Occasionally I find myself in the surprising position of encouraging students to take on more debt. It's a odd situation for someone who is customarily espouses frugality. For law students, minimizing student loan debt not only reduces stress but also opens the door to a wider range of practice choices when maximizing income isn't the primary driver for employment choices.
Sometimes, however, I find students so fearful of taking on additional student loan debt that they deny themselves opportunities which would pay abundant dividends in the long run. For investors, putting a portion of one's portfolio in stock funds, even though they carry higher risk, ultimately pays off better than socking everything away in a savings account. But I'm running into more students nowadays who, fearful of increasing debt, are doing the equivalent of stuffing dollar bills under the mattress. One student, for example, eschewed any legal practice experience during summers or the academic year, choosing instead the immediate paychecks coming from work in the hospitality industry. While the income stream meant that s/he graduated with less debt than many classmates, s/he found it an uphill battle to land legal employment after graduation with no practice experience. Some reject out of hand the possibility of taking plum summer positions in a field they are passionate about if it would mean paying extra rent in another city for a month or two. Even decisions as mundane as choosing local housing can have an impact: I've known students who have settled so far out in their quest for cheap housing that the long commute saps the time and energy they should be devoting to law school.
Law school is an expensive proposition, but students get to choose whether to make it a money pit or a worthwhile investment. When I suspect students are being penny-wise and pound-foolish, I encourage them to do a cost-benefit analysis, focusing on the long term with their goals in mind. Extraordinary opportunities often carry short-term costs. Keeping your eyes on the prize, would this opportunity provide a great experience to learn, to grow, to interact with expert lawyers? Will it provide an unparalleled opportunity to let you explore your passions? Will it pay dividends in helping you become an extraordinary lawyer? If so, it's probably worth the the relatively minimal amount it will add to your student loans. Be frugal, certainly, but take advantage of opportunities to suck the marrow out of your law school experience.
(Nancy Luebbert)
