Making a price conscious choice after 120k in debt with IBR Forum
- OneSixtySix
- Posts: 121
- Joined: Tue Jun 30, 2009 12:40 am
Making a price conscious choice after 120k in debt with IBR
Lets say I was choosing between a school @ 160k in debt and a school @100k in debt. If I have an interest in going into IBR, how logical is it to disregard the debt total in light of IBR/LRAP/etc? It almost seems that after a certain point, its worth it to go wherever I wish and deal with 10 years @ 10 percent of income.
For what its worth I'm talking T15-25, (maybe T10-25 if I'm lucky).
For what its worth I'm talking T15-25, (maybe T10-25 if I'm lucky).
-
- Posts: 296
- Joined: Thu Oct 15, 2009 10:56 pm
Re: Making a price conscious choice after 120k in debt with IBR
I've been mulling over this thought as well. I'm not in the same range, but assuming (hoping) I get into one of my reaches in the 30-45 range at sticker I'm going to have to compare that offer with Tier 2s who are throwing paper at me equaling 1/2 to 3/4 tuition.
IBR makes debt seem a minor issue.
IBR makes debt seem a minor issue.
- ozarkhack
- Posts: 380
- Joined: Tue Sep 29, 2009 2:48 pm
Re: Making a price conscious choice after 120k in debt with IBR
Everything I've read and re-read and re-read about IBR suggests this. Now, figuring where that threshold is is the tricky part.OneSixtySix wrote:It almost seems that after a certain point, its worth it to go wherever I wish and deal with 10 years @ 10 percent of income.
Given my plan for govt/PI and the certainty that I'll be looking at $120K+ in debt (looking at same situation as above poster ... hoping to swing a coupla those 30-45ers, surely at sticker), I'll definitely let IBR level the field and choose my school based on everything OTHER THAN debt.
-
- Posts: 151
- Joined: Thu Jan 28, 2010 11:59 pm
Re: Making a price conscious choice after 120k in debt with IBR
I'm dealing with the exact same predicament. If you are POSITIVE that you are going to do PI and if you are POSITIVE that you can get the PI job you want, then do it. In fact, you might as well take out as much debt as you can in federal loans and use that money to buy anything random you want (or save it for monthly payments). Your monthly payments won't change one iota, so who cares? This way the tax payers will essentially end up paying for your new car, new clothes, etc. MANY people are going exploit IBR like this, and while I thought it was unethical at first, I figure it serves the govt. right for not realizing that these types of programs get taken advantage of.OneSixtySix wrote:Lets say I was choosing between a school @ 160k in debt and a school @100k in debt. If I have an interest in going into IBR, how logical is it to disregard the debt total in light of IBR/LRAP/etc? It almost seems that after a certain point, its worth it to go wherever I wish and deal with 10 years @ 10 percent of income.
For what its worth I'm talking T15-25, (maybe T10-25 if I'm lucky).
This is actually one big problem with IBR now that I think about it. Lets say that I get a full scholarship to a school. I can still take out 150k in debt, and while I will end up paying back approximately 40k of that back (10 year IBR), the tax payers just paid me 110k to go to law school.
- Veritas
- Posts: 2695
- Joined: Fri Oct 24, 2008 11:50 pm
Re: Making a price conscious choice after 120k in debt with IBR
no you can't. schools will cap the amount you can take out for living expenses (if you have a full ride) and it takes quite an appeal to take out more (like having a family)letsdoit1982 wrote:I'm dealing with the exact same predicament. If you are POSITIVE that you are going to do PI and if you are POSITIVE that you can get the PI job you want, then do it. In fact, you might as well take out as much debt as you can in federal loans and use that money to buy anything random you want (or save it for monthly payments). Your monthly payments won't change one iota, so who cares? This way the tax payers will essentially end up paying for your new car, new clothes, etc. MANY people are going exploit IBR like this, and while I thought it was unethical at first, I figure it serves the govt. right for not realizing that these types of programs get taken advantage of.OneSixtySix wrote:Lets say I was choosing between a school @ 160k in debt and a school @100k in debt. If I have an interest in going into IBR, how logical is it to disregard the debt total in light of IBR/LRAP/etc? It almost seems that after a certain point, its worth it to go wherever I wish and deal with 10 years @ 10 percent of income.
For what its worth I'm talking T15-25, (maybe T10-25 if I'm lucky).
This is actually one big problem with IBR now that I think about it. Lets say that I get a full scholarship to a school. I can still take out 150k in debt, and while I will end up paying back approximately 40k of that back (10 year IBR), the tax payers just paid me 110k to go to law school.
