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*Official student loan pay off thread*

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  • Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6177
    Joined: 01/12/2016

    Question,

     

    I recently refinanced from SoFi fixed to Laurel Road/Mohela 160K @2.5% variable x 5 years.  I obviously enrolled in autopay feature to get lowest possible rate.  I have been reading about bi-monthly payments to keep accumulated interest as low as possible.  My question is, with autopay feature, is this possible through Mohela?  I don’t see an option to split my monthly payment, only to add in additional payment and my base payment is fairly high where I’m comfortable paying at $2850/month.

    Anyone do this?  Is it worth it?

    Click to expand…

    Your rate is so low, as is balance, and your term short enough that your accumulated interest is going to be relatively small anyway. A bimonthly payment will not make a huge difference compared to a monthly overpayment. In fact you can just run the numbers and make a single big one early on or spread over a couple months that has the same effect.

    This kind of thing is very simple once you figure out the game. Your rate doesnt even matter that much. You want a lower one, just pay more and it lowers the effective rate (as total interest drops).

    I think you have a great setup and are doing fine.

    #69228 Reply
    Avatar DMAL 
    Participant
    Status: Physician
    Posts: 33
    Joined: 12/18/2016

    Just paid off private loans (one at 10% and another at 6.5%) both ~ 58k

    Still have federal loans, currently on REPAY. 47k at 3.3%, 140k at 6.5%. Monthly payments for month currently total 200$. I’m working straight locums currently.

    Wanting to pay the loans down aggressively (within the next 8 months- i keep going over that thread on SDN of the guy who paid of ~400k in 7 months. I keep thinking if he did that, then surely I can knock out 187k ). But a big thorn in my side is that I don’t have any retirement accounts. Working on opening some now, but still trying to decide- just pay down the loans, then start full retirement account contributions once that is done or just do REPAYE for the year, while getting a start on the accounts. (the beginners forum disappeared before I was able to post on there 🙁 )

    #69286 Reply
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6177
    Joined: 01/12/2016

    Just paid off private loans (one at 10% and another at 6.5%) both ~ 58k

    Still have federal loans, currently on REPAY. 47k at 3.3%, 140k at 6.5%. Monthly payments for month currently total 200$. I’m working straight locums currently.

    Wanting to pay the loans down aggressively (within the next 8 months- i keep going over that thread on SDN of the guy who paid of ~400k in 7 months. I keep thinking if he did that, then surely I can knock out 187k ). But a big thorn in my side is that I don’t have any retirement accounts. Working on opening some now, but still trying to decide- just pay down the loans, then start full retirement account contributions once that is done or just do REPAYE for the year, while getting a start on the accounts. (the beginners forum disappeared before I was able to post on there ???? )

    Click to expand…

    Why dont you refinance? Some of your rates are terrible.

    #69288 Reply
    Liked by Craigy
    Craigy Craigy 
    Participant
    Status: Spouse
    Posts: 2052
    Joined: 09/16/2016

    Question,

     

    I recently refinanced from SoFi fixed to Laurel Road/Mohela 160K @2.5% variable x 5 years.  I obviously enrolled in autopay feature to get lowest possible rate.  I have been reading about bi-monthly payments to keep accumulated interest as low as possible.  My question is, with autopay feature, is this possible through Mohela?  I don’t see an option to split my monthly payment, only to add in additional payment and my base payment is fairly high where I’m comfortable paying at $2850/month.

    Anyone do this?  Is it worth it?

    Click to expand…

    When I was with darien rowayton (now Laurel Road) the only way to do anything other than your monthly payment schedule was to make additional payments, and the easiest way was by check in the mail.  That was about a year ago.  I’m sure they’ve updated their system since then, but a lot of these companies aren’t that flexible.  Call them up and they’ll let you know the answer for sure.

    But in general, no, unless you’re paying more in total, making bimonthly half payments won’t really help you out.  Your accumulated interest every half month is like $165.00.  Accumulated interest on that amount is a couple few dollars a month.

    LEVEL 1 WCI FORUM MEMBER.

    #69378 Reply
    SomeRandomGuyOnline SomeRandomGuyOnline 
    Participant
    Status: Physician
    Posts: 12
    Joined: 01/22/2017

    Finally did it! My student loan balance is $0! Total paid, including interest, came out to about $400k. Took me just over three years to pay them off.

