Number 4 is somewhat misleading. I'd say gov't and public interest are both appealing options, regardless of the pay. You can get the advantages of the public service loan forgiveness program and, in some cases, some extra soft benefits. For example, my wife gets two official paid weeks, and extra time when the judges take time en masse (i.e, Christmas), so her two weeks is in reality four or five.

And, while our case might be an exception to the general outlook for families of two newly minted lawyers (2012 grads), her government job also enables us to lower our payments since we can contribute to an IRS 457 plan to defer compensation and lower our AGI, in addition to her retirement plan. So, that helps keep her payments lower during the required 120 payment period, while enabling us to dedicate more to addressing my law school loans.

Finally, I don't think even most government and public interest jobs are competitive in the sense that other candidates are the reasons why people can't get these jobs. Admittedly, this will be the case in more sought after positions, but there are many government jobs that don't have serious competition, where you are competing against a few other applicants. A lot of the time, the problems with people finding these jobs have to do with character issues from their past. Government jobs, notably state attorneys general, district attorneys office, or other governmental posts affiliated with law and enforcement, do scrutinize the background of the candidates more than others. So, any mishaps in character would cull you from the pool. But that's not competition, because you could be the only applicant and you still not get the job.