In Europe, the state pays for the institutional costs of instruction; students pay little or no tuition, but are responsible for living costs; and most universities are public. In the US, by contrast, student loans have become the most profitable, uncompetitive, oppressive, and predatory type of debt of any in the nation. This has occurred due to legislation that was largely paid for by the the lobbying machine of Sallie Mae, the largest student loan company in America. Vast personal fortunes are being made by both Sallie Mae executives, and others who paid for this legislation, at the expense of decent citizens who were not able to capitalize on their education. This has effectively crippled MILLIONS of decent citizens who want to repay their original debt, but are prevented from doing so by staggeringly higher amounts being demanded from them by both non-profit, and for-profit student loan companies.
According to this logic, no one should go to college, especially a private college --tuition and living expenses $35,000 X 4 = $140,000You earn some $30,000 a year after you graduate, and it'll take some 40 years to reach your break-even point, isn't it so?
Exactly, loan payer, according to this line of reasoning few families in the US should take mortgages. If you take, say, a $300,000 mortgage and are able to pay monthly only some $2,000 -- it'll take 20 years to pay it off and become the owner, point in time when you can sell it and hopefully make some profit.
[...] However, the USMLE scores are an important determinant of the residency match, so strong USMLE scores make up for a lot and can be a great equalizer. [...]
Quote from: polycephalous on May 10, 2007, 02:48:24 AMWeil, Gotshal & Manges (New York)1st year: $125,0002d year: $135,0003d year: $150,0004th year: $165,0005th year: $190,0006th year: $205,0007th year: $215,000Bonuses in all classesJust checked Covington and Jenner, both are also at $160k to start.
Weil, Gotshal & Manges (New York)1st year: $125,0002d year: $135,0003d year: $150,0004th year: $165,0005th year: $190,0006th year: $205,0007th year: $215,000Bonuses in all classes
I think your calculations are pretty good for the most part except that they ignore interest on your loan (not that high if you truly pay it off in three years, and assuming interest was deferred until graduation):year 1: salary 160K + 30K bonus = 190K - 40% tax = 114Kyear 2: salary 180K + 30K bonus = 210K - 40% tax = 126Kyear 3: salary 200K + 30K bonus = 230K - 40% tax = 138K__________________Total earnings [3yrs]............................. .378KTotal [3 yr] interest accrued on a 180K loan......(~30K)Living expenses [3yrs]*...........................(~150K)Principal.................... .....................(~180K)--------------------------------------------------------- remaining ~48K
Still, if these are your goals and you feel confident you can make it, then as you say its a good investment. (uh, provided you actually like being a lawyer!)
BUT, this is the absolute best case scenario in which you land a very high paying job at a top law firm with substantial salary increases and a growing economy that permits the assumption of a consistent bonus ... and of course that you remain at your job for 3 years (not burning out).
What this means is that students completing their studies in such schools might be at a disadvantage when competing for strong residencies. However, the USMLE scores are an important determinant of the residency match, so strong USMLE scores make up for a lot and can be a great equalizer. Another disadvantage is that often the clinical rotations are done in US medical schools. [...]