USF - worth it for $120,000 in loans? Forum

(Applications Advice, Letters of Recommendation . . . )
Post Reply
snotrocket

Bronze
Posts: 330
Joined: Sun Apr 06, 2008 3:13 am

Re: USF - worth it for $120,000 in loans?

Post by snotrocket » Fri May 01, 2009 10:00 pm

Just keep in mind that if you're not doing public service, then you don't get forgiveness until you hit 25 years. If you borrow full cost of attendance and get a job paying $55k, then IBR will hold your payments down to a manageable level. The kicker is that even after 300 payments you will not have touched the principal, and when they write off the balance of $280k at the end, that's considered taxable income. As long as you're ok with eating a $92,000 tax bill, this may be a viable plan. Public service loan forgiveness is a different story. That kicks in at 10 years and is not considered taxable income, so it's actually a reasonable means for retiring any level of debt. The trick of course is getting a public interest job you can stick with for 10 years, and living on the typical $36-40k salary that comes with it.

User avatar
Cramble

New
Posts: 20
Joined: Fri Nov 21, 2008 3:47 pm

Re: USF - worth it for $120,000 in loans?

Post by Cramble » Fri May 01, 2009 10:06 pm

I understand that the write off would be considered taxable income. But I also imagine that one would have planned for this and be prepared to pay the tax that comes along with the write off. 25 years is a long time to save 100k... It's all about the cash flow.

Additionally, I view this program as more of a safety net than as an absolute solution. In my mind, it's worth it to take out a more expensive loan for the assurance of a lower monthly payment.

User avatar
Cramble

New
Posts: 20
Joined: Fri Nov 21, 2008 3:47 pm

Re: USF - worth it for $120,000 in loans?

Post by Cramble » Fri May 01, 2009 10:07 pm

Then again, if you could save the 100k, you could probably just pay off your loans outright... paradox.

gentrumpet

New
Posts: 2
Joined: Mon Jan 05, 2009 10:44 pm

Re: USF - worth it for $120,000 in loans?

Post by gentrumpet » Sat May 02, 2009 3:31 pm

This is in regards to the analyses that start off of the premise that law school would increase one's salary by $20,000 (45-65 or so).

For many of us, the increase would be more dramatic. For those of us with philosophy degrees, a salary of $45 is simply not happening.

The salary increase would be more like $40,000 (25-65).

Would it be worth the investment in that sort of scenario?

User avatar
General Tso

Gold
Posts: 2272
Joined: Sun Dec 07, 2008 6:51 pm

Re: USF - worth it for $120,000 in loans?

Post by General Tso » Sun May 03, 2009 1:31 pm

gentrumpet wrote:This is in regards to the analyses that start off of the premise that law school would increase one's salary by $20,000 (45-65 or so).

For many of us, the increase would be more dramatic. For those of us with philosophy degrees, a salary of $45 is simply not happening.

The salary increase would be more like $40,000 (25-65).

Would it be worth the investment in that sort of scenario?
Loan Interest Rate: 8.25%
Loan Term: 30 years
Highest Degree Expected: Master's
Field of Study/Career: Other
Expected Year of Graduation: 2012
Projected Starting Salary: $72,200.00
Educational Debt-to-Income Ratio: 15.00%

Maximum Manageable
Monthly Loan Payment: $902.50
Maximum Manageable
Debt Load: $120,130.46

According to this site, you need at least a $72k job in 2012 to justify the 120k in loans. That's assuming a 8.2% interest rate, 30 year repayment, and that you are paying 15% of your income towards loans.

http://www.finaid.org/calculators/scrip ... dvisor.cgi

I think a 70k+ job is not a totally unreasonable expectation in the Bay Area, but obviously everyone else in this thread disagrees with me.

uesaptnyc

New
Posts: 1
Joined: Sat Jun 13, 2009 3:05 pm

Re: USF - worth it for $120,000 in loans?

Post by uesaptnyc » Sat Jun 13, 2009 3:29 pm

Don't go to any of the TTTT NY schools--you're going to murder people trying to get a job out of one of those.

User avatar
lancerlot

New
Posts: 12
Joined: Thu Apr 15, 2010 7:55 pm

Re: USF - worth it for $120,000 in loans?

Post by lancerlot » Wed Apr 21, 2010 6:07 pm

Now I see how USF is able to build & maintain that nice fancy modern buildings they have cuz they dont offer alot of free money

Post Reply

Return to “Law School Admissions Forum”