sinfiery wrote:At least UT.
Assumptions: I have a 1% chance to be at the top 1% of the class and a 1% chance to be at the 50th% of the class. (I still don't believe but I am a 0L)
Biglaw chances = based on NLJ250 chances = 145k salary situated in Texas = 4 year stint
8% IR on loans
4.5% IR on FV
UT: 22% chance at biglaw
Debt at the end of year 3: 154.268928 (44x1.08^3+44x1.08^2+44x1.08)
Current job prospects: Year 1: 18,000 Year 2: 35,000 Year 3: 40,000
after Taxes savings: 4k/17.5k/21k
4000 x 1.045 ^2 + 17,500x 1.045 + 21,000 = $43655.6 savings lost due to attendance, accounted for interest and taxes and COL
So cost of attendance (including debt)= 154k + 43.5k = 198k
I don't know anything at all about employment prospects during the summers of LS but that could cause a giant dent to this number in both principle and taxes.
Biglaw chance = 22%.
145,000 after tax = 104k
COL = 11k
93k after tax income savings
Assumption for other job: ~24k
= $187,135 x .22 =
Worth 41,169 after interest and probability are accounted for
198 - 41 = 157,000
45 year lifespan of work
157,000 to pay off (I don't want to do it by hand and make the first 4 variables @ 80%, so deal with the slight overassumption of value)
http://www.investopedia.com/calculator/ ... z2E4EnnuWY
n = 45
r = 4.5
payment = 8000
PV = 153,000
Let's make it 8500 to account for the lack of .8 variable for the first 4 periods
So on average, will you make $8,500 more dollars per year from your job after biglaw/nonbiglaw job from graduation than if you didn't attend lawschool?
Considering with my current degree, my best job prospects are sales related to life planning, I would say this is not even a question.
UT at sticker, in-state is a no-brainer for me