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    October 31, 2024

    Stressed and Depressed: Young Lawyers and Student Debt

    This article was originally published in the ABA Journal at www.abajournal.com.

    This article was originally published in the ABA Journal at www.abajournal.com.

    High student debt is affecting the emotional well-being of young lawyers and affecting their life decisions, according to a 2024 survey by the ABA Young Lawyers Division released Monday.

    It is also causing a sizable number of young lawyers to reassess their educational choices.

    Seventy-six percent of young lawyers with no loans said their law school education was worth the cost, compared to only 34% of those with student debt greater than $250,000. Seventy-eight percent of young lawyers with no loans would attend the same law school if they could do it all over again, compared to 28% of those with loans greater than $250,000.

    But a majority in both groups would get a JD if given the chance to do it over, although the percentages differed. Eighty-three percent of those with no loans would still get a JD, compared to 69% with student debt greater than $250,000.

    Finances are a worry for 67% all young lawyers and 68% of young lawyers with student debt, according to a Sept. 9 ABA press release summarizing the survey findings. But the impact increases with higher debt loads.

    Among those with more than $200,000 in student debt, for example, 76% reported that the burden made them feel stressed or anxious, and 52% reported that it made them feel depressed or hopeless. Sixty-nine percent at that debt level postponed or decided not to get married.

    While higher salaries helped offset the financial stress, they had a negative impact on work-life balance, the survey reported. Among young lawyers making more than $200,000 per year, fears of jeopardizing a promotion or salary increase led 31% to not use their vacation time, 53% to spend less time with family and friends, and 60% to spend less time on exercise and other forms of self-care.

    Among all young lawyers, the percentages were 24% who didn’t use vacation because of perceived career and salary risks, 35% who spent less time with family, and 47% who spent less time on exercise and other forms of self-care.

    The survey 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. More than 700 lawyers completed the survey in full, and more than 800 provided partial responses. The AccessLex Institute analyzed the data.

    Surveys by the Young Lawyers Division in 2020 and 2021 also found that newer lawyers with high debt balances were delaying or forgoing significant life events, including marrying, buying a house and having children, according to the press release.

    “These results show again that education debt is a major deterrent to young attorneys’ progression toward career, financial and personal life goals,” said ABA President Bill Bay in the press release on the new 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.”

    The study includes several recommendations, including easing the ability to discharge student loans in bankruptcy, strengthening the Public Service Loan Forgiveness program, and better education regarding student loans and the legal job market.

    Among lawyers with student loans over $200,000:

    • 84% felt high or overwhelming stress over personal finances. The percentage was 87% for those with debt between $150,000 to $200,00; 75% for those with debt between $100,000 and $150,000; 65% for those with debt less than $100,000, and 38% for those with no debt.
    • 79% worried about meeting normal monthly expenses sometimes or all the time. The percentage was 76% for those with debt between $150,000 to $200,00; 63% for those with debt between $100,000 and $150,000; 52% for those with debt less than $100,000, and 27% for those with no debt.
    • 76% reported that their debt burden caused them to feel stressed or anxious. The percentage was 78% for those with $100,001 to $200,000 in student debt, and it was 58% for those with $100,000 or less in student debt.
    • 52% said their debt burden made them feel depressed or hopeless. The percentage was 49% for those with $100,001 to $200,000 in student debt, and it was 29% for those with $100,000 or less in student debt.
    • 69% postponed or decided not to get married. The percentage was 56% for those with $100,001 to $200,000 in student debt, and it was 41% for those with $100,000 or less in student debt.
    • 50% postponed or decided not to have children. The percentage was 45% for those with $100,001 to $200,000 in student debt, and it was 26% for those with $100,000 or less in student debt.

    Overall, 85% of the respondents reported borrowing to finance law school or undergraduate education, and 21% borrowed to cover the cost of bar exam preparation. Twenty-seven percent of the surveyed lawyers said their student loan balance is higher than when they graduated. Eighty-six percent of surveyed borrowers said they benefited from the COVID-19 student loan repayment pause.

    The survey also asked young lawyers how they would use their extra money if their loans were forgiven, allowing more than one choice. Half of borrowers said they would use the extra money to increase their savings, 44% would contribute the money to a retirement account, 36% would pay down other debts, 36% would buy a house or make home improvements, 29% would make nonretirement investments, and 24% would use the money for child care or to start or grow a family.

    The survey is titled Student Debt, COVID-19 Relief, and Loan Forgiveness: Perspectives From Today’s Young Lawyers.