Law School Discussion

$1060.06/mo For 10 Years or $250/mo for 6 Years? --Find Out Your Slavery Term

http://www.finaid.org/calculators/loanpayments.phtml

This website will tell you how much you'll have to pay each month and for how many years on your potential student loans.

It will also tell you how much you'll need to make per year to be able to comfortably pay it off.

For example, if I take Washington & Lee's tuition, multiply it by 3, then take their esetimated room/board/books/fees/etc... and multiply that by 3, then subtract my savings and a presumed $17,000 from a summer externship, I will owe $1,014 per month for 10 years.  I will have paid $27,181 in interest, and will need to make $121,726 per year to comfortably pay it off.

This is scary. 

I'd need $147,000/year to pay off going to Vanderbilt comfortably, even scarier.

http://www.finaid.org/calculators/loanpayments.phtml

This website will tell you how much you'll have to pay each month and for how many years on your potential student loans.

It will also tell you how much you'll need to make per year to be able to comfortably pay it off.

For example, if I take Washington & Lee's tuition, multiply it by 3, then take their esetimated room/board/books/fees/etc... and multiply that by 3, then subtract my savings and a presumed $17,000 from a summer externship, I will owe $1,014 per month for 10 years.  I will have paid $27,181 in interest, and will need to make $121,726 per year to comfortably pay it off.

This is scary. 

I'd need $147,000/year to pay off going to Vanderbilt comfortably, even scarier.

Oh dear god, why did you have to post that.  Mine is terrifying and I have a sizable amount of money in saving to counteract it.  Dear god.  I'll have to make like 150K a year.  Can't you generally get a lower interest rate though?  I've never had student loans before so I don't know what the rate might be.

I'd say 5.25% is a reasonable estimate.  I guarantee loan rates will increase over the next 18 months--they already have this year by about a tenth of a point.

If you have a lot of savings then just subtract that off the total amount you will be financing. 

You can also drag out the number of years you'll be making the payments (but you're going to pay that much more in interest). 

I think the government limits you to something like 15 or 20 years, so I wouldn't go beyond that.  I'm pretty sure the optimal time period is 10 years (if you're in $100,000 of debt or more). 

There should be some sort of compromise point between the school you go to, the salary you can expect to make as a graduate from there, and the amount you'll have to pay off. 

Good luck :)

zakrob

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Ouch, that hurts. I combined my debt with my husbands and found we will have to make 220,000 between the two of us to live comfortably.  :-\

But if you don't have dependents, you should be able to live cheaply and put more than 10% of your monthly income towards loans, I imagine.

Did anyone else do the EFC calculator? I thought that the math was hilarious. They expected me to contribute 50% of my "available income" and 35% of all of my assets. That house I worked my ASS off to save up for the past 4 years just burned to the ground.  >:(

Two caveats about this calculator:

1) If you think you need to earn $100,000 to comfortably pay $1,000 a month then you must have an extraordinarily extravagant lifestyle.  Assume 40% effective tax rate: $100,000 becomes $60,000 per year which is $5,000 per month.  Excluding savings, my current cost of living (Food, rent, entertainment, and all other expenses) is less than $1,800.  If I earned $5,000 take home every month,  that would leaves $3,200 of extra, "discretionary" income.  Even if I put $1,000 of that straight into the bank, I would still be left with $2,200 to spend on loan payments.  And my $1,800 per month budget is VERY comfortable.  It would be easy to live on far less than that if you didn't eat out and go to the bars as often as I do.

2) This calculator does not take into account compounding interest while you're in school.  It assumes a single lump sum borrowed at a fixed interst rate with payments beginning immediately.  If you borrow $90,000 over three years, most of that will NOT be subsidized by the government and interest will compound from the day you sign the paperwork for the loan to cover your first semester's tuition.  I have a spreadsheet that I used to make much more accurate calculations and determined that I would be $160,000 in debt at graduation after borrowing $135,000 to cover tuition and cost of living for three years.  That's $25,000 in interest that's compounded during school alone.

After my review, I found out that I could go to Baylor and end up with a whopping total debt of $13,140 after all three years (food/fees/books/tuition/etc... etc... factored in--the cheapness is due to a 100% scholarship).  

Minnesota would cost me $98,000 (1,060/mo for 10 years)

Vandy $114,900 ($1,232/mo for 10 years)

SMU $42,903 ($814/mo for 5 years)

Indiana $58617 (749/mo for 8 years)

Alabama $38715 ($628/mo for 6 years)

Arizona $46,990 ($762/mo for 6 years)

interesting.... interesting...

Try living in NYC/Boston/LA on $100k/yr.  You'll be in a 300sq ft studio apt eating ramen noodles and cutting your own hair. 


Two caveats about this calculator:

1) If you think you need to earn $100,000 to comfortably pay $1,000 a month then you must have an extraordinarily extravagant lifestyle.  Assume 40% effective tax rate: $100,000 becomes $60,000 per year which is $5,000 per month.  Excluding savings, my current cost of living (Food, rent, entertainment, and all other expenses) is less than $1,800.  If I earned $5,000 take home every month,  that would leaves $3,200 of extra, "discretionary" income.  Even if I put $1,000 of that straight into the bank, I would still be left with $2,200 to spend on loan payments.  And my $1,800 per month budget is VERY comfortable.  It would be easy to live on far less than that if you didn't eat out and go to the bars as often as I do.

MrBadExample

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Try living in NYC/Boston/LA on $100k/yr.  You'll be in a 300sq ft studio apt eating ramen noodles and cutting your own hair. 


Two caveats about this calculator:

1) If you think you need to earn $100,000 to comfortably pay $1,000 a month then you must have an extraordinarily extravagant lifestyle.  Assume 40% effective tax rate: $100,000 becomes $60,000 per year which is $5,000 per month.  Excluding savings, my current cost of living (Food, rent, entertainment, and all other expenses) is less than $1,800.  If I earned $5,000 take home every month,  that would leaves $3,200 of extra, "discretionary" income.  Even if I put $1,000 of that straight into the bank, I would still be left with $2,200 to spend on loan payments.  And my $1,800 per month budget is VERY comfortable.  It would be easy to live on far less than that if you didn't eat out and go to the bars as often as I do.

Reason 101 that I'm glad I live in Chicago.

Chicago: The Big City Where You Don't Have to Be Rich to Live Comfortably!

But don't everyone move here at once.  We're trying to keep the rents low (ex. I pay 1200 a month for a 3 bedroom apt. with @ 1200 sq feet).