Amongst the hubbub the past couple of weeks over the deficit commission's report, one proposal that hasn't gotten nearly as much press is the elimination of in-school interest subsidies for federal student loans. This is obviously less attention-worthy than some of the proposals, but for starving, jobless students and graduates, it's a big deal. Bigger still, the proposal to end interest-subsidized student loans suggests that a much newer and less-established program, Income Based Repayment (IBR), could be next to fall under the ax man's gaze.
Subsidized student loans have been taken as a given by students. IBR is a much newer program that is only fully available to those folks who are coming out of school after 2008. There are a number of formulas based on your income and ability to pay, and it only applies to federal loans. Basically, it works out that if you have a really shitty salary (or none), like many law graduates since 2008, you get a monthly repayment much lower than you would be looking at under a standard repayment plan. Also, by electing IBR, your outstanding debt is forgiven after 25 years, or 10 years if you work for a state/local government or qualified public interest organization. It's an okay program, and is helpful for unemployed, debt-pwnd students coming out of school during the Great Recession.
From what I can tell, the idea behind IBR was for graduates of expensive law and other postgrad programs who wanted to "pursue the common good" in public interest, to be given a break on their monthly payments in exchange for their selfless service. In the new reality of 50%+ graduating law classes being unemployed, it's more than likely going to become a catch-all for all of us with six-figure federal debt and no way to pay it back. All the while, the government will be eating the remaining interest on the loans, and if you make it to the 10 or 25 year mark, hey, forgiven! With so many unemployed graduates, the government is likely to be left holding a much heavier bag than they figured on when they were crafting IBR. For those un-and-underemployed recent grads relying on IBR, who's to say what will happen in 10 years, to say nothing of 25, as Erskine "Bowels" and his crew look for crafty new ways to close the deficit gap?
Personally, I don't care that the government is going to be saddled with more unpaid debt. It's not like it's "real" money; they just transferred some digits from their printing presses to the law school dean's office and our tuition showed up as "paid." The school pisses it away and modifies its ledger accordingly, but we're fooling ourselves if any real value is changing hands. That's another issue, though. The federal government created this student loan mess by guaranteeing tens of thousands a year in free money to prospective law students, thereby allowing schools to uniformly jack up their prices to around $50,000 a year. I have no sympathy for the feds if they are going to whine about the unintended consequences of IBR. I do, however, worry about their willingness to repeal the program and leave all of us debtors out in the cold.
Our one saving grace may be that, on the whole, the number of unemployable debtor law students is relatively small (compared to other federal obligations). In any given year, the number of people running up red ink for the feds via subsidized, low IBR payments or total discharge should be quite low. However, experience makes me wary. So many unfortunate law students have at least six figures in debt, particularly those who entered in 2008 and after and would be eligible for IBR, in the era where law school COA is almost uniformly ~$50k a year. It's not just law students, either. Every day we see more and more unemployed undergrads with six figure debt, and soon the crop of economic refugees who went for MBAs or other advanced degrees to try and dodge the bad economy of 2008 will be emerging, jobless. There are a hell of a lot of unemployed recent grads of all degree-stripes out there with six figures of debt and nowhere to go but back to school or onto the IBR rolls. If the in-school interest subsidy is on the chopping block, how long can it be before the IBR payment subsidy and eventual discharge are also scrapped?
Showing posts with label no jobs for law graduates. Show all posts
Showing posts with label no jobs for law graduates. Show all posts
Thursday, December 2, 2010
Wednesday, October 27, 2010
Sounding the alarm to deaf 0Ls, now with tuition hikes
I always get a little excited when a respectable news outlet reports on the law school scam. Even though it’s happening with increasing frequency in recent months, it’s still good to see articles like this piece from Slate. Judging by the continuing log-pile of prospective students taking the LSAT and clamoring to get into law schools, all of the warnings and media attention don't seem to be soaking in.
I talk about my own school a lot, but the facepalm-worthy news continues to roll out of that putrid money pit. Earlier this week, 1Ls were given the happy news that their tuition will be rising 13.5% next year. That seems like a relative bargain compared to the 15% increase that was announced a year ago. This is when tuition, fees, and COL at this fine public institution of legal learning are already $45,244, IN STATE.
As a four-way-tied-for-top-22 law school, Minnesota sadly is able to delude a lot of out-of-state students into thinking they’re paying for a “top 20 law school,” and I can only imagine how horrendously confiscatory their total COA will be. Tuition at the school had already doubled since 2005; factoring in this latest increase, it will have doubled and then some. So much for an affordable, public, land-grant university.
I talk about my own school a lot, but the facepalm-worthy news continues to roll out of that putrid money pit. Earlier this week, 1Ls were given the happy news that their tuition will be rising 13.5% next year. That seems like a relative bargain compared to the 15% increase that was announced a year ago. This is when tuition, fees, and COL at this fine public institution of legal learning are already $45,244, IN STATE.
