Taking Out Maximum Loans Each Semester Because of Loan Repayment? Forum
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Taking Out Maximum Loans Each Semester Because of Loan Repayment?
Hi all,
I am a student at CLS who will likely be taking advantage of Columbia's LRAP program (>5 years of LRAP participation = total repayment).
Is there any reason NOT to max out the amount of loans CLS will give me each semester with the goal of them forgiving the loans later on?
I don't mean to travel every weekend or spend money on ridiculous purchases, but should I opt to live in a nicer apartment, spend more money on food etc. each semester and accrue more debt that will be paid off by CLS?
The major downsides I could see only rest with failing to obtain full loan forgiveness (a decision not to participate in LRAP-qualifying employment, or hating law and quitting before 5 years). But if I am committed to my job and am confident in passing the bar... should I commit to maximizing my loans each semester?
I am a student at CLS who will likely be taking advantage of Columbia's LRAP program (>5 years of LRAP participation = total repayment).
Is there any reason NOT to max out the amount of loans CLS will give me each semester with the goal of them forgiving the loans later on?
I don't mean to travel every weekend or spend money on ridiculous purchases, but should I opt to live in a nicer apartment, spend more money on food etc. each semester and accrue more debt that will be paid off by CLS?
The major downsides I could see only rest with failing to obtain full loan forgiveness (a decision not to participate in LRAP-qualifying employment, or hating law and quitting before 5 years). But if I am committed to my job and am confident in passing the bar... should I commit to maximizing my loans each semester?
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Re: Taking Out Maximum Loans Each Semester Because of Loan Repayment?
When you say "will likely be taking advantage of Columbia's LRAP program," do you mean you have a qualifying job offer that you likely will be taking? Because if not, then that's a huge reason not to max out on loans in hopes of getting LRAP.
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Re: Taking Out Maximum Loans Each Semester Because of Loan Repayment?
Realistically, what is the minimum you could take out versus the maximum? How much of a difference are we talking about over the course of three years? There’s no point in taking out loans you don’t need, but how much do you think you realistically won’t need? At a certain point a few thousand a year is a drop in the bucket compared to the rest of the loans and not worth worrying about. Then again, I didn’t max out my loans because I lived with my spouse who covered our living expenses, so maybe you’re talking about something like that (which would be a more substantial savings), but it’s not clear to me.
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Re: Taking Out Maximum Loans Each Semester Because of Loan Repayment?
Feel free to PM me.
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Re: Taking Out Maximum Loans Each Semester Because of Loan Repayment?
I could be wrong but I've looked at CLS' LRAP for a friend and my understanding was that after 5 years, you don't have to pay back any of the loans that CLS has provided for you to that point, but your entire balance isn't paid off until after 10 years. Again, I could be wrong, but I've looked at CLS' plan a few times and that was my understanding so just wanted to mention that so that you're not blindsided if my understanding is correct.
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Re: Taking Out Maximum Loans Each Semester Because of Loan Repayment?
This is accurate. Am currently on CLS's LRAP. Still, if you did the regular plan (not combined w/ PSLF/IBR), that means half of your loan balance will be gone by that point.MarxJackson wrote: ↑Mon Mar 15, 2021 5:42 pmI could be wrong but I've looked at CLS' LRAP for a friend and my understanding was that after 5 years, you don't have to pay back any of the loans that CLS has provided for you to that point, but your entire balance isn't paid off until after 10 years. Again, I could be wrong, but I've looked at CLS' plan a few times and that was my understanding so just wanted to mention that so that you're not blindsided if my understanding is correct.
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Re: Taking Out Maximum Loans Each Semester Because of Loan Repayment?
I'd say "no, unless you need to." Sure, you might look back 8 years after graduation, having maintained a steady LRAP-qualifying job, and think to yourself "why didn't I take out the full loan amount? It wouldn't have made a lick of difference."
Let me tell you: it feels like it makes a difference when you're actually in the course of maintaining LRAP-qualifying employment. Public-interest hiring is tough, there's tons of turnover, and it might take a little while for you to find out where you want to be. The distinction between "half of what I could" versus "full freight bay-bee" hanging over your head for a decade is huge.
So I wouldn't take out more to temporarily have a nicer lifestyle. If you're like most people, you'll pay it back through added anxiety (especially if the economy tanks) over the course of a decade.
Let me tell you: it feels like it makes a difference when you're actually in the course of maintaining LRAP-qualifying employment. Public-interest hiring is tough, there's tons of turnover, and it might take a little while for you to find out where you want to be. The distinction between "half of what I could" versus "full freight bay-bee" hanging over your head for a decade is huge.
So I wouldn't take out more to temporarily have a nicer lifestyle. If you're like most people, you'll pay it back through added anxiety (especially if the economy tanks) over the course of a decade.
- HillandHollow
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Re: Taking Out Maximum Loans Each Semester Because of Loan Repayment?
To sort of +1 this, I will tell you that I *had to max my loans out basically every year. I was public interest oriented going into law school and remained so throughout school. I am now ~6 years out of school, and about to enter my 4th job (including a fellowship and clerking). This recent job search was rough. Without outing myself too much, I will just say that I am at least a very good candidate for many public interest litigation jobs, and it was still a bit nerve wracking for me. So much so that I started also looking into biglaw etc in case I had no other choice. At that point I realized, "oh, so I need to do the math on exactly how much more I need to make over the next ~5 or so years to equalize what I was expecting to be able to forgive through PSLF."Anonymous User wrote: ↑Sun Mar 21, 2021 10:23 amI'd say "no, unless you need to." Sure, you might look back 8 years after graduation, having maintained a steady LRAP-qualifying job, and think to yourself "why didn't I take out the full loan amount? It wouldn't have made a lick of difference."
Let me tell you: it feels like it makes a difference when you're actually in the course of maintaining LRAP-qualifying employment. Public-interest hiring is tough, there's tons of turnover, and it might take a little while for you to find out where you want to be. The distinction between "half of what I could" versus "full freight bay-bee" hanging over your head for a decade is huge.
So I wouldn't take out more to temporarily have a nicer lifestyle. If you're like most people, you'll pay it back through added anxiety (especially if the economy tanks) over the course of a decade.
All this to say: do not put yourself in this position if you do not strictly need to do so. Freedom at the job selection point is better than relative comfort adds during law school.