I also only take notes on paper, but more importantly, I throw all my notes out as soon as I finish writing them.
For me studying is the act of writing the notes. The purpose of notes was never to read them later. That's why writing on paper is important to me. It's not about the qualities and convenience of the storage medium. It's about the experience of writing itself that makes me dislike digital notes.
When it's time for exams I go back to the primary source, whether it's a text book, lectures, or handouts, and I write a new set of notes. I throw those out when I'm done also.
You might think it's inefficient, which it is only in terms of ink and paper. In terms of time and effort, at least for me personally, the act of putting pen on sheet is 10x as effective as reading in building comprehension and retention. From anecdotal observation, I get done in a few hours of taking new notes what my classmates do in days of binge reading.