The Weight of Law School Debt on New Lawyers
The path to becoming a lawyer is often paved with high expectations and the promise of a lucrative career. However, the reality for many new associates is far from glamorous. The weight of substantial law school debt is a pervasive issue that casts a long shadow over the early years of legal practice.
According to a 2020 survey by the American Bar Association Young Lawyers Division, titled The 2020 Student Loan Debt Survey Report, the vast majority of law school graduates carry a debt burden of at least $100,000. This staggering figure represents a significant financial hurdle for young lawyers just starting their careers. The pressure to repay these loans quickly can be overwhelming, impacting both personal and professional life. Participants were asked how their total student loan debt affected their life? The responses below were eye opening:
- I postponed or decided not to buy a house (55.6%)
- I postponed or decided not to have children (48%)
- I postponed or decided not to buy a car (46.3%)
- I postponed or decided not to get married (28.8%)
Studies have shown a correlation between high levels of student loan debt and increased stress, anxiety, and depression among young professionals. For example, a 15-year longitudinal study on young adults found that those with student debt reported 11.7% higher symptoms of stress and 13.2% higher symptoms of depression compared to the average citizen. Additionally, a study by Dr. Kristy Archuleta and colleagues found that financial concerns, including debt, were significantly associated with mental health problems and overall stress among college students. The constant worry about making loan payments can hinder an associate's ability to focus on their work and build their career. Moreover, the fear of financial instability can limit career choices, as new lawyers may feel compelled to prioritize high-paying positions over their desired practice areas.
The legal profession has traditionally been associated with financial success, but the economic realities of the modern legal market have changed. The job market for new lawyers has become increasingly competitive, with lower salaries and fewer traditional associate positions available. This combination of factors has created a perfect storm for young lawyers burdened with debt. To address this issue, law schools and the legal profession should work together to provide more support and resources for graduates. The first step is awareness among senior partners. Brenda Barnes and Camille Stell write in Respect - An Insight to Attorney Compensation Plans that “many senior partners find this [student debt] number difficult to conceive. They remember when their own law school experience cost $600 a semester. Many had no debt or if they did it was comparable to a car loan rather than home ownership.”
The weight of law school debt is not merely a financial burden but a systemic challenge that threatens the vitality of the legal profession. By investing in programs that support struggling graduates, law schools and firms can cultivate a more resilient and engaged legal workforce. A future where young lawyers are liberated from crushing debt is not only achievable but essential for the long-term health of the legal industry.
