Law School Applications Surge Amid Economic Uncertainty
Law school applications in the United States are rising sharply, continuing a long-standing trend of increased interest in legal education during economic downturns. According to data from the American Bar Association and compiled by the Law School Admission Council, applications for the 2026 cycle have jumped 17 percent compared to the previous year, marking a staggering 44 percent increase over the past two years.
This surge echoes patterns seen during past economic slumps, such as after the 2008 financial crisis. At that time, law school enrollment peaked at over 52,000 by 2010, a 7 percent rise in three years. However, many graduates from that era struggled to find employment in their field, with only about half of 2011 law school graduates securing full-time, law-required jobs within a year.
While job prospects have since improved—with over 80 percent of 2023 and 2024 graduates landing law-required positions—the current wave of applicants faces a distinctly different landscape shaped by financial constraints and rapid technological change.
Soaring Costs and New Loan Limits
The cost of a legal education has ballooned over the decades. In 1985, annual tuition at private law schools averaged $8,000. Today, it’s around $60,000, and public institutions charge about $32,000. When factoring in living expenses, the total annual cost at some schools surpasses $110,000.
Compounding these costs are new federal student loan caps, taking effect in July under legislation passed during the Trump administration. These rules impose a $50,000 annual limit and a $200,000 lifetime cap for students pursuing professional degrees. Financial aid experts warn that alternative financing options like private loans often come with higher interest rates and more restrictive conditions.
“This could significantly impact how students plan for law school,” said Susan Bogart, director of financial aid at Penn State Dickinson Law. With the school’s estimated cost of attendance hitting $90,000, many students may find themselves under increasing financial pressure.
Additionally, the increased demand could prompt law schools to reduce merit-based scholarships and tuition discounts that were previously offered to attract top candidates during leaner application cycles.
Job Outlook: High Salaries or Public Service?
Prospective law students often envision lucrative careers in private firms or corporate law, where entry-level salaries can reach $225,000, according to the National Association for Law Placement (NALP). However, public sector roles, such as those in legal aid or government positions, typically start closer to $65,000—making it more difficult to manage substantial student loan payments.
Evaluating the return on investment for a law degree has never been more important, especially as financial aid becomes more limited and tuition costs continue to rise.
Artificial Intelligence Enters the Legal Arena
Artificial intelligence is emerging as a disruptive force in the legal profession. In 2023, researchers from Stanford University, working with a legal tech firm, claimed that ChatGPT passed the bar exam, scoring in the 90th percentile. While the validity of this claim was later questioned, it sparked widespread speculation about AI’s potential to automate legal tasks.
Goldman Sachs economists estimated that up to 44 percent of legal work could be automated. AI-powered tools such as Thomson Reuters’s CoCounsel and the legal assistant Harvey are already being used to streamline tasks like document review and case research.
“AI is really good at sifting through vast amounts of data,” said Michael Kohagen, a mergers-and-acquisitions lawyer at WyrickRobbins, during an appearance on the “I Am the Law” podcast. However, overreliance on AI has led to embarrassing missteps—such as legal briefs citing fictitious court cases.
Despite these concerns, demand for new lawyers remains strong. The class of 2024 had the highest employment rate on record, with over 90 percent finding jobs. Still, NALP cautioned that fewer summer associate positions in 2024 and 2025 could signal leaner hiring years ahead.
AI’s Impact: Threat or Opportunity?
Kellye Testy, executive director of the Association of American Law Schools, acknowledged uncertainty surrounding AI’s long-term impact on the profession. “Some worry that AI will reduce the demand for lawyers,” she said. “But it might also expand their capabilities, making legal services more efficient and accessible.”
For example, AI could help resolve small court disputes more quickly or assist in drafting routine legal filings. Whether this leads to job reductions or a redefinition of legal roles remains to be seen.
Students Still See Value in a J.D.
Despite the financial and technological uncertainties, aspiring lawyers like London Cooper remain undeterred. A senior political science major at Dillard University in New Orleans, Cooper has applied to five law schools after thoroughly researching tuition costs and potential salaries.
“I factored so many things in,” she said. “But AI wasn’t part of my decision. To me, law is where you see how society really operates.”
For many, the appeal of a legal education lies not just in potential earnings, but in its broader societal relevance. As the profession evolves, future lawyers will likely need to adapt to new tools and expectations—while holding onto the core values that make the law a vital part of civic life.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.