Dealing With Undergrad Loans Forum

[Hammystring]

Long-Time Lurker, First-Time Poster. Howddya do?

K-JD here. I'm sitting on an offer from a T10 that would require taking on additional debt (just over 100,000 without any of the scholarships I applied for). If I decide to defer for a year or two, I'll most likely get rid of all of my undergrad debt (debt=$20,000; looking at jobs that pay 35000-40000+under-the-table money+no living expenses).

Of course, I'd like to get rid of this debt before picking up [a LOT] more...but I'm worried about how this might affect my financial aid. I figure that if suddenly I'm making a lot more money than I am now (which is basically zip), law schools may not be as generous with the aid.

I know it's also based off of what my parents make as well but...they haven't been supporting me for a while and they don't make much anyway (less than my expected salary).

Could taking the time to pay off my loans change how much aid they give me because I'll suddenly be claiming more money?

EDIT: To clarify, the "under-the-table" money comes from odd jobs/tutoring/freelance.

[A. Nony Mouse]

Most law schools don't give need-based aid - if they give you money, it's based on merit/your numbers. If they don't give you money (and for cost of living) you take out federal loans, and the federal government will give you as much as you want to take out up to the cost of living; it doesn't matter how much money you make. (Well, I believe if you have a truly piss-poor credit rating you'll have a hard time getting GradPLUS loans, but that's not strictly about what assets you have.)

[Hammystring]

Most law schools don't give need-based aid - if they give you money, it's based on merit/your numbers. If they don't give you money (and for cost of living) you take out federal loans, and the federal government will give you as much as you want to take out up to the cost of living; it doesn't matter how much money you make. (Well, I believe if you have a truly piss-poor credit rating you'll have a hard time getting GradPLUS loans, but that's not strictly about what assets you have.)

Thanks A. Nony Mouse. I did not know this. I was told in my letter that the money I was allotted was based on need and that I may still be eligible for merit-based awards. Obviously this changes from school to school. Ah, what a train wreck. Maybe I should retake the LSAT. URG.

(Thanks again though!)

[cinephile]

Never hurts to get some work experience anyway. I say go for it and eliminate your debt and maybe even save a bit for living expenses when you do end up in law school. Law school isn't going anywhere and working for a couple of years sounds like the best plan.

[ManOfTheMinute]

Pay your damn taxes.

Sincerely,
Someone who pays taxes on everything he makes

[LegalEagle92]

In the big scheme of things $20k in undergrad debt is going to be a drop in the bucket compared to your law school debt. I wouldn't worry about it if you're willing to take on $100k+ in loans.