A Wall Street Journal analysis of federal student loan debt recently showed that elite law programs can offer the best return on investment to graduates. Among the top 20, the debt-to-income ratio averaged out to 1.0, which means that graduates were making a salary just two years out of school equal to what they had accrued in debt; the range in debt to income ratio among this elite group spanned from 0.7 at Stanford to 1.36 at Georgetown University.
Of note, this analysis only includes the salary and student loan debt for students who took out federal student loans and does not include private loans. The analysis reviewed the federal student loan debt accrued in 2015 and 2016 compared to the graduate’s salary two years later.
*17 schools ranked within the top 20 were included in the Wall Street Journal analysis; Yale, Duke and Cornell were not included
More broadly, however, the Wall Street Journal found that most law degrees, excluding those from elite programs, have decreased in value over time as inflation has outpaced salary, all while tuition prices have risen dramatically. The article notes that between 1985 and 2019, adjusting for inflation, the average annual tuition for a private law school has nearly tripled according to advocacy group, Law School Transparency. And, within this context, salaries have not jumped as significantly.
According to the National Association for Law Placement, starting law salaries generally fall within two clusters: $45,000-$75,000 for public service and small firm attorneys and around $190,000 for attorneys at large firms. And, according to a Law School Transparency analysis using American Bar Association data, more than half of the entry-level jobs at the large and high-paying firms go to graduates of the top 20 ranked law programs.
Prospective law students should take into account a law program’s cost as well as the expected median salary for graduates during the school selection process. Additionally, for those students who hope to go into public service or work for a smaller firm, it may be beneficial to compare the costs and outcomes for various public and private law school options, as well as debt repayment plans that may be available for different career tracks. Similarly, those hoping to obtain a place at a large and high-paying firm should look at placement outcomes at law schools of interest to best position themselves for success.
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ABA Report Calls for Action to Help Young Lawyers Struggling with Student Loans