Lawyer with $150K in Student Loans Asks Suze Orman for Advice
A lawyer saddled with $150,000 in student debt has written to financial guru Suze Orman for advice.
The anonymous writer tells of a “dire” financial situation caused by the pursuit of a law degree and a graduate degree in public policy. He or she has $150,000 in debt at 4 percent interest and only $8,000 in savings.
“Now I have to work at a corporate law firm to pay off the debt!” the writer says in a letter posted on the New York Times Freakonomics blog. “Am I doomed to a life of puritanical delayed gratification where I can’t think about buying a car or home for another 20 years? How much should I save, as opposed to using that money to pay off school debts?”
Orman responds that the 4 percent interest rate is a “pretty nice deal” and the lawyer shouldn’t rush to pay it all off, as long as the interest rate is fixed. She adds that the writer will probably be able to make a “serious dent” in the loans within about five years and will be able to pursue other financial goals at that time, whether it’s buying a home or putting money in stocks.
Orman also offers a haiku that sums up her best financial advice.
Can you afford it?
Unpaid credit card balance?
One word, friend: denied!
