PLAN AHEAD
Most financial planners will stress the need for law
students to explore all funding sources for scholarships to grants. All great
ideas! . . btw: here is a list of federal grants for aid: www.ed.gov/fund/grants-apply.html
. . However, I would take this one step further. Law students must also consider
what they will be doing with their law degree, post-graduation.
I know that one can’t actually predict beforehand what legal
career opportunities law school may bring to a law student. However, if a
student knows for a fact, for example, that sitting on the Supreme Court of the
United States, or in the Managing Partner’s chair of a leading Big Law firm,
will probably not be a career choice, the student needs to start narrowing down
school choices to a list of very good “local” schools in geographic areas where
their career is more likely to take place. So look for a school that will more
than suit the student’s needs and staly well within a reasonable educational
budget.
Every year the National
Jurist posts its list of the “Best
Value Law Schools:
Before considering the costs of law school, I would advice
all prospective students who, in their heart-of-hearts, feel that they will be
establishing a law practice, or seeking employment in the state where they live
(or close thereabouts) to consider a quality law school – one with good
clinical programs – in the geographic region in question – and apply.
Such a move will cut the law school bill significantly – even before attending
a class!
BE FRUGAL WHILE IN
SCHOOL
What always seems to remain lost in the law school debt
equation is the need for the law student, like all the rest of the people
already in the work force, to start considering and putting into place a
strict financial budget while he/she is in law school (and living by it!). Work it out on paper.
. . . What is the amount of the monies that you have coming
in, and what is flowing out on a daily. . weekly. . . and monthly
basis??? Then, subtract the two (hopefully, income coming in is a tad greatly than the amount flowing out. If
not, the student needs to stop the insanity before it event starts) and then
live by the numbers.
Moreover, forget the new law school gadgets, tools,
study-guides, if you can’t afford them! You DON’T need the best, the latest,
the brightest of all those toys, unless you can really afford them. And please
don’t hit up parents, relatives, and friends up when you want a tool but can’t afford it!
Once one starts down the self-absorbed instant gratification road, it’s tough
to get off that train. I firmly believe that keeping costs down while one is in law school will help you
in the overall costs of your debt when you graduate.
One more thing, please don’t talk yourself into buying a car
on credit! You are in law school, remember? Figure out how you can get transportation
without putting your name on a three to five year car loan. Bad idea.
AFTER GRADUATION
Especially if you are on the public interest side of the
law, there are many programs around to help you in loan repayment:
·
Income-Based
Repayment (IBR) will limit monthly payments to 15% of your
discretionary income and then provide forgiveness after 25 years;
·
Public
Service Loan Forgiveness (PSLF) was step up specifically for students
entering public service. This loan will “forgive” your federal direct loans after
you make 120 payments on the right (there’s the catch) repayment plan
while working at a 501(c)(3) nonprofit or in federal, state, local, or tribal
government.
·
Loan
Repayment Assistance Programs (LRAPs) – these are programs that can be
obtained from universities, the federal and state governments, employers and
private organizations (check out bar associations) to assist with payements.
Check out more information at www.equaljusticeworks.org
Thus, if you go to law school, think ahead, explore your
actions and stay “lean and mean.”
Phil Guzman
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