What do most people do with loan payments when going clerkship --> Biglaw?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
User avatar
dasq5511
Posts: 181
Joined: Thu May 19, 2016 3:52 am

What do most people do with loan payments when going clerkship --> Biglaw?

Postby dasq5511 » Thu Apr 20, 2017 4:38 am

Are most people on IBR while completing clerkships and then switching to standard payment plans when going to biglaw? Does doing IBR + LRAP cover any of the principal or does your total loan balance basically stay the same over the course of the year you're doing a clerkship? Basically trying to find out how much of your loan is reasonable to pay down if/while you do a clerkship.

cavalier1138
Posts: 4283
Joined: Fri Mar 25, 2016 8:01 pm

Re: What do most people do with loan payments when going clerkship --> Biglaw?

Postby cavalier1138 » Thu Apr 20, 2017 5:58 am

It depends on how much debt people have and what their future employment looks like.

Just bear in mind that a lot of LRAP programs don't cover clerkships at all, and if they do, they often require that you go into PI afterwards (or pay back any funding).

User avatar
Thelaw23
Posts: 785
Joined: Mon Oct 19, 2015 8:23 pm

Re: What do most people do with loan payments when going clerkship --> Biglaw?

Postby Thelaw23 » Thu Apr 20, 2017 10:11 am

I would imagine the PAYE repayment plan could come in handy if you know your salary might fluctuate like that.

RedPurpleBlue
Posts: 430
Joined: Wed Dec 14, 2016 9:41 pm

Re: What do most people do with loan payments when going clerkship --> Biglaw?

Postby RedPurpleBlue » Thu Apr 20, 2017 3:29 pm

dasq5511 wrote:Are most people on IBR while completing clerkships and then switching to standard payment plans when going to biglaw? Does doing IBR + LRAP cover any of the principal or does your total loan balance basically stay the same over the course of the year you're doing a clerkship? Basically trying to find out how much of your loan is reasonable to pay down if/while you do a clerkship.


Very few LRAPs cover clerkships.

It depends on how much debt you have, but using IBR/PAYE your loan balance is either going to stay about the same or increase a bit by the end of your clerkship. Then, when you get that signing bonus, you can instantly create your emergency fund. With an emergency fund, you can now throw almost all of your earnings beyond COL at your debt until it's gone. Getting a clerkship is going to be a net $ loss early in your career, unless you get a Kellogg Hubner type of bonus. That's just unfortunately how it works.

User avatar
Kummel
Posts: 3362
Joined: Fri Oct 03, 2014 11:55 pm

Re: What do most people do with loan payments when going clerkship --> Biglaw?

Postby Kummel » Thu Apr 20, 2017 3:31 pm

Depends on your institution's LRAP program. CLS will make the payments for you with an LRAP loan, but then the loan is repayable at some fixed % back to CLS if you go to biglaw

cheaptilts
Posts: 405
Joined: Mon Jul 01, 2013 11:29 pm

Re: What do most people do with loan payments when going clerkship --> Biglaw?

Postby cheaptilts » Thu Apr 20, 2017 3:37 pm

Question: Assuming like 100-150k worth of debt, does making REPAYE/PAYE payments make sense over IBR or any other loan payment options? Assuming you don't want the balance to increase.




Return to “Financial Aid”

Who is online

Users browsing this forum: No registered users and 2 guests