Want to continue reading?
Register now to search topics and post comments!
Absolutely FREE!
Already a member? Login
-
- Posts: 151
- Joined: Thu Jan 28, 2010 11:59 pm
Re: Making a price conscious choice after 120k in debt with IBR
I didn't think it was up to schools. I thought it was up to the federal government.Veritas wrote:no you can't. schools will cap the amount you can take out for living expenses (if you have a full ride) and it takes quite an appeal to take out more (like having a family)letsdoit1982 wrote:I'm dealing with the exact same predicament. If you are POSITIVE that you are going to do PI and if you are POSITIVE that you can get the PI job you want, then do it. In fact, you might as well take out as much debt as you can in federal loans and use that money to buy anything random you want (or save it for monthly payments). Your monthly payments won't change one iota, so who cares? This way the tax payers will essentially end up paying for your new car, new clothes, etc. MANY people are going exploit IBR like this, and while I thought it was unethical at first, I figure it serves the govt. right for not realizing that these types of programs get taken advantage of.OneSixtySix wrote:Lets say I was choosing between a school @ 160k in debt and a school @100k in debt. If I have an interest in going into IBR, how logical is it to disregard the debt total in light of IBR/LRAP/etc? It almost seems that after a certain point, its worth it to go wherever I wish and deal with 10 years @ 10 percent of income.
For what its worth I'm talking T15-25, (maybe T10-25 if I'm lucky).
This is actually one big problem with IBR now that I think about it. Lets say that I get a full scholarship to a school. I can still take out 150k in debt, and while I will end up paying back approximately 40k of that back (10 year IBR), the tax payers just paid me 110k to go to law school.
-
- Posts: 30
- Joined: Tue Feb 02, 2010 7:49 pm
Re: Making a price conscious choice after 120k in debt with IBR
You get your loan money through the school. You don't just submit a form online asking for 150k and get a check from uncle sam. You submit forms through the gov't that the school's financial aid office then uses to coordinate loans, scholarships, and grants UP TO the expected cost of attendance, meaning you're living on a tight fixed income if you're going with 100% loan/grant financing
- beesknees
- Posts: 458
- Joined: Wed Nov 11, 2009 10:46 am
Re: Making a price conscious choice after 120k in debt with IBR
Ok, 1) there is a cap on how much you borrow. I was able to live well under the total cost of living in undergrad, so I assume you can live under it comfortably and then take out more money for crap. So its possible.letsdoit1982 wrote: I'm dealing with the exact same predicament. If you are POSITIVE that you are going to do PI and if you are POSITIVE that you can get the PI job you want, then do it. In fact, you might as well take out as much debt as you can in federal loans and use that money to buy anything random you want (or save it for monthly payments). Your monthly payments won't change one iota, so who cares? This way the tax payers will essentially end up paying for your new car, new clothes, etc. MANY people are going exploit IBR like this, and while I thought it was unethical at first, I figure it serves the govt. right for not realizing that these types of programs get taken advantage of.
This is actually one big problem with IBR now that I think about it. Lets say that I get a full scholarship to a school. I can still take out 150k in debt, and while I will end up paying back approximately 40k of that back (10 year IBR), the tax payers just paid me 110k to go to law school.
But 2) How is it not unethical simply because the gov't foots the bill instead of a person or private institution? And saying "the gov't will pay for it" is saying we, as taxpayers will pay for it! I love it when people say, oh the government can pay for it.
Also, back to OP: IBR is a back-ended forgiveness program. Meaning if you lose your qualifying employment and/or want to work in something else in year 9 of repayment, all of that extra interest and the principal that you weren't paying is still there. Of course, everything's forgiven after 25 years even without PI/gov work, but that's a hell of a long time to have your wages garnished by 10%.
-
- Posts: 16
- Joined: Sun Jan 10, 2010 1:56 pm
Re: Making a price conscious choice after 120k in debt with IBR
you fool, if your wages are being garnished, you have a whole hell of a lot more problems than "IBR" can solvebeesknees wrote: Also, back to OP: IBR is a back-ended forgiveness program. Meaning if you lose your qualifying employment and/or want to work in something else in year 9 of repayment, all of that extra interest and the principal that you weren't paying is still there. Of course, everything's forgiven after 25 years even without PI/gov work, but that's a hell of a long time to have your wages garnished by 10%.
