Thoughts on Alex Benikov's Interview

I greatly appreciated the interview between Professor Bassett and Alex Benikov. Although much of what Benikov said was disheartening, he offered realistic advice that should be discussed more. 

I will use this blog post to highlight some of Benikov’s points and provide my own commentary. 

You Should Pay Off Your Student Loans as Fast as Possible

Benikov graduated with $100,000 in debt, and by the time he paid it off nine and a half years later, that debt was valued at almost $250,000 because of interest. That’s insane! He paid more interest than what he borrowed! Paying off loans quickly will lower the amount of interest you owe, so it is a good idea to pay off your loans quickly if you can. Moreover, paying off your loans provides more freedom in the long run since you can spend your money on other things. For example, you can take that dream vacation you always wanted, or buy a nice car or house earlier in life. Paying off your loans fast also provides mental relief since you do not have to worry about making a monthly payment and can essentially move on. 

Consider Your Lifestyle Choices  

At one point in the interview, Benikov said that he did not want to sound like a Boomer and said that we should not buy avocado toast. I do not think it is wrong to enjoy a meal out every so often or order coffee a few times a week, but I have seen many law students and attorneys with loans eat out for two-thirds of their weekly meals or drive a fancy car while owing hundreds of thousands of dollars. It is difficult to live frugally given how expensive everything is these days. I was going to rent a 300-square-foot studio apartment about five minutes from campus but backed out when someone pointed out the $1,600 monthly rent (not including Wi-Fi or utilities). I now live in a tiny apartment and share a bathroom with another person for much less than $1,600. I am uncomfortable sometimes, but I remind myself how lucky I am to have cheap rent.  

Student Loans May Never be Forgiven

This is a difficult idea to accept. Of course, no one knows whether the federal government will ever cancel everyone’s student debt, but I agree with Benikov when he said that he does not think it will ever be canceled. We have already seen the U.S. Supreme Court strike down President Biden’s attempt at doing so, and who knows whether a future administration will keep the Public Service Loan Forgiveness program. I was taken aback when Benikov said that we should take a higher-paying job over a lower-paying job that may allow us to qualify for loan forgiveness, but it makes sense since we do not know what the future of student loans looks like. I am public service-oriented, so I am considering jobs that pay less than what many of my peers will earn. While I do not want to give up on having a job that serves the public, this interview has made me reconsider some of my choices.  

Conclusion

I would like to conclude this post by saying that law school is too expensive. Many schools provide generous scholarships, but for most people, those scholarships are not enough to cover all tuition or living expenses. Before anyone attends law school, I would advise them to consider the costs of attending and compare that to their potential earnings as an attorney. Some people can have a job and salary they are happy with without earning an expensive JD. I wish I had considered this before attending law school.