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<li>The first thing you need to do is figure out how much each school will actually cost. I’ll do one as an example, but you should run the analysis for each other school.</li>
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<p>Emory University, Atlanta GA offering $30K per year to offset total cost of $71K per year</p>
<p>1(a). The first thing you should do is figure out what stipulations attach to the scholarship. There’s usually a GPA limit on these and you need to compare that to the curve at the school. [url=<a href=“http://www.top-law-schools.com/emory-law-school.html]Emory[/url”>Emory Law - TLS wiki]Emory[/url</a>] curves to a 3.17 (it’s worth noting that this number does not appear anywhere I could find on Emory’s website - an instant red flag). I’m going to assume for sake of argument that the stipulation is relatively generous, requiring you to only maintain median or better. If it’s something else, you can adjust the probabilities accordingly. Assuming a median stipulation, you have a 50% chance of losing your scholarship every year. That means there are 3 possible scenarios: you keep the scholarship through all of law school, you keep it through 2 years of law school, or you keep it for only one year of law school. We will run each.</p>
<p>1(b). The second thing you have to do is figure out how much the law school actually costs, not what they say it costs. Law schools hide the ball by chopping up the cost and feeding it to you in independent chunks. We’re going to put it all back together. Emory’s [url=<a href=“Tuition and Financial Aid | Emory University School of Law | Atlanta, GA”>Tuition and Financial Aid | Emory University School of Law | Atlanta, GA]tuition[/url</a>] is $46,414 per year. This generally rises at about 3% per year for any given law school, so we can assume the 2nd year will cost 47,806 and the 3rd 49,240. They estimate the cost of living to be 24,720 (I’m just assuming it’s constant because I don’t know how the Georgia housing market fluctuates). So, we are looking at 3 year totals of: 1: 71,134; 2: 72,526; 3: 73,960.</p>
<p>1(c). Third, we plug in the numbers for each of the available scenarios. [url=<a href=“Financial Aid | Georgetown Law”>Financial Aid | Georgetown Law]Georgetown[/url</a>] has a very handy calculator for these purposes. They assume the annual tuition increase is 3.5%, but I think 3% is fine for our purposes (if you really care you can go back and see how much they actually increase by tracking their tuition over the last few years).</p>
<p>The first scenario we’ll plug 30,000 into the first box available for scholarship. Pretend “Georgetown” says “Emory.” Now scroll down and take a look at “Total Debt at Repayment.” Assuming you maintain your scholarship for all years, your total debt will be $153,496. At 25 year repayment that’s 1,125 per month</p>
<p>The second scenario you only get 30,000 for 2 years of law school. Same analysis as above, so now your total debt is $187,411. At 25 year repayment that’s 1,384 per month.</p>
<p>The third scenario you only get to keep your scholarship during 1L. Same analysis as above, but now your total debt is $223,784. At 25 year repayment that’s $1,662 per month.</p>
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<li>Now that we know how much your schooling will actually cost, we need to figure out whether it provides sufficient benefit to offset that. For that information, we look to job prospects. [url=<a href=“6 Keys to a Stellar Law School Resume - Professional Resume Writers”>6 Keys to a Stellar Law School Resume - Professional Resume Writers]Emory[/url</a>] is employing 57.3% of its class (subtracting the school-funded, 9 month jobs which don’t really count). Emory doesn’t provide information on salaries (want to guess why?) but we can estimate from the type of jobs Emory grads get since we know a lot about law salaries overall. If you look at Emory’s [url=<a href=“6 Keys to a Stellar Law School Resume - Professional Resume Writers”>6 Keys to a Stellar Law School Resume - Professional Resume Writers]NALP[/url</a>] report and scroll down to jobs by firm size, we can use that as a good proxy for salary. </li>
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<p>Let’s just be generous and say that any firm with more than 100 lawyers is paying NY market rate of 160,000. That accounts for 19.1% of the class. Lawyer salaries are [url=<a href=“http://www.nalp.org/salarycurve_classof2011]bimodal[/url”>NALP - National Association for Law Placement | The NALP Salary Curve for the Class of 2011]bimodal[/url</a>], so for the remaining part of the employed class we’re looking at 40-65k. That’s roughly 20% of the class making 160, 40% of the class making between 40-65k, and 40% of the class unemployed or on the doc review circuit. </p>
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<li>Putting all this information together, you will be paying a minimum of 150,000 for a 20% chance of a job that will provide enough income to support your minimum $13,500 annual loan payment. If you live as spartan as possible (no family, house, decent car, etc.) you may be able to get by on the 65k that at best estimate 5% of the class obtained (25-100 attorneys). I don’t know how risk averse you are, but those numbers would scare me. </li>
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<p>You should go through this process for each school you are admitted to and determine whether any of the schools available is worth the cost. After that you should come back and we can chat about things like loan repayment and forgiveness.</p>