Law School Discussion

Law School Debt-Important Facts

nealric

  • ****
  • 2248
  • a.k.a. Miguel Sanchez
    • View Profile
Re: Law School Debt-Important Facts
« Reply #20 on: January 22, 2007, 02:10:51 PM »
Quote
  WILL be eating out 2-3 meals a day. $7 for starbucks and bagel, $12 for lunch, $25 for dinner.

Ever heard of a sandwich?
or 75 cent coffee from 7/11?

Einstein

  • ****
  • 1275
    • View Profile
Re: Law School Debt-Important Facts
« Reply #21 on: January 22, 2007, 02:49:31 PM »
Quote
  WILL be eating out 2-3 meals a day. $7 for starbucks and bagel, $12 for lunch, $25 for dinner.

Ever heard of a sandwich?
or 75 cent coffee from 7/11?


Yea I know right.. Just because everyone around you is trying to keep up with the Jones.. doesn't mean that you have to do it also.. Some of you have really expensive tastes, obviously.

Be smart, don't live beyond your means.. save your money and invest in something that will create income for you, so you don't have to work your whole life.. This is called passive income, this is the ultimate in prestige IMO.  While your associate friends are toiling away in their law firm, you will be sitting on a beach somewhere living off of your business/real estate/whatever investment checks... Just remember that possibility every time you pay for a $12 lunch or a $25 dinner.  Work hard, and remember that there is more to life than big houses and fast cars, cause I guarantee once you get these things you will realize that it really isn't all that it is cracked up to be.  Not having to go to work everyday, now that's a different story.  :D

nealric

  • ****
  • 2248
  • a.k.a. Miguel Sanchez
    • View Profile
Re: Law School Debt-Important Facts
« Reply #22 on: January 22, 2007, 04:40:23 PM »
Quote
Be smart, don't live beyond your means.. save your money and invest in something that will create income for you, so you don't have to work your whole life.. This is called passive income, this is the ultimate in prestige IMO.  While your associate friends are toiling away in their law firm, you will be sitting on a beach somewhere living off of your business/real estate/whatever investment checks... Just remember that possibility every time you pay for a $12 lunch or a $25 dinner.  Work hard, and remember that there is more to life than big houses and fast cars, cause I guarantee once you get these things you will realize that it really isn't all that it is cracked up to be.  Not having to go to work everyday, now that's a different story

Werd.


I agree that law school debt can be a big problem for those who either cannot get a biglaw job or would rather do something else.
I'm just saying that nobody should be complaining about school debt if they are raking in 6 figures. All it would take to pay debt from the most expensive law school at biglaw wages would be for me to simply live for the first 2-3 years like I am now. 2-3 years after that and I could buy a house with cash.
Probably a lot of it is just expectations. People think that the second they start at a big firm they should be living like donald trump.

Burning Sands, Esq.

  • *****
  • 6525
  • Yes We Kan-sas!!!
    • View Profile
Re: Law School Debt-Important Facts
« Reply #23 on: January 22, 2007, 04:47:54 PM »
Quote
Be smart, don't live beyond your means.. save your money and invest in something that will create income for you, so you don't have to work your whole life.. This is called passive income, this is the ultimate in prestige IMO.  While your associate friends are toiling away in their law firm, you will be sitting on a beach somewhere living off of your business/real estate/whatever investment checks... Just remember that possibility every time you pay for a $12 lunch or a $25 dinner.  Work hard, and remember that there is more to life than big houses and fast cars, cause I guarantee once you get these things you will realize that it really isn't all that it is cracked up to be.  Not having to go to work everyday, now that's a different story

Werd.


I agree that law school debt can be a big problem for those who either cannot get a biglaw job or would rather do something else.
I'm just saying that nobody should be complaining about school debt if they are raking in 6 figures. All it would take to pay debt from the most expensive law school at biglaw wages would be for me to simply live for the first 2-3 years like I am now. 2-3 years after that and I could buy a house with cash.
Probably a lot of it is just expectations. People think that the second they start at a big firm they should be living like donald trump.

