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dinkleberg

100k in debt?!

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Gooooooooood Monday morning to you all! 

I wanted to ask how common it is to have 100k in debt- how do your peers or you manage this much debt? Is it something that effects your life significantly on the daily? 

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It is becoming increasingly common. Some other professionals, such as doctors, often carry significantly more educational debt. 

You can manage the debt by obtaining employment that pays enough for you to service it.

Without that sort of employment (or perhaps family to bail you out), the results would (obviously) be catastrophic. 

Does carrying the debt "effect (sic) your life significantly on the daily"? Well, that's going to depend on how successful you've been in obtaining lucrative employment. Of course, paying $1000 per month toward debt affects my life to a degree; however, because I have much, much more money coming in every month now than I ever had before I acquired the debt, I don't notice any negative effect of the debt I have on my day-to-day lifestyle.

 

 

Edited by QuincyWagstaff
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1 hour ago, QuincyWagstaff said:

It is becoming increasingly common. Some other professionals, such as doctors, often carry significantly more educational debt. 

You can manage the debt by obtaining employment that pays enough for you to service it.

Without that sort of employment (or perhaps family to bail you out), the results would (obviously) be catastrophic. 

Does carrying the debt "effect (sic) your life significantly on the daily"? Well, that's going to depend on how successful you've been in obtaining lucrative employment. Of course, paying $1000 per month toward debt affects my life to a degree; however, because I have much, much more money coming in every month now than I ever had before I acquired the debt, I don't notice any negative effect of the debt I have on my day-to-day lifestyle.

 

 

#notsohumblebrag :)

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My experience is roughly analogous to Quincy's. I am aggressively paying off my student debt (was 80k coming out of law school, currently paying roughly 3k a month) but I still have a greater disposable income than my mom when she was raising me so I don't find it too objectionable.

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2 hours ago, dinkleberg said:

Gooooooooood Monday morning to you all! 

I wanted to ask how common it is to have 100k in debt- how do your peers or you manage this much debt? Is it something that effects your life significantly on the daily? 

Common enough in our profession nowadays that it shocks almost no one who's graduated in the last 3-5 years and only a handful of senior lawyers who haven't kept up with how much tuition has jumped since they paid it in full working part-time.  

Does it affect your day to day? Of course it does. Lucrative employment or not, carrying that much debt alters how you spend money and make decisions about your life, when you get married, when you buy a house, where you buy a house, whether you can start a family or even whether you can transition out of big law or law altogether if that was your goal.

For a lot of people though, they're still earning more money lawyering and paying  down a 100k loan than their income before going to law school soooo I mean, in that sense it's still worth it if you end up on the right side of the pay scale.

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More common in some places than others - the (non-Quebec) east tends to have higher tuition for school than the west, but west coast schools in particular can make up for that in cost of living over 3 years.

 

Paying $1000 monthly is going to have an effect, it depends what kind of work you find what kind of effect (and this probably feeds into some places having more stress about the Big Law recruit than others). I mean, I have no idea how accurate any of the numbers are in https://www.zsa.ca/salary-guide/, but their general trend of 'this city pays more or less than that city' feels pretty accurate, and it really underlines the difference of effect if the numbers are even close to accurate. That repayment bill on $50k is going to be a very different experience than on $95k. 

 

For people who have a combination of top-tier debt, and below average articling or early career earnings, the total could be prohibitive. For people who have a lower debt load and earn more, not so much.

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56 minutes ago, BabyRhinoRainbow said:

My experience is roughly analogous to Quincy's. I am aggressively paying off my student debt (was 80k coming out of law school, currently paying roughly 3k a month) but I still have a greater disposable income than my mom when she was raising me so I don't find it too objectionable.

Very aggressive. Well done 

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Unless your parents or some rich benefactor are paying for your law school tuition you will graduate with substantive student loans. Last I checked, tuition alone runs between $10k-36k a year. Plus text books, other school fees, rent, living expenses. Even if you work during the summer you won't make enough to cover the rest of the year and are too busy to have a part time job. 

I went to one of the schools with the tuition on the lower end of the spectrum, and still graduated with about $50k in debt. I can see if you went to Osgoode or Toronto you could easily graduate with $100k in debt. 

The short answer: law school is expensive, but lawyers (generally) make good money, so it is worth it in my opinion. 

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$100k of debt pre-law school is a lot.

$100k of debt post-law school is more than manageable, and relatively normal.

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9 minutes ago, utmguy said:

$100k of debt pre-law school is a lot.

$100k of debt post-law school is more than manageable, and relatively normal.

Agreed

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1 hour ago, Deadpool said:

Graduated with around 180k debt. Currently on a first year government salary. 

No regrets. No pain, no gain. 😀

May I ask what is your monthly interest and principal repayment? 

 

Edited by Luckycharm

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2 hours ago, Deadpool said:

Graduated with around 180k debt. Currently on a first year government salary. 

No regrets. No pain, no gain. 😀

Foreign law school? 

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25 minutes ago, Luckycharm said:

May I ask what is your monthly interest and principal repayment? 

 

OSAP has been paid off. Line of credit remaining where interest is prime + 0. 

 

14 minutes ago, QuincyWagstaff said:

Foreign law school? 

Osgoode + debt from previous studies.

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It's manageable for sure though you likely will have to defer making major purchases like a new car or a house and stick to a budget for a few years after law school in order to pay it down to a more reasonable level.  The fact that you can't deduct the interest on the private loan part really does sting though. 

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9 hours ago, Deadpool said:

Graduated with around 180k debt. Currently on a first year government salary. 

No regrets. No pain, no gain. 😀

Oh my. It hurts just thinking about this. 

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^ what in the world is this.

I’ll edit this to say that living frugally is a good thing to do when you’re facing down debt. 

But fuck off about what “Canadian youth need to learn.”

Edited by easttowest
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4 minutes ago, easttowest said:

^ what in the world is this.

 

I guess it's an interesting anecdote?

I think it is possible to graduate from law school debt free, but you really have to thread the needle on a lot of stuff and be very frugal. 

That means living at home with family, commuting as cheaply as possible, getting financial aid and working a lot to make money.

You also have to be capable and lucky enough to get a Bay Street job. If you can do all that, then it's possible without much parental support (except living at home).

One wonders though, if the benefit of graduating debt free is worth the cost of sacrificing a lot of one's time while in law school. It's a matter of personal preference.

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2 minutes ago, JaysFan364 said:

One wonders though, if the benefit of graduating debt free is worth the cost of sacrificing a lot of one's time while in law school. It's a matter of personal preference.

For some, I’m sure it is. For most, at least for 1L, you’re only hurting yourself if you’re not putting school first. 

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