I am sure that everyone knows people who obtained a legal education in order to serve the greater good. When I was in law school, I had classmates who wanted to be prosecutors, public defenders, and other types of lawyers that promote the public welfare. Many of my friends who were “public interested” did not even bother interviewing for jobs in Biglaw, since they were content with forgoing the opportunity to earn a higher paycheck in order to pursue their dreams of entering public service.
Although I respect anyone who enters the public sector, it is undeniable that law school is extremely expensive. As a result, it might be very difficult for someone to pay off the massive amount of student debt usually incurred during law school while working a public service job. It is true that income-based repayment programs exist, and some law schools, like my alma mater Georgetown Law, have loan repayment assistance programs that help individuals in public interest fields pay off their debt. However, not everyone can take advantage of loan assistance programs, and many individuals do not have enough debt to justify an income-based repayment plan or do not intend to stay in a public interest job long enough to obtain debt forgiveness.
For anyone who is considering a career in public service, but has the chance to work in Biglaw, I have a suggestion: Take the job right out of law school that pays the most money. It may sound like I am suggesting that public interest folks “sell out,” but let me explain my perspective.
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It is undeniable that a person has the biggest ability to influence their student loan fate right after graduating from law school than at any other point in one’s career. This is because of the effect of capitalizing interest, that same concept your elders have probably pointed to when arguing that you should save for retirement as soon as you can. In the case of student loans, capitalizing interest is your worst nightmare, and the more debt you pay off today, the less interest upon interest you will have to pay in the future. This is why it is advisable to take a high-paying job right after law school so the most money can be devoted toward paying down student debt as soon as possible.
In addition, your first job out of law school is not going to massively determine the fate of your entire legal career. In the past, attorneys stayed at one firm for decades and made entire careers under one roof. In the “new economy,” however, it is not uncommon for young attorneys to change jobs frequently and even enter completely different parts of the legal profession. This means that it is easier than ever for an individual to cool their heels in a high-paying gig for a few years before entering a part of the legal profession that brings more fulfillment. Also, it is worth mentioning that many large law firms have robust pro bono programs and donate money to charities. Therefore, anyone interested in public service can still make fulfilling contributions to worthy causes while working in Biglaw.
Furthermore, you are best able to work the longer hours that many higher-paying jobs require when you are at the beginning of your career. People naturally have fewer personal commitments right after they graduate from law school than they might have later in life, which makes working more demanding jobs easier when you are younger. Also, younger individuals usually have fewer expenses, so any extra income can be devoted to paying down student loans. In addition, high-paying positions in Biglaw are notoriously difficult to obtain later in one’s career, so one should strike while the iron’s hot, and take such an opportunity should the chance arise.
Taking a high-paying job right out of law school will also allow you to pay down debt without making sacrifices in other parts of your life. After I left Biglaw, I personally had to work several side-hustles and live frugally in order to expedite student loan payments. If you have a higher paycheck from your primary job, however, you do not need to make other sacrifices to pay off debt. Ultimately, delaying your aspirations for a few years to assume a higher-paying gig will ensure you do not have to incur other life sacrifices, and this trade-off makes taking a higher-paying job right out of law school even more worthwhile.
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Of course, this approach is not for everyone, and there are some individuals that really cannot see themselves doing anything but public service work. I completely understand this mentality. It is also true that only a fraction of law students will even have the opportunity to work in Biglaw right after graduating from law school. However, you can best control how much money you devote to student loans through where you decide to work. And if you can bear deferring your dreams for a few years, the reward of financial freedom might just be worth it.
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Jordan Rothman is the founder of Student Debt Diaries, a personal finance website discussing how he paid off all $197,890.20 of his college and law school student loans over 46 months of his late 20s. You can reach him at [email protected].