• Ony 34% of young lawyers with high debt believe their JD was worth the cost, but the majority of them would do it again, an ABA survey shows.

• Student debt significantly impacts young lawyers' financial anxiety and life choices.

• Higher salaries provide some relief but often compromise work-life balance.

A recent survey by the American Bar Association Young Lawyers Division and AccessLex Institute’s Center for Legal Education Excellence highlights the immense pressure student debt places on new lawyers. Many are wondering whether pursuing a JD was a sound financial decision, with finances being a top concern for those struggling with high debt loads.

The survey, titled Student Debt, COVID-19 Relief, and Loan Forgiveness: Perspectives From Today’s Young Lawyers, targeted members of the Young Lawyers Division who were age 36 or younger or who graduated law school or obtained a law license within the last 10 years. 

Questioning the Value of a JD

The survey found that a sizable number of young lawyers are reassessing their educational choices:

• Worth the cost – 76% of young lawyers with no loans said their law school education was worth the cost, compared to only 34% of those with student debt over $250,000.

• Attending the same school – 78% of lawyers with no loans would attend the same law school if they could do it all over again, compared to 28% of those with high loans.

• Getting a JD again – 83% of debt-free lawyers would still get a JD, compared to 69% with high student debt.

Financial Anxiety and Emotional Burden

For many young attorneys, financial stress is constant, with 67% of all respondents and 68% of those with student debt saying they were worried about finances and that this had a negative impact on their well-being and life choices:

• Worrying about regular expenses – 27% of those with no debt and 79% of those with debt greater than $200,000

• Feeling stressed or anxious – 58% of those with little or no debt and 76% of those with debt greater than $200,000

• Feeling depressed or hopeless – 29% of those with little or no debt and 52% of those with debt greater than $200,000

• Postponing or deciding not to marry - 41% of those with little or no debt and 69% of those with debt greater than $200,000

• Postponing or deciding not to have children - 26% of those with little or no debt and 50% of those with debt greater than $200,000

How High Salaries Can Help

High starting salaries in top law firms might seem like a solution, but they come with trade-offs. Many young lawyers reported that while their salaries eased some financial stress, the demanding hours and pressure that come with these jobs took a toll on their mental health and work-life balance:

• Not using vacation time – 31% of young lawyers making more than $200,000 a year, 24% overall

• Spending ess time with family and friends – 53% of young lawyers making more than $200,000 a year, 35% overall

• Spending ess time on exercise and self-care – 60% of young lawyers making more than $200,000 a year, 47% overall

What’s Next

The study includes several recommendations for addressing this situation, including:

• easing the ability to discharge student loans in bankruptcy

• strengthening the Public Service Loan Forgiveness program

• providing better education regarding student loans and the legal job market

“These results show again that education debt is a major deterrent to young attorneys’ progression toward career, financial and personal life goals,” ABA President Bill Bay sad in a press release detailing the survey findings. “But they also give us a roadmap to potential solutions that could serve to relieve financial stress for young lawyers as well as for the millions of Americans shouldering the weight of education debt.”