Guys, here are my stats, would appreciate your feedback. I definitely would appreciate a second/another opinion about where I am right now.
Facts, as we know them.
I just finished my 1L year(evening program-part time). I am employed as green collar (parks job) at a small political subdivision(100 employees)(potential to move up, but not sure as a "lawyer"(they have outside counsel for legal matters)).
Just Checked today.
Loan Balance
$111,542
Interest Rate
5.5%
Interest is nearing $400 bucks a month, i get 13 dollars poorer every day
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Present Income :
$33,000.00, with a possible 3k tuition reimbursement per year (t.re-burst has yet to go through, but has been "promised")
Best Case Scenario: 36K per year
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Need for Tuition for 2 more years of law school
Cost of Tuition: roughly $1100 per hour, i need another 57 hours.
Total $60,000.00 need.
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Present Costs of Living
Car at 9% interest: $275.00 per month owe 4$500.00
Living expenses: $1000.00 per month total(food-rent-etc.
Contribute 5% of income to 457/401 plans.
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MY PLAN OF ATTACK for next 2 years: Considering the limitations of take home pay of
$1900 per month(lots of taxes but get most of it back in the tax refund)
Planning to pay off 2010 model year car(owe $4500.00) with income tax refund(thank you congress for educational tax credits).
I plan to put aside $1000.oo cash aside to pay to the school.
IN 24 MONTHS, it should be about 24k paid cash towards the tuition.
Also, considering two income tax returns at about $4,500 each year is about $9,000.00.
Also, two rounds of tuition assistance from the job totals $6,000.oo
BEST CASE SECENARIO: $40,000.00 total paid out of earnings
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So if all goes well, I'll pay 40k of cash money towards tuition, yet will need about 20 k in loans to meet the tuition costs if i want to finish within two years.
Another factor the max out the loan limit at $138, 500 (i will refuse to go beyond this number, no grad plus loans rule is self imposed)
Future:
I plan to work in the rural area, take over retiring mentor's practice, maybe do some real estate/real property moves.
Estimated future income 50k+ either working solo or continuing with the gubment...
Other consideration: Again i work for the government,
As an option, thinking about getting into IBR program next year and paying that, with the intention of taking advantage of PSERVICE forgiveness.
I worked there for one year before i started school, and was paying undergrad loans. Meaning if i start again in January, ill have "only" 9 more years to have the first round of loans forgiven, and only 7 after law school is done. (i checked with the feds, and they let me know i can include months-retroactively towards the Public Service forgiveness.
Yet, don't know how the cost benefit analysis of having a stable salary at the political subdivision vs being able to take risks and starting something from the ground up.
Guys, i really find this challenging. I didn't see my life being s bound by the chains of obligations like these when i was dreaming in undergrad.
It is what it is, and i want to pay this off, but DAT 6.0% interest!
Your honest and perhaps critical feedback would be appreciated.
thanks!
TL:DR
PART TIME STUDENT
OWES 111K
STILL NEEDS 60 K FOR TUITION
I'AM POOR AND ONLY MAKE ENOUGH TO FEED MYSELF AND SHOP AT THE GOODWILL FOR CLOTHING