I'll pay off my 240k loan balance in 4 years by living cheap Forum

[NYSprague]

Why would someone want to pay that kind of a debt in four years. IBR-it (pay some extra here and there) and save the money you would pay on it on a bank account.

If you get fired from biglaw, you would have savings to last you for sometime + IBR with no job = 0$ monthly payments.

If you get gov job after 3-4 years of biglaw = profit because of the ten year public service rule.


If you are not able to pay it all in 25years, but you have been saving on the side = profit cause the tax bomb will only be like 1/3 or 1/4 of what will be forgiven.

I think that forgiveness will be capped eventually, though I don't think it will be retroactive. The tax code, however, can easily be changed. Depending on how politics go, I'm not sure counting on the same tax code being in effect in 25 years is a great plan. I don't think the tax rate for forgiven student loan debt has even been established. (Please let me know if I'm wrong.)
People have thought that the tax bomb might lessen, but I don't know if the political climate will ever support that.

Right now it looks like the IRS treats forgiven student loans as income. (LRAP forgiveness is not taxable by the federal government, don't know about state governments) Not to panic anyone. So don't worry about it now, I guess. I just assume that taxes will be going up over time.

[Pokemon]

Why would someone want to pay that kind of a debt in four years. IBR-it (pay some extra here and there) and save the money you would pay on it on a bank account.

If you get fired from biglaw, you would have savings to last you for sometime + IBR with no job = 0$ monthly payments.

If you get gov job after 3-4 years of biglaw = profit because of the ten year public service rule.


If you are not able to pay it all in 25years, but you have been saving on the side = profit cause the tax bomb will only be like 1/3 or 1/4 of what will be forgiven.

I think that forgiveness will be capped eventually, though I don't think it will be retroactive. The tax code, however, can easily be changed. Depending on how politics go, I'm not sure counting on the same tax code being in effect in 25 years is a great plan. I don't think the tax rate for forgiven student loan debt has even been established. (Please let me know if I'm wrong.)
People have thought that the tax bomb might lessen, but I don't know if the political climate will ever support that.

Right now it looks like the IRS treats forgiven student loans as income, but I don't know if it will remain the case. (LRAP forgiveness is not taxable by the federal government, don't know about state governments) Not to panic anyone. So don't worry about it now, I guess. I just assume that taxes will be going up over time.

Without being an expert at this, I assumed IRS treats IBR forgiveness as it would treat any other loan forgiveness. Students do not get any benefits from IRS on this issue. As such, I doubt 25 years from now, students would be treated worse than they are currently treated.

IF gov however limits how much you can forgive via IBR 25 years from now, then that is a different question.

[NYSprague]

Why would someone want to pay that kind of a debt in four years. IBR-it (pay some extra here and there) and save the money you would pay on it on a bank account.

If you get fired from biglaw, you would have savings to last you for sometime + IBR with no job = 0$ monthly payments.

If you get gov job after 3-4 years of biglaw = profit because of the ten year public service rule.


If you are not able to pay it all in 25years, but you have been saving on the side = profit cause the tax bomb will only be like 1/3 or 1/4 of what will be forgiven.

I think that forgiveness will be capped eventually, though I don't think it will be retroactive. The tax code, however, can easily be changed. Depending on how politics go, I'm not sure counting on the same tax code being in effect in 25 years is a great plan. I don't think the tax rate for forgiven student loan debt has even been established. (Please let me know if I'm wrong.)
People have thought that the tax bomb might lessen, but I don't know if the political climate will ever support that.

Right now it looks like the IRS treats forgiven student loans as income, but I don't know if it will remain the case. (LRAP forgiveness is not taxable by the federal government, don't know about state governments) Not to panic anyone. So don't worry about it now, I guess. I just assume that taxes will be going up over time.

Without being an expert at this, I assumed IRS treats IBR forgiveness as it would treat any other loan forgiveness. Students do not get any benefits from IRS on this issue. As such, I doubt 25 years from now, students would be treated worse than they are currently treated.

IF gov however limits how much you can forgive via IBR 25 years from now, then that is a different question.

