There are some nationwide Social Security Advocacy firms that apparently do well enough to advertise a lot. They are regulated by SSA. California requires Immigration Consultants to post bond. Public Notaries such as they exists in some states also provide independent paralegal services. Given that lawyers have a lot more latitude to cheat clients and state bars are often indifferent regulators - as long as there is a need someone will provide the service. My point is that most DL law students will fail to pass the California bar but they can still work in the legal system and provide services while turning a profit equal or better than a solo practitioner if they are good enough.
Yes that would be true if one did not take initiative but NOSSCR offers training for SSA advocates. A high school grad likely would not be able to handle the paperwork or rules involved. SSA is actually one of the most complex areas of the law which is why few attorneys go there.
True there is no education requirement to be an SSA advocate but it sure helps. Besides being a lucrative field, it is one in which people are actually getting helped. Same with Workers Comp and Veterans Disability. A lot of attorneys still think these are "bottom feeder" fields - very, very wrong. These are among the most complex areas of the law, not the least.
If you're going into business for yourself as a solo practitioner doing SSA or VA advocacy, it doesn't matter if you're licensed. It's not going to prevent you from hiring yourself, and nothing you learn for the bar exam is going to prepare you anyway. Is it a good idea to go into solo practice straight out of law school, and without a mentor? Depends on the individual. Some people are smart enough to figure it out, especially if they have previous experience in the field. Others aren't, and need some hand holding at first. I could see it being a problem if clients want a licensed attorney as opposed to a mere advocate, but frankly, I doubt if most actually care. What they want is someone who can win, regardless of licensure.