Law school is a big investment, and student loans are probably paying for part or all of it. Making your loan payments on time and keeping your credit record clean can make life a lot easier after you graduate. Planning now to manage debt means you won't have as much to worry about when you are studying for the bar and looking for a job after graduation. You can begin managing your debt during school and after you graduate.
Online Debt Management Resources
Things to think about
- For every $10,000 you borrow in loans it is a good idea to assume that you will owe $125 per month in a 10-year repayment loan period.
- If you borrow the entire cost of your law school education, which at DU would be over $100,000, you can expect to be paying well over $1,000 per month if you don't consolidate your federal loans after graduation.
- Tuition usually increases 5-7% each year.
What to do?
- During school
- Take advantage of work study. After your first year, take a look at the work study job offerings. Every dollar you earn in work study is a dollar you don't borrow. And you can gain valuable experience and make contacts at the same time.
- Lower your standard of living. Get a roommate or two, eat in instead of out, give up beer for law school. It's only for a few years and besides you'll be able to tell great stories of the hardships you endured after you become successful.
- Pursue scholarships. Every scholarship, no matter how small, reduces the amount you have to borrow. If you have any kind of connection with a business or organization, contact them and ask if they offer scholarships. Many small scholarships are not well advertised, and you could be the only applicant.
- After you graduate
- Track your student loans. It's important to know who and what you owe. Your federal student loan history is available at www.nslds.ed.gov. You will need the PIN you use for the FAFSA to access this information. Private student loan information will not be listed here, but would be listed on a credit report and may still be listed on MyWeb. Let us know if you have questions about your private student loan lenders.
- Balance your loan payments. Pay the minimum payments on all your loans, and use your disposable income to make extra payments on the loans with the highest interest rates.
- Communicate with your lender. It's not fun to admit you may be in trouble, but if something does happen to cause you to miss a payment or make a late payment, call your lender and talk to them. The sooner you communicate with them, the sooner you can find a way to work things out without destroying your credit rating.
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Online Debt Management Resources
The staff of the Financial Management Office is available to discuss your personal situation and help you plan your law school finances.
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