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Should I Take Out Loans Even If I Can Afford Law School?

Posted: Sat Feb 26, 2011 10:07 am
by upalittletoolate
I have a slightly different twist on the financial situation. I know that at some point in my career I want to do Public Interest work. But! I don't know if that will be right out of school or a few years down the road, so I'd like to keep my options open (IE not throw all my eggs in the UVA LRAP basket). So- if, by emptying out my bank account and borrowing from relatives, I am able to pay for law school without loans, should I do it? Or is there a certain type of loan (student-centric, don't pay till you graduate, type thing) that I should look at to pay a portion of my expenses?

Just curious if holding on to the cash (and maybe investing it), and paying parts of law school through loans, would be a better route.

Thanks for the help!

Re: Should I Take Out Loans Even If I Can Afford Law School?

Posted: Fri Mar 04, 2011 6:13 pm
by bk1
I'd just pay it so you don't have loans and the interest.

Re: Should I Take Out Loans Even If I Can Afford Law School?

Posted: Fri Mar 04, 2011 6:24 pm
by Malcolm8X
Pay law school in all cash?! With relatives' money?! HELL NO! Don't do that! I'm all about minimizing debt but you can take out $30-$50k. That's only like $500/mo in payments. That plus LRAP or big law would mean you're living good. Especially outta UVA law, you're fine.

Edit: grammar

Re: Should I Take Out Loans Even If I Can Afford Law School?

Posted: Fri Mar 04, 2011 6:28 pm
by bk1
Malcolm8X wrote:Pay law school in all cash?! With relatives' money?! HELL NO! Don't do that! I'm all about minimizing debt but you can take out $30-$50k. That's only like $500/mo in payments. That plus LRAP or big law would mean you're living good. Especially outta UVA law, you're fine.

Edit: grammar
OP didn't state how much of it was family money nor did OP state whether there was the expectation of paying that money back or not. Why would you take out a loan for 30-50k when you could just pay that money upfront and not have to take the loan?

I'd say if the family money was just a loan then it might be reasonable to take out loans for that amount so that you don't have to mess with the sticky situation of money and family but I don't see why you wouldn't use savings unless you are planning to keep it around for a rainy day.

Re: Should I Take Out Loans Even If I Can Afford Law School?

Posted: Fri Mar 04, 2011 6:34 pm
by bdubs
If you have an EFC that is less than the cost of attendence you should use your federally subsidized loans. I wouldn't borrow anything beyond those loans if you can avoid it or unless your variable interest rates are lower than your returns on relatively safe investments (highly unlikely but possible).

Re: Should I Take Out Loans Even If I Can Afford Law School?

Posted: Fri Mar 04, 2011 6:36 pm
by bk1
bdubs wrote:If you have an EFC that is less than the cost of attendence you should use your federally subsidized loans. I wouldn't borrow anything beyond those loans if you can avoid it or unless your variable interest rates are lower than your returns on relatively safe investments (highly unlikely but possible).
Will OP actually be eligible for that much in subsidized loans with a significant amount of savings?

Re: Should I Take Out Loans Even If I Can Afford Law School?

Posted: Fri Mar 04, 2011 6:37 pm
by bdubs
bk187 wrote:
bdubs wrote:If you have an EFC that is less than the cost of attendence you should use your federally subsidized loans. I wouldn't borrow anything beyond those loans if you can avoid it or unless your variable interest rates are lower than your returns on relatively safe investments (highly unlikely but possible).
Will OP actually be eligible for that much in subsidized loans with a significant amount of savings?
Depends on how much is savings vs how much is family support. Fill out the FAFSA and see.