| Topic Name: |
Law School Debt |
| Message Name: |
get a grip |
| Date Posted: |
04/22/2002 |
| In Reply To: |
Do you have any idea how much $160,000 in debt will cost you until it is paid?
15 years @ 9% interest - $292,000.
At the average legal salary of $80,000 per year you will only clear $52,000 after taxes. That's $4300 per month. Your law school tab will cost you over 1/3 of your take home pay. Rent and utilities are likely to cost you $1200-1500 per month. Car, food and insurance will tack on another $1250 per month. Add it up and you'll have just $250 per month of discretionary income. That's not much. It certainly doesn't leave room for savings.
Even if you make BIGLAW - you will be entitled to around $115,000 per year with no guarrantee of longevity. That translates to roughly $6200 per month after taxes. In most major cities, an apartment on your own will cost you between $1200-2400 per month without expenses. Expenses will run another $500 per month. A car will cost another $500 per month. Food will run $250 per month. That leaves $1350 per month for other discretionary expenses.
Most BIGLAW firms are up or out. Many associates leave the firm in 3-6 years. If your salary drops significantly after your first few years, you'll have a hard time paying your loans which will be with you for at least 15 years.
Ask yourself.....
Can you stomach that sort of debt??? Maybe you should rethink your choices before you're in too deep.
|
| Message: |
There are plenty of people who live a pretty cushy life on less than $50,000/year....AFTER taxes. $4300/month is about twice what I make now, and I've never been close to uncomfortable, even living in San Francisco. Sure, paying $1000+ a month in debt is rough, but you're not exactly going to be scraping by on $80,000 a year. Don't freak this guy out.
|
|
