Which law schools have the best and worst debt-to-income ratios among recent graduates?
The Wall Street Journal recently highlighted data disclosures from the Department of Education concerning debt and income outcomes of graduates across a variety of metrics—institutions, majors, degrees, and so on. One intriguing figure is the “debt-to-income” ratio, or how much student debt recent graduates have compared to their earnings. Lower is better. (A slightly better way is to calculate what percentage of your monthly paycheck is required to service your monthly debt payment, or the debt-service-to-monthly-income ratio, but this gives a good idea of the relationship between debt and income.)
I took the raw data file and pulled out all domestic schools that had a concentration in “law” for a “doctoral degree” or “first professional degree.” I then compared the median debt load to the median earnings figures. The Department of Education site defines these figures as follows:
Field of Study Median Earnings
The median annual earnings of individuals who received federal financial aid during their studies and completed an award at the indicated field of study. To be included in the median earnings calculation, the individuals needed to be working and not enrolled in school during in the year when earnings are measured. Median earnings are measured in the first full year after the student completed their award.
These data are based on school-reported information about students' program of completion. The U.S. Department of Education Department cannot fully confirm the completeness of these reported data for this school.
For schools with multiple locations, this information is based on all of their locations.
Field of Study Median Total Debt
The median federal loan debt accumulated at the school by student borrowers of federal loans (William D. Ford Federal Direct Loan Program, the Federal Family Education Loan Program, and Graduate PLUS Loans) who completed an award at the indicated field of study. Non-federal loans, Perkins loans, and federal loans not made to students (e.g., parents borrowing from the federal Parent PLUS loan program) are not included in the calculation. Only loans made at the same academic level as the award conferred are included (e.g., undergraduate loans are not included in the median debt calculation for graduate credential levels). Note that this debt metric only includes loans originated at this school, so this metric should be interpreted as the typical debt level for attending this school alone, not necessarily the typical total debt to obtain a credential for students who transfer from another school. For schools with multiple locations, this information is based on all of their locations.
These data are based on school-reported information about students' program of completion. The U.S. Department of Education Department cannot fully confirm the completeness of these reported data for this school.
That means debt loads can of course be higher if undergraduate loans were factored in. These count Academic Year 2015-2016 & 2016-2017 figures.
A number of elite schools are near the top—despite their high debt levels, they translate into high median incomes among their graduates. A number of lower-cost schools also fare well near the top.
A good rule of thumb is 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 11 schools meet that definition among median debt and earnings, and a few others are close. Many are significantly higher than that.
Of course, medians are likely skewed in other ways—the highest-earning graduates likely received the largest scholarships and, accordingly, graduated with the lowest debt. But, the figures are below. I sort by the lowest (i.e., best) debt-to-income ratio. (Due to size of chart, results may be best viewed on a desktop or on a phone turned sideways.)