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Author Topic: Not sure how many folks are like me but......  (Read 787 times)

Stencilasnusky

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Not sure how many folks are like me but......
« on: February 28, 2006, 12:27:33 PM »
Unlike most folks here, I left undergrad years ago and been working ever since. The law school thing just so happened (actually it was a slight career change) so its not like I've been dreaming of it for a while. The issue at hand is I got into my dream school but now I need $$$ to pay for it. Problem is my Expected Family Contribution per FAFSA might be too high to get zilch, including need based aid. I didn't get any merit scholarships (don't ask) and I'm scared to Bejesus that I won't get minority scholarships. Do you think I should
(1) Defer and save more money for the year (I make a little less now than I would make as a 1st year associate but after performing a discounted PV of the difference and it looks like I will be at a net loss of $250k if I retire at 70).
(2) Whore myself to Big Law firms in hopes they'll give me loan forgiveness in exchange for a 5 yr committment of slave labor (not sure if this is possible)
(3) Beg the school to help me to help you to help me ( blank stare!!!)
(4) Suck it up with debt and hope to goodness I make White House Counsel then transition to Big Daddy law as a HUNC Partner (High Units No Clients)
(5) Forget law school and stay on track to be an industry executive

Any serious thoughts will be appreciated thanks

EDIT: Cross posted on BLSD

upNdown

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Re: Not sure how many folks are like me but......
« Reply #1 on: February 28, 2006, 03:00:36 PM »
(1)(I make a little less now than I would make as a 1st year associate but after performing a discounted PV of the difference and it looks like I will be at a net loss of $250k if I retire at 70).

What does this mean?  Some first year associates make 40K, some make 140K.  What is PV?  A net loss of 250K at 70?

I'm assuming what you're saying is that you make good money now but if you have to take out loans to pay for law school, that will decrease the amount you earn over your lifetime by 250K.  That is exactly the same situation that most of us are facing.  Law school is expensive.  

Most of us older folks (I'm only 32, but around here thats pretty old) make the career switch because we want to be attorneys, not because we want to make more money.  So if that is the case for you, what does it matter how much money you end up with (as long as its comfortable)?

If you want to go to school, then take the loans and go to school.  Or else start saving money and go to school in a few years.  You'll save some money in interest that way, but of course it will be that much longer before you're an attorney.  
GPA - 2.095 (It was a long time ago and I wasn't trying.)
LSAT - 161

In - Suffolk, New England School of Law
Out - BC, Northeastern
Pending - Nothing pending . . . now what?

upNdown

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Re: Not sure how many folks are like me but......
« Reply #2 on: February 28, 2006, 03:01:39 PM »
You should proceed on the basis that no financial help is coming. The question then is whether the non-monetary benefits of the (slight) career change are worth an NPV of $250,000 to you. Only you can judge that.

I think that's what I said.  If not, that's what I meant to say.
GPA - 2.095 (It was a long time ago and I wasn't trying.)
LSAT - 161

In - Suffolk, New England School of Law
Out - BC, Northeastern
Pending - Nothing pending . . . now what?

Stencilasnusky

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Re: Not sure how many folks are like me but......
« Reply #3 on: February 28, 2006, 04:10:17 PM »
What does this mean?  Some first year associates make 40K, some make 140K.  What is PV?  A net loss of 250K at 70?

Sorry..I'm an finance guy so I tend to use terms like that in common conversation. I am going to law school to attain absolute power beyond my wildest dreams so no $40k/yr for me (that's more than a 65% paycut right now anyways). PV= Present Value of an investment or annuity. I calculated how much I'd expect to be making from my first year as an associate till I retire at 70 and I discounted it at my effective rate of interest to come up with what its worth today, then compared the same formula with a one year deferral and the net loss was $250k, in present day terms.

[/quote]
I'm assuming what you're saying is that you make good money now but if you have to take out loans to pay for law school, that will decrease the amount you earn over your lifetime by 250K.  That is exactly the same situation that most of us are facing.  Law school is expensive.[/quote]
Er..not really. I meant that in that if I deferred for one year...I'd lose $250k in today's money when I retire at 70  

[/quote]
Most of us older folks (I'm only 32, but around here thats pretty old) make the career switch because we want to be attorneys, not because we want to make more money.  So if that is the case for you, what does it matter how much money you end up with (as long as its comfortable)?[/quote]

You aren't old..don't be bashful. See comment about attaining power beyond my wildest dreams..you get the money, then the power and then (in my case)..the world

[/quote]
If you want to go to school, then take the loans and go to school.  Or else start saving money and go to school in a few years.  You'll save some money in interest that way, but of course it will be that much longer before you're an attorney.[/quote]

I'm trying to minimize my exposure to debt even though I won't get need based aid and merit aid. Any help will do before digging deep into debt.  



yiplong

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Re: Not sure how many folks are like me but......
« Reply #4 on: February 28, 2006, 05:29:02 PM »
If 40k/year is more than 65% paycut for you, then you are making over 100k/year at your current job?  Why would you even consider going to law school if it does not significantly improve your career prospect? 

Stencilasnusky

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Re: Not sure how many folks are like me but......
« Reply #5 on: February 28, 2006, 05:46:09 PM »
If 40k/year is more than 65% paycut for you, then you are making over 100k/year at your current job?  Why would you even consider going to law school if it does not significantly improve your career prospect? 

Excellent deduction my dear Watson (jk). I can make a lot of money where I am but I want power..absolute power and I think with a law degree I can get that..also, I'm pretty skilled in my job and it can get kinda boring..

lightessenz

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Re: Not sure how many folks are like me but......
« Reply #6 on: March 01, 2006, 06:13:16 PM »
Quote
absolute power

You scare me.

WannabeLAW

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Re: Not sure how many folks are like me but......
« Reply #7 on: March 05, 2006, 11:53:17 PM »
Did you ever think of attending part-time? Is that a possibility?