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Thrive92

How to not get into 100k + debt pursuing a law degree? (serious question)

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5 minutes ago, Thrive92 said:

On a separate note, has anyone purchased a new car from their PSLOC? I’m thinking 40k out of the 125k isnt such a big deal. Plus I would look like a pretty penny whenever I drive the new 2021 honda accord sedan touring, so thats a major plus.

Forget the car, buy a boat instead. It's what all the ballers do.

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4 minutes ago, Thrive92 said:

On a separate note, has anyone purchased a new car from their PSLOC? I’m thinking 40k out of the 125k isnt such a big deal. Plus I would look like a pretty penny whenever I drive the new 2021 honda accord sedan touring, so thats a major plus.

Edit: that last paragraph was a joke...maybe...so don’t take it seriously 

On the off chance it's not a joke, some of my friends did use some of their PSLOC on cars. Getting a used diesel VW Jetta is usually a good choice if you need a cheap and reliable vehicle.

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Just now, PlayALawyerOnTV said:

Forget the car, buy a boat instead. It's what all the ballers do.

When I went to UBC I fantasized about living in West Vancouver, owning a boat, and making this commute every day:

OqtClXP.png

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2 minutes ago, canuckfanatic said:

On the off chance it's not a joke, some of my friends did use some of their PSLOC on cars. Getting a used diesel VW Jetta is usually a good choice if you need a cheap and reliable vehicle.

thank you. i thought i was being an absolute fool for even considering using my psloc for a car. 

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I've mentioned this before but I graduated with well over 100k+ debt as a result of attending a Toronto school. Then I went into the government. It's completely doable. I'm less than 5 years out and have sliced my debt by more than half. Don't overspend on things you really don't need right now and you should be fine. I still spend quite a bit on entertainment, food, and leisure activities. Recently bought a lot of major appliances for my parents too. My debt should be completely cleared in the next two years. You don't have to be crippled by a 100k+ debt - just be responsible and proactive in paying it off. 

Edited by Deadpool
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1 minute ago, Thrive92 said:

thank you. i thought i was being an absolute fool for even considering using my psloc for a car. 

As long as you can make it make sense in your budget! As in you'll get a lot of use out of it, the upkeep costs (gas, maintenance, insurance) are low, and your other budget categories won't be unreasonably tight as a result.

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1 minute ago, Deadpool said:

I've mentioned this before but I graduated with well over 100k+ debt as a result of attending a Toronto school. Then I went into the government. It's completely doable. I'm less than 5 years out and have sliced my debt by more than half. Don't overspend on things you really don't need right now and you should be fine. I still spend quite a bit on entertainment, food, and leisure activities. Recently bought a lot of major appliances for my parents too. My debt should be completely cleared in the next two years. You don't have to be crippled by a 100k+ debt - just be responsible and proactive in paying it off. 

thank you for your input. i am glad you are doing well with your debt.

i am strongly leaning towards being a sole practitioner right off the bat as soon as i finish my articling, as i found out that i love working independently compared to working for others. of course, this is all in the air and nothing is certain right now. working without a fixed income right from the start is what worries me about my debt from law school

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12 minutes ago, canuckfanatic said:

When I went to UBC I fantasized about living in West Vancouver, owning a boat, and making this commute every day:

OqtClXP.png

Brilliant, I’m stealing this if online learning ever ends. Google has the closest points at just under 6k. I could get buff kayaking that everyday. 

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2 hours ago, Thrive92 said:

Thank you everyone. I have decided that perhaps it may be better not to be a penny pincher and use my student loans a bit liberally once I get into law school.

On a separate note, has anyone purchased a new car from their PSLOC? I’m thinking 40k out of the 125k isnt such a big deal. Plus I would look like a pretty penny whenever I drive the new 2021 honda accord sedan touring, so thats a major plus.

Edit: that last paragraph was a joke...maybe...so don’t take it seriously 

Yes, not a 40k one though and on the way out of law school rather than the way in. If a recall cars worth more than 5k (maybe 10k) counted against you come bursary time. 
 