Right now it looks like student loan forgiveness is income that is added to AGI. But right now, the only student loan debt that is forgiven is based on death or severe disability or,very rarely, bankruptcy. No one with a high income or high net worth gets their loans cancelled.

I don't think that just discharging the debt owed to the federal government from high income or even medium income people is going to be that popular. I haven't seen this addressed anywhere, other than people seemed to think the tax bomb would go away or lessen.

[09042014]

If I had PAYE I'd definitely just do that.

[09042014]

The big problem is trying to delay adulthood well into your thirties. It just doesn't work. You are going to get married, buy a house, pop out some kids.

You just aren't going to live like a stupid college student forever.

[Attax]

The big problem is trying to delay adulthood well into your thirties. It just doesn't work. You are going to get married, buy a house, pop out some kids.

You just aren't going to live like a stupid college student forever.

Are these mandatory? I don't like the whole popping out some kids part.

But thanks for the thread, DF. Makes me feel a lot more comfortable about going to a strong regional with $ as a legit decision.

[NYSprague]

If I had PAYE I'd definitely just do that.

Yeah, maybe people should calculate their budgets with PAYE/IBR and accept they may be paying for school for 20/25 years. The sad part, to me, is that people may be more likely to go knowing that even without big law, or hell any job at all, they can service their debt. Like," I can borrow more than $200,000 to go to New York Law School (current COA just under $73,000) because I won't ever have to pay it back if I don't get a job."

[rayiner]

The big problem is trying to delay adulthood well into your thirties. It just doesn't work. You are going to get married, buy a house, pop out some kids.

You just aren't going to live like a stupid college student forever.

Are these mandatory? I don't like the whole popping out some kids part.

But thanks for the thread, DF. Makes me feel a lot more comfortable about going to a strong regional with $ as a legit decision.

Not mandatory, but a ton of people in my class (C/O 2012) got married in the last couple of years, and a few have had kids. Lots of people will meet someone in law school, and graduation is a milestone that precipitates a lot of long-term relationships into marriage.

[Attax]

Not mandatory, but a ton of people in my class (C/O 2012) got married in the last couple of years, and a few have had kids. Lots of people will meet someone in law school, and graduation is a milestone that precipitates a lot of long-term relationships into marriage.

Good to hear. I'm from a small town, KJD and people are shocked I'm not married yet and have no prospects. I just graduated UG and that seems to be a milestone for marriages, so it makes sense LS would be as well.

[09042014]

The big problem is trying to delay adulthood well into your thirties. It just doesn't work. You are going to get married, buy a house, pop out some kids.

You just aren't going to live like a stupid college student forever.

Are these mandatory? I don't like the whole popping out some kids part.

But thanks for the thread, DF. Makes me feel a lot more comfortable about going to a strong regional with $ as a legit decision.

Well, working in shit probably sucks worse. But if you do make biglaw, ill be mad jelly.

[Attax]

The big problem is trying to delay adulthood well into your thirties. It just doesn't work. You are going to get married, buy a house, pop out some kids.

You just aren't going to live like a stupid college student forever.

Are these mandatory? I don't like the whole popping out some kids part.

But thanks for the thread, DF. Makes me feel a lot more comfortable about going to a strong regional with $ as a legit decision.

Well, working in shit probably sucks worse. But if you do make biglaw, ill be mad jelly.

That's my fear is shitlaw, but I figure Texas isn't a terrible choice for someone with money and from Texas who wants to stay in Texas. That's what I've been told around here at least.

[09042014]

The big problem is trying to delay adulthood well into your thirties. It just doesn't work. You are going to get married, buy a house, pop out some kids.

You just aren't going to live like a stupid college student forever.

Are these mandatory? I don't like the whole popping out some kids part.

But thanks for the thread, DF. Makes me feel a lot more comfortable about going to a strong regional with $ as a legit decision.

Well, working in shit probably sucks worse. But if you do make biglaw, ill be mad jelly.

That's my fear is shitlaw, but I figure Texas isn't a terrible choice for someone with money and from Texas who wants to stay in Texas. That's what I've been told around here at least.

what's the debtload gunna be?

[Attax]

what's the debtload gunna be?

