USF - worth it for $120,000 in loans?

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snotrocket
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Re: USF - worth it for $120,000 in loans?

Postby snotrocket » Fri May 01, 2009 10:00 pm

Cramble wrote:http://www.finaid.org/loans/ibr.phtml

Just keep in mind that if you're not doing public service, then you don't get forgiveness until you hit 25 years. If you borrow full cost of attendance and get a job paying $55k, then IBR will hold your payments down to a manageable level. The kicker is that even after 300 payments you will not have touched the principal, and when they write off the balance of $280k at the end, that's considered taxable income. As long as you're ok with eating a $92,000 tax bill, this may be a viable plan. Public service loan forgiveness is a different story. That kicks in at 10 years and is not considered taxable income, so it's actually a reasonable means for retiring any level of debt. The trick of course is getting a public interest job you can stick with for 10 years, and living on the typical $36-40k salary that comes with it.

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Cramble
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Re: USF - worth it for $120,000 in loans?

Postby Cramble » Fri May 01, 2009 10:06 pm

I understand that the write off would be considered taxable income. But I also imagine that one would have planned for this and be prepared to pay the tax that comes along with the write off. 25 years is a long time to save 100k... It's all about the cash flow.

Additionally, I view this program as more of a safety net than as an absolute solution. In my mind, it's worth it to take out a more expensive loan for the assurance of a lower monthly payment.

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Cramble
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Re: USF - worth it for $120,000 in loans?

Postby Cramble » Fri May 01, 2009 10:07 pm

Then again, if you could save the 100k, you could probably just pay off your loans outright... paradox.

gentrumpet
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Re: USF - worth it for $120,000 in loans?

Postby gentrumpet » Sat May 02, 2009 3:31 pm

This is in regards to the analyses that start off of the premise that law school would increase one's salary by $20,000 (45-65 or so).

For many of us, the increase would be more dramatic. For those of us with philosophy degrees, a salary of $45 is simply not happening.

The salary increase would be more like $40,000 (25-65).

Would it be worth the investment in that sort of scenario?

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General Tso
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Re: USF - worth it for $120,000 in loans?

Postby General Tso » Sun May 03, 2009 1:31 pm

gentrumpet wrote:This is in regards to the analyses that start off of the premise that law school would increase one's salary by $20,000 (45-65 or so).

For many of us, the increase would be more dramatic. For those of us with philosophy degrees, a salary of $45 is simply not happening.

The salary increase would be more like $40,000 (25-65).

Would it be worth the investment in that sort of scenario?


Loan Interest Rate: 8.25%
Loan Term: 30 years
Highest Degree Expected: Master's
Field of Study/Career: Other
Expected Year of Graduation: 2012
Projected Starting Salary: $72,200.00
Educational Debt-to-Income Ratio: 15.00%

Maximum Manageable
Monthly Loan Payment: $902.50
Maximum Manageable
Debt Load: $120,130.46

According to this site, you need at least a $72k job in 2012 to justify the 120k in loans. That's assuming a 8.2% interest rate, 30 year repayment, and that you are paying 15% of your income towards loans.

http://www.finaid.org/calculators/scrip ... dvisor.cgi

I think a 70k+ job is not a totally unreasonable expectation in the Bay Area, but obviously everyone else in this thread disagrees with me.

uesaptnyc
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Joined: Sat Jun 13, 2009 3:05 pm

Re: USF - worth it for $120,000 in loans?

Postby uesaptnyc » Sat Jun 13, 2009 3:29 pm

Don't go to any of the TTTT NY schools--you're going to murder people trying to get a job out of one of those.

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lancerlot
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Re: USF - worth it for $120,000 in loans?

Postby lancerlot » Wed Apr 21, 2010 6:07 pm

Now I see how USF is able to build & maintain that nice fancy modern buildings they have cuz they dont offer alot of free money




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