Less Debt = More Options
March 12th, 2010It’s no secret that attending law school can get pretty expensive. Although Washburn Law remains one of the best values in the country, most students still incur at least some debt to help finance their education. What many students don’t consider when making decisions about the amount and type of loans they take is how those loans may affect their job prospects down the line. The amount and type of debt carried by a graduate could affect whether they can afford to take certain types of jobs and whether their loans could be eligible for federal programs reducing their payments and ultimately discharging the loans. Here are some things to remember when funding your law school education.
1) Borrow only the lowest amount necessary to fund your education and living expenses. You don’t have to take ALL the money you are awarded. Take what you need and if necessary go back for more later.
2) Limit your educational debt to federally subsidized loans. Students may be eligible for either or both federally funded loans (Stafford) or private loans. The federal government has several programs for graduates working in the public sector that allow for income-based payments and discharge of loans in certain circumstances. Most federal loans also are now eligible for income-based repayment plans for those working in lower-paying positions regardless of whether the position is or is not in the public sector. Equal Justice Works is an excellent resource for information about all these programs.
3) Consider a part-time job to help with bills and gain practical legal experience. While all law schools discourage students from working during the first year, you should consider pursuing paying positions over the summer and part-time during the second and third years to subsidize the cost of living. In addition to the benefit of being paid, finding a position that provides practical legal experience is an obvious bonus both to your education and long-range career plans. If the you can’t find a paying legal position for the summer and chose to volunteer or take classes, consider taking a non-legal job to at least contribute toward living expenses for the summer. Consider jobs at retail stores with merchandise discounts (preferably on necessities such as a professional wardrobe or groceries and personal items rather than CDs, video games, and movie rentals!) or a restaurant with great tippers and a good take-out benefit.
4) Do everything you can to live within your means. It is an unfortunate truth that if you live like a lawyer in law school, you will live like a law student as a lawyer. Check out this link for 50 ways to trim your budget. Use this link to see how much brand-name coffee costs over the long term.
5) Be realistic about your earning potential. Consider whether you plan a career in the public or private sector, in a large or small firm, in a large metropolitan center or in rural America, and practicing law or pursuing alternative careers. Starting salaries can vary widely but having the least amount of debt possible when you graduate leaves you more prepared to find and accept the career you really want – not just one that pays the bills!
6) Do NOT use credit cards! Repeat after me, “I won’t use credit cards in law school.” Most people have a credit card “for emergencies” which may or may not be a good idea but is nevertheless a reality for most Americans. “Emergencies” are not pizza, Starbucks, ring tones, CDs, concert tickets, Spring Break, cash advances, NCAA Tournament tickets, Thursday nights out, or spa treatments! Don’t let short-sighted “wants” affect your long-term financial stability!!