As a later-in-life attorney, this is my second time paying down my own student loan debt. I graduated law school in 2010 with about $91,500 in debt (before interest). I heard rumors that some of my younger classmates -- who had gone to law school immediately after undergrad -- were burdened with total loan obligations exceeding $200,000. (Where I live, $200,000 can buy someone a modest starter home.) Unlike other types of debt, student loan debt is not dischargeable in bankruptcy. Also, some hiring firms look at how responsibly their potential hires manage their own financial obligations (particularly in situations where the lawyer's duties would involve handling other people's money.)
There is an issue...
My law school colleagues and I share some opinions on the subject of student loan debt. For instance, we concur that level of debt influences the type of job someone accepts, where he lives, the type of car he drives, and the clothes he wears. Loan debt also affects the types of vacations someone takes and whether he can save for the future. Repayment obligations also impact at what point (and whether) someone has children of and to what schools he can afford to send those children. Student loan debt also influences how quickly -- and to what degree -- someone responds to medical situations, home improvement and repair needs, and car repair.
but it's largely self-made.
However, some of my classmates and I differ sharply on the level of personal responsibility a lawyer should take for his debts. Frankly, my opinions on the matter could be seen as curmudgeonly by some. In exchange for my education, I agreed to pay the school a certain amount of money. Because I did not have enough cash on hand to pay that sum, I financed my degree by taking out a number of student loans. I agreed to the terms of those loans. Those terms included the amount of principal, the amount of interest, and the payback period. I was told what my monthly repayment obligations would be. As a person of my word, I'm going to honor that agreement.
I am sensitive to the fact that life can throw unexpected curve balls that necessitate loan deferral or repayment over an extended period. However, I do not think that anyone is entitled to avoid repayment or have loans forgiven just because he or she claims to have not "fully realized" the impact of those future obligations.
I make loan repayment a priority. My husband and I have decided to pay down my student loans as quickly as we can. We make lifestyle ***choices*** (not "sacrifices") based on this decision. With very few exceptions, we don't buy something unless we have cash in hand. We pay off our credit cards each month. We don't take on additional debt unless it is absolutely necessary. We understand and accept that this is just the way we'll have to live until the 10-year repayment period ends. Most importantly, we don't feel "burdened." Instead, we feel grateful that a loan provider helped me finance an education I couldn't pay out-of-pocket for at the time.
A modest proposal...
Further, I believe that law school loans should be made more difficult to obtain, especially if one exits undergrad with significant debt. While an undergrad degree is seen by many as necessary to get a good job, a graduate degree is arguably still a privilege. It is simply shortsighted and wrong for someone to take on hundreds of thousands of dollars in debt, based on an expectancy for a job that may never materialize. There is no guarantee of a high-paying job as an attorney after graduation. In New Hampshire, many attorneys just starting their careers (especially those in the public sector) make about the same as an entry-level college graduate.
There has been some talk about better informing students about their repayment obligations ***before*** they obtain their first loans. This is not an adequate solution, because some loan recipients are so intent on becoming a lawyer that they'll sign just about anything put in front of them. (Not an auspicious start for a transactional attorney.) A better solution would be mandatory financial management training throughout law school, while students are still making decisions about the size of the loans they'll take out during their 2L and 3L years. However, I have serious reservations about how well this idea would be received, especially in the Live Free or Die state.
What are your thoughts on the issue of law school debt?
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