LOANS: Your debt load? Normal debt load?

[cwhelan]

Well, I didnt know the answer to that question. Now I do. Thanks. Given that interest will build as soon as I take it out, I've changed my plan. I will be throwing all the weight of my personal savings (besides a little set aside, I don't believe in $0 in my bank account as a good idea) at the first year. See how much it costs me. Get loans accordingly the following years.

[cwhelan]

I understood, by the way, from reading about loans, that only the subsidized Stafford loans have no accruing interest. At least that was the only one in which that was explicitly stated. But I am uncomfortable with finances and even though the natural assumption I made was that PLUS and the other kind of Stafford did have accruing interest, I hesitate to trust my own conclusion until someone explicitly states in a positive sentence, yes they do or do not come with accruing interest. So thanks for making explicit.
I feel like I have to get used to talking like a lawyer. I know that you're not trying to make this conversation an 'argument' but to me it comes off like that "Uh, isnt that the difference..." because it's not my style of speaking/writing.

[chi2009]

Watch the numbers on your student loan debt every year and you'll see the interest add up.  It's pretty sickening.

[cmd758]

I have to get used to talking like a lawyer. I know that you're not trying to make this conversation an 'argument' but to me it comes off like that "Uh, isnt that the difference..." because it's not my style of speaking/writing.

Definitely taken the wrong way. And no, I am not going to argue about that.

[cwhelan]

Yeah, I know. The funny thing is I know but then it still somehow sticks out to me usually. Maybe I should be a preschool teacher instead? Then I can make sure everyone is super nice all the time.. ahhh.. anyway thanks for the great advice.

[chi2009]

Yeah, I know. The funny thing is I know but then it still somehow sticks out to me usually. Maybe I should be a preschool teacher instead? Then I can make sure everyone is super nice all the time.. ahhh.. anyway thanks for the great advice.

Based on my limited experience with small children, I would not say they're super nice all the time.  You're just getting honest, straight forward advice.  A couple classes with the right kind of law prof and you'll grow some thick skin in no time.  Sometimes I think people just get too busy to worry about sugarcoating things.  Don't take it personally; it's definitely not personal.

[DTEJD1997]

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!

[shayna]

On certain loans, which people who pay completely for their legal education take out these loans, interest starts while you are in school.  Maybe it is wise to try and pay only the interest on these loans while you are in school.

[cooleylawstudent]

you suggest paying loans with loans?

On certain loans, which people who pay completely for their legal education take out these loans, interest starts while you are in school.  Maybe it is wise to try and pay only the interest on these loans while you are in school.

[fllaw]

Before going into massive debt in an industry that may not offer the rewards you anticipate, you might want to read this:

Effects of Being in Debt

http://www.ehow.com/about_4602144_effects-being-debt.html

and this:

The Next Bubble: Law School Tuition

http://abovethelaw.com/2010/04/the-next-bubble-law-school-tuition/

By Elie Mystal

It’s one thing when I write about how crushing law school debt has impacted the value proposition of going to law school. I’m just repeating what every jobless 4L already knows. And prospective law students, 0Ls, have already proven that are too full of themselves to take out a calculator before they commit to three years of debt financing.

This is very important information. You may believe that this happens "to the other guy" but don't be so certain.

  College Grad Exposes Everything That’s Wrong With 0Ls 

http://abovethelaw.com/2010/06/college-student-exposes-everything-thats-wrong-with-0ls/

By Elie Mystal

We spend a lot of time telling prospective law students to carefully consider the decision to go to law school. And still they come. We tell prospective law students that law school is expensive and the job market is weak. But still they come, in record numbers.