Class of 2014 with debt or Class of 2015 debt free

(Rankings, Profiles, Tuition, Student Life, . . . )

What do you recommend?

Class of 2014 (45K debt)
4
8%
Class of 2015 (no debt)
46
92%
 
Total votes: 50

jameslaw
Posts: 1
Joined: Wed Apr 06, 2011 8:33 pm

Class of 2014 with debt or Class of 2015 debt free

Postby jameslaw » Wed Apr 06, 2011 8:58 pm

Without naming names (though many will probably be able to guess), I have accepted enrollement in a 20-25 ranked law school. I have been given the opportunity to defer enrollment until next year. They will bump up my scholarship to full tuition (an increase of about 40K) and I will be able to remain in my current job where I make about 45,000 dollars after taxes.

My current job is unstimulating and I am a little burnt out on it but it allows for a ton of free time. I am 27 and anxious to start my "real" career.

I need help considering this from all angles. If I take their offer, I will be able to pay my undergraduate loans for one more year, save about $10,000 more for law school and graduate law school virtually debt free (my savings will be enough to cover cost of living/books for three years). I am weighing these benefits against the opportunity cost of missing out on one year of legal salary (assumming I could get a job) and staying in a job that does nothing for me intellectually.

Is there anything else that I am missing? What factor should carry the most weight? Counsel from wiser people than me would be greatly appreciated.

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Knock
Posts: 5152
Joined: Wed Jun 10, 2009 3:09 pm

Re: Class of 2014 with debt or Class of 2015 debt free

Postby Knock » Wed Apr 06, 2011 8:59 pm

jameslaw wrote:Without naming names (though many will probably be able to guess), I have accepted enrollement in a 20-25 ranked law school. I have been given the opportunity to defer enrollment until next year. They will bump up my scholarship to full tuition (an increase of about 40K) and I will be able to remain in my current job where I make about 45,000 dollars after taxes.

My current job is unstimulating and I am a little burnt out on it but it allows for a ton of free time. I am 27 and anxious to start my "real" career.

I need help considering this from all angles. If I take their offer, I will be able to pay my undergraduate loans for one more year, save about $10,000 more for law school and graduate law school virtually debt free (my savings will be enough to cover cost of living/books for three years). I am weighing these benefits against the opportunity cost of missing out on one year of legal salary (assumming I could get a job) and staying in a job that does nothing for me intellectually.

Is there anything else that I am missing? What factor should carry the most weight? Counsel from wiser people than me would be greatly appreciated.


Class of 2015 debt free.

Sandro
Posts: 2526
Joined: Sat Jul 18, 2009 12:12 am

Re: Class of 2014 with debt or Class of 2015 debt free

Postby Sandro » Wed Apr 06, 2011 9:02 pm

You couldn't pay me enough to defer another year.






Of course you could, but not realistically.

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camelcrema
Posts: 281
Joined: Fri Oct 01, 2010 2:43 pm

Re: Class of 2014 with debt or Class of 2015 debt free

Postby camelcrema » Wed Apr 06, 2011 9:04 pm

Knock wrote:
Class of 2015 debt free.


+1

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Patriot1208
Posts: 7044
Joined: Tue May 18, 2010 11:28 am

Re: Class of 2014 with debt or Class of 2015 debt free

Postby Patriot1208 » Wed Apr 06, 2011 10:31 pm

camelcrema wrote:
Knock wrote:
Class of 2015 debt free.


+1

rose711
Posts: 287
Joined: Tue Jan 11, 2011 11:57 pm

Re: Class of 2014 with debt or Class of 2015 debt free

Postby rose711 » Wed Apr 06, 2011 10:35 pm

One year of your life to graduate debt-free is the best choice here. You will have many more options if you finish school with no debt and don't have to take a job just so you can pay back your loans. It will also give another year for the economy to improve or stabilize.

There is no way to know what job you will get out of school - going to a good school in a manner that you know you won't have any debt is the smartest possible move.

