3 Steps during Student Loan Application Season

Photo Credit

January is the month where student loan applications become due.  Nearly eighty percent of law students rely on student loans to finance their education.  At large, the student loan debt of about 40 million Americans comes to around $30,000 per student, and we know that the debt load for law students is much, much more.

Making the decision to borrow might seem easy.  All you do is ask, it’s probably going to be approved, you attend classes, and about 6 months after graduation your terms kick in and your jaw hits the ground.  How did I end up owing so much?  Where did all this money go?  Borrowing should be far from an easy choice.  Take these three steps to help you research and create the best financial aid package for you.

1.      Search for as many scholarship opportunities as possible.  Remember to look in unique places for scholarships.  Go to your employer or the employers of friends or family who may offer scholarships or reimbursement plans.  Look to community organizations, fraternal orders, or bar associations.  Check with your school, financial aid office or with career counselors for additional scholarship opportunities.  Organize what you find by deadlines and make a goal to apply to a certain number of scholarships each week.

2.      Decrease how much you borrow.  Too often students take out more loans than they actually need.  Money is spent on electronics or parties rather than on education.  Do you really want to pay for last night’s kegger for thirty years?  Probably not.  Learn to budget and live for less.  Take measures to decrease your student debt prior to graduation.  Make an effort to negotiate your tuition and eliminate the charges the school includes into your tuition that you aren’t using (i.e. computer lab, gym fee, athletic tickets).  Take on part-time work (if it won’t cause your grades to suffer) to supplement your income.

3.      Research the loan market.  Private v. Federal loans?  What will work best for you?  As you may know, there were many changes made to the interest rates of federal student loans this past summer.  What your loan terms are this time will be different than loans you may have borrowed last year or earlier.  Be sure to read and understand the terms of your loan (which is well described in Chapter 5 of my book).  You might be able to find a private loan that has better rates, although the government often gives better repayment options – just be sure to weigh what will be better for you long-term.  Here is a helpful article when considering private loans.  If you do take out private loans, make sure you have a good credit score so that you can get the best interest rate as possible.

It may be a lot of work, but it’s definitely worth the time to prevent a lifetime of financial stress and hardship in the future.

---

A New Year, A New You: 5 Resolutions for Law Students

Photo Credit

The clock has struck midnight, the crystal ball has dropped in Times Square, and the corks of champagne bottles have popped – it’s 2014!  It’s also that time of year for New Year’s resolutions.  Lose weight, quit smoking, try something new are just some of the more common resolutions, and most people ditch those plans by February.  The reason many New Year’s resolutions fail is because people tend to set too many and/or unattainable goals.  This can be overwhelming.  Avoid losing your gumption by choosing one resolution that is really important to you, creating a plan to reach that goal, and writing it down somewhere that can be a constant reminder. For all you law students out there, here are a few New Year’s resolutions designed just for you and tips on how to sustain them.

When you select your goal, try to make it time-specific, achievable, and measurable.  These are keys to making a successful resolution.  When you create your plan, write out small steps that you can take towards your end goal.  Small accomplishments can give you something to physically cross off, and will motivate you to stay on track as well as boost your morale.  Finally, write your goal and your steps down, and then place it somewhere you will see every day such as on the desktop of your computer, on your fridge or as an alert on your cellphone.

1.      Goal:  Improve class rank by the end of the spring semester. Achieving a high class rank will increase your chances of employment upon graduation.  Example Plan:  Drop extracurricular activities that are stretching you too thin.  Form a study group with those in the top ten percent of your class.  Tweak your study habits (check out Learning Your Learning Style for tips). Do one practice test every other week.   

2.      Goal:  Make Law Review or Moot Court.  Both are competitive, and will help your résumé and increase your job opportunities.  Example Plan:  Talk to whoever is in charge to find out when selections will be made as well as the requirements – this will give you your specific time and some of your steps.  Practice in mock trials or get a research assistant position to fine tune or improve your skills.

3.      Goal:  Pass The Bar.  Whether you’re a 1L or 3L, passing the bar is the ultimate goal to practicing law, and it’s never too early to think about it.  Example Plan:  Look up the state’s admission requirements and deadlines.  Invest in a good bar prep course.  Take courses that are tested – most of your 1L classes cover the MBE and MPRE, but electives may be needed for state-specific essays.  Read 4 Bar Exam Bargains While You’re Still in Law School and 4 Bar Exam Purchases That Got Me Through the Bar to get more ideas as you build your plan.

4.      Goal:  Acquire a scholarship for next year.  Free money will help lessen your financial stress during school and your burden upon graduation.  Example Plan:  Talk to your school’s admission office and career counselors, search online, and check with local and state bar associations to find out about opportunities and requirements.  Take steps to fulfill those requirements.  Determine a certain number of applications to submit each week or month.  Check out New Scholarship Opportunities for Law Students.

5.      Goal:  Create a budget and stick to it for 3 months.  Establishing a 3-month time frame is less overwhelming and you will be less likely to abandon it if you mess up a week or two.  Plus, after doing something for 3 months, it will probably turn into habit.  Example Plan:  Spend like you normally do for a set period (1 week or 1 month) or look at the previous month’s expenses and design your budget.  Pick an area that you can cut back (don’t cut back everything all at once – again, this can make it overwhelming).  Add a new area to cut back each month.  Clip coupons.  Read Barrister on a Budget:  Investing in Law School…without Breaking the Bank for specific budgeting plans and tips.

