Is 120K too much debt to take on for a law degree?

Question

If I go into tax law, will I be in over my head financially when I get out of school?

What if I go into another branch of law? Has anyone lived to tell about the obscene amounts of money one has to take out for an advanced degree?

*Note: I'm busy applying for any scholarships and grants that I can get my hands on. In the case that none of this comes through, and I have to borrow everything, I'm just wondering if it's worth it.

Answer 1

Hmm...if you're okay with the idea of paying $600-1000 a month every month for about 20 years, then you won't have a problem with $120,000 in law school debt.

On the other hand - in 2006, the Department of Labor salary survey determined that the median income for salaried lawyers was $102,470. Keep in mind that salaries vary considerably by practice type and area of the country. The "middle 50%" of salaried attorneys reported incomes between $70,000 and $146,000.

One other thing to keep in mind - those aren't the salaries of rookie attorneys - they make far less. According to the DOL, the median salary of all first year lawyers was only $60,000.

So - yes, a debt of $120,000 is extreme, but many professional school graduates run up, and manage to pay off that kind of debt. $120,000 is on the high end for law school students, but medical and dental school students hit those kinds of numbers all the time. Keep in mind that your early salaries may require some budget stretching - it's later on in your career that you can anticipate receiving the levels of income that might make large debt more manageable.

Some of this decision would depend on your ability to live frugally, the likelihood that you would graduate highly in your class and find a high-paying job, the interest rates that are available to you on these loans, and other sources of money that might help you retire these debts early. Only you know your unique circumstances.

I would strongly recommend that you make an appointment with a qualified financial advisor who can sit down with you and show you the payment schedule that you'd be looking at. That will help you get your head around the minimum income that would allow you manage this kind of debt load. You might also ask them to discuss how this type of debt might impact your ability to buy a car or a home.

I'm going to be honest - I graduated from law school with a very high debt load - I wouldn't particularly recommend it to a lot of people. Good luck to you!

Answer 2

My recomendation on borrowing is this.

Don't exceed what you would earn with that immediate  degree, but not your ultimate goal.  The drop out rate for law school is astronomical, not to mention how many people they churn out that never actually practice law when they do graduate.

Maybe it would be better if I explained it this way.

Ideal example:

Borrowing 4,000 total to get your Associates degree is okay because with an associates you can earn enough to pay it back no problem.

Borrowing an additional 8,000 for 2 more years to earn your Bachelors is okay because with only 12,000 total debt, you can pay this off regardless of the degree you get.

Borrowing an additional 20,000 to get your law degree would be okay if you would expect to earn 4K+8K+20K=32,000 your first year out when you graduate with a law degree.

BAD EXAMPLE:

Borrowing 25,000 for just an associates degree... would  you earn this your first year with a job in this field?  Maybe, maybe not.

Borrowing an additional 30K to get your Bachelors degree.  This would put you at 55K total debt.  It is very difficult to get a job right out of college earning 55K with just a bachelors degree.

Borrow an additional 45K for law school.... lets see that would be 100K total.  One failed class, one illness, one pregnancy, or second thoughts about going to school and you would be in debt 100K and only a bachelors degree.

Answer 3

Tax law - wow not sure how much that field would pay - you should really check on that first...

Law makes mega bucks....

Answer 4

How much could you reasonably expect to earn after you get your degree?--That would vary on the part of the country you expect to be in, as well as the ranking of the law school, and where you might rank in your class.

The country's getting over-populated with lawyers; you can't assume you'll pass the Bar, say, "Ta-Da!" and get hired.   Of course, you can take years to pay off your debts, and taxes are getting more complex, so maybe there will always be a market for tax lawyers.

Answer 5

Well that is completely dependent on the law school!  I would think if u were considering being a tax attorney u would have a cpa so i don't understand y u would bother asking this!  

IF U ARE GOING TO A TIER 2 OR LOWER SCHOOL IT IS TOO MUCH $!  Most Tier 2 graduates start out around 60k a year or so!  IF u don't have a CPA u probably won't make more than that!

If the school is tier 1 then 120k is nothing because u will land a good job at graduation!  

Come on u are thinking of becoming a tax attorney and u can't do basic math?  You aren't aware of finance?