Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Student Loan Help » Law School: I’m considering taking a total of $150K worth of student loans.?

Law School: I’m considering taking a total of $150K worth of student loans.?

Debt calculators tell me that if I refinance the term to 30 years, my payment will be over $900/mo. Practicing attorneys, would you suggest I do this, or should I chose a more affordable school. Keep in mind, the average starting salary for this school of choice is $130k/yr, but on the east coast.

RELATED POSTS:

  1. Better At School, The Essential Guide To Help Kids Improve At School Better At School Is An Open Door To The Teacher’s Mind. To Help Your Kids Perform At School, You Need...

  2. I graduated in 2009 as an optometrist. Haven’t got a job yet,Cant pay school loans, Can i apply for bankruptcy? I graduated in 2009 as an optometrist. Haven’t got a job yet,Cant pay school loans, Can i apply for bankruptcy?...

  3. How does bankruptcy effect ones ability to get student loans? I know you can’t usually include student loans in a bankruptcy, but what if a person files for chapter 7...

  4. Help with my Student Loans (college loans)? Between my wife and I we owe about 55k in student loans. When I graduated 4 years ago my student...

  5. I defaulted on student loans and decided to on consolidation. Does this help or harm my credit? I finished school in 2006. This year they took my tax return money, I am trying now to repair my...

Written by

Filed under: Student Loan Help · Tags: , , , , , , ,

One Response to "Law School: I’m considering taking a total of $150K worth of student loans.?"

  1. NotAnyoneYouKnow says:
    Real:

    The general rule of thumb is that a student should not borrow more than his/her first year’s salary. A slightly more accurate estimate is that a monthly student loan obligation should never represent more than about 15% of income.

    From that perspective, you’re close to “reasonable”, but a little bit over.

    A few cautions, though:

    The legal profession is hardly immune from the larger economic environment. Visiting here: http://www.law.com/jsp/tal/PubArticleTAL.jsp?id=1202425647706 , you’ll find a list of layoffs at the Largest 200 law firms in the US.

    You’ll see headlines like:

    “Baker & McKenzie announces associate layoffs in New York”

    “Firms continue to scale back attorneys and staff”

    “Chicago’s Bell Boyd & Lloyd Lays Off 10 Associates”

    “Boston Based Brown Rudnick Lays Off 20 Lawyers”

    Only the large firms pay the kind of salaries that would enable you to bank on a $130,000 offer, and those are amongst the firms that have been hardest hit.

    I’d strongly recommend that you read this article, published today: http://www.law.com/jsp/article.jsp?id=1202429842204 “Five Sobering Future Trends Could Impact Younger Lawyers”, and this one: http://www.law.com/jsp/article.jsp?id=1202428296289 “The Coming Law Firm Hiring Crisis”.

    Listen – my point is not to dissuade you from following your dream to study law, but you’d be short-sighted to ignore the ongoing shifts in the legal profession. It may be feasible to borrow $150,000 to attend your dream school IF it leads to one of the $130,000 jobs that you are counting on. If it doesn’t, well – you’re going to find yourself in a big, big hole.

    The other thing I wanted to mention – it’s also not a given that you’ll be able to consolidate or refinance your loans over 30 years. Consolidation loans have been even harder hit than education loans in general – I can count the number of lenders making student consolidation loans on about one hand, at the moment.

    This is a very risky time to be committing to an expensive law school, and you’ll have to weigh your options carefully. If the economy picks up, and law firms immediately return to their once profligate ways, you could hit the jackpot with your big name degree. If the economy continues to slump, and/or if the firms spend a few more years simply retrenching, that $150,000 in debt is going to be a tremendous albatross around your neck, especially if you’re not able to extend the repayment period on those loans.

    Good luck to you – I’m sorry I couldn’t give you a definitive answer.

Leave a Reply

Connect with Facebook

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player