Use savings for law school?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
jaymaynard
Posts: 118
Joined: Sun Feb 06, 2011 6:58 am

Use savings for law school?

Postby jaymaynard » Fri Feb 11, 2011 1:23 pm

Would it be advisable to dump all of my savings into paying for tuition/COL for school or just hold on to it (~12k)? I would assume using it would make the most sense since I won't have to worry about interest, but just looking for some feedback in case im overlooking something.

sarahh
Posts: 610
Joined: Wed Sep 08, 2010 2:36 pm

Re: Use savings for law school?

Postby sarahh » Fri Feb 11, 2011 6:43 pm

jaymaynard wrote:Would it be advisable to dump all of my savings into paying for tuition/COL for school or just hold on to it (~12k)? I would assume using it would make the most sense since I won't have to worry about interest, but just looking for some feedback in case im overlooking something.


I would save a little bit, maybe $2,000 or so, in case something unexpected comes up - car repairs, medical billls, etc.

jaymaynard
Posts: 118
Joined: Sun Feb 06, 2011 6:58 am

Re: Use savings for law school?

Postby jaymaynard » Fri Feb 11, 2011 6:53 pm

sarahh wrote:
jaymaynard wrote:Would it be advisable to dump all of my savings into paying for tuition/COL for school or just hold on to it (~12k)? I would assume using it would make the most sense since I won't have to worry about interest, but just looking for some feedback in case im overlooking something.


I would save a little bit, maybe $2,000 or so, in case something unexpected comes up - car repairs, medical billls, etc.


Yeah. Thats what I was thinking. Maybe take out loans to cover the gaps between tuition and scholarships and pay COL with savings. It'll last me one year anyway

colforbin
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Joined: Wed Aug 12, 2009 1:09 am

Re: Use savings for law school?

Postby colforbin » Tue Mar 01, 2011 5:21 pm

Along those same lines - does having 10-15k saved before law school help? I'd like to put this money towards tuition, but will my savings prevent me from gaining need-based aid? Other posts I've read through offer conflicting advise. But it would be frustrating to save 15k, only to find out that if I hadn't, I'd be awarded 15k more in merit aid anyway.

TheOcho
Posts: 394
Joined: Wed Jun 09, 2010 9:46 pm

Re: Use savings for law school?

Postby TheOcho » Tue Mar 01, 2011 5:22 pm

jaymaynard wrote:Would it be advisable to dump all of my savings into paying for tuition/COL for school or just hold on to it (~12k)? I would assume using it would make the most sense since I won't have to worry about interest, but just looking for some feedback in case im overlooking something.



If you know what you're doing you could invest it and earn a rate of return higher than what the interest would be on 12k of loans.

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vertex
Posts: 239
Joined: Wed Jun 23, 2010 4:22 pm

Re: Use savings for law school?

Postby vertex » Tue Mar 01, 2011 5:27 pm

TheOcho wrote:
jaymaynard wrote:Would it be advisable to dump all of my savings into paying for tuition/COL for school or just hold on to it (~12k)? I would assume using it would make the most sense since I won't have to worry about interest, but just looking for some feedback in case im overlooking something.



If you know what you're doing you could invest it and earn a rate of return higher than what the interest would be on 12k of loans.


Unless your loans are interest-free, do not do this. You'll probably come out behind.

rebexness
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Re: Use savings for law school?

Postby rebexness » Tue Mar 01, 2011 5:34 pm

Last edited by rebexness on Thu Nov 13, 2014 3:18 pm, edited 1 time in total.

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mez06
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Re: Use savings for law school?

Postby mez06 » Tue Mar 01, 2011 5:40 pm

If anything, just pay the amount that the loans would collect in interest with your personal savings. And with the bulk of your savings, keep that on tap just in case. Lord willing you will have legal employment but if not I'd like to have my savings to actually be able to live. And if you do receive a job after school, you can THEN pay-out a good chunk of your loan with your cash on hand.

I'm also considering putting a large chunk of my savings in a high yield CD. I've yet to do the exact calculations, but the $$ earned will hopefully cover or make a sizable dent in the interest amount that might incur from the tuition loans. And worst case once again, I will have access to money for any unforeseen emergencies.

Granted, this all depends with how much money you are working with in comparison to the cost of attending school. If you have 100k in the bank then go ahead lol.




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