• Student Loans
    • Undergraduate
    • Graduate
    • Parent Loans
    • Tennessee Lending Program for Teachers and Nurses
    • Eligibility Requirements
    • FAQs
  • Refinance Student Loans
    • Student Loan Refinancing
    • Parent Loans
    • Benefits & Savings
    • Eligibility Requirements
    • FAQs
    • Referral Program
  • For Business
    • CARES Act Details
  • About
  • Resources
    • Private Student Loan Calculator
    • Student Loan Refinance Calculator
    • Blog
    • Reviews
    • Press

Rates starting at: Variable 5.28% APR | Fixed 5.48% APR*

  • 1-844-601-ELFI

  • Log In
Education Loan Finance
  • Student Loans
    • Undergraduate
    • Graduate
    • Parent Loans
    • Tennessee Lending Program for Teachers and Nurses
    • Eligibility Requirements
    • FAQs
  • Refinance Student Loans
    • Student Loan Refinancing
    • Parent Loans
    • Benefits & Savings
    • Eligibility Requirements
    • FAQs
    • Referral Program
  • For Business
    • CARES Act Details
  • About
  • Resources
    • Private Student Loan Calculator
    • Student Loan Refinance Calculator
    • Blog
    • Reviews
    • Press
Find My Rate

Find My Rate

Categories

Career Graduate School Student Loan Refinancing

Average Student Loan Debt & Monthly Payments for Lawyers

January 14, 2022
Kat Tretina headshotKat Tretina

While law school appeals to many students because of the potential for high incomes — as of 2020, the median salary for lawyers was $126,930 per year — you should prepare for a large amount of law school debt. The typical law school graduate leaves school with six figures of student loans, and it can take 20 years or more to pay them off.

 

Before heading to law school, make sure you understand the costs involved and how long you’ll be in debt so you can plan for your future.

 

Average Law School Debt for Graduates

The cost of law school can be staggering. The average cost of tuition is over $49,000 as of 2019, the last available data.

 

To cover that cost, most law school students take on education debt. According to the National Center for Education Statistics, 69% of law school graduates took out student loans. The average law school debt per student is $145,500.

 

Depending on the student, they may take out federal or private student loans or a mix of both loan types. Law school students may be eligible for the following options:

 

  • Unsubsidized Direct: With federal unsubsidized Direct loans, you can borrow up to $20,500 per year to pay for law school. However, there are limits on how much you can borrow over your lifetime; the aggregate limit is $138,500, and it includes all of the loans you took out for your undergraduate degree. Currently, the interest rate on unsubsidized Direct loans is 5.28%.
  • Grad PLUS: Grad PLUS loans don’t have limits on borrowing amounts, so you can borrow up to 100% of the school-certified cost of attendance. The interest rate on GRAD Plus loans is 6.28%.
  • Private Student Loans: How much you can borrow in private loans varies by lender, but most allow you to borrow up to the total cost of attendance. Interest rates are dependent on the lender and the borrower’s credit profile, but fixed-rate loans typically range between 2.94% and 13.02%.

Typical Repayment Cost of Law School Debt

How much you borrow is only one factor determining how much you’ll repay over time. Law school student loans tend to have higher interest rates than undergraduate loans — even with federal loans — and you could take decades to repay your debt, allowing more interest to accrue.

 

If you had $145,500 in loans with a 10-year repayment term and a 6.28% interest rate, your monthly payment would be $1,636 per month, and your total repayment cost would be $196,306. 

 

But what if you have a longer loan term? Below is what you would pay with a term of 15, 20, or 25 years. As you can see, lengthening the term lowers your monthly payment but increases your total repayment cost.

 

10 Years

15 Years

20 Years

25 Years

Monthly Payment

$1,636

$1,250

$1,066

$963

Total Interest

$50,806

$79,487

$110,351

$143,256

Total Repayment Cost

$196,306

$224,987

$255,851

$288,756

 

Amount of Time It Takes to Repay Law School Loans

The length of time it takes to repay law school debt is dependent on the following factors:

 

  • Income
  • The type of loans you have
  • The repayment plan you’re on
  • If you’re eligible for an income-driven repayment plan
  • If you’re planning on pursuing loan forgiveness.

 

In general, law school graduates repay their loans over the course of 10 to 25 years.

 

5 Ways to Pay Off Law School Debt

Whether you have the average student loan balance or more, there are ways to accelerate your repayment and make your monthly payments more manageable:

 

1. Apply for Loan Forgiveness

If you are a public defender, work for a legal aid organization, or are employed by a non-profit organization or government agency, you may be eligible for Public Service Loan Forgiveness. Under this program, federal loan borrowers can qualify for loan forgiveness after 10 years of working full-time for an eligible employer while making 120 monthly payments.

 

2. Take Advantage of Student Loan Repayment Assistance

Some states have loan repayment assistance programs for lawyers with law school debt. If you commit to working for a legal aid organization for a set period of time, you could get money to repay your loans.

 

For example, the Louisiana Bar Foundation Loan Repayment Assistance Program gives lawyers up to $5,000 per year to repay their loans if they work in a public interest position.

