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Written by Brett McKay

Indebt Student was started by a third year law student at the University of Buffalo. It provides lots of information about the student problem in America. He also has an e-petition to Congress to take action to solve this growing problem.

The interesting thing about Indebt Student, is that the creator is soliciting donations to pay off his own debt. Crass? Perhaps. He does redeem himself a bit by promising as soon as he raises $20,000, half will go to pay off his own loans and the other half he will give as a scholarship to some needy student.

This is an interesting site and an interesting idea. If you don’t agree with his asking for money to pay off his student debt, I would at least visit his site for the information about student debt.

Young and in Debt: Week 2

Written by Brett McKay

This week’s USA Today Young and In Debt profile is about Heather Schopp. She’s 29 years old and has over $165,000 in student loans. She’s working two jobs to pay them off, but she’s still having a hard time making ends meet.

Part of her problem is she’s living in Long Beach, CA where rent for her “not even a full one bedroom” apartment is $800. She needs to get the heck out of California and move to someplace where the cost of living is way lower. She works as a chiropractor, so I’m sure she can find that kind of work somewhere else. If she’s not going to leave California, at least should get a roommate.

Phillip Cook gives planer’s advice for individuals in similar circumstances as Miss Schopp.

  1. Set a budget
  2. Cut interest rate expenses (Schopp has $9,000 in credit card debt. Her interest rate is 16%. When it comes to credit card debt, Frugal Law Student has little sympathy.)
  3. Reduce living expenses
  4. Increase Income

Nothing new or exciting. Just common sense stuff. Let’s hope Miss Schopp puts this advice to practice.

Young and In Debt

Written by Brett McKay

USAToday is running a series called “Young and In Debt.” They will be following six twenty-somethings for the next six weeks as they battle their crippling debt. Each week USAToday will be writing about how these young people handle different financial situations such as paying off student debt, paying for health care, and affording housing.

In their article, USAToday mentioned some interesting statistics. Overall, the amount of young people battling debt has gone down; however, the amount of debt of those who have debt has increased dramatically.

Most of the people that USA is following seem to have genuine problems with student debt. One young woman is facing a debt burden of $165,000 after graduating college. However, I have no sympathy for Tolu Adeleye. He graduated college with no debt, but ran up his credit cards after visiting 22 countries in two years. You blew it dude. Don’t whine because you’re in debt. It’s your own damn fault.

I’m looking forward reading these articles in the next few weeks. Be sure to stop by and read my synopsis of each one.

Highlights from Newsweek’s Live Talk: Legal Aid

Written by Brett McKay

Yesterday, Newsweek hosted an on-line question and answer session on how to make law school affordable with Jeffery E. Hanson, Ph.D, director of Borrower Group Education Services, a nonprofit graduate loan specialist.

Here are a few highlights of the discussion. (Click here for the complete transcript.)

1. Student loan debt provides flexible repayment
. Although it is an individual decision as to whether you repay your student loans as fast as possible, or you take the full repayment period to repay what you borrowed, it is important to consider the trade-offs between the cost of the loans you are repaying versus the return you could earn if you invested your available funds elsewhere rather than prepaying your loans.

2. Borrow the minimum amount possible. There are several ways to reduce what you will need to borrow. First, make sure you are aware of what grant and scholarship assistance may be available from the school you want to attend and what you must do to receive that assistance. You also should consider living with roommates while in school who can help share in the cost of housing. Another step is to talk with your family about how much they will be able to help you. And, you will want to consider working part-time while in school so that you can reduce what you have to borrow.

3. Check to see if your school provides a Loan Repayment Assistance Repayment Program (LRAP). Check out the E-Guide and the resources that are available from Equal Justice.

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The Underemployed Lawyer

Written by Brett McKay

Over at Grey Area Left of Center, the Donnybrook contemplates his job prospects, or lack thereof, after graduation. He laments that after graduating “I am left with a mountain of debt and the uncertainty of whether I will obtain gainful employment.”

He discusses that there are already 83,000 lawyers in his state and he worries whether there will be a job for him after graduation. I often worry about this as well. I hope I’m wrong.

A mother worries about her son’s law school debt

Written by The Frugal Law Student

I found this post about a mother who’s worried that her debt laden son won’t find a job.