WEST CHESTER, PA — The AccessLex Institute®, in collaboration with the American Bar Association (ABA) Young Lawyers Division, has unveiled the latest Student Debt Survey Report, shedding light on the financial hurdles faced by young lawyers. Conducted during April and May 2024, the survey gathered responses from over 700 young lawyers across the nation, providing a comprehensive look at their experiences with student loans amid the ongoing financial landscape shaped by the COVID-19 pandemic.
The report reveals that more than a quarter of respondents currently owe more on their student loans than the amount they initially borrowed. A significant 71% attribute this increase to income-driven repayment plans that fail to cover the loan principal. Additionally, while 70% of borrowers were aware of their loan balances during law school, only 42% understood the implications of compound interest and deferring payments.
Tiffane Cochran, Vice President of Research at AccessLex Institute, highlighted the broader impact of these financial challenges, stating, “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.”
The survey also found that student debt has profoundly influenced career and life decisions, with 75% of borrowers altering their career plans and 76% delaying or foregoing life milestones such as marriage and starting a family. Despite these challenges, a significant majority (74%) would still choose to pursue a J.D. if given the chance to decide again.
Looking forward, in the event of complete loan forgiveness, 50% of borrowers would prioritize growing their savings, while 44% would focus on bolstering their retirement funds. These findings underscore the ongoing financial pressures young lawyers face and the critical need for informed financial strategies.
The insights from this report aim to inform ongoing efforts to support the financial well-being of emerging legal professionals. AccessLex Institute and the ABA continue to work towards fostering a sustainable financial future for law graduates across the country.
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