As a four-way-tied-for-top-22 law school, Minnesota sadly is able to delude a lot of out-of-state students into thinking they’re paying for a “top 20 law school,” and I can only imagine how horrendously confiscatory their total COA will be. Tuition at the school had already doubled since 2005; factoring in this latest increase, it will have doubled and then some. So much for an affordable, public, land-grant university.
Thursday, October 21, 2010
ABA shows up late to the party, over bloodied bodies of thousands of unemployed
So the ABA might want to “do something” about law school fraud. Way to show up tardy to the party (as usual).
Even if some eventual cap on new law schools is eventually worked out, it will come many years and many tens of thousands of students too late. Students who were suckered out of their tuition dollars during the height of the scam, as well as the even higher number of poor saps who are taking refuge in law school during the recession, will not be helped by this. There will be at least a decade’s worth of law grads who were ushered off into the meat grinder while schools were getting rich and the ABA stood idle. Ten years, approximately 40-45 thousand law grads a year...400,000 condemned souls. That's one hell of a lost generation.
As tuition increased by leaps and bounds, often doubling in the course of a five year period during the last decade, these plump leeches kept sucking and seeking out more warm bodies. As the ABA and law schools presided over a steady decline in decent, sustainable, real legal jobs, they made sure the doors to the profession were propped wide open, and then added more and more schools for good measure. When the economy was battered and ALL employment prospects went into a precipitous decline, making it even harder for underemployed JDs to ever find work in ANY field, they responded by encouraging more people to ride out the recession in law school. Then they printed out more school literature and US News magazines filled with their blatant lies about employment and salary statistics, and raised tuition another 10% per annum for good measure.
So I’m glad that someone in that cavernous, non-responsive realm of the “powers that be” is finally going to start a committee to take a look at making a recommendation that might finally be considered to be eventually enacted sometime after 2011. No one ever said they were speedy. At the very least, another 45,000 law school victims will be parted from their tuition dollars during this time and put on the conveyor belt towards eventual unemployment and inability to service their student debt. To top it all off, the ABA only proposes that schools hand out this “honest and transparent” information to students who are already admitted, i.e. those who have already invested time and money on their misguided journey into law school. They'll have thus already swallowed schools’ lies about the employment situation many times over. (“Yes, the economy is bad, but those graduates who work hard and get good grades will always do well.”) You know the drill.
Law students and recently-minted lawyers are truly assaulted on all sides in their struggle to keep their heads above water, service their massive debt, and keep food on the table. We are faced with an ignorant, uncaring, and negligent professional organization that has ceded all responsibility in defending and upholding the integrity of the legal profession. We have to deal with an even more ignorant general public who is still convinced that all lawyers “make the big bucks,” and that society always “looks out” for lawyers. We have to contend with an inept federal government that thinks more education and more students in law school is always the answer, and encourages schools to jack up their tuition in response to unlimited federal student aid. No one is asking for a pity party, but the very best that blathering commentators can ever do is claim that law students should have "done more research" or they should just "look harder" for those nonexistent jobs.
None of these problems are going to be solved overnight. Indeed, the skeptics among us will say that they are too far metastasized to ever be corrected. The fetid, fatal cancer that has been killing the legal profession for years is now moving in for the kill, and the over-saturation and perpetual decline in job prospects is but a symptom. This all may be true, and in my heart of hearts I’d agree that the horrible problems facing most law students and recent graduates are almost insurmountable. A good starting point in doing the right thing would be for the ABA to start taking its mission of promoting an honest, robust, and viable legal profession seriously. “Defending liberty, pursuing justice,” as their motto goes, cannot include sitting idly by while law schools bankrupt the profession of all credibility and debase whatever slim portion of prestige it still has by continuing to accept any student with $150,000 and a pulse. For as much as law schools like to claim that they are the gatekeepers of truth, justice, honesty, and all sorts of other feel-good buzzwords, it’s clear through their duplicity and entirely profit-driven motives that they are anything but. I don’t trust the ABA to solve the problem, as they have sat on their hands for years as the law school scam got woefully out of hand, but any step in the right direction must be better than continuing down the current path.
Even if some eventual cap on new law schools is eventually worked out, it will come many years and many tens of thousands of students too late. Students who were suckered out of their tuition dollars during the height of the scam, as well as the even higher number of poor saps who are taking refuge in law school during the recession, will not be helped by this. There will be at least a decade’s worth of law grads who were ushered off into the meat grinder while schools were getting rich and the ABA stood idle. Ten years, approximately 40-45 thousand law grads a year...400,000 condemned souls. That's one hell of a lost generation.