- Stringer Bell
- Posts: 2332
- Joined: Wed Oct 21, 2009 9:43 pm
Re: Making a price conscious choice after 120k in debt with IBR
This is true, but I believe you can pick up any other federal job (teacher, garbage man, etc.) and start the clock back up at 9 years.beesknees wrote: Also, back to OP: IBR is a back-ended forgiveness program. Meaning if you lose your qualifying employment and/or want to work in something else in year 9 of repayment, all of that extra interest and the principal that you weren't paying is still there.
- Lawl Shcool
- Posts: 766
- Joined: Tue Oct 27, 2009 6:44 pm
Re: Making a price conscious choice after 120k in debt with IBR
False. Everyone can borrow up to the limit in the student budget with no consideration for scholarship amounts. Why do 0L's post nonsense like this?Veritas wrote:no you can't. schools will cap the amount you can take out for living expenses (if you have a full ride) and it takes quite an appeal to take out more (like having a family)letsdoit1982 wrote:I'm dealing with the exact same predicament. If you are POSITIVE that you are going to do PI and if you are POSITIVE that you can get the PI job you want, then do it. In fact, you might as well take out as much debt as you can in federal loans and use that money to buy anything random you want (or save it for monthly payments). Your monthly payments won't change one iota, so who cares? This way the tax payers will essentially end up paying for your new car, new clothes, etc. MANY people are going exploit IBR like this, and while I thought it was unethical at first, I figure it serves the govt. right for not realizing that these types of programs get taken advantage of.OneSixtySix wrote:Lets say I was choosing between a school @ 160k in debt and a school @100k in debt. If I have an interest in going into IBR, how logical is it to disregard the debt total in light of IBR/LRAP/etc? It almost seems that after a certain point, its worth it to go wherever I wish and deal with 10 years @ 10 percent of income.
For what its worth I'm talking T15-25, (maybe T10-25 if I'm lucky).
This is actually one big problem with IBR now that I think about it. Lets say that I get a full scholarship to a school. I can still take out 150k in debt, and while I will end up paying back approximately 40k of that back (10 year IBR), the tax payers just paid me 110k to go to law school.
- Veritas
- Posts: 2695
- Joined: Fri Oct 24, 2008 11:50 pm
Re: Making a price conscious choice after 120k in debt with IBR
I posted it because that's what I was told by a financial aid person.JPU wrote: False. Everyone can borrow up to the limit in the student budget with no consideration for scholarship amounts. Why do 0L's post nonsense like this?
- Mr. Matlock
- Posts: 1356
- Joined: Thu Nov 27, 2008 6:36 pm
Re: Making a price conscious choice after 120k in debt with IBR
1
Last edited by Mr. Matlock on Sun Feb 28, 2010 4:00 pm, edited 1 time in total.
Register now!
Resources to assist law school applicants, students & graduates.
It's still FREE!
Already a member? Login
-
- Posts: 39
- Joined: Sat Nov 29, 2008 6:41 pm
Re: Making a price conscious choice after 120k in debt with IBR
You're wrong, but I've got no proof at the moment.Mr. Matlock wrote:Correct me if I'm wrong, and I may be, BUT, I don't believe GRAD PLUS loans are covered in this program. Just Perkins and Stafford.
(Please prove I'm wrong!!! )
- Stringer Bell
- Posts: 2332
- Joined: Wed Oct 21, 2009 9:43 pm
Re: Making a price conscious choice after 120k in debt with IBR
http://www.ibrinfo.org/what.vp.html#pslfsnakemongler84 wrote:You're wrong, but I've got no proof at the moment.Mr. Matlock wrote:Correct me if I'm wrong, and I may be, BUT, I don't believe GRAD PLUS loans are covered in this program. Just Perkins and Stafford.
(Please prove I'm wrong!!! )
It is towards the bottom of the page.
- Mr. Matlock
- Posts: 1356
- Joined: Thu Nov 27, 2008 6:36 pm
Re: Making a price conscious choice after 120k in debt with IBR
1
Last edited by Mr. Matlock on Sun Feb 28, 2010 3:59 pm, edited 1 time in total.