So, here’s to 2014 – a new year, a new you!  Cheers!

---

5 To Dos for Law Students This Winter Break

Photo Credit

Finals are done!  Time for the twenty-four hour marathon of The Christmas Story, a little Jack Frost nipping at your nose, and plenty of sleep so those sugar plums can dance up a storm in your head.  Oh wait, you’re a law student.  If you want to give yourself every advantage, you’ll be spending your break working towards your goal – to be an employed attorney upon graduation.  Slip on your Snuggie, buckle down with a cup of hot cocoa, and check these items off your winter break to do list.

1.      For 3Ls:  You will have a little extra work ahead of you this break.

a.       Complete Your Bar Application:   The bar application takes up a lot of time and isn’t something you will want to add to your already busy semester.  Use your break to track down all of your employers and addresses.  Secure your references.  Get your finger prints and get forms notarized.  Check with your state’s bar admissions for directions, required documents, and deadlines.

b.      Review Graduation Requirements:  Make sure you have all of the credits and courses required to graduate completed.

c.       Plan Your Budget:  This next semester, you will want to scrimp as much as you can.  Big expenses such as bar applications, bar prep courses, and graduation fees can put a significant dent in your financial plan.  Not to mention, you will need to plan for unemployment during bar study and possibly afterward.

2.      Get Ready for Interview Season: Update your résumé to include any changes in your rank, GPA, and any new experience or activities from the fall semester.  Polish your writing sample. Get in touch with your career counselors to have them review and critique your documents.  See if they are available during break or schedule an appointment upon your return to have a mock interview and critique session.  If you need interview attire, the sales for suits are awesome this time of year.

3.      Create a Financial Plan:  As many applications for student financial aid are due for the next academic year in the early spring semester, use this time to figure out your best options, fill out applications, and submit them.  Look for scholarship opportunities and try to finance the majority of your education with them.  Government loans aren’t what they used to be, so shop around for the best deal.  Establish your budget.  How was your spending last semester?  Are there areas that you can cut back on?  If so, maybe you can ask for fewer loans for next year or even accept less this upcoming semester.

4.      Hunt For Opportunities:  Can you get your Alternative Dispute Resolution (ADR) training or certification?  Having this experience lends to your résumé and may even provide you income down the road when you might need it.  Participate in any CLEs or bar association meetings where you can gain some experience in a niche field or to help you build a network.  Are you planning on practicing law in your hometown, but go to school elsewhere?  Hit the pavement hard while you’re home.  Not only can you make face-to-face contact when dropping off your information (which can be better than a cold email or letter), you might save yourself travel costs during the semester.

5.      Start Reading:  Get ahead by reading supplements for your upcoming courses.  Organize for the upcoming semester.  If you didn’t do well last semester, reevaluate how you study and manage time  or even whether you want to go back to law school.  Start on your outlines or flash cards.  Shop around for your textbooks early to get the best prices.

---

5 Tips for The Jobless Lawyer This Holiday Season

Photo Credit

You’re already feeling the pressure.  Six months since graduation, five since you took the bar – even less since you passed.  Your student loan grace periods are ending.  And on top of it all, it’s the holidays and you still don’t have a job as an attorney!  Try to keep your Grinch at bay, and try these tips to get you through this holiday season.

1.      Take Advantage of Temporary Employment:  Part-time work is abundant during the holidays.  Yes, the whole point of getting an advanced degree was so you wouldn’t have to fold one more sweater, but hear me out.  It is imperative that you can pay your upcoming bar membership fees and CLEs so you can keep an active license.  Going inactive will not get you a job as an attorney.  These things add up and stowing away as much income from a holiday job can really help.  The bonus – it’s temporary!  You aren’t committed.  You will have time to look for your career job, and it’s less likely that there will be hurt feelings if you quit the temp job on short notice.

2.      Gifts:  This is a two-sided tip.  Don’t spend money that you don’t have.  Talk to your friends and family and explain that you may only be able to give something small or nothing at all this year.  You can always offer a helping hand (best if kept non-legal) with something around the house or babysitting for a friend as a gift instead.  On the other side, if your friends and family are cool with not getting something from you and are feeling generous any way, ask for them to chip in towards bar association memberships, an online CLE course, a student loan payment, or a ream of paper so you can print more résumés.  Do you really need a blender or an iPod?  No, you need a job.

3.      Holiday Events:  If you’re a member of a bar association, there may be a holiday gathering you can attend for free or at little cost.  Maybe you have a friend who is working at a firm.  If their firm is having a holiday party, see if you can go as a date.  Use the opportunity to mingle and expand your network.  Avoid going in guns blazing for that job; it will turn people off.  Just relax and try to get to know people, expecting nothing in return.  Make a good impression – dress appropriately and don’t overdo it on the cocktails.

4.      Prevent Gaps:  It’s very important to keep the gaps out of your résumé and to keep your skills sharp.  Volunteer on a bar association committee or offer to do a presentation.  See if a firm needs help with a pro bono case.  Get your Alternative Dispute Resolution (ADR) certification and sign up with the court to offer your services.

5.      Keep Searching:  People tend to get wrapped up in the holiday spirit, slowing down and humming Christmas tunes, and that spirit is starting earlier each year.  Take advantage of that lag when others aren’t putting forth effort.  Plus, why waste any moment not looking?  Sometimes all it takes is lucky timing.

---