How Young Lawyers Feel About Astronomical Student Debt (Spoiler Alert: Not Good)

The ABA Young Lawyers Division recently surveyed law school graduates with the highest student loans. Unsurprisingly, graduates with the highest levels of debt faced significant anxiety over their loans and reported the loans were affecting their life decisions. One example is delaying marriage.
The ABA Young Lawyers Division received responses from 800 lawyers aged 36 and younger who became licensed in the last ten years. 85% of respondents took out loans to pay for their legal education, with 21% of those taking out private loans in addition to federally subsidized loans. The average debt amount was $137,500 for all student loans at graduation.
Key Findings
While perhaps not breaking news (a 2021 study by the Young Lawyers Division had similar findings), the study did have several notable results. Possibly the most significant one was that approximately one-quarter of respondents have a current student loan balance that is higher now than when they graduated. Of those, 71% said they are on an income-driven repayment plan, and their monthly payments do not cover the principal.
Another important survey result was the impact on mental health, even for recent graduates who have found employment. Recent grads making more than $200k per year are still worried about their student loans. 30% said it made them not take their vacation days, and over half said it resulted in them spending less time with family and on self-care. The effect is more severe for graduates who did not land high-paying jobs. Around half (52%) said their debt level made them feel depressed and hopeless.
The survey also asked about student loan forgiveness. According to respondents, the COVID-19 student loan repayment pause provided crucial relief, with most respondents using the freed-up funds for essential expenses and debt reduction.
Young Lawyers Want to Practice Law Despite Debt
The news is not all dour. Despite the issues many new lawyers have with student loans, a clear majority (74%) said they did not regret their choice to go to law school and would do it again if they had to.
However, many said that the starting salary was more significant when looking for jobs than anticipated. A majority (60%) said salary was a large factor when looking for a job, and 31% said they took a job less focused on public service than they had intended when starting law school.
Is There Anything to be Done?
The survey provided several recommendations, including enhancing financial education and loan counseling in law schools, improving awareness of free financial advising services, and advocating for policies that support manageable loan repayment options and the Public Service Loan Forgiveness program. Additionally, the survey called for better support for young lawyers in maintaining work-life balance and wellness routines. The study also called for a greater ability to discharge student loans in bankruptcy.
You can read the full report on the ABA website.
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