$150k in loans... am I crazy? Forum

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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bearsEATtrees

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$150k in loans... am I crazy?

Post by bearsEATtrees » Wed Jul 07, 2010 12:37 pm

I recently got off the waitlist at one of my top choices and immediately accepted without thinking the loan situation all the way through.

At this school estimated total cost is $70k a year. Even with help from my parents I will be conservatively borrowing about $150k (unless I find a pot of gold at the end of a rainbow or land some amazing summer jobs paying me $3k a week).

Is this even possible to payback?? I don't want to go into public interest and so if I do reasonably well at school I'll be making over $100k. I know that's a HUGE assumption but I need to sort of dream that there may be a light at the end of this VERY expensive tunnel.

I guess what my central question is... am I royally screwing myself for all eternity or is this a doable, though difficult, situation?

Aggiegrad2011

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Re: $150k in loans... am I crazy?

Post by Aggiegrad2011 » Wed Jul 07, 2010 12:38 pm

How much of that is subsidized (GradPLUS), and is any of it private?

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merichard87

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Re: $150k in loans... am I crazy?

Post by merichard87 » Wed Jul 07, 2010 12:39 pm

Is it T14 or T20 and in your region of choice?

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D-ROCCA

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Re: $150k in loans... am I crazy?

Post by D-ROCCA » Wed Jul 07, 2010 12:40 pm

Where will you be attending?

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bearsEATtrees

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Re: $150k in loans... am I crazy?

Post by bearsEATtrees » Wed Jul 07, 2010 12:59 pm

About $60k of it is stafford loans and $90 grad plus

I figured the grad plus were better than private loans because of the fixed interest rate. But admittedly I know nothing about any of this so if you have any helpful info please share!!

T20- USC and yes I am from SoCal originally and want to practice/raise a family/enjoy sunshine here and my desire is to work in entertainment law.

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General Tso

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Re: $150k in loans... am I crazy?

Post by General Tso » Wed Jul 07, 2010 1:05 pm

Finaid estimates those loans at $1750/mo with 6.8% interest on the 10 year plan, and around $1000 a month on the 30 year plan. But realistically its going to be at least 150-200 more per month because the rate on Grad Plus is almost 9% and because much of the interest will be compounded over the 3 years you are in school.

So probably like $2000/mo. on 10 year plan and $1300 on 30 year plan. I figure you'd need to make over 90k to live a semi-comfortable lifestyle with that kind of debt.

Do you have a SO with good job/long term earning potential?

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General Tso

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Re: $150k in loans... am I crazy?

Post by General Tso » Wed Jul 07, 2010 1:07 pm

and what are your other LS options? Sucks how in CA there is no T1 with generous merit aid... I generally think Loyola and USD are such steps down from UCLA/USC that they would have to be 100% free, 100% guaranteed $$ to be worthwhile alternatives.

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bearsEATtrees

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Re: $150k in loans... am I crazy?

Post by bearsEATtrees » Wed Jul 07, 2010 1:09 pm

General Tso wrote:Finaid estimates those loans at $1750/mo with 6.8% interest on the 10 year plan, and around $1000 a month on the 30 year plan. But realistically its going to be at least 150-200 more per month because the rate on Grad Plus is almost 9% and because much of the interest will be compounded over the 3 years you are in school.

So probably like $2000/mo. on 10 year plan and $1300 on 30 year plan. I figure you'd need to make over 90k to live a semi-comfortable lifestyle with that kind of debt.

Do you have a SO with good job/long term earning potential?

I'm assuming by SO you mean summer opportunity or something to that effect?

I'm working at an entertainment company in the legal department. The company is super recognizable by all entertainment firms so I'm hoping that with it on my resume I'll get some solid looks from entertainment firms. Otherwise as long as I do well in school I have some family connections that can help me land either a clerkship or solid internships/job opportunities in other areas of law besides entertainment.

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romothesavior

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Re: $150k in loans... am I crazy?

Post by romothesavior » Wed Jul 07, 2010 1:11 pm

You are taking a big risk, but I don't think you're totally crazy.

It is more than I could stomach at a T20 though. I will be just under 100k at WUSTL and I can barely handle that.

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General Tso

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Re: $150k in loans... am I crazy?

Post by General Tso » Wed Jul 07, 2010 1:14 pm

No I meant Significant Other

It seems like even well-connected people are struggling ITE...there was an article in the NYT today about a kid from a well to do Massachusetts family who hasn't found a job since graduating in 2008. Granted he has a degree in PoliSci but it's from Colgate and his dad is a senior manager at some kind of manufacturing company. And his brothers are working in Boston finance.

I dunno what to tell you...are you in a position to bargain with USC for more aid?
Last edited by General Tso on Wed Jul 07, 2010 1:14 pm, edited 1 time in total.

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bearsEATtrees

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Re: $150k in loans... am I crazy?

