170orDie wrote:Question for all of you going through debt repayment. I'm currently a 0L deciding between schools. Assuming I get BL salary(i know, i know, never safe to assume), for the sake of calculation for my future.
I am looking at around 230,405 in loans (LS loans + ~40k in UG loans) averaged at about 6.1% interest.
Based on the loans calculator on studentloans.gov, and assuming a 160k adjustable gross income, payments are estimated to be 2529/month for the standard plan.
What does QOL look like in this scenario? I'm planning on living on the west coast, so assuming maybe 2000-2500 for rent/mortgage. Also assuming, putting in the reasonable amount for retirement savings (401k, ira, etc). I'm trying to get a sense for what this type of debt looks like in the real life. It seems that 160k gross will net me around 105k after income taxes and FICA.
Does anyone have similar debt that can give me some advice?
I had a similar debt load upon graduation and matriculation into big law. I lived (and have lived) on a total life budget of around $4500 a month with the rest going to servicing loans. I don't drive a BMW. I don't eat out every meal. I do eat out and drink often. I do go on nice vacations twice a year with several weekend trips a year. I live in a nice part of LA. I find it fine to manage. You've just gotta figure out what your budget is and stick to it. If you do indeed get biglaw money, you'll be fine.
This is basically me too. QOL feels pretty good, having grown up lower-/low-middle class. I do live in a sorta-shitty (not, like, gang shitty, but like definitely working class) part of LA, but pay $1400ish rent for a house rather than an apartment. I basically never worry if I can afford anything, which is a pretty sick feeling compared to worrying about being able to buy food and stuff. I have a bit less in loans than question-OP, so at this pace should have them paid off in 3-4y presuming no shitcan.
I think question-OP's tax estimates are wrong for CA at least. At 180k salary, my takehome is closer to 108k, almost on the nose. Maybe just not calculating for insurance and stuff.
Honestly tho, like--
--It's less a question of whether you make enough money to enjoy making money and more about whether you have time, but that's a big digression from the point of the thread
Also agreed w/ others that the even bigger worry is not getting biglaw