Law School Discussion

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latenitesession

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« on: January 15, 2007, 12:32:08 PM »
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Re: money issues
« Reply #1 on: January 15, 2007, 01:11:47 PM »
I'm not in your situation, but most schools explicitly say that you can't borrow extra money for credit card debt or car payments.  Insurance isn't so much of a problem -- health insurance is factored into most student budgets and I *think* car insurance is a legitimate addition (may depend on the school).  But if you can't find a job in your field, you might have to consider retail or something, since you have so much non-deferrable debt.  If you have access to a financial counselor at your bank or your current school, I'd suggest making an appointment soon.  They might have more ideas for you.

ptown

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Re: money issues
« Reply #2 on: January 15, 2007, 01:23:12 PM »
I dont think it is the schools that say you cant use loans for debt, that is the guidelines for federal loans.  As far as private lenders go, you can use the money for whatever you want.  How you will qualify for those loans is difficult to say, but from my understanding the credit guidelines are not really really strict, like say to the level of a conforming mortgage.

Re: money issues
« Reply #3 on: January 15, 2007, 01:35:48 PM »
True, once you have the money in-hand you can use it for whatever you want.  But most student loan companies will only let you borrow up to the amount of your student budget.  And most schools won't increase your student budget so you can pay for consumer debt.  So, for example, if rents run on average $750/month in the school's area, your budget might allow for about $12,000/year for room and board.  If you pay less than the going rate for these things, then you can use the extra to pay on your CCs.  But if your rent is normal for the area and you eat a normal amount, there won't be a whole lot left over for debt payments, and you can't get a budget increase for those.  The probability of the OP getting an unsecured loan that's not a student loan is very slim, given the amount of debt he/she has already.  Plus, regular (non-education) loans wouldn't be deferred the way student loans are, so there would still be monthly payments to make.

My advice to consult someone in the financial field still stands.

ptown

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Re: money issues
« Reply #4 on: January 15, 2007, 02:11:48 PM »
True, once you have the money in-hand you can use it for whatever you want.  But most student loan companies will only let you borrow up to the amount of your student budget.  And most schools won't increase your student budget so you can pay for consumer debt.  So, for example, if rents run on average $750/month in the school's area, your budget might allow for about $12,000/year for room and board.  If you pay less than the going rate for these things, then you can use the extra to pay on your CCs.  But if your rent is normal for the area and you eat a normal amount, there won't be a whole lot left over for debt payments, and you can't get a budget increase for those.  The probability of the OP getting an unsecured loan that's not a student loan is very slim, given the amount of debt he/she has already.  Plus, regular (non-education) loans wouldn't be deferred the way student loans are, so there would still be monthly payments to make.

My advice to consult someone in the financial field still stands.

This is only true for school certified loans.  There are others out there that I have read about (chase, boa) that are not certified.  They allow up to $30k regardless of school budget.

Not to say that I think it is a good idea to take out loans to pay back other debts, but if you are backed up against a wall...

Butters Stotch

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Re: money issues
« Reply #5 on: January 15, 2007, 02:28:55 PM »
I will be starting school on a P/T basis in '07, but am concerned about finances. I am finishing up my PhD in molecular biology now, and hope to get a job in a firm during the days as a scientific advisor/technical specialist.... My plan is to work in IP (patent) law.

I plan to take out loans to cover the cost of law school, but am worried how f-ed I'll be if I don't get a job during the days. I have tons of credit card debt (15-20K), car payment, insurance, etc etc. Honestly, I would have no problem taking out additional loans from  private lenders to help me live for the 1st year (with the hope I'll eventually line up a form of income). My concern is thus whether or not I'll be able to get that $$.

I would say your most immediate concern is:  How much have you already borrowed up to this point?  I don't have an exact figure handy, but I believe there is a maximum lifetime loan limit in the neighborhood of `$150k for federal loans (though no such restriction applies to private, non-subsidized lenders, of course).

Re: money issues
« Reply #6 on: January 15, 2007, 02:53:17 PM »

This is only true for school certified loans.  There are others out there that I have read about (chase, boa) that are not certified.  They allow up to $30k regardless of school budget.

Not to say that I think it is a good idea to take out loans to pay back other debts, but if you are backed up against a wall...

Ahh, gotcha.  I shudder to think what the interest rates must be on those loans, though :o

latenitesession

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Re: money issues
« Reply #7 on: January 15, 2007, 03:08:58 PM »
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