Student Loans

[Pancho 45062]

Currently, my loans are with nelnet.  Because I'm writing my dissertation, I'm not FT anymore and must start paying them back.  I was looking to refinance through SoFi.  So two questions:

1.) Anyone else use SoFi?  If so, how is/was it?  (Good reviews via reddit.)

2.) I qualify for Student Loan Forgiveness, but does that still happen if you refinance through someone like SoFi?

[Sbbruin 21898]

Well, doesn't look like this thread got a lot of feedback.  Anyway, this is more of a student loan for parents question.  Given that both the boy's 529 and our stock portfolios have been kicked square in the nuts, dipping into them now locks in our losses.  I think I would rather just pay the first year or 2 cash  while these things recover, even if I have to pay a little interest, assuming we get into a recovery sooner than later.  But I don't know the first thing about them.  Where should I start looking?

[Gil Bang 26048]

on the "Gap Year" thread.

[Sbbruin 21898]

On 5/18/2022 at 5:50 PM, Gil Bang said:

on the "Gap Year" thread.

There isn’t shit on that in that thread.  So bumping.  Thoughts on where to source a decent parent based student loan where credit score isn’t an issue and assets are more than adequate.  Really thinking of doing it as a financial play while our portfolios and his 529 recover from the ass raping of the last 4 months, when we can then start using it again.  Would not look to carry it very long.

[fattyflattie 4638]

Ahem. He’s saying take a year; a joke. 

[Sbbruin 21898]

4 hours ago, RatJuul said:

Sorry bro, just gonna have to lock-in the losses. Bad timing, Bruin.

Not sure I agree with you.  So anyway, anyone else?

[Bevo 13601]

On 5/21/2022 at 3:02 PM, Sbbruin said:

There isn’t shit on that in that thread.  So bumping.  Thoughts on where to source a decent parent based student loan where credit score isn’t an issue and assets are more than adequate.  Really thinking of doing it as a financial play while our portfolios and his 529 recover from the ass raping of the last 4 months, when we can then start using it again.  Would not look to carry it very long.

Is this a new student loan or refinancing a current student loan? I assume that it is not a loan cosigned by you but actually in your name? Student loans should be in zero interest deferment until August so you shouldn't be paying anything right now.

[Sbbruin 21898]

1 hour ago, Bevo said:

Is this a new student loan or refinancing a current student loan? I assume that it is not a loan cosigned by you but actually in your name? Student loans should be in zero interest deferment until August so you shouldn't be paying anything right now.

This would be a new loan in my name.  Just a financing option versus liquidating assets to pay.  I want to avoid liquidating at the bottom of the market.

[Muny_Tex 299]

^^^He’s trying to obtain a brand new loan in lieu of liquidating college fund accounts.

I don’t know much about student loans (thank God), but I believe your kid needs to fill out a FAFSA regardless of your earnings/assets in order initiate eligibility for certain loan programs (e.g. the federal ones with lowest interest rates).

As part of that same pursuit, I would prob speak with Financial Aid office at your son’s school and just tell them your best case scenario…even if they feed your horseshit advice it’s still a useful data point for comparison purposes.

Lastly, I would consider speaking with one of the real estate/lending gurus (Wulaw or UTPhil) to explore other avenues like 2nd mortgage and/or LOC’s that could help you accomplish same goals with potentially better terms/flexibility.

From what I’ve gathered, you are among the true Surly 1% so may be better to leverage some of the monster assets you already have rather than starting from scratch on a school-only loan like a poor person typically would.

Also potentially a whole host of tax implications involved with certain courses of actions, so prob want to think that through as well.

Best wishes and sorry about your stocks. Your kid is lucky to have your support and I hope he appreciates/pays it forward.

[Bevo 13601]

16 minutes ago, Sbbruin said:

This would be a new loan in my name.  Just a financing option versus liquidating assets to pay.  I want to avoid liquidating at the bottom of the market.

How much money are we talking? Student loans are considered non-guaranteed (ie. risky) loans. So, interest rates on student loans are ridiculously high. If it is short term and given that you aren't going to default on the loan, I would consider getting a loan other than a student loan (with the caveat that it is possible that the president will abolish some student loan debt - the talk is all over the place). Interest rates on student loans could be in the 6% range right now but are variable and increase with prime. Again, you will have to look up the numbers.

[Sbbruin 21898]

6 minutes ago, Bevo said:

How much money are we talking? Student loans are considered non-guaranteed (ie. risky) loans. So, interest rates on student loans are ridiculously high. If it is short term and given that you aren't going to default on the loan, I would consider getting a loan other than a student loan (with the caveat that it is possible that the president will abolish some student loan debt - the talk is all over the place). Interest rates on student loans could be in the 6% range right now but are variable and increase with prime. Again, you will have to look up the numbers.

Probably $100K.  I'm gonna talk to a pro.

[Bevo 13601]

16 minutes ago, Sbbruin said:

Probably $100K.  I'm gonna talk to a pro.

Yeah, I think that is probably the best idea. There are just too many variables. I think it is going to come down to crunching the numbers.

[UTPhil2006 3817]

41 minutes ago, Sbbruin said:

Probably $100K.  I'm gonna talk to a pro.

If I give you the 100k can I have access to your boat 2 weekends a month until the kid is out of college?

[Sbbruin 21898]

33 minutes ago, UTPhil2006 said:

If I give you the 100k can I have access to your boat 2 weekends a month until the kid is out of college?

[luke duke 6414]

If I give you the 100k can I have access to your boat 2 weekends a month until the kid is out of college?

[Jerry Callo 8734]

On 5/24/2022 at 4:30 PM, Sbbruin said:

Probably $100K.  I'm gonna talk to a pro.

Please post what you find out.  I'm in the same boat with one just finished her 1st year of college and the other starting in 2023.

[gyroprotagonist 2595]

will the 529 amount (as is) cover tuition?  for how many years?  on one hand, you saved this money that can only be used for school stuff.  it's right there and ready to go.  If you take out a loan and essentially gamble on the 529 'recovering' in the next what, 2 years, you are betting that the amount recovered in the 529 is > the interest paid on the loan?

if you know the 529 will be short to cover the 4 years no matter what, i guess i could see taking a loan out on the front end and hoping the stonks go back up in the 529 to cover the back end.

there is also no guarantee that it will be better in a few years.  if the reverse had happened and the market had tanked 2 years ago but now it was well on the rise and at the same amount of $$ it is today would you feel this way?

[Revolution512 1495]

Put the loan in your kids names, great way to build their credit scores for early adulthood.