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leveredge

Creative ways of financing degree?

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Just thought I'd ask whether anyone has found a creative, successful way to finance their law degree, which resulted in very little debt in the end? I have paid off my undergrad and would really appreciate any advice before I get into a lot more debt. Thanks!

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Take out Scotia PLC - Pay tuition - Invest the remaining portion in a high-yielding mutual fund.

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Getting a bank to give you 135k with no cosigner or collateral at prime sounds pretty creative to me.

Edited by harveyspecter993
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On 5/10/2019 at 3:11 PM, Smorr53 said:

Take out Scotia PLC - Pay tuition - Invest the remaining portion in a high-yielding mutual fund.

Have you actually done this? How did it work out?

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On 5/13/2019 at 11:30 AM, Linaelm said:

Have you actually done this? How did it work out?

 

1 hour ago, Whosiewhatsie said:

anyone??

You do realize that doing so is an extremely risky proposition... right?  You would first need to find a mutual fund that has a return that is higher than your interest rate that is being charged to your LOC, e.g. prime ~ 4%, after which you would have to find a mutual fund that returns >4% per year otherwise you would be losing money.  Honestly, you could pull out all of your money go to Vegas and play big and hope you win a ton of cash, or you could invest in a tech start up, or some obscure prospective diamond mine and hope they actually find a damn diamond. Betting/gambling/investing with money you don’t have brings on a whole set of extra liabilities and stress than investing your own money, if you lose 10k in the stock market of your own money it sucks, it sucks real bad, losing 10k and then having to find another 10k plus interest to pay back on top of that...? You’re not looking for a good time. And if you do decide to use your LOC money to essentially gamble it away, for the love of God please do not have a co-signor attaches to that LOC because you will be ultimately dragging that person down with you. 

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Well, I mean if you invest in a non-reg account you could probably get the effective rate pretty low, depending on your marginal tax bracket. And if you specifically targeted Canadian corporations through an index that paid eligible dividends, you might come out ahead over the life of the loan (15 years). The issue is that you're also stuck paying back the principal unless your dividend rate covers the interest and the principal payment, which seems unlikely to me.

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On 5/25/2019 at 8:47 PM, TheSaskConnection said:

 

You do realize that doing so is an extremely risky proposition... right?  You would first need to find a mutual fund that has a return that is higher than your interest rate that is being charged to your LOC, e.g. prime ~ 4%, after which you would have to find a mutual fund that returns >4% per year otherwise you would be losing money.  Honestly, you could pull out all of your money go to Vegas and play big and hope you win a ton of cash, or you could invest in a tech start up, or some obscure prospective diamond mine and hope they actually find a damn diamond. Betting/gambling/investing with money you don’t have brings on a whole set of extra liabilities and stress than investing your own money, if you lose 10k in the stock market of your own money it sucks, it sucks real bad, losing 10k and then having to find another 10k plus interest to pay back on top of that...? You’re not looking for a good time. And if you do decide to use your LOC money to essentially gamble it away, for the love of God please do not have a co-signor attaches to that LOC because you will be ultimately dragging that person down with you. 

Cool, thanks for the patronizing response based on 0 experience! You do realize my question was for harveyspecter993... right?

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On 5/25/2019 at 9:16 PM, celli660 said:

Well, I mean if you invest in a non-reg account you could probably get the effective rate pretty low, depending on your marginal tax bracket. And if you specifically targeted Canadian corporations through an index that paid eligible dividends, you might come out ahead over the life of the loan (15 years). The issue is that you're also stuck paying back the principal unless your dividend rate covers the interest and the principal payment, which seems unlikely to me.

Thanks, makes sense to me. It was mostly out of curiousity anyway.

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On 5/10/2019 at 10:59 AM, leveredge said:

Just thought I'd ask whether anyone has found a creative, successful way to finance their law degree, which resulted in very little debt in the end? I have paid off my undergrad and would really appreciate any advice before I get into a lot more debt. Thanks!

You could work as an escort. ;) 

https://www.lawtimesnews.com/author/michael-mckiernan/former-escort-turns-life-around-to-become-lawyer-9229/

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I've only completed my first year, but I only took on the OSAP Max in debt by working throughout the school year. I wouldn't call it creative, nor would I recommend it. 

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I'd be skeptical about investing borrowed money. When I asked the question, I suppose I was hoping for more job-related responses; earning money in creative ways as a law student, etc.! So, thank you @OWH for your suggestion. 🤣

Edited by leveredge
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I keep coming back to this thread hoping someone'll say something I could use. Buuuut no luck so far... 😞

So, I've put together a few thoughts. If you want to graduate law school with very little debt, your options are to:

  • be born to wealthy parents
  • be adopted by wealthy parents
  • marry into wealth, or
  • rob a bank - although this last one might prevent you from being called ... maybe
  • I suppose you could also impress the hell out of the adcoms with your admission stats and have them offer you all the scholarships ... and I mean ALL of them

Seriously though, you could work throughout your degree, and that helps a bit I think. I did it in undergrad, but I don't recommend it for law school b/c it tends to interfere with studying. It also depends on how much your school loans will be. If you're going to one of the pricier schools, a little work here and there probably won't make much of a difference. 

Hmm. I guess if I did have to do it all again, my plan would be to get a decent paying, full-time summer gig after 1L, not necessarily law related, but something that will hopefully pay you enough to offset 25-50% of your tuition. Then kill OCI's in 2nd year, land a Bay Street gig and laugh the rest of the way to the bank.

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1 hour ago, TheAEGIS said:

I keep coming back to this thread hoping someone'll say something I could use. Buuuut no luck so far... 😞

So, I've put together a few thoughts. If you want to graduate law school with very little debt, your options are to:

  • be born to wealthy parents
  • be adopted by wealthy parents
  • marry into wealth, or
  • rob a bank - although this last one might prevent you from being called ... maybe
  • I suppose you could also impress the hell out of the adcoms with your admission stats and have them offer you all the scholarships ... and I mean ALL of them

Seriously though, you could work throughout your degree, and that helps a bit I think. I did it in undergrad, but I don't recommend it for law school b/c it tends to interfere with studying. It also depends on how much your school loans will be. If you're going to one of the pricier schools, a little work here and there probably won't make much of a difference. 

Hmm. I guess if I did have to do it all again, my plan would be to get a decent paying, full-time summer gig after 1L, not necessarily law related, but something that will hopefully pay you enough to offset 25-50% of your tuition. Then kill OCI's in 2nd year, land a Bay Street gig and laugh the rest of the way to the bank.

You are ignoring my perfectly good and viable suggestion. ;) 

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2 hours ago, OWH said:

You are ignoring my perfectly good and viable suggestion. ;) 

Yeah, well I have a face for radio so I'm not sure how viable an option that would be for me. 

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