Juris Doctorate: The New Toxic Asset

I was referred to a very interesting article this morning, posted by the Wall Street Journal. The article essentially outlines the very grim outlook for law students and new attorneys we are already all too aware of. Most importantly, the article pays homage to abysmal hiring rates, the heavy burden of high tuition and hints at the low salaries many are now forced to deal with. Personally, I would have preferred a little more substance regarding the last point, but it is a fair article nonetheless.

Low or no salaries coupled with high tuition create a unique breed of degree. Several months ago, a friend of mine used a term to describe our law degrees. He called them "toxic assets," and I can honestly think of no better way to describe the magnitude of our loss. What we are seeing now, and arguably have been seeing even prior to the economic collapse, are artificially inflated tuitions. What makes the law degrees therefrom toxic is that median wages have fallen so unbelievably far in contrast. Ultimately, the holder of the asset is left in a worse position then she was prior to embarking on her educational trek. Furthermore, the disparity we are seeing is not restricted to the legal community. In fact, for years colleges, universities and professional schools alike have been raising tuition based upon completely arbitrary factors, none of which seem to appreciate stagnant or falling wages.

So, what can be done? Well I plan to draft a post specifically dealing with loan forgiveness, but it bears mention that those out there with reduced earning power and sizable student loan debt need to get proactive. You need to petition your representatives and senators for student loan forgiveness now. We have come close with recent legislation providing IBR (Income Based Repayment) and forgiveness after a period of time for those opting to embark on careers in the public sector; this however, does not go far enough. We need a bailout for those who have truly earned it. Additionally, we need to curtail tuition hikes by our educational institutions. Law schools, you are WAY out of control. Colleges and universities, you are not much better. When you draft that letter to your respective senators and representatives, make sure you mention the undeniable need for tuition regulation.

Alternatives to Legal Practice?

So what are the alternatives to legal practice? It seems a fair question for people to be asking. If, like myself, you are hesitant to get into the temp circus, and you are not independently wealthy to the extent you can weather the next few years in unemployed bliss, than where can you make the most of your education and skills? I promise you the list is not extensive, but there are a few things worth mentioning.

For one, I know that there are a slew of administrative and paralegal opportunities out there. To be totally honest, I have had zero luck with these. Even given my enthusiasm in letters of interest, it just seems that many employers want specialized experience. I have even seen paralegal postings of late specifically stating "JDs need not apply." This is not to say that it isn't worth sending out a few feeler resumes, however. Employers seeking administrative or paralegal professionals could be eager to take advantage of the downturn and snag a few overqualified persons to fill their ranks. Ironically too, paralegal salaries are currently far greater than what entry level attorneys are being offered.

It is worth giving props to the public sector. I have to say, almost 3/4 of my resumes have been aimed in this direction. While state and federal budgets have been trimming entry level attorney positions, there are so many other worthwhile opportunities out there. In addition to administrative and paralegal positions, try considering risk assessment, compliance, analyst and contract specialist positions, to name a few. I have even been applying for law enforcement work. Be creative. Most government positions have an experience threshold for the various paygrades associated with them. Furthermore, professional and advanced degrees can supplant certain requisite experience.

I am dealing with the lingering pain of realization; realization that I may never get the chance to practice law. I am finding though, that there are many positions out there I can feel equally as good about placing my efforts behind. It is also worth noting that the public sector has amazing benefits and some of the best compensation available. It doesn't hurt that there is loan forgiveness after ten years either. The same is also true for nonprofits. If, on the other hand, you choose to go into the private sector, just make sure you heavily weigh the pros and cons before committing.