Average Student Loan Debt & Monthly Payments for Lawyers

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.

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.

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.