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.Cramble wrote:http://www.finaid.org/loans/ibr.phtml
USF - worth it for $120,000 in loans? Forum
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Re: USF - worth it for $120,000 in loans?
- Cramble
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Re: USF - worth it for $120,000 in loans?
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.
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.
- Cramble
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Re: USF - worth it for $120,000 in loans?
Then again, if you could save the 100k, you could probably just pay off your loans outright... paradox.
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Re: USF - worth it for $120,000 in loans?
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?
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?
- General Tso
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Re: USF - worth it for $120,000 in loans?
Loan Interest Rate: 8.25%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 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.
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Re: USF - worth it for $120,000 in loans?
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.
- lancerlot
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Re: USF - worth it for $120,000 in loans?
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