so i'm borrowing 63K just for next year (
), and over the course of next three years i'm expecting to borrow a total of 180K. with interests accrued over three years (since i'm doing private loans), i expect the debt immediately after graduation to be about 200K. (....fuck.)
i know most people plan on paying back their loans over 10-20 years, but i hate the idea of compounding interests and having the debt loom over me, so i want to pay back this loan as soon as possible, preferably in three years before babies and/or mortgages come. if i live like a student while working BigLaw (crap apt, ikea furniture, bargain shopping, etc), i think i can do it. anyone planning on doing the same? let's talk about the juiciness that is loan repayment plans.
Not to be discouraging, but on one income, this is very, very, very hard, if possible at all. Perhaps if you subsist on a diet of ramen noodles and water and live in your parents' basement, but under no other circumstances.
Assume you get a biglaw job (potentially big assumption, depending on where you're going, especially with layoffs galore), and that this job pays $160k (also a big assumption, judging by the salary cuts going down right now).
Taxes immediately take you down to 100k (yes, taxes are that much, especially in jurisdictions like NY and CA where the biglaw jobs are). Assume you can live on $2500 a month by living frugally (again, big assumption since you will be living in a major metro and paying ludicrous rent) - no vacations, cooking most nights you're not in the office, brown bagging lunch, etc. You're down to $70,000.
Not sure what the terms on your loan are, but this should barely cover 1 years worth of principal + interest.
So I guess it is possible, but requires a very frugal lifestyle. If you ask me, I would say extend it out to 5 years, and it could be much more realistic. While you'd have to avoid spending too much, you could live a little.
Of course this is irrelevant if you have parents/a significant other helping you out.