The Shackles Are Off

I have taken the shackles off (almost completely). For most people these days, going to law school means borrowing money. Since law is often not the lucrative, exciting profession many people thought it would be before deciding to attend law school, student loan debt can be crippling in many instances (see my previous post here). I attended a private (read expensive) law school in New York City, and as such, the maximum amount of federal loans I could borrow was not sufficient to cover the cost of my tuition alone. Consequently, I was forced to borrow money from private lenders at much higher rates. I was able to make it through my first year of law school private-loan free thanks to scholarships, but borrowed $38,000 in my last two years of law school. Yes, that’s right – I borrowed $19,000 each year from one of the world’s largest private student loan lenders solely to help cover the cost of my tuition. These loans are not eligible to be consolidated at the lower federal rates and carry much higher interest rates than the federal rate. The only benefit was that I did not need to make payments while in law school and had a six month grace period upon graduation, a grace period that ended last December. 

I am happy to announce that as of today I am free from my private loans. Since I began working I have paid off all $38,000 plus the interest that had accrued over the last three years. I still have federal loans outstanding, but they are consolidated at a rate so low that it is worthwhile to invest our money elsewhere.  This is a good feeling. What I had thirty years to pay off I have done in less than one, since my grace period expired less than a year ago. Now we can begin taking the thousands of dollars that we used each month towards these loans and use them for something else, say, like, a down payment for a house. That, at least, would be a good start.  


2 Responses

  1. that’s awesome- congratulations!

  2. What the….that rocks Jerry! Teach me! Teach me! I know, I have to get a real job that pays 6 figures first…okay okay. Have you heard Dan’s joke about the difference between a Pediatrician and a bird? It ends with something about one being able to make a deposit on a Lexus.

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