Hmm well this is an enlightening thread. I did a spreadsheet, though I'm not too knowledgeable when it comes to loans, but I'm guessing it's about right? I'm assuming that (in this scenario) I apply to my top choice NYU ED, get in, get no merit aid, and am maxing out Stafford loans unsubsidized at 20,500/yr and GradPLUS at 49,500/yr (assuming 70k/yr should cover all expenses for the 2009-12 years that I'll be in law school). This seems to paint a dreary picture:http://www.flickr.com/photos/29115704@N ... 2/sizes/o/
This is assuming paying 40k a year beginning in the fall after graduation, figuring 160k/yr. The repayment part is lacking though, since I didn't take into account bonuses (which most should expect 15-20k) and salary increases (10k/yr?). Even then, the initial data concerning the accrual of interest stands. Or is this right?
20k a year in merit aid is starting to look really good.
I didn't even take into account the repayment of Stafford loans and forgot to add the interest since they'd likely be unsubsidized! But anyways, this is at paying 40k/yr and it looks like it would take roughly 7 years to pay it off. But like I said, I'm guessing you could hit the big principal loan with bonuses/salary increases each year. As for living expenses, I figured this?
Taxes 62,400 (@ 39%, assuming that will cover all of them)
Living 30,000 (2,500/mth)
Food 9,000 (750/mth)
Other bills 12,000 (1,000/mth NO NEW CAR!!!#@$#@%@#)
Extra Living Expenses 6,000 (500/mth)
Total Leftover 40,600
The leftover should increase each year and there should hopefully be a bonus to tag in there, so maybe everything could be comfortably paid off in 5 years. But is the money I've set aside enough to live comfortably?