~20k total + 25k from UG so <$50,000

[TheSpanishMain]

Not mandatory, but a ton of people in my class (C/O 2012) got married in the last couple of years, and a few have had kids. Lots of people will meet someone in law school, and graduation is a milestone that precipitates a lot of long-term relationships into marriage.

Good to hear. I'm from a small town, KJD and people are shocked I'm not married yet and have no prospects. I just graduated UG and that seems to be a milestone for marriages, so it makes sense LS would be as well.

So you're 22-23? Just an observation, take it or leave it: you're not supposed to want to have kids at 22-23. People who do are kind of weird. Your priorities/interests shift as you get older.

I don't mean this as a dig: if 30 rolls around and you still don't want to have kids, good on ya. It's a totally legitimate decision. I would just be careful about trying to game out how you feel about this stuff so early on.

[Attax]

So you're 22-23? Just an observation, take it or leave it: you're not supposed to want to have kids at 22-23. People who do are kind of weird. Your priorities/interests shift as you get older.

I don't mean this as a dig: if 30 rolls around and you still don't want to have kids, good on ya. It's a totally legitimate decision. I would just be careful about trying to game out how you feel about this stuff so early on.

Yep, 22. Small town = everyone has babies already so parental pressure makes it feel like I should but alas I know it is reasonable not to and may change when I'm older. But I know many people my age wanting to start their family and have kids already which is why I have been staying out of the dating scene through UG.

[09042014]

So you're 22-23? Just an observation, take it or leave it: you're not supposed to want to have kids at 22-23. People who do are kind of weird. Your priorities/interests shift as you get older.

I don't mean this as a dig: if 30 rolls around and you still don't want to have kids, good on ya. It's a totally legitimate decision. I would just be careful about trying to game out how you feel about this stuff so early on.

Yep, 22. Small town = everyone has babies already so parental pressure makes it feel like I should but alas I know it is reasonable not to and may change when I'm older. But I know many people my age wanting to start their family and have kids already which is why I have been staying out of the dating scene through UG.

You realize by saying "I'll just be poor for 5 years" you are commiting to not seriously dating til like 31. That's crazier than 22

[beepboopbeep]

So you're 22-23? Just an observation, take it or leave it: you're not supposed to want to have kids at 22-23. People who do are kind of weird. Your priorities/interests shift as you get older.

I don't mean this as a dig: if 30 rolls around and you still don't want to have kids, good on ya. It's a totally legitimate decision. I would just be careful about trying to game out how you feel about this stuff so early on.

Yep, 22. Small town = everyone has babies already so parental pressure makes it feel like I should but alas I know it is reasonable not to and may change when I'm older. But I know many people my age wanting to start their family and have kids already which is why I have been staying out of the dating scene through UG.

You realize by saying "I'll just be poor for 5 years" you are commiting to not seriously dating til like 31. That's crazier than 22

Yes, poor people cannot date. It's illegal.

[09042014]

So you're 22-23? Just an observation, take it or leave it: you're not supposed to want to have kids at 22-23. People who do are kind of weird. Your priorities/interests shift as you get older.

I don't mean this as a dig: if 30 rolls around and you still don't want to have kids, good on ya. It's a totally legitimate decision. I would just be careful about trying to game out how you feel about this stuff so early on.

Yep, 22. Small town = everyone has babies already so parental pressure makes it feel like I should but alas I know it is reasonable not to and may change when I'm older. But I know many people my age wanting to start their family and have kids already which is why I have been staying out of the dating scene through UG.

You realize by saying "I'll just be poor for 5 years" you are commiting to not seriously dating til like 31. That's crazier than 22

Yes, poor people cannot date. It's illegal.

Good luck taking ur lady to Chiptole when you make six figs. Or buying her a 25 dollar gift. Or buying a 2k engagement ring.

[ymmv]

So you're 22-23? Just an observation, take it or leave it: you're not supposed to want to have kids at 22-23. People who do are kind of weird. Your priorities/interests shift as you get older.

I don't mean this as a dig: if 30 rolls around and you still don't want to have kids, good on ya. It's a totally legitimate decision. I would just be careful about trying to game out how you feel about this stuff so early on.

