Decision time debt v no debt

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Debt vs no debt

Debt - W&M/Emory/ND
9
23%
No Debt - UNC
31
78%
 
Total votes: 40

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Matteliszt
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Decision time debt v no debt

Postby Matteliszt » Sun Apr 18, 2010 12:34 pm

Am i rationalizing this correctly?
I want to do big law/mid law.

Currently, I have a 10k/yr scholly to UNC and am an out of state resident. I am WL at William and Mary(out of state), Emory, and Notre Dame
I have 80k in the bank for school and UNC is 45k/yr out of state and 35k/yr in state.

Assuming I get into a school I am currently wait listed at here is how i see the permutations of choice.


UNC w/ no residency and no FAFSA aid
45 x 3 = 135k - 30k(scholly) = 110k - 80k(banked) = 20k DEBT

UNC w/ 1 year no residency and no FAFSA aid
45 x 1 = 45 + (35 x 2 = 70) = 105k - 30k(scholly) = 75k - 80k(banked) = 5k PROFIT

vs
Emory/W&M/ND/any school that is 60k/yr

60 x 3 = 180 - 80 = 100k DEBT


Knowing this - is the placement of a marginally national school like Emory/ND/William and Mary worth taking on debt for big law prospects? All three seem negligibly different for placement in big law markets than UNC.
Last edited by Matteliszt on Sun Apr 18, 2010 12:55 pm, edited 1 time in total.

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ggocat
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Re: Decision time debt v no debt

Postby ggocat » Sun Apr 18, 2010 12:51 pm

Matteliszt wrote:At the ASD at UNC they told us we could expect about 20k/yr from the FAFSA in terms of aid.

...

UNC w/ 1year no residency and FAFSA for 2 years (I missed deadline for this year as I was a dependent and didnt think I would qualify)
45 x 1 = 45 + (35 x 2 = 70) = 105k - 30k (scholly) = 75k - 60k(FAFSA) = 15k - 80k = 65k PROFIT

...

So anything between no FAFSA and 20k in FAFSA means I come out of law school with NO DEBT if i gain residency.

"aid" = loans.

and with 80K in the bank, you probably will only get $12K unsubsidized.

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Matteliszt
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Re: Decision time debt v no debt

Postby Matteliszt » Sun Apr 18, 2010 12:53 pm

Thank you. Let me edit the math.

*edit* so we do we assume 12k w/ paying it back?

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ggocat
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Re: Decision time debt v no debt

Postby ggocat » Sun Apr 18, 2010 12:56 pm

Matteliszt wrote:Thank you. Let me edit the math.

*edit* so we do we assume 12k w/ paying it back?

Yeah, the $12K would be unsubsidized stafford loan, which I think you can qualify for even with savings. Interest accumulates while you are in school, so it's best not to take out unless you have to.

edit: and I meant $12k/year = $36k.
Last edited by ggocat on Sun Apr 18, 2010 12:57 pm, edited 1 time in total.

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Matteliszt
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Re: Decision time debt v no debt

Postby Matteliszt » Sun Apr 18, 2010 12:56 pm

I edited the fafsa aid out to simplify the math, essentially its 5k debt v 100k debt for marginally better placement.


I think the choice is easy.

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ggocat
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Re: Decision time debt v no debt

Postby ggocat » Sun Apr 18, 2010 12:57 pm

Matteliszt wrote:I think the choice is easy.

I think so, too.

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dudester
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Re: Decision time debt v no debt

Postby dudester » Sun Apr 18, 2010 1:01 pm

/thread

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Matteliszt
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Re: Decision time debt v no debt

Postby Matteliszt » Sun Apr 18, 2010 2:08 pm

/thread


does that mean discussions over?

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gdane
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Re: Decision time debt v no debt

Postby gdane » Sun Apr 18, 2010 2:35 pm

Go to UNC. Without a doubt. Be a Tar Heel!

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cigrainger
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Re: Decision time debt v no debt

Postby cigrainger » Sun Apr 18, 2010 7:57 pm

Your math is wrong on the bit about 1 year non-residency at UNC. You'd be 5k in debt still. Your math says 45k+70k = 105k. Should be 115k. Not sure that makes any difference to the decision, just thought I'd point it out.

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Matteliszt
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Re: Decision time debt v no debt

Postby Matteliszt » Sun Apr 18, 2010 8:27 pm

ty. Not a huge factor but still nice to know. Will edit later.

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underachiever
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Re: Decision time debt v no debt

Postby underachiever » Sun Apr 18, 2010 8:35 pm

gdane5 wrote:Go to UNC. Without a doubt. Be a Tar Heel!


+1




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