If you do that you certainly will be living check to check. It doesn't take much to blow a few thousand bucks a month.  Especially in the larger cities.

Re: Law School Debt-Important Facts
« Reply #24 on: January 22, 2007, 10:53:36 PM »
I did the quick loan calculator check even my loan repayment on the 30 year plan is like $150 or $160k or something crazy like that.  That's insane to me.  I understand banks have to make money but man!

They aren't really making that much money over 30 years.  I mean, it's good, but it's not like inflation is zero.  What is the rate on your loan?

Burning Sands, Esq.

  • *****
  • 6525
  • Yes We Kan-sas!!!
    • View Profile
Re: Law School Debt-Important Facts
« Reply #25 on: January 23, 2007, 07:33:36 AM »
Even taking inflation into account, they're still coming out on top.  I'd have to go back and look again but I beleive I have somewhere around 50k which I consolidated at 2.8% when the interest rate dropped down to its lowest point in years, and then another 20k at somewhere around 3.25% and another 20k this year that will probably be at like 6% or whatever the interest rate ends up being.  So something like 90k, which if stretched out over 30 years literally becomes over $160k.  $70k in interest on a 90k loan??  Amazing.

zephyr

  • ****
  • 632
    • View Profile
Re: Law School Debt-Important Facts
« Reply #26 on: January 23, 2007, 07:47:44 AM »
All this is going through my head right now too. Biglaw isn't for me...I'm more interested in doing gov't work, so the amount of debt I take on is even more important. I'd also like to buy a house along the way. I don't see how I could possibily afford the equivalent of two mortgage payments.

zephyr

  • ****
  • 632
    • View Profile
Re: Law School Debt-Important Facts
« Reply #27 on: January 23, 2007, 08:01:18 AM »
That depends on how much you're making. If I am pulling in ~60k as a gov't attorney, I think I'm ineligible for LRAP.

Re: Law School Debt-Important Facts
« Reply #28 on: January 24, 2007, 01:08:24 PM »
Even taking inflation into account, they're still coming out on top.  I'd have to go back and look again but I beleive I have somewhere around 50k which I consolidated at 2.8% when the interest rate dropped down to its lowest point in years, and then another 20k at somewhere around 3.25% and another 20k this year that will probably be at like 6% or whatever the interest rate ends up being.  So something like 90k, which if stretched out over 30 years literally becomes over $160k.  $70k in interest on a 90k loan??  Amazing.

This is actually less than the amount of interest you'd pay on a 30 home mortgage, even at 6%. for most homes, you pay double the principle if you only pay the set payment for 30 years. But keep in mind that up to a point, you can deduct your interest on the home loan and the education loan, and the education loan is unsecured. If you weren't going to school, no lender in their right mind would give as favorable an interest rate for as much unsecured money...

Burning Sands, Esq.

  • *****
  • 6525
  • Yes We Kan-sas!!!
    • View Profile
Re: Law School Debt-Important Facts
« Reply #29 on: January 24, 2007, 01:17:30 PM »
Even taking inflation into account, they're still coming out on top.  I'd have to go back and look again but I beleive I have somewhere around 50k which I consolidated at 2.8% when the interest rate dropped down to its lowest point in years, and then another 20k at somewhere around 3.25% and another 20k this year that will probably be at like 6% or whatever the interest rate ends up being.  So something like 90k, which if stretched out over 30 years literally becomes over $160k.  $70k in interest on a 90k loan??  Amazing.

This is actually less than the amount of interest you'd pay on a 30 home mortgage, even at 6%. for most homes, you pay double the principle if you only pay the set payment for 30 years. But keep in mind that up to a point, you can deduct your interest on the home loan and the education loan, and the education loan is unsecured. If you weren't going to school, no lender in their right mind would give as favorable an interest rate for as much unsecured money...

Oi vay!