Monday, January 4, 2021
Following upon my previous posts (links below): Derek Muller (Iowa), Which Law Schools Have the Best and Worst Debt-to-Income Ratios Among Recent Graduates?:
Last year, a treasure trove of data from the Department of Education offered incredible insights into debt and earnings of law school graduates. A recent update for 2018-2019 has been made available, and we can look at the data again.
One intriguing figure is the “debt-to-income” ratio (last year, plenty of people hated this term, but I’m still using it), or how much student debt recent graduates have compared to their earnings. ... A good rule of thumb might be that “manageable” debt loads are those where debt is about equal to expected income at graduation—i.e., a ratio of 1.00 or lower. Only 22 schools meet that definition among median debt and earnings. ...
In contrast, 17 law schools have debt-to-income ratios greater than 3.0.
Prior TaxProf Blog coverage: