At Nearly 1 in 5 Law Schools, Graduates Earn Less Than $55,000 Net of Debt Four Years After Graduation, Georgetown University Report Says
June 25 2024 - 12:01AM
The Georgetown University Center on Education and the Workforce’s
(CEW) latest report finds that graduates of many law schools carry
substantial debt, dimming some of the earnings and career returns
associated with a JD. A Law Degree Is No Sure Thing: Some Law
School Graduates Earn Top Dollar, but Many Do Not provides context
on law school employment outcomes, bar-exam passage rates, and
student-loan debt. In addition, CEW’s report ranks 186 law schools
based on their graduates’ median earnings net of debt four years
post-graduation.
For all law school graduates, the median earnings net of debt
are $72,000 four years after graduation, but exceed $200,000 at
seven law schools: Columbia University, University of Pennsylvania,
University of Chicago, Cornell University, Stanford University,
Harvard University, and Northwestern University. By comparison,
graduates of the 33 lowest-ranking law schools earn less than
$55,000 net of debt four years after graduation and have a lower
bar passage rate.
“When it comes to law school, the best returns are concentrated
among a small number of institutions, educating approximately 20%
of law students,” CEW Director and lead author Jeff Strohl said.
“Graduates earn the highest salaries from highly selective
institutions. The top 26 law schools lead to six-figure salaries
and a bar passage rate of 97%.”
The disparities in law school outcomes are most pronounced for
women and members of marginalized racial/ethnic minority groups,
who account for a larger share of enrollments at law schools where
earnings outcomes are lower and unemployment for graduates is
higher. These disparities are most pronounced for Black/African
American and Hispanic/Latina women. Since 2016, women have outpaced
men in law school enrollments and currently make up 56% of all law
school students, but their higher enrollment is yet to be reflected
in the profession: women account for only 39% of all practicing
lawyers. For prime-age working lawyers (ages 25–54), the gender pay
gap favors men by $28,000: female lawyers earn a median of $113,000
while male lawyers earn $141,000. This gender pay gap is much lower
($12,000) for entry-level lawyers, indicating that institutional
barriers and attrition in the legal profession contribute to the
lack of earnings parity later in lawyers’ careers.
Despite increased diversity at law schools overall, members of
marginalized racial/ethnic groups are underrepresented at large law
firms that pay the highest salaries. This is one factor in earnings
disparities by race/ethnicity in the legal profession. Asian
American lawyers, ages 25–54, have the highest median salaries
($132,000), followed by white ($131,000), multiracial ($125,000),
Hispanic/Latino ($113,000), and Black/African American lawyers
($108,000).
While those median salaries are relatively high, they don’t
account for the student loan payments that many former law students
are still making years later. Survey data show that Black/African
American and Hispanic/Latino graduates are more likely to leave law
school burdened with higher debt than their white or Asian American
peers. Furthermore, CEW’s analysis of College Scorecard debt data
indicates that prior to the pandemic-era student loan pause, law
school graduates were not making significant progress in paying off
student loans. At six in ten law schools, at least half of
graduates held loan balances that were the same as they were at
graduation, or had increased three years after completing their
degree.
“Law schools are notoriously expensive. Graduates leave law
schools with a median debt burden of $118,500, and lower earnings
make it harder to pay back this debt,” said Catherine Morris,
report co-author and senior editor and writer at CEW. “The
consequences of six-figure debt are also far-reaching for law
school graduates, impacting their ability to purchase a home, start
a family, and achieve other traditional markers of success.”
Even with the high cost of law school, the future of the legal
profession is stable. Legal occupations will be impacted by
technology-driven change that is moving all fields toward
digitization and automation, but job opportunities in the legal
profession are expected to increase. Between 2021 and 2031, the
total number of jobs associated with legal occupations will grow
from 1.26 million to 1.41 million.
“The legal profession is dominated by advanced degree holders,”
said Strohl. “Those contemplating a legal profession need to
consider factors like tuition costs and living expenses, existing
and additional student loans, and disparate earnings outcomes. But
the most important thing to understand is that debt may constrain
the career choices that graduates can make after earning their
degree.”
To view the full report, including an ROI ranking of 186 law
schools, visit: https://cew.georgetown.edu/law.
The Georgetown University Center on Education and the Workforce
(CEW) is a research and policy institute within Georgetown's
McCourt School of Public Policy that studies the links between
education, career qualifications, and workforce demands. For more
information, visit https://cew.georgetown.edu/. Follow CEW on X
@GeorgetownCEW, Instagram, YouTube, LinkedIn, and Medium.
Katherine Hazelrigg
Georgetown University Center on Education and the Workforce
202.510.8269
kh1213@georgetown.edu