Savings and law school - use it or lose it?

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yeff
Posts: 333
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Re: Savings and law school - use it or lose it?

Postby yeff » Fri May 14, 2010 2:15 pm

LawCurious wrote:(3.8x, high 170s)


Is that a real or practice score?

In any case, that's not a "hope I find a T14 I like" set of numbers, that's a "capable of getting YHS and/or phat T14 scholly" set of numbers.

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TUP
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Re: Savings and law school - use it or lose it?

Postby TUP » Fri May 14, 2010 2:16 pm

lawyering wrote:Based on my personal experiences, I'm going to have to disagree with this. The difference in my assets would not have changed my loans one bit. The loan package remained constant, and the only thing my assets affected was my scholarship award. If I had had no assets, my scholarship would have been bigger to make up the difference. Thus, having those assets did me absolutely no good.


I was under the impression that the vast majority of scholarships discussed here and posted on LSN were fully merit-based. Or does need play a role in scholarships and not only grants?

LawCurious
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Re: Savings and law school - use it or lose it?

Postby LawCurious » Fri May 14, 2010 2:26 pm

yeff wrote:
Is that a real or practice score?


It's an actual. Yeah I know it puts me in a solid position, which again is one of the reasons I feel slightly more comfortable taking some time off.

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Shlonster
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Re: Savings and law school - use it or lose it?

Postby Shlonster » Fri May 14, 2010 2:32 pm

LawCurious wrote:
yeff wrote:
Is that a real or practice score?


It's an actual. Yeah I know it puts me in a solid position, which again is one of the reasons I feel slightly more comfortable taking some time off.


Something that hasn't been mentioned is that it completely depends on what your definition of a healthy chunk of savings is. If it's 30k there is absolutely no reason to blow it all before you get to school. If it's 5k I would feel a lot more comfortable blowing it, and you could travel SE asia or Central America for quite a while on 5k. Also, it's not at all a bad thing to use all your savings on law school -- it's why people save money, so they can spend it on things later.

Get into a good school, take 5 grand and go travel for a couple months.

yeff
Posts: 333
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Re: Savings and law school - use it or lose it?

Postby yeff » Fri May 14, 2010 2:41 pm

Shlonster wrote:Get into a good school, take 5 grand and go travel for a couple months.


Word. If you apply early and put together a solid app, you have a solid shot at lots and lots of merit money at great schools. Maybe you'll not need loans at all, if you can swing a fully and use the savings for living expenses.

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tstyler98
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Re: Savings and law school - use it or lose it?

Postby tstyler98 » Sat May 15, 2010 7:05 am

TUP wrote:How would this impact financial aid? Obviously the situation eliminates need-based aid, but what about federal loan eligibility? Is there a risk that at some point savings would impact the 20500 in subsidized / unsubsidized loans?


Having just gone through this myself, it only becomes an issue when the total of your EFC (Expected Family Contribution) and any scholarship received is higher than the total cost of attendance (tuition, fees, living expenses). My EFC and scholarship were higher than the cost of attendance...and I still received the full $20,500 in Stafford loans, but they are all unsubsidized loans (no subsidized). As long as you are a citizen, you'll receive the unsubsidized portion. Having savings will only impact whether you receive subsidized loans. (I should receive subsidized loans my second year after I spend down a portion of the savings).

Being in a similar position to the OP, I'm choosing to keep it and use it to help keep down the amount of loans I'll have to take out. With the economy the way it is, it's one less worry for me. I know that there is the IBR now, but I'd rather have that as a back-up in case things are tough rather than relying on it. But that's just what I decided is best for me...OP, do what's best for you so that you don't look back and say "I wish I had saved the money" or "I wish I had traveled/bought a car".

the lantern
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Re: Savings and law school - use it or lose it?

Postby the lantern » Sun May 16, 2010 3:46 pm

If anything you should invest your savings. You can (should) easily beat 6.8% (what you'll be charged on interest on GradPLUS loans).




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