-
- Posts: 656
- Joined: Wed Jan 28, 2009 7:19 pm
Re: Making a price conscious choice after 120k in debt with IBR
Actually, it's true. This is from an actual financial aid communication from a school:JPU wrote:[strike]False. Everyone can borrow up to the limit in the student budget with no consideration for scholarship amounts. Why do 0L's post nonsense like this?[/strike]Veritas wrote:no you can't. schools will cap the amount you can take out for living expenses (if you have a full ride) and it takes quite an appeal to take out more (like having a family)letsdoit1982 wrote:I'm dealing with the exact same predicament. If you are POSITIVE that you are going to do PI and if you are POSITIVE that you can get the PI job you want, then do it. In fact, you might as well take out as much debt as you can in federal loans and use that money to buy anything random you want (or save it for monthly payments). Your monthly payments won't change one iota, so who cares? This way the tax payers will essentially end up paying for your new car, new clothes, etc. MANY people are going exploit IBR like this, and while I thought it was unethical at first, I figure it serves the govt. right for not realizing that these types of programs get taken advantage of.OneSixtySix wrote:Lets say I was choosing between a school @ 160k in debt and a school @100k in debt. If I have an interest in going into IBR, how logical is it to disregard the debt total in light of IBR/LRAP/etc? It almost seems that after a certain point, its worth it to go wherever I wish and deal with 10 years @ 10 percent of income.
For what its worth I'm talking T15-25, (maybe T10-25 if I'm lucky).
This is actually one big problem with IBR now that I think about it. Lets say that I get a full scholarship to a school. I can still take out 150k in debt, and while I will end up paying back approximately 40k of that back (10 year IBR), the tax payers just paid me 110k to go to law school.
Your budget takes into account your scholarship award, and allows you to take out more only to meet the difference between the $20.5k + scholarship and the COA...Keep in mind that you are guaranteed $20,500 in federal loan funds if you submitted your 2009-2010 FAFSA. Also, the remaining cost that isn’t met through the $20,500 and/or scholarship offers, will be offered to you through the Grad Plus program. The credit check for the Grad Plus program does not take a long time to complete.
Get unlimited access to all forums and topics
Register now!
I'm pretty sure I told you it's FREE...
Already a member? Login
- im_blue
- Posts: 3272
- Joined: Sun Apr 12, 2009 3:53 am
Re: Making a price conscious choice after 120k in debt with IBR
TINTCR. Methinks you're the clueless 0L.JPU wrote:False. Everyone can borrow up to the limit in the student budget with no consideration for scholarship amounts. Why do 0L's post nonsense like this?Veritas wrote:no you can't. schools will cap the amount you can take out for living expenses (if you have a full ride) and it takes quite an appeal to take out more (like having a family)letsdoit1982 wrote:I'm dealing with the exact same predicament. If you are POSITIVE that you are going to do PI and if you are POSITIVE that you can get the PI job you want, then do it. In fact, you might as well take out as much debt as you can in federal loans and use that money to buy anything random you want (or save it for monthly payments). Your monthly payments won't change one iota, so who cares? This way the tax payers will essentially end up paying for your new car, new clothes, etc. MANY people are going exploit IBR like this, and while I thought it was unethical at first, I figure it serves the govt. right for not realizing that these types of programs get taken advantage of.OneSixtySix wrote:Lets say I was choosing between a school @ 160k in debt and a school @100k in debt. If I have an interest in going into IBR, how logical is it to disregard the debt total in light of IBR/LRAP/etc? It almost seems that after a certain point, its worth it to go wherever I wish and deal with 10 years @ 10 percent of income.
For what its worth I'm talking T15-25, (maybe T10-25 if I'm lucky).
This is actually one big problem with IBR now that I think about it. Lets say that I get a full scholarship to a school. I can still take out 150k in debt, and while I will end up paying back approximately 40k of that back (10 year IBR), the tax payers just paid me 110k to go to law school.
- whuts4lunch
- Posts: 391
- Joined: Fri Feb 06, 2009 3:54 pm
Re: Making a price conscious choice after 120k in debt with IBR
What if you borrow 200k and then qualify for a full scholarship after you borrow? Can you still do 10% IBR for 10 years and pocket the majority of the loan?
- im_blue
- Posts: 3272
- Joined: Sun Apr 12, 2009 3:53 am
Re: Making a price conscious choice after 120k in debt with IBR
Loans aren't disbursed until just before classes start, so you'd certainly know about any scholarships by then. And you're bound to report all scholarships to FAFSA.whuts4lunch wrote:What if you borrow 200k and then qualify for a full scholarship after you borrow? Can you still do 10% IBR for 10 years and pocket the majority of the loan?
Communicate now with those who not only know what a legal education is, but can offer you worthy advice and commentary as you complete the three most educational, yet challenging years of your law related post graduate life.
Register now, it's still FREE!
Already a member? Login