Law school debt

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stintez
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Law school debt

Postby stintez » Thu Apr 15, 2010 9:03 am

I have a few questions that I would appreciate answers to.

1) How many years do you have to pay back your law school loan?

2) If your in debt for 120k how much is that a month you pay back?

3) As an individual without a family how much would one need to make a year in the midwest to live comfortably and pay back a debt of 120k?

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scribelaw
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Re: Law school debt

Postby scribelaw » Thu Apr 15, 2010 9:08 am

http://www.finaid.org/calculators/loanpayments.phtml

Your payment would be around $1,500 a month.

How much you'd need to make will depend on where you live, COL, whether it's a high tax or low tax area, and personal financial factors (other debt, etc.) You'd probably need to make between $100,000-$125,000 to live comfortably with that debt level.

DeepSeaLaw
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Re: Law school debt

Postby DeepSeaLaw » Thu Apr 15, 2010 9:20 am

Try a loan calculator like this

http://www.bankrate.com/calculators/mor ... lator.aspx

It does the basic calculation like the above, but also shows the amortization if you pay extra on your monthly payments or pay off lump sums. The advantage to doing this is you get out from under debt faster and reduce the overall amount of interest you will pay; the disadvantage is that it subtracts from your disposable income and ability to invest.

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stintez
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Re: Law school debt

Postby stintez » Thu Apr 15, 2010 9:25 am

DeepSeaLaw wrote:Try a loan calculator like this

http://www.bankrate.com/calculators/mor ... lator.aspx

It does the basic calculation like the above, but also shows the amortization if you pay extra on your monthly payments or pay off lump sums. The advantage to doing this is you get out from under debt faster and reduce the overall amount of interest you will pay; the disadvantage is that it subtracts from your disposable income and ability to invest.


Whats the average length 15-30 years? what is an average interest rate?

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Jericwithers
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Re: Law school debt

Postby Jericwithers » Thu Apr 15, 2010 10:01 am

stintez wrote:
DeepSeaLaw wrote:Try a loan calculator like this

http://www.bankrate.com/calculators/mor ... lator.aspx

It does the basic calculation like the above, but also shows the amortization if you pay extra on your monthly payments or pay off lump sums. The advantage to doing this is you get out from under debt faster and reduce the overall amount of interest you will pay; the disadvantage is that it subtracts from your disposable income and ability to invest.


Whats the average length 15-30 years? what is an average interest rate?


6.8% for Stafford Loans, 7.9% for GradPLUS loans.

Not sure of the average payoff period.

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elle86
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Re: Law school debt

Postby elle86 » Thu Apr 15, 2010 10:13 am

You should also take into account that Obama signed a new law where loan payments each month (from federal loans) can't be more than 10% of the person's income. The government also took out the middle man, so all new loans will be federal ones. To get more information you should contact your Congressman's office and ask for their education legislative assistant and they can track down the details for you.

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Jericwithers
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Re: Law school debt

Postby Jericwithers » Thu Apr 15, 2010 10:14 am

elle86 wrote:You should also take into account that Obama signed a new law where loan payments each month (from federal loans) can't be more than 10% of the person's income. The government also took out the middle man, so all new loans will be federal ones. To get more information you should contact your Congressman's office and ask for their education legislative assistant and they can track down the details for you.


My Congressman is a republican so I should wish myself good luck with that lol. Does the 10% cap apply to loans taken out before 2014? I heard that it doesn't.

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scribelaw
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Re: Law school debt

Postby scribelaw » Thu Apr 15, 2010 10:18 am

elle86 wrote:You should also take into account that Obama signed a new law where loan payments each month (from federal loans) can't be more than 10% of the person's income. The government also took out the middle man, so all new loans will be federal ones. To get more information you should contact your Congressman's office and ask for their education legislative assistant and they can track down the details for you.


This won't help anyone going to law school this fall.

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elle86
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Re: Law school debt

Postby elle86 » Thu Apr 15, 2010 10:21 am

I actually work for a republican on the hill and we help everyone who calls our office, granted my boss is pretty moderate in his views.

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Jericwithers
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Re: Law school debt

Postby Jericwithers » Thu Apr 15, 2010 10:30 am

elle86 wrote:I actually work for a republican on the hill and we help everyone who calls our office, granted my boss is pretty moderate in his views.


Im from Texas....soooooo

He seems like a nice guy though and I might call him just to give him a chance. At least my Rep. isn't DeLay anymore.




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