Addicted to Student Loans

[avarist]

Anyone else feel that after 8 years on student loans, having to live without them is scary as hell?

I don't even want a Masters or a PhD but am considering both just to keep living expences coming in and defer repayment. You only have to do the programs part time to get that, and you can normally do that on schedules that allow you to search for work (and god willing find it and start doing it) as well. In a poor job economy is this an idea that has entered anyone elses mind too?

[SoCalLawGuy]

Why would you say you can't live without loans? For me, the simple idea of having to give money back is giving me the shivers.

[avarist]

Why would you say you can't live without loans? For me, the simple idea of having to give money back is giving me the shivers.

for the same reason that people get "dependent on welfare and govt handouts (except here, yes as you pointed out, we have to pay them back-in thoery eventually)

If you re-read my post you will see the answer to your questions. (defer loans, keep money coming in)

[AlwaysSunny]

You have to forgive me for my ignorance because I haven't gotten into the school loan game yet.

Won't your loans still be accruing interest if you go back to school? So you'll end up owing substantially more (in interest alone) if you continue to put them off, correct? Have you done the math on your monthly payments if you start now vs. one or two years from now?

[avarist]

You have to forgive me for my ignorance because I haven't gotten into the school loan game yet.

Won't your loans still be accruing interest if you go back to school? So you'll end up owing substantially more (in interest alone) if you continue to put them off, correct? Have you done the math on your monthly payments if you start now vs. one or two years from now?

we don't all have trust funds to live off of, or spouses/parents to take care of us.

yes, more debt is bad. But no money to survive in short run is worse. -There is a reason why people are willing to pay the electric bill with a creditcard.

Plus (in theory) the extra degree will give an edge (somehow).

How are you to the point of enrolling in law school without any student loans? You on GI Bill, or just have parents pay for it?

[Maintain FL 350]

Plus (in theory) the extra degree will give an edge (somehow).

No, it probably won't. Unless your goal is to teach college, a Ph.D will only give you more debt. The starting salary for an assistant professor is less than that of a junior associate, and you'll max out at far, far less than an attorney. Most legal employers won't care a bit about a Ph.D (or M.A.), so outside of academia it will not give you an edge. Even if you do want to teach, you better get into a very well-regarded doctoral program. The job market for academics is even worse than the job market for lawyers.

I would advise taking any kind of legal work you can get, just get some experience. If you have to, move in with family or relocate to a cheaper part of the country. Believe me, I recently graduated and I know how crappy the market is. The first couple of years out of school might be awful, but if you can get some experience it will get better. Handling DUIs and insurance subrogation cases for $40,000 a year is still better than accruing an additional $100,000 debt for a degree that will not increase your earning potential.

[avarist]

Plus (in theory) the extra degree will give an edge (somehow).

No, it probably won't. Unless your goal is to teach college, a Ph.D will only give you more debt. The starting salary for an assistant professor is less than that of a junior associate, and you'll max out at far, far less than an attorney. Most legal employers won't care a bit about a Ph.D (or M.A.), so outside of academia it will not give you an edge. Even if you do want to teach, you better get into a very well-regarded doctoral program. The job market for academics is even worse than the job market for lawyers.

I would advise taking any kind of legal work you can get, just get some experience. If you have to, move in with family or relocate to a cheaper part of the country. Believe me, I recently graduated and I know how crappy the market is. The first couple of years out of school might be awful, but if you can get some experience it will get better. Handling DUIs and insurance subrogation cases for $40,000 a year is still better than accruing an additional $100,000 debt for a degree that will not increase your earning potential.

I'm not saying not to take work, I'm just saying the idea of taking the work (if you can get it) PLUS taking either online or weekend courses (to avoid having to move in with family,etc). I'd rather risk more debt than pretend I'm 17 again.

[avarist]

I forgot before to add that student loan interest in normally tax deductable too (for what that helps in negating it as too big of an issue).

[AlwaysSunny]

How are you to the point of enrolling in law school without any student loans? You on GI Bill, or just have parents pay for it?

Sorry, no trust fund or rich parents here. It was all scholarships from the state and my school, along with working a full time job at night.

I'm not at all looking down on student loans, I was genuinely asking how the interest works if you stay in school.

[avarist]

How are you to the point of enrolling in law school without any student loans? You on GI Bill, or just have parents pay for it?

Sorry, no trust fund or rich parents here. It was all scholarships from the state and my school, along with working a full time job at night.

I'm not at all looking down on student loans, I was genuinely asking how the interest works if you stay in school.

Hey if you can get scholarships more power to you. With any luck you can ride out the whole JD that way too, that would be f'n sweet!   
Oh, and you'll see the spoiled richdads kids when you get in too. For some reason the girls tend to be the most obvious. They tend to be the ones who (no joke) get disgusted when anyone asks if they plan to practice after getting married (they don't, and you best spoil them like daddy).....