     

    Feels great!

    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 2817
    Joined: 01/03/2017

    Finally did it! My student loan balance is $0! Total paid, including interest, came out to about $400k. Took me just over three years to pay them off.

     

    Feels great!

    Click to expand…

    Congratulations! You’re not just SomeRandomGuyOnline to me…you’re SomeRandomGuyOnlineWithoutStudentLoans now!

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #70911 Reply
    Avatar PNWskindoc 
    Participant
    Status: Physician
    Posts: 99
    Joined: 01/10/2016
    Earnest refinancing bonus

    That’s incredible. Kudos to you!

    #70913 Reply
    Avatar link2swim06 
    Participant
    Status: Resident, Physician
    Posts: 3
    Joined: 01/02/2017

    On November 15th I will have paid off ~240K in debt in 20 weeks. Excited to turn 30 next year with no debt.

    #71087 Reply
    Avatar DMAL 
    Participant
    Status: Physician
    Posts: 33
    Joined: 12/18/2016

    On November 15th I will have paid off ~240K in debt in 20 weeks. Excited to turn 30 next year with no debt.

    Click to expand…

    Congrats!

     

    How did you manage that in 5 months? I’m trying to force myself to pay 190k in less than 6 months.

    #71217 Reply
    Avatar Ninersfan 
    Participant
    Status: Resident
    Posts: 15
    Joined: 10/19/2017

    Great thread, sorry if I missed it but any specific tips to help payoff.the debt quickly? Or are most people just trying to live frugally and putting all extra cash to loan debt?

    Loan amount : $340,000
    Still in 3rd treat residency

    #71239 Reply
    Avatar link2swim06 
    Participant
    Status: Resident, Physician
    Posts: 3
    Joined: 01/02/2017

    Here is my longer post on SDN. It details what I did.

    https://forums.studentdoctor.net/threads/paid-off-240k-of-debt-20-weeks-after-finishing-residency.1285377/

     

    Basically I took the Dave Ramsey approach while working the highest paying jobs I could find.

    #71240 Reply
    Avatar hightower 
    Participant
    Status: Physician
    Posts: 1485
    Joined: 12/07/2016

    @link2swim06 Congrats on that very impressive pay off.  I can’t imagine how good you feel being done.  Now that you’re debt free, what’s your plan?  Are you going to keep working that hard or cut back?  

    #71244 Reply
    Avatar hightower 
    Participant
    Status: Physician
    Posts: 1485
    Joined: 12/07/2016

    I’ll be down to 101k at 2.6% in the next several weeks as far as my student loans go.  Trying to decide if I should keep going or just start contributing to a taxable…more here: https://www.whitecoatinvestor.com/forums/topic/critique-my-finances-please/page/4/

    #71245 Reply
    Avatar SkiDoctor 
    Participant
    Status: Physician
    Posts: 3
    Joined: 11/10/2017

    Good news, 7.5 years out of residency and I have officially paid off my loans.
    Want to thank everyone on here for the motivation, after some deep contemplation 10 months ago, I decided to debt free. In total, starting Jan 1 2017 I have paid off 472k in debt.
    1. 152 med school
    2. 100k wife college and grad school
    3. 2 cars at 86k
    4. Personal loan at 134

    Lots of poor decisions, but I was uniformed.
    At age 38, i am debt free and have hit the million net worth club. Was a long and painful year, but I am happy the sacrifices were made.
    2018 will be a year to focus on living with intention, maximizing relationships/experiences and personal health.
    Cheers to all

    #73935 Reply
    MPMD MPMD 
    Participant
    Status: Physician
    Posts: 2488
    Joined: 05/01/2017

    Good news, 7.5 years out of residency and I have officially paid off my loans.
    Want to thank everyone on here for the motivation, after some deep contemplation 10 months ago, I decided to debt free. In total, starting Jan 1 2017 I have paid off 472k in debt.
    1. 152 med school
    2. 100k wife college and grad school
    3. 2 cars at 86k
    4. Personal loan at 134

    Lots of poor decisions, but I was uniformed.
    At age 38, i am debt free and have hit the million net worth club. Was a long and painful year, but I am happy the sacrifices were made.
    2018 will be a year to focus on living with intention, maximizing relationships/experiences and personal health.
    Cheers to all

    Click to expand…

    you forgot to include what you did to celebrate!??

    #73936 Reply

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