(Potentially) Facing a difficult choice Forum

[Anonymous User]

Made a decision - thanks!

[BeenDidThat]

AUSA if you can get it. Only way it would be different is if you were supporting a wife and two kids already. The debt is an issue, but a decent stint as an AUSA means you're probably biglaw eligible in the future if that's what you want. Especially given your desire to actually be a trial lawyer, this is an easy choice in my eyes.

[BarbellDreams]

Unles you absolutely hate the city the AUSA is in I would take the AUSA job by a mile. Truthfully this isn't even close for me.

[CanadianWolf]

Not enough details. It's clear that you want to be an AUSA in your firm's city but can't afford to do so due to your heavy debt burden, yet you want to be a litigator, not a paper pushing library grunt. How much debt ? Are you supporting a family ? Are you comfortable reneging on your word to the firm ?

[Yardbird]

AUSA + PAYE + debt forgiveness after 10 years. Also, depending on what your starting salary is, you may be eligible for your school's LRAP.

[Edit]Just watch out for the tax bomb at year 10.There is no tax bomb for PSLF, but if that disappears, PAYE/IBR do have tax bombs at the end of the payment period.

[CanadianWolf]

Aren't debt forgiveness programs subject to change ?

[rickgrimes69]

AUSA + PAYE + debt forgiveness after 10 years. Also, depending on what your starting salary is, you may be eligible for your school's LRAP.

Just watch out for the tax bomb at year 10.

No tax bomb for PSLF

[Yardbird]

Aren't debt forgiveness programs subject to change ?

There's no guarantee it will still be around, but at the moment it looks like it will stay for at least a while.

If they do get rid of it, you can consolidate/refinance to a longer payment plan to minimize payments (or maybe refinance your mortgage at that point for some equity, pay off student loans completely from refinancing, and then you get to deduct interest payments that you otherwise wouldn't be able to due to the phase out on student loan interest payment deductions).

If you have the opportunity for your dream job you should take it. Biglaw will likely remain an option should you need it (Article III clerkship + AUSA), but there is no reason to let the debt control your decision when you have options to pay it off (albeit slower).

[Yardbird]

AUSA + PAYE + debt forgiveness after 10 years. Also, depending on what your starting salary is, you may be eligible for your school's LRAP.

Just watch out for the tax bomb at year 10.

No tax bomb for PSLF

Oh yea, forgot about the IRS' stance on PSLF/LRAP. Edited my first post to correct this.

[los blancos]

Unles you absolutely hate the city the AUSA is in I would take the AUSA job by a mile. Truthfully this isn't even close for me.

Isn't there also a pretty decent chance that OP could switch locations after a few years in that office? Going all out for tje AUSA job seems CR to me though I also bring my own biases into this.

[Anonymous User]

Yeah, I was going to say that I think switching offices once in is easier than getting in in the first place. A number of the people who have left my office - which sounds similar to the one you're considering - have gone to other districts.

[Anonymous User]

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[rickgrimes69]

OP is your UG debt eligible for PSLF discharge? BC even with biglaw, it's gonna take you close to ten years to pay down $400k anyway. Might as well do the PSLF route, stick to minimum payments, and get the whole thing discharged. Would substantially lower your opportunity cost by freeing up a ton of money to invest with.

[Anonymous User]

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