Law School Discussion

Show Posts

This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.


Messages - DTEJD1997

Pages: [1]
1
Incoming 1Ls / Re: LOANS: Your debt load? Normal debt load?
« on: June 09, 2010, 01:07:02 AM »
Hello:

I would caution you to think twice about having $175k in student loan debt.

I graduated from law school in 1997 and did not get a good job for several years.  My debt eventually went up to just over $100k. 

Eventually, I got back on track and I have had a VERY good job for the last several years.   So far, I have paid about $60k towards my loans & interest, but I still owe about $75k.

Lets assume you can make $100k a year after graduation.  Take home pay will be in the neighborhood of $60k.  You will most likely have to have a place to live , vehicle, food, clothing, etc....That is certainly going to be at least $2k a month, but probably will be at least $3k, maybe even more...That will leave you with $24k a year to build a retirement account, build a down payment for a house, AND PAY DOWN YOUR LOAN BALANCE.   I forgot to calculate interest on your loans....interest will probably be around 5% or so, which equates to $8k a year.

REMEMBER, for all intents & purposes, student loan interest is not tax deductible.

If you have a job earning $100k a year, you will probably be able to pay down your student loan debt by a maximum of $12-16k a year.  It will therefore take you a MINIMUM of 10 years to pay off your loan.  Probably a more realistic expectation is 12-14 years.  That is also assuming that you make AT LEAST $100K a year.

Of course, if you are making $125k or more, you will probably be OK if you are aggressive about debt repayment for 5-6 years.

Please be careful, and GOOD LUCK!

Pages: [1]