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Moxie
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Joined: Thu Aug 06, 2009 3:27 pm

Re: Class of 2014 with debt or Class of 2015 debt free

Postby Moxie » Wed Apr 06, 2011 10:37 pm

Since it sounds like you don't like your job, and I'm assuming that you don't have anything exciting to do, I voted for you to go now. $45,000 is a lot of money, but spending a year of your life doing something you don't enjoy or doing nothing at all, wouldn't be worth it IMO.

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esq
Posts: 571
Joined: Tue Jul 13, 2010 9:59 pm

Re: Class of 2014 with debt or Class of 2015 debt free

Postby esq » Wed Apr 06, 2011 10:43 pm

Knock wrote:Class of 2015 debt free.

+3 - I see no down side to waiting a year, graduating debt free and potentially (because the economy looks like it is starting to rebound) with better job prospects after another year of economic recovery.

adt231
Posts: 241
Joined: Thu Oct 21, 2010 4:51 pm

Re: Class of 2014 with debt or Class of 2015 debt free

Postby adt231 » Wed Apr 06, 2011 11:17 pm

Moxie wrote:Since it sounds like you don't like your job, and I'm assuming that you don't have anything exciting to do, I voted for you to go now. $45,000 is a lot of money, but spending a year of your life doing something you don't enjoy or doing nothing at all, wouldn't be worth it IMO.


I second this. Yes, it is a much smarter financial decision for you to defer for a year; but, this is not the rational choice if you REALLY hate your job. If you REALLY hate it and know for SURE that you are ready to embark on your legal career with enthusiasm, then go to law school this year. But only you can decide how much you hate it. This is ultimately personal decision about your happiness.

But, if you can tough it out for one more year and enjoy your free time in the process, it will leave you with many more options upon graduation because of no debt! I truly envy that the person in that position (whether or not they cleaned up in law school)...

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northwood
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Joined: Fri May 14, 2010 7:29 pm

Re: Class of 2014 with debt or Class of 2015 debt free

Postby northwood » Wed Apr 06, 2011 11:19 pm

debt free. try to find another job in the meantime if you really hate your current job.

keg411
Posts: 5935
Joined: Tue Apr 21, 2009 9:10 pm

Re: Class of 2014 with debt or Class of 2015 debt free

Postby keg411 » Wed Apr 06, 2011 11:32 pm

OP, just deal with the job another year. I've been there in terms of the job, but free is free and you get to make a little more money to put away for spending and COL.

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romothesavior
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Joined: Fri Jun 26, 2009 4:29 pm

Re: Class of 2014 with debt or Class of 2015 debt free

Postby romothesavior » Wed Apr 06, 2011 11:40 pm

This is an absolute no brainer. Look at it this way, it sucks that you are going to be at your job another year, but it is almost like you're getting another 40k (maybe 50k including interest) in salary to stick around another year. Plus you can save a little of that money from your current job to help pay for COL expenses. Sounds like a great deal all around. You'd be foolish to turn down that much money to just wait another year. Definitely take that year off.

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Robespierre
Posts: 512
Joined: Mon Jan 24, 2011 7:02 pm

Re: Class of 2014 with debt or Class of 2015 debt free

Postby Robespierre » Thu Apr 07, 2011 12:07 pm

Normally I would say go now. If you're thinking of law school, you should be burning to practice law, and you should get started on that path right now since you're already out of UG a few years and don't like your present job. 45K, while a lot money, shouldn't change your mind. If you get Biglaw, you'll make back the 45K anyway by getting the big paycheck a year earlier than you would have otherwise.

But I voted to defer. I think there are two special circumstances here. First, you already have UG debt, so avoiding further debt is paramount (especially if the UG debt is substantial; you didn't state an amount). Second, I agree with the other poster that the hiring picture is likely to gradually improve, so stepping back for a year might help you in the long run.

Sandro
Posts: 2526
Joined: Sat Jul 18, 2009 12:12 am

Re: Class of 2014 with debt or Class of 2015 debt free

Postby Sandro » Thu Apr 07, 2011 5:02 pm

I dont remember my IUb 120k award letter but if it doesnt say anything about it being contingent on non resident status you should move to Indiana this year and get residency and make bank with 120k on top of in state ... lol




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