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Law School Confidential

LAW SCHOOL CONFIDENTIAL PUBLIC SCHOOL PRIVATE SCHOOL THE AVERAGE AMOUNT A RECENT LAW SCHOOL GRADUATE OWES IN 2013: $75,728 $124,950 = 2,000 = 2,000 AVERAGE MONTHLY INTEREST RATE 9% HOW MUCH WILL YOU BE PAYING MONTHLY ? = 100 = 100 10 YEAR TERM $959 $1,582 CECCECEECO 15 YEAR TERM (AVERAGE) $768 $1,267 20 YEAR TERM $681 $1,124 WHAT ARE YOUR OPTIONS TO HELP PAY OFF YOUR LOANS ? DEFERMENT You can delay repayment of your loans for a few years if you face unemployment or economic hardship (better pass the bar!). Need Job Depending on the type of loan, however you might still have to pay on the interest that accrues during the deferment period--making it a temporary solution at best (and a big pain later). PAYMENT PLANS Income-based repayments are granted to those with a low income or large family. If you make regular payments for 25 years, the rest of your loan will be forgiven. The downside: you have to maintain that same low income for 25 years in order to maintain eligibility (uh, no thanks). Student Loan DISCHARGING A LOAN DISABILITY Becoming totally, permanently disabled and thus unable to work or make payments is one of the circumstances on which a student loan will be discharged (your loans, however, will probably be the last thing on your mind). BANKRUPTCY Filing for bankruptcy protection is no one's first choice, but the court may discharge your loans if they create an "undue hardship" for you. Unfortunately, according to the Dept. of Labor, student loans are rarely considered an undue hardship. PUBLIC SERVICE LOAN FORGIVENESS You are eligible to have your loan forgiven if you work in public service during your law career. You must work full-time with a government or non-profit agency that is tax-exempt according to Section 501(c)(3) of the IRC. After 120 consecutive payments, the remaining balance of your loan will be forgiven OPTIONS (FOR THOSE WHO DON'T LIKE THROWING AWAY MONEY) LOWER MONTHLY PAYMENTS THROUGH CONSOLIDATION 5% The average consolidated loan interest rate is 5%. UCTOBER SMTWTFS Consolidating allows you to combine multiple loans into one lower payment 23 24 25 28 27 20 CONSOLIDATION LOAN You end up with a lower monthly payment AND a lower overall payment through the life of the loan (niiiice). SAVINGS with a fixed interest rate. It works for government and private loans. WHAT WILL YOUR PAYMENTS BE WITH A 5% INTEREST RATE ?" O = 100 = 100 $593 $988 SAVINGS $177/MONTH SAVINGS $279/MONTH WHAT COULD YOU D O WITH ALL THAT EXTRA MONEY ? READ BRET EASTON ELLIS AND... Buy a bespoke Armani suit for your first big day at the new firm (don't forget the Montblanc and the cufflinks... or the Birkin you've been waiting for since 06). SUBSCRIBE TO ROBB REPORT AND... Send over a fancy bottle of cognac to the partners (and their friends). Or you can always become a craft beer connoisseur, it's more hip. PRIORITIZE AND... Order an Italian espresso machine for the office--and your sanity ! FINALLY GET YOUR PLATINUM CARD AND... PLATINUM You, ESQ Flash it and swipe it everywhere. You're a lawyer now, after all. And you can pay now worry later--isn't that what carpe diem means? OR, you could be sensible, and as your salary increases and your consolidated loan stays at a fixed rate, you can begin making higher payments to pay off your loan faster. STUDENT LOAN PAID UGH, WHO WANTS TO BE SENSIBLE? The sooner you can begin paying off interest and starting paying back principal, the better! OR JUST STAY STRAPPED FOR CASH BUT LOOK SUPER RICH--EVENTUALLY YOU'LL MAKE PARTNER AND PAY OFF THOSE PESKY LOANS SOURCES : http://www.cedaredlending.com/ http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service http://bucks.blogs.nytimes.com/2010/04/27/how-to-lower-the-burden-of-student-loans/

Law School Confidential

shared by gryffin on Mar 14
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Already debating about whether public school or private school is the better option for potential law students? Consider these financial statistics including payments and financial aid when it comes t...

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