What qualifies as “too much debt”?
I’m gearing up to start law school at Notre Dame this fall. Currently, I have around $100,000 in undergraduate loans. Notre Dame has awarded me a scholarship covering approximately 40% of my tuition. By the time I finish my three years, I’ll owe about $160,000, not including housing. My parents will assist with living expenses, but I plan to borrow $15,000 each year for housing costs. This means I’ll accumulate a total of $205,000 in debt, excluding interest. Assuming interest adds another $50,000, I could graduate with approximately $355,000 in debt.
I have two main questions: (i) Is attending Notre Dame worth it if my only goal is to land a job in biglaw—ideally in Washington, D.C., but I’m also open to opportunities in Texas? I also aspire to clerk for a federal judge, but the thought of this debt makes that seem daunting if I choose Notre Dame. (ii) Is this level of debt manageable, and if not, how long might it take to pay it off if I take an aggressive approach?
2 Responses
Navigating the decision to attend law school, especially at a prestigious institution like Notre Dame, can be daunting, particularly when considering the level of debt you’re predicting. Here are some points to consider related to your questions:
(i) Is it worth going to Notre Dame for biglaw?
Prestige and Opportunities: Notre Dame is a well-respected law school, and attending could open doors in biglaw, particularly if you excel academically and network during your time there. However, success in securing a biglaw position often depends not just on the school itself but also on your performance, internships, and connections you develop.
Cost vs. Benefit: Research the starting salaries for associates in firms you’re targeting, particularly in DC and TX. In biglaw, starting salaries often exceed $200k, but they can vary based on location and firm. Calculate if this salary will realistically allow you to manage that debt and child expenditures.
Clerkships: Securing a clerkship, particularly at the federal level, can be competitive. While clerking may help your career, it may not compensate for the debt burden depending on the type and size of the firm you associate with afterward.
(ii) Is this too much debt?
Debt-to-Income Ratio: A common guideline is that your total student debt should ideally be less than your expected first-year salary after graduation. With an anticipated total debt of approximately $355k, your debt-to-income ratio could be concerning if your starting salary doesn’t align well.
Repayment Timeline: If you manage to secure a high-paying biglaw position, you may be able to pay off your loans fairly quickly. If you earn around $200k per year and are aggressive with repayment, you could potentially pay off your loans in 5-7 years. However, this depends on other factors like living expenses, interest rates, and any changes in income.
Consider Alternatives: Reflect on whether attending a less costly law school with a strong career placement in your desired field could yield similar opportunities. Programs with lower tuition or excellent in-state options might allow you to graduate with significantly less debt.
In conclusion, weigh the potential salary against your debt and consider the long-term financial implications carefully. It might also be beneficial to talk to current students or alumni about their experiences and any financial strategies they found effective. Good luck with your decision!
Thank you for sharing your thoughtful reflections on the financial implications of pursuing a law degree. It’s definitely a significant investment, and your concerns about debt are completely valid.
To address your question about whether attending Notre Dame is worth it for your goals in biglaw and federal clerkships: it’s essential to consider not just the prestige of the law school, but also the current job market and your career aspirations. Graduating from a well-regarded institution like Notre Dame can open doors—especially in competitive markets like Washington, D.C., and Texas. However, it’s equally important to assess your own career strategy and whether you’re pursuing other opportunities that could mitigate your debt burden, such as internships or networking in your desired field.
Regarding the manageability of your debt, it’s wise to realistically evaluate your potential starting salary in biglaw. Typically, entry-level positions in firms tend to offer salaries around $190,000, but this varies based on location and firm prestige. With an aggressive repayment plan, utilizing income-driven repayment options, and possibly considering loan forgiveness programs (especially if you’re interested in public interest law), you might find a path to tackle your loans more comfortably.
Furthermore, consider the importance of financial literacy during law school. Familiarize yourself with budgeting, investing, and potential loan repayment strategies early on, as being proactive can make a significant difference in your overall financial wellbeing. Engaging with alumni and current students about their experiences with debt management may provide additional insights and strategies.
Ultimately, weigh the