There are notable differences in borrowing and debt effects among more than 700 young lawyer respondents in a new survey conducted by the American Bar Association Young Lawyers Division.
Tiffane Cochran
The report provides a sharper perspective on the challenges recent law graduates face in balancing their loan repayment obligations with their personal and professional aspirations, said Tiffane Cochran, vice president of research at AccessLex Institute and one of the report authors.
“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 Cochran. “These insights will continue to inform and motivate our efforts to partner with the ABA and others to advance financial well-being among rising legal professionals.”
The survey revealed that 27% of respondents reported current student loan balance that is higher now than when they graduated, and of those, 71% indicate their balance has grown because they are on an income-driven repayment plan and their monthly payments do not cover the principal.
Carrying student loan debt was reported as a causes of stress and anxiety among 68% of respondents who borrowed, 75% of whom said they altered career plans or delayed life plans, such as marriage and children.
Notably, despite the burdens that accompany education debt, most respondents (74%) said they would still get a J.D. if they could go back and do it all over again.
Report authors suggested, among their recommendations, that leaders augment student loan counseling and related financial education programming within law school and continue educating pre-law students on the legal job market, salary expectations and the financial realities of student loan repayment.
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