 

You can find a list of state repayment assistance programs on the American Bar Association website.

 

3. Use Your Bonus to Pay Off Debt

As a lawyer, you may be eligible for bonuses from your employer.  The American Bar Association Journal reported that law firms typically pay between $15,000 to $100,000 in annual bonuses that are based on your associate class year.

 

Let’s say you had $145,500 in loans at 6.28% interest and a 10-year repayment term. If you received a $15,000 bonus and used it to make a lump sum payment toward your loans, you’d pay off your loans 16 months sooner. And you’d save $11,945 in interest charges.

 

4. Ask Your Employer for Help

To recruit top lawyers, some law firms offer student loan repayment benefits. They could match a portion of your payments, up to a percentage of your salary. Taking advantage of this perk could help you save money and pay off your loans faster.

 

5. Refinance Your Student Loans

If you have private loans or high-interest federal loans, student loan refinancing could help you tackle your law school debt. If you have a steady source of income and good to excellent credit, you could qualify for a refinancing loan with a lower rate than you have now, and you can combine your loans into one to simplify your payments.

 

For example, if you had the loans mentioned above and refinanced them, you may qualify for a 10-year loan at 4.75% interest. With the lower rate, you’d save over $13,000 in interest charges, and your monthly payment would be lower too.

 

Original Loan

Refinanced Loan

Loan Term

10 Years

10 Years

Interest Rate

6.28%

4.75%

Monthly Payment

$1,636

$1,526

Total Repaid

$196,306

$183,064

Total Savings: $13,242

 

If you’re taking advantage of federal loan programs like income-driven repayment or Public Service Loan Forgiveness, keep in mind that you can choose to refinance only your private student loans.

 

Find out how much you can save with the student loan refinancing calculator.

 

Refinancing Your Debt

Law school can be a worthwhile investment that leads to a lucrative career. However, the average law school debt amount can give students sticker shock, so it’s a good idea to do your homework and consider all of your options before taking out loans.

 

If you decide to refinance your existing student loans, get a rate quote with ELFI.* You can have up to 20 years to repay your loans, and you can take advantage of today’s low rates.

 

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related Posts

Students discussing the average college debt statistics
2022-12-09
Average Student Loan Debt 2022

If you have outstanding student loans, you’re not alone. The Federal Reserve Bank of St. Louis reported that Americans currently […]
READ MORE about Average Student Loan Debt 2022
Clock representing the time it takes to pay off student loans.
2022-08-25
How Long Does it Take to Pay Off Student Loans?

  According to data from the U.S. Department of Education’s Federal Aid Office, 43 million borrowers in the U.S. owed […]
READ MORE about How Long Does it Take to Pay Off Student Loans?

Categories

Career College Prep ELFI for Business For College For Parents Graduate School Lifestyle Personal Finance Private Student Loans Student Loan Forgiveness Student Loan Refinancing

Related Posts

Scholarships for Occupational Therapy Students
Filing Taxes From a Side Hustle
Military & Veteran Student Loan Forgiveness Programs
How Can We Tackle the Teacher Shortage in Tennessee?
How to Pay Off Student Loans When You Are Self-Employed

How Much Could You Save by Refinancing?

Use our student loan refinancing calculator to see how much you could save by refinancing your student loans.

Calculate Savings
  • Login
  • Press
  • Careers
  • Referral Program
  • Corporate Site
  • About Us
    • Contact Us
      • answers@elfi.com
      • 1-844-601-ELFI
  • Legal
    • Privacy Policy
    • USA Patriot Act
    • Refinancing Terms & Conditions
    • Private Student Loan Terms & Conditions
    • TNLP Terms & Conditions
Education Loan Finance

© 2015-2021 Education Loan Finance from SouthEast Bank®. 12700 Kingston Pike, Farragut, TN 37934. All rights reserved. Subject to credit approval. See Terms and Conditions.

  • Facebook
  • Twitter
  • Instagram
  • LinkedIn
  • Pinterest
FDIC Logo
The content on this website is for educational and informational purposes only and should not be construed as legal, financial or tax advice. While the ELFI team works to maintain updated blog content, the information provided is subject to change over time. Information is accurate as of the publishing date. Links to other websites or references to services or applications are provided as a convenience only. A link does not imply ELFI’s sponsorship or approval of any other site, service or application. ELFI does not control the content of these sites, services or applications.

*Education Loan Finance is a nationwide student loan debt consolidation and refinance program offered by Tennessee based SouthEast Bank. ELFI is designed to assist borrowers through consolidating and refinancing loans into one single loan that effectively lowers your cost of education debt and/or makes repayment very simple. Subject to credit approval. See Terms & Conditions. Interest rates current as of 10-13-2023. The interest rate and monthly payment for a variable rate loan may increase after closing, but will never exceed 9.95% APR. Interest rates may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. See Eligibility Requirements for more information. For example, a 10-year loan with a fixed rate of 6% would have 120 payments of $11.10 per $1,000 borrowed. Rates are subject to change.

 

2Named a Best Student Loan Refinance Lender by U.S. News & World Report as of 6/7/23.