For a large majority, walking the aisle of the law school is a great event—most of the time it is presided by a feeling of achieving and looking forward to what is yet to come. On the contrary, increasing numbers of law school graduates report that achieving this developmental phase is synonymous with high levels of financial stress. As one recent graduate of law school bluntly put it, “I just did attend law school, graduated, and now I am going to be paying out 2.7K dollars every month for the next ten years as a slave to school loans.”
This is how many law school graduates resonate, as most of them are already struggling with financial obligations even before engaging in any work occupation. Managing high loan rates together with household needs is turning out to be a problem, especially in the case of individuals who went to expensive private law schools, and is thus on the rise.
The High Cost of Law School Education
Law school has never been cheap, but recent years have seen tuition costs soar to unprecedented levels. Graduates from private institutions are particularly vulnerable, as they often accumulate higher levels of debt compared to their public school counterparts. According to the American Bar Association, the average law school graduate leaves school with approximately $165,000 in student loan debt. For those attending private schools, like this recent graduate, the figure can be much higher—sometimes exceeding $200,000.
This debt can seem manageable when you are in school, but the reality hits hard after graduation. Even with a starting salary of $170,000, as this graduate mentions, once taxes, living expenses, and loan payments are deducted, the disposable income shrinks drastically. “After taxes, it’s like $110,000,” he explains. That $2.7K monthly payment does not just chip away at the debt; it can dominate the graduate’s budget, leaving little room for savings or other financial goals.
Income-Driven Repayment: Not Always an Option
For those graduates who carry student loans, the possibility of income-driven repayment (IDR) arrangements becomes one of their potential saviors. These arrangements provide for the computation of the monthly payments as a function of the earnings and the size of the family, hence bringing in some comfort. However, these arrangements are not available to all graduates immediately after the completion of their studies.
In this case, the graduate was informed that she could not make an application for an IDR plan since she was still in the grace period, meaning she had graduated no more than six months ago and thus could not make loan repayments yet. Within this period, however, the graduates can start the application for an IDR plan, which is aimed at decreasing the graduates’ monthly repayments. But too many are left in a situation where they have to pay the full cost in the meantime.
The Mental and Emotional Toll of Student Debt
There’s no doubt that the issue of students’ financial activities comes first in the hierarchy of concerns about the student loan crisis, but the psychological effects are just as paralyzing. “What in the actual hell??! Who can live like this? I regret all of this,” lamented the fresh graduate, which so many others in his stance would understand.
To have this debt weigh down like a life sentence of incarceration can be disheartening, especially to those in pursuit of getting a first job. Becoming a lawyer for some loses its glamour simply because they have to always think about paying back the loans. A phrase frequently seen on the internet where graduates gather to express and unburden themselves of the new graduate burden is, “My student loans are killing me.”
Weighing the Costs: Is Law School Worth It?
When it comes to achieving a legal career in the United States, many people believe that it is mandatory to attend law school despite the costs involved. However, with the costs of tuition and cost of living on the rise, potential spenders are more often than not looking at the pros and cons dejectedly. For those lucky enough to get high-paying job offers from top-tier law firms, the debt may be bearable. Unfortunately for most, especially those who work in public interest law or other less lucrative areas of practice, the debt is astronomical.
And as more and more graduates speak out in disappointment, there are louder calls for transformative reforms. Be it reforms that include student loan forgiveness programs or more income-driven repayments that are better structured or dealing with the exorbitant costs of legal education, the reality of student loans is impossible to wish away.
For this recent graduate, a hefty monthly payment will dictate the course of the next ten years. This is a situation that is faced by numerous individuals and has led to a controversy regarding the actual price tag of college education in the United States.