Yep, 22. Small town = everyone has babies already so parental pressure makes it feel like I should but alas I know it is reasonable not to and may change when I'm older. But I know many people my age wanting to start their family and have kids already which is why I have been staying out of the dating scene through UG.

You realize by saying "I'll just be poor for 5 years" you are commiting to not seriously dating til like 31. That's crazier than 22

Yes, poor people cannot date. It's illegal.

Have you ever attempted to date someone of similar income level while you're trying to live far more frugally than is ordinary for that income level? It's pretty damn difficult, and people pretty quickly start thinking you're a cheapskate for not wanting to go out all the time, especially to places above a single $ Yelp factor.

Though I suppose it would be easier if you could find another grossly indebted young attorney who comprehends the magnitude of your financial situation.

[beepboopbeep]

You realize by saying "I'll just be poor for 5 years" you are commiting to not seriously dating til like 31. That's crazier than 22

Yes, poor people cannot date. It's illegal.

Have you ever attempted to date someone of similar income level while you're trying to live far more frugally than is ordinary for that income level? It's pretty damn difficult, and people pretty quickly start thinking you're a cheapskate for not wanting to go out all the time, especially to places above a single $ Yelp factor.

Though I suppose it would be easier if you could find another grossly indebted young attorney who comprehends the magnitude of your financial situation.

Yea I guess I don't want to date anyone who has grossly different expectations re: frugality/spending than I do. There are people who would rather just have fun than give a shit about how much money someone is spending on them.

DF I'm not too worried, teh gf is an artist. And I would rather not get engaged than be married to someone who cares whether an engagement ring costs $2k or $20k.

[09042014]

You realize by saying "I'll just be poor for 5 years" you are commiting to not seriously dating til like 31. That's crazier than 22

Yes, poor people cannot date. It's illegal.

Have you ever attempted to date someone of similar income level while you're trying to live far more frugally than is ordinary for that income level? It's pretty damn difficult, and people pretty quickly start thinking you're a cheapskate for not wanting to go out all the time, especially to places above a single $ Yelp factor.

Though I suppose it would be easier if you could find another grossly indebted young attorney who comprehends the magnitude of your financial situation.

Yea I guess I don't want to date anyone who has grossly different expectations re: frugality/spending than I do. There are people who would rather just have fun than give a shit about how much money someone is spending on them.

DF I'm not too worried, teh gf is an artist. And I would rather not get engaged than be married to someone who cares whether an engagement ring costs $2k or $20k.

Just wait bro, just wait.

[exitoptions]

Here's the thing. In big law, your significant other isn't actually "with" you in any meaningful sense of the word.

If they aren't in big law, there will come a time when they realize that the only thing they're getting out of the relationship is financial stability. And they won't be that cool with the fact that you spend 80 hours a week at the office and they have to eat canned beans 5 nights a week, and be taken to fast food on the rare weekends you spend significant time together. This applies to artists, teachers, hippies and whatnot. It's not about how frugally they lived before, it's about how shitty you make their life now. The only think you have to make it better is money. You'll be begging them to let you take them out to a Michelin starred place before long.

If you're both in the big law boat, you'll both want to splurge on the rare weekend you spend together, to takeaway the horrible inching feeling that you are wasting your youth making hedge funds a few more million while you're still worth negative $150k. Also, you'll realize that you don't really have a relationship, and that you're really just roommates.

Everyone I know in big law falls into one category or the other.

[rayiner]

Seriously. People who "just want to have fun" rarely want it to be slotted in between M&A deals. Big law limits your ability to do fun cheap stuff. Try going to free shows when you're only available late in the evening, or stuff like camping when you always need your blackberry with you.

[beepboopbeep]

Seriously. People who "just want to have fun" rarely want it to be slotted in between M&A deals. Big law limits your ability to do fun cheap stuff. Try going to free shows when you're only available late in the evening, or stuff like camping when you always need your blackberry with you.

Point taken. I don't doubt that the toll biglaw takes on relationships is a heavy one.

Guess I haven't hit the level of cynicism espoused by exitoptions. One of the more impressively depressing posts on a site filled with many of them. Time will tell if I'm singing that tune two years from now.

[dsamuels]

Pause...How in the Hell does someone owe 240K? Do people really take out this much for law school?!