Post by bearsEATtrees » Wed Jul 07, 2010 1:14 pm

General Tso wrote:and what are your other LS options? Sucks how in CA there is no T1 with generous merit aid... I generally think Loyola and USD are such steps down from UCLA/USC that they would have to be 100% free, 100% guaranteed $$ to be worthwhile alternatives.
my other option was UC Hastings with about $20k/yr in scholly/grants . But unfortunately that ship has sailed since USC required an answer within a week and I happened to be out of the country at the time and needed to make a quick decision. And I really did want to be back in SoCal.

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General Tso

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Re: $150k in loans... am I crazy?

Post by General Tso » Wed Jul 07, 2010 1:16 pm

bearsEATtrees wrote:
General Tso wrote:and what are your other LS options? Sucks how in CA there is no T1 with generous merit aid... I generally think Loyola and USD are such steps down from UCLA/USC that they would have to be 100% free, 100% guaranteed $$ to be worthwhile alternatives.
my other option was UC Hastings with about $20k/yr in scholly/grants . But unfortunately that ship has sailed since USC required an answer within a week and I happened to be out of the country at the time and needed to make a quick decision. And I really did want to be back in SoCal.
So you've committed to USC then? Do they do any need based grants or only merit based?

Hastings gave me nothing in need grants for 1L but $7,000 for 2L and I am anticipating $10,000 or so for 3L.

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bearsEATtrees

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Re: $150k in loans... am I crazy?

Post by bearsEATtrees » Wed Jul 07, 2010 1:17 pm

General Tso wrote:No I meant Significant Other

It seems like even well-connected people are struggling ITE...there was an article in the NYT today about a kid from a well to do Massachusetts family who hasn't found a job since graduating in 2008. Granted he has a degree in PoliSci but it's from Colgate and his date is a senior manager at some kind of manufacturing company. And his brothers are working in Boston finance.

I dunno what to tell you...are you in a position to bargain with USC for more aid?
haha sorry. No significant other, at 22 I guess I'm a bit young to be starting law school and way too young for the marriage thing.

I'm working on the bargaining but they essentially told all WL/Accept people we wouldn't see any money from them. I'm hoping a few sappy emails/phone calls and a bit of eyelash batting may help my case.

Otherwise I'm living close enough to Sunset that I guess I could start turning tricks at night in between briefing cases and reading E&E's

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bearsEATtrees

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Re: $150k in loans... am I crazy?

Post by bearsEATtrees » Wed Jul 07, 2010 1:20 pm

General Tso wrote:
bearsEATtrees wrote:
General Tso wrote:and what are your other LS options? Sucks how in CA there is no T1 with generous merit aid... I generally think Loyola and USD are such steps down from UCLA/USC that they would have to be 100% free, 100% guaranteed $$ to be worthwhile alternatives.
my other option was UC Hastings with about $20k/yr in scholly/grants . But unfortunately that ship has sailed since USC required an answer within a week and I happened to be out of the country at the time and needed to make a quick decision. And I really did want to be back in SoCal.
So you've committed to USC then? Do they do any need based grants or only merit based?

Hastings gave me nothing in need grants for 1L but $7,000 for 2L and I am anticipating $10,000 or so for 3L.

Yea, it looks like im officially a Trojan ::shudder:: They claimed that they only award money the first year. But it's USC and they tend to be open to discussion when it comes to money. I may be screwed for the first year but may be able to finagle something the other two years.

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Mroberts3

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Re: $150k in loans... am I crazy?

Post by Mroberts3 » Thu Jul 08, 2010 12:36 am

Hey Bears! I remember swapping personal statements with you for editing last fall -- guess who else is going to be a Trojan? Trust me, that ::shudder:: is well warranted. A ton of my friends went to UCLA for undergrad and they will barely speak to me :)

Obviously USC is a good school, but the repayment schedule that someone mentioned sounds pretty brutal. I can say for sure that you aren't crazy, but don't take on that much debt lightly. Win the lottery so you can join us this fall stress free! (How's that for internet advice?)

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Grizz

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Re: $150k in loans... am I crazy?

Post by Grizz » Thu Jul 08, 2010 12:39 am

Prepare for a lot of Mad Max style encounters when Cali becomes a failed state.

But seriously, I would definitely not have done it, but it's not the worst decision in the world.

If all else fails, just be poor, do 25 yr. IBR., and hope Congress fixes the tax bomb at the end.

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bearsEATtrees

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Re: $150k in loans... am I crazy?

Post by bearsEATtrees » Thu Jul 08, 2010 12:50 am

Mroberts3 wrote:Hey Bears! I remember swapping personal statements with you for editing last fall -- guess who else is going to be a Trojan? Trust me, that ::shudder:: is well warranted. A ton of my friends went to UCLA for undergrad and they will barely speak to me :)

Obviously USC is a good school, but the repayment schedule that someone mentioned sounds pretty brutal. I can say for sure that you aren't crazy, but don't take on that much debt lightly. Win the lottery so you can join us this fall stress free! (How's that for internet advice?)

haha omg amazing!! It will be nice to finally meet you!