Once I locked down my articling job in third year I bought one using the loc. No regrets, it was a great interest rate and I know I had enough credit left not to sweat it. 
 

You do not get access to the whole 120k all at once, it’s spread out over three years

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Thought I would add my two cents in here for those worried about struggling!

I graduated with $74k in law school debt in 2016. I was stressed as all hell, but then I paid it  off three years later in September 2019 while living on my own. My salaries slowly increased from 55k while articling, 75k, 98k, and then 130k (moved to a city with higher pay grades that last year). I really focused on paying down my debt as much as I could, but I was still able to take 2 international vacations each year so I was by no means miserly - just cautious in what I purchased. Outside of vacations I think I kept the same standard of living throughout until the last penny was paid off. 

Alternatively, I have friends who graduated in 2015 and are making $160k+ but who still haven't paid off their debts because they make the minimum payments. Instead they live lavish lifestyles and just consider the debt to be like a monthly expense. There's no rush for them to pay it off.  

The debt melts off a lot faster/easier than you think. My advice to anyone would be to maximize those student loans and ENJOY THEM. Eventually, you'll likely find that you have more money than time when you're a lawyer and wish you hadn't been so money-cautious in law school, when you had more time than money. So take an extra $10k out after you graduate and go on a trip around the world! (...after Covid)

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7 hours ago, Thrive92 said:

Thank you everyone. I have decided that perhaps it may be better not to be a penny pincher and use my student loans a bit liberally once I get into law school.

On a separate note, has anyone purchased a new car from their PSLOC? I’m thinking 40k out of the 125k isnt such a big deal. Plus I would look like a pretty penny whenever I drive the new 2021 honda accord sedan touring, so thats a major plus.

Edit: that last paragraph was a joke...maybe...so don’t take it seriously 

With you on everything else, but if I had 40k to blow on a "cool" car I probably wouldn't spend it on a Honda Accord lol

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6 hours ago, Coolname said:

Yes, not a 40k one though and on the way out of law school rather than the way in. If a recall cars worth more than 5k (maybe 10k) counted against you come bursary time. 
 

Once I locked down my articling job in third year I bought one using the loc. No regrets, it was a great interest rate and I know I had enough credit left not to sweat it. 
 

You do not get access to the whole 120k all at once, it’s spread out over three years

Interesting..So the PSLOC is not based on a "withdraw when needed" basis? There is actually a limit on how much one can spend in an academic year? I keep trying to find more information about it from the scotiabank website, but there's not much info about the loan sadly

As for the bursaries, do you mean bursaries offered by the government loan services, or from law schools? Because pre - covid I would receive a 1,500 grant every semester from studentaid bc. If I purchase the car on my way into law school, I would assume that grant would be gone + reduced borrowing amount?

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39 minutes ago, Thrive92 said:

Interesting..So the PSLOC is not based on a "withdraw when needed" basis? There is actually a limit on how much one can spend in an academic year? I keep trying to find more information about it from the scotiabank website, but there's not much info about the loan sadly

As for the bursaries, do you mean bursaries offered by the government loan services, or from law schools? Because pre - covid I would receive a 1,500 grant every semester from studentaid bc. If I purchase the car on my way into law school, I would assume that grant would be gone + reduced borrowing amount?

It’s withdraw as need, but your credit limit doesn’t start at 100k. Your limit is 33k in the first year, 66k second year than 100k in the third year. (Adjust your whatever the standard credit limit is now)
 

As for bursaries, school and government ones, but don’t quote me on that, it’s just my recollection.

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Just now, Coolname said:

It’s withdraw as need, but your credit limit doesn’t start at 100k. Your limit is 33k in the first year, 66k second year than 100k in the third year. (Adjust your whatever the standard credit limit is now)
 

As for bursaries, school and government ones, but don’t quote me on that, it’s just my recollection.

Thank you for the info. It was dumb of me to think that I would have access to 100k right off the bat haha

I'll dig up for more info about the bursaries

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