You may be hearing about a recession, rising inflation, or overall instability in the global market. These things can be alarming. However, we think this is a great time to revisit one possibility strategy for avoiding the effects of an economic downturn. And, you can do this while gaining a valuable skill. Attending law school during a recession can be one of the smartest career moves. While everyone else panics and loses their job, you can take time off. Additionally, you can receive financial aid from the government to attend law school. You will graduate into much better, and higher-paying, job prospects.
Should I go to law school during a recession?
Yes, attending law school during a recession can be one of the best times to learn the skills necessary to enter a new profession. As discussed below, law school can insulate you from the anxieties of a recession and provide you with financial help. All this occurs while learning a new skill.
Before diving in to how this plays out, let’s take a look at what exactly a recession is.
What is a recession?
Generally, a recession is an economic term to describe a general decline in economic activity of a country. Individual countries can experience recessions or there can be global recessions because of the interconnection of the modern global economy. Recessions can be triggered by various events including financial crisis, economic bubbles bursting, war, supply chain, or rampant inflation. In the United States, a recession is defined as “a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production, and wholesale-retail sales.”
How does a recession affect law schools?
Law Schools are generally not affected like a typical business during a recession. Typically, during a recession many businesses will go bankrupt or have trouble paying their costs. This usually isn’t the case for law schools because a large amount of the money that law schools make come from law school tuition. Most law school tuition is paid, indirectly, by the US government through law school student loans.
This does not mean that the US government is simply paying to keep law schools afloat no matter the economic conditions. But, this is somewhat the situation. The reason for this is because the US government does not typically reduce student loans even during a recession. In fact, the current total US student loan debt is at $1.75 trillion as of April 2022. Of that, the average law student owes $145,500!
What this means is that the US Government does not appear to be slowing down any time soon in handing out money for student loans. This means that students entering law school will have the available funds to pay law schools. This means that law schools will continue to have the vast majority of their revenue available to them despite a recession. Ultimately, this means law schools will stay in business and probably operate normally despite any economic downturn. This isn’t true for all law schools as some do go out of business. But, typically this is because they can’t attract enough students to pay tuition and fund all the costs of running a law school. It is not the function of an economic down turn.
How will law students experience the recession while in law school?
This is one of the best reasons to attend law school during a recession. As a law student, you will likely not feel the effects of a recession as much as others. You will definitely notice the recession in your day to day life when at stores or purchasing goods. However, as far as your reading, classes, testing is concerned, the recession likely won’t change your law school life much.
In fact, law school is a great way to “wait out” or escape the recession. This is because since 1900 the average recession has lasted only 15 months. This is great news for law students because if you begin law school as a recession is starting, it may be entirely over by the time you graduate. You’ll have found a way to learn a new skill (becoming a lawyer) while everyone else was stressing the recession and you’ll graduate into a job market that is on the recovery.
Additionally, another benefit of being in law school is that the US government will provide you with financial aid for both your tuition and your supplies. This is incredibly helpful because you will have money to help you pay rent, eat, and go to school. And, with the growing number of businesses that accept Affirm, Afterpay, or other “buy now, pay later” financial plans, it is easier than ever to budget for law school.
Will I get a job after law school?
Yes! This is a concern every year no matter what type of economic cycle we are in. Law school graduates nearly always end up with a job after graduation if they keep applying and interviewing. Those that don’t get a job are the ones that either decide they don’t want a job or give up. Not every law school graduate ends up as a practicing attorney. But, even if they don’t enter the legal field, nearly all law school graduates end up with a job somewhere.
And nine times out of ten this new job is much better than the job the law graduate had before going to law school. This is because businesses like to hire people with law degrees even if for a non-legal position such as a consultant. Law school teaches you how to think logically and helps you to navigate complex legal, regulatory, and other matters. Although it is a common fear held by almost all law students, it has been our experience that every law school graduate eventually finds a job that is better than what they had before law school.
How will a recession affect student loan repayment?
Student loan repayment is an area that is in flux right now. After the 2020 pandemic law student loan repayments were put on pause. However, what we can say is that law schools loans that are provided by the US government are for fixed interest rate payments. This is good because it means that no matter the economic cycle, you will know how much money you owe. A big part of the anxiety of a recession is the uncertainty. However, with your student loan payments you will know how much you owe and you will be able to financially plan for repayments.
When is the best time to go to law school during a recession?
As discussed above, the average recession only last 15 months. The effects of the recession can linger for much longer. However, if you can enter law school right as the recession is beginning, you will be in the best shape to graduate into a recovering job market. The second best time is probably to go to law school the next enrollment cycle after you find out the economy is in a recession.
When is the worst time to go to law school during a recession?
The worst time to be in law school is graduating right as the recession is beginning. You will be looking for jobs right as law firms and other companies are slowing or pausing hiring. This is not an ideal situation to be in. However, we know many colleagues that graduated right as the 2008 recession began. And guess what? Now, they are successful, high-paid practicing attorneys. They had a few rough years and had to look a little harder in their job search but they all eventually made it. Good times or bad, people will need lawyers.
One bright spot though, as a new lawyer you will be the cheapest time of legal help available. Law firms that are looking to save on employee costs may get rid of older attorneys that are too expensive first. So, even if you are starting amidst a recession, you may be safe as a new hire because you are likely one of the least expensive payroll costs.
Conclusion: A recession can be one of the best times to go to law school.
We know there is much fear and anxiety about a recession as the summer of 2022 kicks off. However, we can assure you that if you have been thinking about law school and are on the fence, now is going to be one of the best times to go! While everyone else if panicking, you can receive a huge loan from the US government (that you will eventually pay back) to take a break and learn a new skill and become a new professional! If you time it correctly, you should be graduating three years later into a recovering economy that will now need tons of new lawyers.