Friday, January 10, 2014

4 Options to Paying Off Law School Debt

When a young student signs up to become a lawyer he or she often forgets about the cost. Unfortunately, law school is expensive, and it may take years for a new lawyer to pay off their debts. Paying off law school bills is a tough, but a recent graduate can pay off their debts quickly with a few proven techniques. Here are four tips for a new lawyer to pay off his or her debts quickly.

Forgiven loans: Many new lawyers dream of making the big bucks. While there is nothing wrong with making a lot of money, some lawyers want to do a couple of years of public service. When a lawyer signs up to work for a local charity law clinic or a non-profit, he or she can have loans forgiven. When a lawyer wants to take part in a debt forgiveness program, he or she must work a few years at the non-profit. Not only that, a non-profit is a perfect place for a new lawyer to begin his or her career.

Refinance Loans: Interest rates are hovering near all-time lows. A smart graduate of law should consider refinancing their school loans. Most of the time, the interest rate on a school loan is less than the rate of inflation. When looking to refinance a school loan, a lawyer should do some research to find the best deal. In the end, refinancing can save a lawyer a lot of money and bring down his or her stress levels.

Tutor: Current students of law need all the help they can find. A newly graduated lawyer can help law students by giving classes and tutoring. A lawyer could find students to tutor using the Internet or word of mouth. Oftentimes, a lawyer can charge upwards of 30 dollars an hour to tutor current law students. While tutoring will not make a lawyer rich, if he or she can tutor five hours a week, they will have an easier time paying down their debts.

Live like a student: Since most people usually have a serious amount of school loans, it will take a new lawyer a long time to pay off the debts. While it may be tempting to buy a new car and spend the money frivolously, a new graduate should live like a student for a couple of years. When a student can live frugally for three or four years, he or she can devote a large portion of their income to pay off the debt.

Paying off school loans takes a lot of work and discipline. While many new graduates want to live a fun lifestyle, it is smarter to pay off debts at a young age. A lawyer should meet their financial goals with ease once they pay off all of their school loans. When following these tips, a lawyer should be well on his or her way to a comfortable life.