    finished one month before the start of my 3rd year no debt left on anything but only emergency fund savings at this point and my roth/401k maxed out first two years.

    #53796 Reply
    Avatar ginmqi 
    Participant
    Status: Physician
    Posts: 103
    Joined: 01/20/2016

    Good call on the math above. Yes the Chase points is worth 1.5pt/$1 if you book travel through their website so you can still come out ahead just a bit.

    FOr example for 100,000pts, you gross $1500 but net is about $500 as you would’ve spent about $1000 in fees using the gift card route.

    Also initial sign up bonuses are huge…you generally only have to spend between $1000 to $5000 in 2-4 months to get between 20-100k in points/miles. Of course you do need to be careful with how many hard credit pulls and accounts you’re opening up and Chase does have the 5/24 limit as well.

    #53824 Reply
    Avatar ginmqi 
    Participant
    Status: Physician
    Posts: 103
    Joined: 01/20/2016

    Maybe I’m reading this incorrectly but it seems to me that if you follow the advice of buying those college gift cards at a fee of $5.95 for a value of $500, your effective cost is 1.19% and when most credit cards will only pay you 1% back, it seems to be a losing proposition? Unless I’m missing something ?

    Click to expand…

    IIRC the $500 card each fee is 4.95

    But yes you’re right in most cases if the CC reward is only 1% it’s not worth it. But for Chase UR, it’s 1.5%. And also you can continue to sign up for new cards that rewards you with 30-100k pts for 1-5 grand in spending to get that.

    Since I do have chase I figured I can do a few new cards and then do the bulk of the buying through chase to get the 1.5%….and of course some cards can get up to 2% cash back but I do like seeing allthe pts accumulate in my chase account!

    #53825 Reply
    Avatar adventure 
    Participant
    Status: Spouse
    Posts: 1204
    Joined: 10/24/2016

    Just checked with Sofi, and refinance an already low loan to an ever lower rate! Still much time away from getting loans paid off, but getting closer each month!

    #54208 Reply
    Avatar FutureDoc 
    Participant
    Status: Resident, Physician
    Posts: 124
    Joined: 04/24/2016

    Well, at the end of intern year we’ve done a really good job and put ourselves on a good footing.  As of next paycheck we will have cleared out two private loan at variable rates, with only one more left.  Sadly the dual medical school loans (~500k) are just sitting there, but on the bright side the retirement accounts are now growing faster than the interest accrues on the debt, so that makes me feel a little better. We should be in good shape to tackle them hard in 3 years once at least one of us is an attending, and at least thanks to REPAYE our interest rate is right at 3%.  Overall still shooting for around 3-5 years after residency for payoff.

     

     

    #54249 Reply
    Liked by Zaphod
    Avatar Dermonc 
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    Status: Resident
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    Joined: 04/21/2017

    I completely paid off my student loans today, 2 years after graduating med school!

     

    How I did it: Cheated and only had ~33k in loans at the end of med school (went to state undergrad under full scholarship then state med school so my parents paid for ~75% of my med school costs). I hardly made a dent in the loans during intern year, went down to around 28k then I discovered WCI book, read all about personal finance, plugged all available cash into my loans, refinanced my public 6.8% interest loans down to 4.9 (thanks WCI for the $300!), re-refinanced a month later to 4.4% (thanks again WCI for another $300!), cut lifestyle costs wherever possible, got into churning for free travel and sacrificed my emergency fund (I am recently married and she has an emergency fund that I am piggy backing on currently). I am also on track to max my roth out this year (I know I should lump sum at the beginning but I did not have the cash) and withheld 1300 in my HSA so far this year. I did this on 58k (intern) and 48k (pgy-2) salaries. Thanks WCI as I would definitely still have ~25k in debt if I didn’t read your book!

    #54265 Reply
    Liked by hatton1, EDDOCMOM
    childay childay 
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    Status: Physician
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    Joined: 01/09/2016
    Earnest refinancing bonus

    I completely paid off my student loans today, 2 years after graduating med school!

     

    How I did it: Cheated and only had ~33k in loans at the end of med school (went to state undergrad under full scholarship then state med school so my parents paid for ~75% of my med school costs). I hardly made a dent in the loans during intern year, went down to around 28k then I discovered WCI book, read all about personal finance, refinanced my public 6.8% interest loans down to 4.9 (thanks WCI for the $300!), re-refinanced a month later to 4.4% (thanks again WCI for another $300!), plugged all available cash into my loans, cut lifestyle costs wherever possible, got into churning for free travel and sacrificed my emergency fund (I am recently married and she has an emergency fund that I am piggy backing on currently). I am also on track to max my roth out this year (I know I should lump sum at the beginning but I did not have the cash) and withheld 1300 in my HSA so far this year. Thanks WCI as I would definitely still have ~25k in debt if I didn’t read your book!

    Click to expand…

    You paid off 33k of loans during residency?  Not sure how much your spouse makes but great job!

    #54269 Reply
    Avatar Dermonc 
    Participant
    Status: Resident
    Posts: 13
    Joined: 04/21/2017

    Thanks! She is also a resident, made 48 or 49k last year but she has no loans which helps. We have lived in very low cost of living areas and have very little expenses other than food, cheap housing and travel. Now I have to figure out my next financial goal.

    #54274 Reply
    Zaphod Zaphod 
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    Status: Physician, Small Business Owner
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    Joined: 01/12/2016

    Thanks! She is also a resident, made 48 or 49k last year but she has no loans which helps. We have lived in very low cost of living areas and have very little expenses other than food and travel. Now I have to figure out my next financial goal.

    Click to expand…

    Stack em high.

    #54286 Reply

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