I actually talked to a friend who graduated law school a few years ago and she explained to me how she managed her debt. It actually won't be that bad... it's just going to take me till I'm 50 to do it!!

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Grizz

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Re: $150k in loans... am I crazy?

Post by Grizz » Thu Jul 08, 2010 12:52 am

bearsEATtrees wrote: I actually talked to a friend who graduated law school a few years ago and she explained to me how she managed her debt. It actually won't be that bad... it's just going to take me till I'm 50 to do it!!
To be frank, this sounds bad.

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bearsEATtrees

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Re: $150k in loans... am I crazy?

Post by bearsEATtrees » Thu Jul 08, 2010 12:52 am

rad law wrote:Prepare for a lot of Mad Max style encounters when Cali becomes a failed state.

But seriously, I would definitely not have done it, but it's not the worst decision in the world.

If all else fails, just be poor, do 25 yr. IBR., and hope Congress fixes the tax bomb at the end.

lucky for me I've already got my spike covered leather jacket and can create gasoline from sand.

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romothesavior

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Re: $150k in loans... am I crazy?

Post by romothesavior » Thu Jul 08, 2010 12:52 am

bearsEATtrees wrote: I actually talked to a friend who graduated law school a few years ago and she explained to me how she managed her debt. It actually won't be that bad... it's just going to take me till I'm 50 to do it!!
Do tell.

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Re: $150k in loans... am I crazy?

Post by Grizz » Thu Jul 08, 2010 12:54 am

bearsEATtrees wrote:
rad law wrote:Prepare for a lot of Mad Max style encounters when Cali becomes a failed state.

But seriously, I would definitely not have done it, but it's not the worst decision in the world.

If all else fails, just be poor, do 25 yr. IBR., and hope Congress fixes the tax bomb at the end.

lucky for me I've already got my spike covered leather jacket and can create gasoline from sand.
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bearsEATtrees

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Re: $150k in loans... am I crazy?

Post by bearsEATtrees » Thu Jul 08, 2010 12:57 am

rad law wrote:
bearsEATtrees wrote: I actually talked to a friend who graduated law school a few years ago and she explained to me how she managed her debt. It actually won't be that bad... it's just going to take me till I'm 50 to do it!!
To be frank, this sounds bad.

So what if I pay $500-$800 a month till I'm 50? Even if I take a job in the DA's office that's MORE than doable. I'm always looking for a bargain but I definitely value the law education I'm about to get and honestly think that in the long run it will be worth it. Plus with my LSAT and GPA I was lucky to break into the top 20. Debt isn't terrible as long as you manage it and make your payments.

Obviously my attitude has changed since I posted this threat this morning. But it won't be healthy to enter law school freaked out about paying for it. I got a lot of good advice today and obviously debt isn't to be taken lightly, but I won't be hurting too bad after. It's not like I'll be the first one in that much debt. Gotta spend money to make money right?! (ok maybe the 2 glasses of wine I had at dinner have helped change my attitude a tiny bit :-) )

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Re: $150k in loans... am I crazy?

Post by bearsEATtrees » Thu Jul 08, 2010 12:59 am

romothesavior wrote:
bearsEATtrees wrote: I actually talked to a friend who graduated law school a few years ago and she explained to me how she managed her debt. It actually won't be that bad... it's just going to take me till I'm 50 to do it!!
Do tell.

Essentially if you spread your stafford loans out to the max 30 years, and get a few Perkins loans you'll pay a few hundred (like $300-$400) a month. The real cost comes when paying back the Grad PLUS or private loans. But if you put your signing bonus, a few tax returns and a bit extra at the end of the year towards paying it down it really does go away much faster than you would think.

Of course that's based on getting a job that pays you enough to spare a that type of money each month so I guess it's up to me to kick ass and get some good summer internships and a great job offer. Masters of our own destinies I guess haha

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Re: $150k in loans... am I crazy?

Post by mleibman » Tue Jul 13, 2010 4:19 pm

Hey Bears, I am in a similar conundrum. I too am planning on studying entertainment law and am in the applicatin process. I am hoping for UCLA '14 though, given my scores (but also applied USC). However, I am from NY, and am looking at an insane cost of living 3000 miles away. $100k plus in loans is a reality I may face too. I also have connections with various studio legal departments through family, however, the pay out the door is not great. In fact, many people who want these jobs, even in top firms, are seeing a reduction in pay due to the saturation in the SoCal legal market. Just be prepared for a long payout, and starting salary lower than expected. I figured I would respond to give you piece of mind. I guess we're not the only ones....

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Re: $150k in loans... am I crazy?

Post by Grizz » Tue Jul 13, 2010 7:50 pm

The obvious answer to all of this is to retake LSAT until you get a scholarship you are comfortable with.

Seriously? What are you waiting for?

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