Is Going to Law School Worth It Anymore?

Is Law School Worth It?

A law career is one of the most reliable paths to financial security, but the cost of getting the degree isn't cheap. The average law school costs about $220,000, including tuition and living expenses, and the average graduate leaves with $160,000 in debt.

With some law school graduates somewhat regretting their decision to attend, it makes sense to examine whether going to law school is still worth it. Keeping in mind the high tuition costs, interest rates, and potential salaries, another good metric to consider would be its return on investment (ROI), calculated as the ratio of expected earnings to debt.

Average Law School Debt and Costs

Going to law school full-time requires a three-year commitment, and the average tuition and fees for just one of those years at an American Bar Association-accredited institution are already high. The average tuition at private law school was $55,993 in 2023, compared to an average of $30,554 at a public school. This cost does not include rent, food, transportation, and other living expenses.

As the law school workload does not permit most students to hold jobs, student loans represent the most common method of paying these costs. Consequently, the average law school graduate has over $160,000 in student debt.

For many students, student loan debt accumulates on top of debt they already carry from undergraduate school. While most lenders allow the deferment of undergraduate loan payments while attending law school, any unsubsidized portion of such debt continues to accrue interest. All told, it is not uncommon for a law school graduate to enter the working world with a sizable negative net worth. 

Expected Salary After Law School

Taking on such debt might be a smart investment if a law degree provided reasonable assurance of a high-paying job. Ideally, recent graduates should earn yearly salaries equal to or greater than their total student debt. This level of pay usually allows for paying off student loans within 10 years without materially affecting a person's lifestyle.

Stories abound, however, of law school graduates struggling to find any sort of legal job, much less one that enables the repayment of student debt in a timely manner. 

A 2022 study by the National Association for Law Placement found that only 51% of law school graduates from the class of 2018 were working in law firms, with the remainder in jobs that do not require a law degree.

A 2020 report by LawHub, based on data from the Department of Education, found that some schools do better than others regarding job placements and salaries. Looking at students three years out of law school, Cornell University, University of Pennsylvania, and Columbia University take the top three spots, with their students earning median salaries above $177,000. Consider that the Bureau of Labor Statistics in 2023 reported a median income for lawyers of $145,760. 

For the class of 2023, Columbia University saw 97.66% of its graduates find full-time jobs, 10 months after graduation. At New York University, 97.06% of the class of 2023 is employed 10 months after graduation. In some cases, of course, students may choose to put off those high-money jobs for prestigious public service spots: In 2023, 57 of 205 Yale Law School graduates were employed in clerkships.

Graduates of second-tier programs often settle for work outside of top law firms, where the pay is much lower. The 2022 median pay for law school graduates across the board was only $85,000. Idealistic young attorneys who choose public service fare even worse financially. Entry-level public defenders earn a median pay of $59,700; public interest organizations pay slightly better at $63,200.

Schools with the Best Debt-to-Salary

Even new lawyers who land good jobs rarely receive paychecks commensurate with their debt levels. The LawHub analysis also ranks law schools based on which offer the best value defined by their debt-to-income ratio. That figure is an indication of how much more your potential salary could exceed your potential debt and help make a more informed decision about whether law school is worth it.

Brigham Young University takes the number-one spot. With students expecting an average salary of $65,457 and holding an average debt just below $50,000, the school has an impressive 0.76 debt-to-salary ratio, making it a good value-for-money bet.

Cornell and Northwestern University are tied for second, each with a debt-to-salary ratio of 0.78. Cornell students have a median debt of nearly $140,000, but they also anticipate a higher target salary of $179,000 per year. Northwestern students borrow $138,000 but earn a target salary of $176,000 within four years. Northwestern also offers a higher tuition discount to qualifying students, with the median student receiving a $40,000 discount compared to Cornell's $30,000.

Opting for schools that fare poorly on this metric could cost you. Take, for example, the Pontifical Catholic School of Puerto Rico, which ranked near the bottom on the LawHub list, with a debt-to-income ratio of 4.94. Let's break down the numbers: Students graduate with $106,290 in debt—considerably higher than the $76,500 Rutgers grads have—but the average annual salary for graduates is only $84,664.

Other Considerations

The numbers do not consider the financial risk of dropping out of law school. The first-year law school attrition rate nationwide is 3.8% in 2023. Enrolling in law school but failing to finish offers no greater marketability than a bachelor's degree. It does, however, substantially add to a person's debt load.

All told, the decision to attend law school is one that should be approached with great consideration. Indeed, most attorneys have successful, high-paying careers. Supply and demand dynamics, however, have changed considerably since the 1980s, with fewer high-paying, entry-level jobs, and many more law school graduates chasing those jobs. Pile on tuition costs—which, for decades, have risen at nearly three times the inflation rate—and going to law school is not the financial no-brainer that it once was. 

The Bottom Line

Becoming a successful lawyer is one of the most lucrative career paths, if you graduate from a top-tier university. However, it's not a cheap path, and Ivy League law grads often graduate with six digits of loans. Public schools can offer a better bargain, but their students are less likely to be hired at the highest paying law firms.