Is 200k in debt serviceable on a 90k a year job?

[Anonymous User]

I go to a lower t14. I will graduate with 200k in debt (law school and undergrad).

I got an offer for a 90k/year jerb, in a secondary market. Cost of living in the city is reasonable, compared to the major markets.

Housing would be $ 9,000 per year

I live modestly. Not a big spender. No family.

The only time I do spend money is when I go out after work and have dinner/couple beers. I already have a car.

IS THIS MANAGEABLE? What will I pay monthly on the loans?

Or should I push for the major markets at 150k? Thanks for the help/advice!

[Aberzombie1892]

It's manageable.

[0L Hoping for 1]

To be able to figure out monthly payments, we would need to know more (what interest rates its at, are they variable, etc). However, at first glance it looks manageable.

[Anonymous User]

To be able to figure out monthly payments, we would need to know more (what interest rates its at, are they variable, etc). However, at first glance it looks manageable.

OP Here.

67k is federal governmental loans

103k will be grad plus

(I assume 170k will accrue interest to 200k)

I assume governmental loans are 6ish % and grad plus are more

[rad lulz]

Why do you ask? Do you have other options?

[Anonymous User]

Why do you ask? Do you have other options?

Yes. I am competitive in the major markets, but I don't want to work in the major markets. I have family/friends in the secondary.

[badaboom61]

Out of curiosity, what markets are handing out offers at this point? I don't think any oci even starts until next week.

But the answer is yes, you'll be able to pay off your loans, probably more comfortably than you would on 160 in NYC. You wont be as comfortable as you would in a non NYC major market, but like you said there are benefits to small cities.

[Lincoln]

Why do you ask? Do you have other options?

Yes. I am competitive in the major markets, but I don't want to work in the major markets. I have family/friends in the secondary.

Then stay in a secondary market. Given that the income tax rate is higher on the last $70k (and is likely higher in a major market) and given that most major markets have a substantially higher cost of living, even if you do take home more it's not likely to be enough to outweigh what sounds like important non-economic QOL factors.

[spleenworship]

If you live like you make only 40K a year then yes. Those ten years will kind of blow, though.

I used a loan repayment calculator to double check and it looks like about 40-50% of your take-home is going to those loans.

[badaboom61]

Also if you marry someone who can bring in even like 40k a year you'll be a lot richer. 130k for 2 people in a cheap city will make you quite comfortable even after loan payments.

[Scottie2Hottie]

remember you most likely won't be making 90K for the entirety of your repayment period

[Anonymous User]

OP here. Thanks for all of the advice.

Basically, I assume my loan payments will be 2k per month? Is that accurate?

I can easily live on 40k-50k a year. All of the attorneys said they don't work more than 65 hours a week (at most). Majority of the attorneys had families and lives outside the office.

I really want to accept this offer, because I think they made the offer so early since it seemed like a great match. Did I insult them by not accepting on the phone when they made the offer? I wanted to crank the numbers before I accept.

[badaboom61]

OP here. Thanks for all of the advice.

Basically, I assume my loan payments will be 2k per month? Is that accurate?

I can easily live on 40k-50k a year. All of the attorneys said they don't work more than 65 hours a week (at most). Majority of the attorneys had families and lives outside the office.

I really want to accept this offer, because I think they made the offer so early since it seemed like a great match. Did I insult them by not accepting on the phone when they made the offer? I wanted to crank the numbers before I accept.

No, it's totally fair to think it over. And I would go ahead take the job, unless maybe there is another firm in that market you'd prefer to hold out for. I know in some of the secondary markets I'm looking at there are firms that pay 90k and other firms that don't sound like they work you any harder that may as much as 110 plus a bonus.

[TTRansfer]

You could always go to the major market for a few years and then use the secondary markets as an out.

[spleenworship]

OP here. Thanks for all of the advice.

Basically, I assume my loan payments will be 2k per month? Is that accurate?

I can easily live on 40k-50k a year. All of the attorneys said they don't work more than 65 hours a week (at most). Majority of the attorneys had families and lives outside the office.

I really want to accept this offer, because I think they made the offer so early since it seemed like a great match. Did I insult them by not accepting on the phone when they made the offer? I wanted to crank the numbers before I accept.

No, it's cool to think it over for a few days. As for 2K a month: the numbers I saw were a little above that, like 2100 or something. but, yeah, basically 2K.

[target]

why is it $2k/month? Can't you do IBR? Or do you just prefer to pay off ASAP?

[otnemem]

simple student loan calculator: http://www.finaid.org/calculators/scrip ... yments.cgi (your interest rate might be around %7.3-7.5, idk)
law school cost of attendance calculator: --LinkRemoved-- (this should help you figure out the balance of your loan at graduation)
take home pay calculator: --LinkRemoved-- (make sure to change the location to your market)

[dixiecupdrinking]

Sounds reasonable with housing at ~$850 a month. I wouldn't want to do it in NYC.

There's probably something to be said for doing a major market salary for a few years to pay it off sooner. Personally, I wouldn't want to deal with those payments for 10 years; what if something happens and you can't work, etc. But if the question is just "can I afford this," then yeah I'd say so. If you say $90k becomes $60k after taxes, that's $5000 a month, minus ~$1000 for housing/utilities, and you've got $4000 a month for servicing your loans and all your other expenses. I'd guess you can put half that toward loans and live on $500 a week pretty well in a secondary market.

[Lacepiece23]

Is OP never going to get a raise? I thought even in secondary markets they jump you up like 5-10 thousand per year. 0L don't kill me just curious. If OP was at say 120 by year 6 or 7 then it seems like OP might be able to pay off that loan a little bit quicker.

[justonemoregame]

He could definitely pay it off quicker than 10 years, even without raises. Should have about 30K leftover after loans and rent, which is plenty for a quasi-frugal person in a low COL city.

[Anonymous User]

I think this is a little dated, but an example of salary progression in a secondary market:

http://www.infirmation.com/shared/lss/o ... _id=FL0140

[Anonymous User]

Out of curiosity, what region is it in?

[chrisbru]

Is OP never going to get a raise? I thought even in secondary markets they jump you up like 5-10 thousand per year. 0L don't kill me just curious. If OP was at say 120 by year 6 or 7 then it seems like OP might be able to pay off that loan a little bit quicker.

No offense, but I thought 0L's aren't supposed to post in here?

[yuqq]

Is OP never going to get a raise? I thought even in secondary markets they jump you up like 5-10 thousand per year. 0L don't kill me just curious. If OP was at say 120 by year 6 or 7 then it seems like OP might be able to pay off that loan a little bit quicker.

No offense, but I thought 0L's aren't supposed to post in here?

Leave the 0L alone. He's clearly not lost, nor asking for advice.

[Anonymous User]

OP here.

I don't want to post the market for anonymity reasons. I don't think it will help anyone knowing the particular market. The firm said they never make offers before OCI, but they really liked me.

Thanks for all of the advice. I think I'm going to accept it early next week