Interesting Thoughts on Scholarship vs. DEBT

[cesco]

Just some info for those of you that have gotten great scholarships -

The rate for Stafford Loans is expected to go up to 6.86 (repayment rate) for the 2006-2007 school year.  To make things easy, assume that 6.86 is your rate for ALL loans.

$90,000 on a 10 year payoff plan is: $1,038 a month
$90,000 on a 20 year payoff plan is: $690 a month

Ouch 

["V"]

What would make this interesting is if people could input into an excel, and see, for instance, how much more per month (average salary) they could expect from one school over another. Then, they'd need to be able to input the difference in loan amounts.

THAT would be interesting.

[Reaching]

But don't you think it'd be inaccurate to compare the median incomes from the two schools? There should be an adjustment to take into account the higher (how much?) grades you're likely to get at the scholarship school.

I mean, you are very likely to have higher GPA and LSAT than average (or maybe even 75th percentile) at the school you get a scholarship from.  However, you are probably at or below the median at the higher ranked school. So, you're more likely to have higher grades and a higher class rank at the scholarship school. Surely, if that is the case, some of the disparity in earnings will be erased between the two school choices.

["V"]

But don't you think it'd be inaccurate to compare the median incomes from the two schools? There should be an adjustment to take into account the higher (how much?) grades you're likely to get at the scholarship school.

I mean, you are very likely to have higher GPA and LSAT than average (or maybe even 75th percentile) at the school you get a scholarship from.  However, you are probably at or below the median at the higher ranked school. So, you're more likely to have higher grades and a higher class rank at the scholarship school. Surely, if that is the case, some of the disparity in earnings will be erased between the two school choices.

Well, first, I never said it would be accurate, I said it would be interesting to compare the difference in monthly income versus monthly loan payments. And I think that WOULD be interesting, but still not something I'd base a decision off of, but I might keep it in mind if the average salaries ended up putting a major difference between the two.

Second, just because you go to a lower ranked school is NO reason to assume you'll place any higher in the class that you would any place else. Many people at lower ranked schools know they have to compete harder than higher schools to get the same out of the degree - and, despite the skill of your classmates, your own skill at the law will probably be roughly the same at either school. I think that sort of assumption is wrong on many counts - if anyone goes to a lower ranked school thinking they'll be able to more easily hit the top 10 percent, I think they're likely to be UNpleasantly surprised.