Mom and Pop Loans vs. School Loans + LRAP

(Applications Advice, Letters of Recommendation . . . )

Loans?

M and D Loans
1
33%
School Loans + LRAP
2
67%
 
Total votes: 3

lawschool?s
Posts: 87
Joined: Sat Aug 20, 2011 3:20 am

Mom and Pop Loans vs. School Loans + LRAP

Postby lawschool?s » Thu Apr 19, 2012 2:58 am

So I am fortunate that my parents have enough savings to pay for the tuition expenses not covered my my scholarship, but this then makes you lose the option of using a schools LRAP which I see as a fall back.

Since I would love the opportunity to be a JAG and use LRAP to cover some payments I wanted to know if the interest during the school year is worth it as a fall back.

And I realize JAG is very competitive and if not given JAG I would most likely work for a firm (probably not biglaw).



Also I realize each school has a different LRAP program and that it varies, but in general what would you guys do?

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alwayssunnyinfl
Posts: 4100
Joined: Tue Mar 13, 2012 9:34 pm

Re: Mom and Pop Loans vs. School Loans + LRAP

Postby alwayssunnyinfl » Thu Apr 19, 2012 3:08 am

lawschool?s wrote:So I am fortunate that my parents have enough savings to pay for the tuition expenses not covered my my scholarship, but this then makes you lose the option of using a schools LRAP which I see as a fall back.

Since I would love the opportunity to be a JAG and use LRAP to cover some payments I wanted to know if the interest during the school year is worth it as a fall back.

And I realize JAG is very competitive and if not given JAG I would most likely work for a firm (probably not biglaw).



Also I realize each school has a different LRAP program and that it varies, but in general what would you guys do?


It depends on the amount of money. Of course, any money your parents loan you should be an amount they would feel comfortable never getting back, but unless they know upfront that you don't plan on going for biglaw or any other avenue that would let you pay them back in a timely fashion, it might be a bit immoral. If they're fully informed and know your plans, that's a different story. Personally, I would make sure that their LRAP is good enough to rely on, and try to stick to Stafford loans and also have IBR as a fallback. It does seem silly to pass up the opportunity to have the law school pay off some of your debt for you. But my opinion is almost useless, I'm still a 0L and am never going to be lucky enough to be in your position.

lawschool?s
Posts: 87
Joined: Sat Aug 20, 2011 3:20 am

Re: Mom and Pop Loans vs. School Loans + LRAP

Postby lawschool?s » Thu Apr 19, 2012 3:14 am

By the way mom and pop loans with be "interest free" obviously they would take some hit not investing it, but for me I would just pay them back over whatever period of time what I borrowed.

So basically how much is the LRAP fallback worth? Esspecially if I am interested in JAG and I wouldn't mind working PI honestly.

Not big on the 12 hour workday personally.

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AreJay711
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Re: Mom and Pop Loans vs. School Loans + LRAP

Postby AreJay711 » Thu Apr 19, 2012 3:23 am

You could take out the loans and if you get in a LRAP or IBR qualifying job stick with that loan. If you get a job that will allow you to pay off your debt in full then go with M&D bank. You will accrue some interest but you don't want money to fuck with your relationship with your family.

Just so you know I'm not talking out of my ass, my parents had a really good year of business and offered to do the same for me and that is what I proposed to them.

lawschool?s wrote:So basically how much is the LRAP fallback worth? Esspecially if I am interested in JAG and I wouldn't mind working PI honestly.

Not big on the 12 hour workday personally.


It is huge. IBR wipes out debt after 10 years of PI and caps the amount of your income you will have to pay each month. LRAPs usually cover the difference up to some amount. At UMich you don't have to pay a dime back until you make over 55K a year I think.

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Oklahoma2014
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Joined: Sun Aug 08, 2010 9:50 pm

Re: Mom and Pop Loans vs. School Loans + LRAP

Postby Oklahoma2014 » Thu Apr 19, 2012 10:25 am

In my opinion, borrowing from family/friends is always a bad idea unless you are facing a huge financial crisis and have zero other options. You have other options, therefore I would not borrow from mom and dad. Again, just my opinion.

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2014
Posts: 5834
Joined: Sat Jun 05, 2010 3:53 pm

Re: Mom and Pop Loans vs. School Loans + LRAP

Postby 2014 » Thu Apr 19, 2012 10:35 am

I would save your parents for a fall back when you really need it. If you take out loans and find yourself struggling to find a job and make payments then since you didn't borrow anything from them before you would be in a fine position to seek their help getting you through a tough time when other loans aren't available.




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