edit my addendum.

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
women'ssoccer
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edit my addendum.

Postby women'ssoccer » Thu Mar 04, 2010 3:00 am

8)


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Last edited by women'ssoccer on Thu Mar 04, 2010 1:43 pm, edited 4 times in total.

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phoenix323
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby phoenix323 » Thu Mar 04, 2010 3:14 am

I may be wrong but it seems to me that you may not be taking into account that there will be interest on the 100K, so you will be paying back substantially more than the initial amount. Also if you are talking about paying off debt collectors, it would imply that you have defaulted on your loan payments which will also mean serious additional charges.

And I don't think living off of 20K/year is all that easy.

Probably looks something like:
studio apartment
no health/dental insurance
no savings
top ramen and mac n' cheese

just my $.02

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Notor
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby Notor » Thu Mar 04, 2010 3:19 am

women'ssoccer wrote:Ok, say someone takes out 100K to pay for COL and tuition at a TTTT.

Say that person gets a 45K job after LS.

Does living off 20K and paying 25K to debt collectors for five years solve the debt?

Is that really all that bad after we account for possible raises over a career (even if that person maxes out at 60K at age 35), and the reality that this TTTT person was not exactly beating away employers with a stick before he/she chose LS?

I'm not trying to flame or anger those with 170 lsats. It just seems that for a modest person with modest career aspirations/lifestyle a TTTT might not be the kiss of death.

What do I miss?

Do you not understand taxes and cost of living? 45k salary equals like 32k or so after taxes. Couple that with housing, a car, food, transportation, and clothes, you are basically effed. If you have to got to a TTTT and take out 100k in debt, you should not go to law school.

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OneKnight
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby OneKnight » Thu Mar 04, 2010 3:20 am

phoenix323 wrote:I may be wrong but it seems to me that you may not be taking into account that there will be interest on the 100K, so you will be paying back substantially more than the initial amount. Also if you are talking about paying off debt collectors, it would imply that you have defaulted on your loan payments which will also mean serious additional charges.

And I don't think living off of 20K/year is all that easy.

Probably looks something like:
studio apartment
no health/dental insurance
no savings
top ramen and mac n' cheese

just my $.02


Yeah, it depends on your location. Here in NYC, living off of 20K/year looks something like:
-Room in a multi-room apt. in the Bronx/Brooklyn(not the good parts of either)
-No insurance
-No savings
-No trips to see family/friends elsewhere
-No vacation
-Ramen and Velveeta mac and cheese (milk too expensive)
etc. etc.

DukeHopeful
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby DukeHopeful » Thu Mar 04, 2010 3:20 am

Not to mention the fact that you entirely ignore taxes in your hypo. $45K salary =/= $45K in money to spend. So your $20K living money is actually a whole lot less.

EDIT: Didn't see Notor's post before I posted. Also, $20K may or may not be enough to live on even if that's what you had. NYU's room and board allowance alone is $21K. And I believe schools only allot for 9 months in financial aid allowances. So that would make NYU's number more like $28K a year. Someone feel free to correct me if this is already a 12 month figure.
Last edited by DukeHopeful on Thu Mar 04, 2010 3:26 am, edited 1 time in total.

women'ssoccer
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby women'ssoccer » Thu Mar 04, 2010 3:26 am

8)
Last edited by women'ssoccer on Thu Mar 04, 2010 4:03 am, edited 1 time in total.

women'ssoccer
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby women'ssoccer » Thu Mar 04, 2010 3:30 am

8)
Last edited by women'ssoccer on Thu Mar 04, 2010 4:03 am, edited 1 time in total.

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phoenix323
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby phoenix323 » Thu Mar 04, 2010 3:31 am

women'ssoccer wrote:
DukeHopeful wrote:Not to mention the fact that you entirely ignore taxes in your hypo. $45K salary =/= $45K in money to spend. So your $20K living money is actually a whole lot less.



good point.

But assume the person lives in SC where the cost of living is really low.

I think that most of us will live on considerable less than 20K during LS, assuming we dont live in NYC or something like that.


But what about interest on your student loans? What about taxes? What about a savings account? This scenario does not seem to be based in reality. Let's say $45k after taxes = $35K (and that's super generous). $35K minus your proposed $25K debt repayment = $10k!!!!

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OneKnight
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby OneKnight » Thu Mar 04, 2010 3:31 am

women'ssoccer wrote:
DukeHopeful wrote:Not to mention the fact that you entirely ignore taxes in your hypo. $45K salary =/= $45K in money to spend. So your $20K living money is actually a whole lot less.



good point.

But assume the person lives in SC where the cost of living is really low.

I think that most of us will live on considerable less than 20K during LS, assuming we dont live in NYC or something like that.


I assume that means South Carolina and not So-Cal :P
But if you're making 32K after taxes, paying 25K on your loans, that leaves you with 7K to live for a year. My judgment may be clouded by my location, but even at, say, $500/month, that would leave you with $1,000 after paying rent. Yikes...

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phoenix323
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby phoenix323 » Thu Mar 04, 2010 3:35 am

This can't be real. I'm declaring

Image

women'ssoccer
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby women'ssoccer » Thu Mar 04, 2010 3:35 am

8)
Last edited by women'ssoccer on Thu Mar 04, 2010 4:04 am, edited 1 time in total.

women'ssoccer
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby women'ssoccer » Thu Mar 04, 2010 3:37 am

8)
Last edited by women'ssoccer on Thu Mar 04, 2010 4:04 am, edited 1 time in total.

DukeHopeful
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby DukeHopeful » Thu Mar 04, 2010 3:39 am

First of all, that person won't be paying off their debt in 5 years. Period. They'll be facing a longer (more expensive) repayment plan so that their monthly student loan payments aren't so high. Second, that person will very likely have to find a job outside of law that pays more than $45K if that's the best they can do in the legal field. Meaning the debt they are paying off isn't even earning a return. Hence the reason so many people advise strongly against racking up huge debt at a school with bleak career prospects. It's not that you can't get a job as a lawyer, it's just that you probably won't be able to afford one.

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Notor
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby Notor » Thu Mar 04, 2010 3:42 am

women'ssoccer wrote:
DukeHopeful wrote:Not to mention the fact that you entirely ignore taxes in your hypo. $45K salary =/= $45K in money to spend. So your $20K living money is actually a whole lot less.



good point.

But assume the person lives in SC where the cost of living is really low.

I think that most of us will live on considerable less than 20K during LS, assuming we dont live in NYC or something like that.

45k considering 30% tax rate = about $32k after taxes

figure the same cost of living as law school at roughly $15k a year (this ignores the need for a new car, and assumes living in some student slum apt)

That gives you roughly $12k a year to spend repaying that 150k, and that is with the interest and loan fees compounding, and forget about vacations, eating out, buying nice things, saving money, investing in your retirement etc.


Don't go to law school at a TTTT, this is your future.

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OneKnight
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Re: Can someone explain the dynamics of huge TTTT debt repayment

Postby OneKnight » Thu Mar 04, 2010 3:48 am

Notor wrote:
Don't go to law school at a TTTT, this is your future.


TITCR

Even hypothetically, don't settle. It SUCKS to retake the LSAT (trust me), but it's worth it, even if you have to miss a cycle or two.




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