New Study Reveals Effects of Law Student Debt, Offers Recommendations

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Sep 09, 2024, 09:00 ET

WEST CHESTER, Pa., Sept. 9, 2024 /PRNewswire/ -- AccessLex Institute®, the largest nonprofit in legal education, is pleased to announce the publication of the newest American Bar Association (ABA) Young Lawyers Division (YLD) Student Debt Survey Report.

The report, a collaborative effort by the American Bar Association Young Lawyers Division and the AccessLex Institute, offers new insights regarding young lawyers' experiences with the COVID-19 student loan repayment pause, their plans in the event of loan forgiveness, their satisfaction with loan servicers, and their mindsets regarding work-life balance. AccessLex Institute and ABA also partnered on student debt surveys in 2020 and 2021.

Conducted over four weeks in April and May 2024, more than 700 young lawyers nationwide completed the 2024 survey and more than 800 provided partial responses.

"The latest Student Debt Report provides a sharper perspective on the challenges recent law graduates face in balancing their loan repayment obligations with their personal and professional aspirations. For instance, we see that when the student loan repayment pause temporarily removed the specter of education debt, the shadow of other debts remained for over half of respondents who used the relief to pay on those obligations," said Tiffane Cochran, Vice President of Research at AccessLex Institute. "These insights will continue to inform and motivate our efforts to partner with the ABA Young Lawyers Division and others to advance financial well-being among rising legal professionals."

The report, which was authored by AccessLex Institute, indicated:

Just over a quarter (27%) of respondents have a current student loan balance that is higher now than when they graduated. Of those, 71% indicate their balance has grown because they are in an income-driven repayment plan and their monthly payments do not cover the principal.
While 70% of respondents who borrowed report they were aware of their student balance each year they were enrolled in law school, only 42% report having an awareness of the impact of compound interest and other fees associated with deferring loan payments. Awareness was even lower for first-generation and racially underrepresented respondents at 33% each compared to 45% of continuing generation respondents and 44% of racially represented respondents.
At the time they enrolled in law school, many young lawyers did not anticipate how student loans would affect them after graduation. Of those who borrowed, only 25% agreed they clearly understood how their student loans would impact their careers, and only 28% clearly understood how their student loans would impact their personal lives.
Most young lawyers (75%) who borrowed report their debt altered the career plans they had when they entered law school, and 76% report their debt caused them to delay or forgo life plans, such as marriage and children.
In the event of total loan forgiveness, half of borrowers would use the money gained to grow their savings, and 44% would contribute it to retirement accounts.
Despite the burdens that accompany education debt, most respondents (74%) would still get a J.D. if they could go back and do it all over again.

Read the full report and recommendations here.

About AccessLex Institute:  

AccessLex Institute is a nonprofit organization committed to helping talented, purpose-driven students find their path from aspiring lawyer to fulfilled professional. In partnership with its nearly 200 member law schools, improving access and positively influencing legal education have been at the heart of the Company's mission since 1983. Learn more about how AccessLex is empowering the next generation of lawyers at AccessLex.org.

Contact: Julie Solomon, [email protected]

SOURCE AccessLex Institute