Big law associates, how long did it take you to pay off your student loans on a big law salary? If comfortable sharing, how much student debt did you have when you started in big law? Did you focus on paying off the loans first, or did you contribute to your 401(k) at the same time?
I’m first gen: I’ve paid of my loans, my parents’ debts, own my house outright, and paid off my parents house. I know it wasn’t the optimal way of doing things, but it was the only way to relieve my financial anxiety. I’ll never be homeless again. So now when people say “invest aggressively,” what does that mean. Is moving money to the fidelity robo-investor sufficient?
I always believe people need to consider their interest rates when paying off their loans early. Granted I graduated at a great time for rates (bad for jobs-2003). Since I pay less than 2% I’ll pay the minimum for whatever it takes to pay them off.
Yeah mine were 6-7% so i saved a lot by paying them off quickly.
Didn’t have loans but helped pay off my husband’s. He had about $190k, which was gone pretty quick with 2 BigLaw incomes. If at all possible, I highly recommend marrying someone with no/less debt and high-earning potential. Makes life super easy.
You’re such a great person!
I don't mean to hijack this thread, but here's a free e-book on how to balance spending, saving, and paying off debt as a Biglaw Associate: https://bit.ly/2F9Mhp5 Enjoy!
I had a plan to pay mine off (around $60K) in 2 years while maxing out my 401(k), then covid hit during my first year in the game, took a salary cut, and realized putting money away for a rainy day took priority. I’m hoping that come the new year, salary will be close to restored and I can get back on track. I know the post asked for people who had paid their debt off but just wanted to chime in to say that sometimes life gets in the way and plans go out the window for a bit.
Started with $225k; paid off in 3.5 years. Paying off my loans was the primary focus, but I maxed my 401k every year except my first year (when I think I contributed about 6%). I also worked on building an emergency and then down payment fund, and also left plenty of room in my budget for traveling (before COVID I was averaging about 2 international trips a year.)
On track to pay off in 4 years, but started off in boutique law and lateraled to biglaw as a second year. Starting debt was $138k, I am at $84k, but with $32 added to a savings account since April to pay it off December 30th when the COVID pause ends. Only reason I’m not paying it off now is because with 0% interest accruing I’m curious what the next president will announce in terms of forgiveness.
A4, I obviously think is should be based on income, not arbitrary categories, that was just an example of the type of person with really high debt levels, with equally high earning potential
Will pay mine off in 5.5 years. I refinanced to get a low rate, and then prioritized maxing out my 401k and saving for a down payment. If you get a low enough rate from a refinancing, depending on what else is ahead for you, it is cheap debt.
Just paid mine off today and I can't tell anyone! 7.5 years after I graduated. Started with 160k of debt, didn't start aggressively paying down until 3.5 years ago. Fully funded 401k and HSA and backdoor roth throughout.
Go you!!!
*laughs in worked during school and paid them off the day after graduation*
My wife came in with $220k debt (she’s an attorney). I am an evening law student, but I do not have loans because I paid with my income. It took my wife 1yr and 4 months to pay off her debt, but in hindsight I regret it because interest rate was 2.2% (refid, fixed with FRB) and we prioritized paying that off right before COVID (stocks then took off) 🤦🏻♂️