Money Management for Graduate and Professional Students
President Obama signed the American Recovery and Reinvestment Act (ARRA) into law on February 17, 2009. The purpose of the Act (known as the Stimulus Bill) is to preserve and create jobs; promote economic recovery; assist those most impacted by the recession; provide investments needed to provide long-term economic benefits; and to stabilize state and local government budgets.
The stimulus bill is notable not just for funding increases for student aid, but for a significant increase in refundable tax credits for 2009 and 2010. Refundable credits mean taxpayers may receive refunds even when they do not owe any tax, allowing low income students who have no tax liability to benefit. Read more about these changes
Keep these figures in mind when planning your graduate education!
Average undergraduate cumulative student loan debt for the class of 2007 (includes federal, institutional AND private loans certified by the institution. Parent PLUS Loans are not included in this calculation) . SOURCE: The Project on Student Debt, Student Debt and the Class of 2007
- Four year public schools: $18,482
- Four year private schools: $23,065
Average debt uncurred by 2007 grads while attending law school (Includes federal, institutional, and private loan debt but excludes bar study loans and debts from prior institutions. SOURCE: 2007-2008 ABA Annual Questionnaire
- Public: $57,170
- Private: $87,906
Average debt incurred by 2008 medical school graduates (Includes pre-medical /college education debt) SOURCE: AAMC 2008 Graduation Questionnaire
- Public: $143,140
- Private: $173,304
National median starting salaries for the law school class of 2007-SOURCE: National Association for Law Placement, Class of 2007 National Summary Report
- Public Interest Law: $42,000
- Government: $50,000
- All firms: $102,000 - By firm size
- 2-10 lawyers - $52,000
- 11-25 lawyers - $65,000
- 26-50 lawyers - $75,000
- 51- 100 lawyers - $90,000
- 101-250 lawyers - $115,000
- 251-500 lawyers - $140,000
- 500 + lawyers - $160,000
Other Credit Issues: SOURCE: Nellie Mae Graduate Students and Credit Cards in 2006: An Analysis of Usage Rates and Trends
- Graduate Students with at least one credit card - 95%
- Average outstanding balance on graduate student credit cards $8,612
- Graduate student survey respondents who used credit cards to pay a portion of their direct education expenses - 94%
Cresit Scores
What are "credit scores" and why are they important? Check this page for more information
Other Interesting Web Sites:
- Paying for Graduate School - from U.S. News and World Reports
- http://www.aamc.org/students/financing/md2/ - (MD) 2 : Monetary Decisions for Medical Doctors is a comprehensive, three-part program developed by the AAMC to assist premedical and medical students in their planning for the financial aspects of their medical education. Divided into three sections—The Premedical School Years, The Medical School Years, and Residency and Early Practice Years—(MD) 2 provides practical and comprehensive information specifically tailored to students throughout their medical education. This online resource contains information about making a successful transition to medical school, credit and consumer debt, types of financial aid, the financial aid application process, and relevant reference materials.
- Financing Medical School - This is the web site of the AAMC (Association of American Medical Colleges) for AspiringDocs.org
- Medical School Education: Costs, Debt and Repayment Facts-October 2008
- Financing Graduate Education: A Guide for Prospective Students - this is a publication from the National Association of Student Financial Aid Administrators ("NASFAA")
- Financial Aid for Law School - This is the web site of the Law School Admissions Council
- http://www.accessgroup.org/wiseborrower/index.htm -The "Wise Borrower" Curriculum is designed to help increase your understanding of personal finance and debt management.
- Loan Talk - receive monthly e-mail messages with financial tips from the Access Group
- http://www.myfico.com/ - Information about credit scoring and credit reporting as well as calculators.
- Financial Literacy Websites - this is a 3 page list compiled by the National Association of Student Financial Aid Administrators.
Did You Know?
April is the official National Financial Literacy Month; however the experts at Money Management International know that regardless of the day or month of the year you begin, the 30 step path will help you achieve financial wellness. Take the first step today at http://www.financialliteracymonth.com/
Updated April 25, 2009
