mrizza wrote: twinkletoes16 wrote:
mrizza wrote:Another thing is the stafford loan is 6.8%, so 20k of each year is at a lower rate. so if you got 120k your exact amount would be
20.0*1.068^3 + (34.76+26.46-40.0)*1.079^3 + 20.0*1.068^2 + (36.41+27.0-40.0)*1.079^2 + 20.0*1.068 + (38.1+27.53-40)*1.079 = 150.1K
thank you for breaking it down for me. still trying to parse out the ^s and the numbers exactly. thanks for being patient.
good news: 120k is really like 140k savings
bad news: still 150k in loans
Its a lot more than 140k in savings. interest keeps accumulating as you pay it down. with 150k you can easily pay it off in 4 years and probably pay something like ~29k in interest, 290k would take more like 10 years, and would pay ~100k on interest alone. I didn't build out a whole excel doc to do this exactly so the 29 and 100 are crude estimations, but your total savings should be 120k + (100k-29k) = 191kits a big fucking deal
ETA: before someone tells me to calculate NPV: no
sorry to derail the thread, but:
as someone who's currently living/earning less than 15k/year and making it work, the CoL estimates seem SO SO high. Berkeley is another choice for me and they allocate $3,081 per semester for food. Am I eating lobster and caviar every night?Obviously my rent now is less (will probably have to pay $400/month more altogether for a Chi-town studio, but still). Additionally I think while in biglaw i'd still be living somewhere under my means (because i probably won't be there a lot anyway) so would be focused on really aggressively paying back the loans.
I guess also we could take (hopeful) income from a 2L SA and use that to pay down some of the debt while still in LS? That would be probably 5-10k max to put toward loans, but every bit counts.
sorry just speculating. WHATS UP FUN SATURDAY NIGHT!? this time next week we'll be partying in chi.