Student Loans: An Investment in Your Future

Nobody wants to borrow money. Ever. But for most law students loan debt is a necessity.

Some things in life cost more money than you have readily available. A car. A house. A law school education. Some financial advisors might recommend going without until you can afford to pay for it in cash. But when you are talking about a six figure price tag, that can take more years than you have available. This is why loans exist. You can pay for law school when you are ready to attend, then pay it back when you are earning a lawyer’s salary.

If you are venturing into the world of student loans, it’s a good idea to stick with federal student loans rather than private as much as possible. Federal student loans (the Federal Direct Subsidized/Unsubsidized/PLUS Loans) come with flexibility on the repayment side that you will not get from private loans. With private loans the amount of the principal is calculated out with the designated interest rate over the length of repayment term you agreed to, and that’s it. That’s your only option. Federal loans also offer a standard amortization, but there are other options. You can choose a repayment plan based on how much you are earning. You can qualify for forgiveness after 10 years if you are working in public service. You can qualify for a deferment or a forbearance if you find yourself in certain circumstances. You can qualify for forgiveness in cases of death or total permanent disability. There are a lot of borrow protections built in.

It can be overwhelming to think about six figure student loan debt, which is not at all unusual for law school graduates. But borrowing that money is putting a down payment on your future success. It’s an investment, just like putting money into real estate or the stock market. You put forth three years of your life and a lot of money. And at the end of that you have a J.D. degree. And the value of that can be immesurable. Student loans are scary. But they are an investment in your future.