Crushing Weight of Student Loans Leaves Some Law Grads with Few Options

Crushing Weight of Student Loans Leaves Some Law Grads with Few Options

The average student loan debt load for new attorneys now stands at $106,000 for private and $70,000 for public law school costs, according to the ABA Journal.  It's one thing for students to take on massive debt when the job prospect light at the end of the educational tunnel is bright, but that  has not been the case for new lawyers for nearly five years.  The chasm between the price tag on a legal education and the salary prospects for graduates continues to widen.  The average law grad starting salary was $63,000 in 2010. Law school debt is up 50 percent over the last ten years, but with fewer legal jobs available and salaries that have been fixed or reduced in recent years, some indebted students are left with little hope but to file for bankruptcy.  

But  bankruptcy is not necessarily the way out of burgeoning student loans, it is extremely difficult to prove financial circumstances that are severe enough to have that debt discharged. It's not only students who are feeling the pressure.  More and more parents are taking on large loans to help their children get their undergraduate degrees.  Federally-backed student loans taken out by parents are estimated nationally at roughly $100 billion dollars, that's 10-percent of the $1 trillion in outstanding educational loans,  Bloomberg reports.

 

Sources:

ABA Journal

Bloomberg