Student Loan Refinanace

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darkguy2
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Location: United States

Student Loan Refinanace

Postby darkguy2 » Sat May 30, 2015 4:08 pm

So I was thinking that I would refinance my private and government student loans when I graduate through SoFi. I will have a job after I graduate that will pay from $62K-$70K depending on who I work for, so I will not benefit from the income based repayment. SoFi will also honor the 6 month grace period, though I will start before then. I will have close to $50K in loans.

Right now I can get a variable 5 year rate of 1.9%. I realize that it will be going up in the future, but with my income I think I can afford to pay it off in 5 years which should keep it from reaching their fixed rate of 3.5%. I also realize I will not be able to write my interest off for my federal loans after I refinance. Still I should save me around $11K in interest.

Anyone have any input on this? it seems to me that I can afford the $900/month in payments. After taking out 6% for my 401(K) I should make at least $3500 after taxes per month. My rent and utilities are always less than $550/month. That leaves over $2K to live on per month which I think is more than enough. I can even put money away for an emergency fund.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)


Vermonster
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Re: Student Loan Refinanace

Postby Vermonster » Tue Jun 02, 2015 2:44 pm

That sounds almost too good to be true. But are your monthly payments really expected to be $900?

Do they have any longer term options or is 5 years the max? It might be worth trying to drop those payments a bit. I know it is pretty cynical but the truth is that you should never rely on your income to be steady for the first few years in an industry. Shit happens, and you would hate to have a $900 a month payment if you are forced to change jobs.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

darkguy2
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Posts: 618
Joined: Thu Jan 24, 2013 12:24 am
Location: United States

Re: Student Loan Refinanace

Postby darkguy2 » Tue Jun 02, 2015 5:22 pm

Vermonster wrote:That sounds almost too good to be true. But are your monthly payments really expected to be $900?

Do they have any longer term options or is 5 years the max? It might be worth trying to drop those payments a bit. I know it is pretty cynical but the truth is that you should never rely on your income to be steady for the first few years in an industry. Shit happens, and you would hate to have a $900 a month payment if you are forced to change jobs.


Yes they have longer term loans, but the rates for these are not as good. The 10 year starts at 3.5%. The payment came to around $875 for the 5 year.

Honestly I think my job security will be very good. I will graduate with two engineering degrees along with just under 2 years of experience in my field. The job I would do for my top pick would be pretty consistent and not working on a single project till completion. I know it is a problem for engineers who get hired on to work a project and their job relies on the project to keep going. Even if I do get sacked there are plenty of other competitors in the field that would be excited to have me with my experience.
Discover IT - $5,700
Chase Freedom - $5,700
Costco Citi - $13,000
Sallie Mae - $4,000
Chase Sapphire Preferred - $6,000
Chase Sapphire Reserve - $19,500
Citi Double Cash - $6,500
Amex BCE - $13,000

FICOs: Discover (777), SallieMae (764), Amex (767), Citi (772)
FAKOs: CK- TU (760), EQ (760)



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