As tuition increased by leaps and bounds, often doubling in the course of a five year period during the last decade, these plump leeches kept sucking and seeking out more warm bodies. As the ABA and law schools presided over a steady decline in decent, sustainable, real legal jobs, they made sure the doors to the profession were propped wide open, and then added more and more schools for good measure. When the economy was battered and ALL employment prospects went into a precipitous decline, making it even harder for underemployed JDs to ever find work in ANY field, they responded by encouraging more people to ride out the recession in law school. Then they printed out more school literature and US News magazines filled with their blatant lies about employment and salary statistics, and raised tuition another 10% per annum for good measure.
So I’m glad that someone in that cavernous, non-responsive realm of the “powers that be” is finally going to start a committee to take a look at making a recommendation that might finally be considered to be eventually enacted sometime after 2011. No one ever said they were speedy. At the very least, another 45,000 law school victims will be parted from their tuition dollars during this time and put on the conveyor belt towards eventual unemployment and inability to service their student debt. To top it all off, the ABA only proposes that schools hand out this “honest and transparent” information to students who are already admitted, i.e. those who have already invested time and money on their misguided journey into law school. They'll have thus already swallowed schools’ lies about the employment situation many times over. (“Yes, the economy is bad, but those graduates who work hard and get good grades will always do well.”) You know the drill.
Law students and recently-minted lawyers are truly assaulted on all sides in their struggle to keep their heads above water, service their massive debt, and keep food on the table. We are faced with an ignorant, uncaring, and negligent professional organization that has ceded all responsibility in defending and upholding the integrity of the legal profession. We have to deal with an even more ignorant general public who is still convinced that all lawyers “make the big bucks,” and that society always “looks out” for lawyers. We have to contend with an inept federal government that thinks more education and more students in law school is always the answer, and encourages schools to jack up their tuition in response to unlimited federal student aid. No one is asking for a pity party, but the very best that blathering commentators can ever do is claim that law students should have "done more research" or they should just "look harder" for those nonexistent jobs.
None of these problems are going to be solved overnight. Indeed, the skeptics among us will say that they are too far metastasized to ever be corrected. The fetid, fatal cancer that has been killing the legal profession for years is now moving in for the kill, and the over-saturation and perpetual decline in job prospects is but a symptom. This all may be true, and in my heart of hearts I’d agree that the horrible problems facing most law students and recent graduates are almost insurmountable. A good starting point in doing the right thing would be for the ABA to start taking its mission of promoting an honest, robust, and viable legal profession seriously. “Defending liberty, pursuing justice,” as their motto goes, cannot include sitting idly by while law schools bankrupt the profession of all credibility and debase whatever slim portion of prestige it still has by continuing to accept any student with $150,000 and a pulse. For as much as law schools like to claim that they are the gatekeepers of truth, justice, honesty, and all sorts of other feel-good buzzwords, it’s clear through their duplicity and entirely profit-driven motives that they are anything but. I don’t trust the ABA to solve the problem, as they have sat on their hands for years as the law school scam got woefully out of hand, but any step in the right direction must be better than continuing down the current path.
Sunday, October 3, 2010
Career services steps up to the plate
Career Services counselors nationwide finally seem to be waking up to the reality that they have sat idly by while 50% or more of their recent classes graduated jobless. I was initially interested to see that someone in my school's office still has a pulse and is doing some flailing about to broaden the “opportunities” available to law student paupers.
While the bulk of a career services counselor’s time is spent trolling non-exclusive, publicly-available job boards and copying and pasting the postings to the school’s own job board, I was intrigued to note that my school’s office has given up on offering students a position within the law. Just look at a recent smattering of re-posted job listings from the school’s board:
Where’s the J.D. requirement? Where’s there even the requirement of ANY degree, period? Where’s the validation for my three years’ worth of invested time and $100,000 tuition? Most importantly, where’s the pay? Oh, wait, not only are law grads still being pushed into unpaid internships, but now the search for some kind of “employment” for students has become so desperate that students are encouraged to do volunteer door-knocking for political campaigns as a way of finding “work.”
While the bulk of a career services counselor’s time is spent trolling non-exclusive, publicly-available job boards and copying and pasting the postings to the school’s own job board, I was intrigued to note that my school’s office has given up on offering students a position within the law. Just look at a recent smattering of re-posted job listings from the school’s board:
Congressional campaign filed intern:
Field interns will work alongside staff on a fast-paced, high-energy campaign. Interns will be assigned leadership roles in all of the campaign’s field operations. You’ll have the opportunity to learn about field strategy development and implementation, and communicate directly with voters. As a field intern, you’ll gain valuable professional experience by working directly with staff to identify and mobilize voters to ensure victory on Election Day.
Responsibilities include, but are not limited to:
• Organizing and managing voter contact events.
• Taking an active role in volunteer recruitment, management, and retention.
• Helping maintain voter database.
Qualifications:
Ideal candidates will be hard-working and possess strong communication skills. Candidates should be outgoing, have a positive attitude, and the ability to work effectively in a fast-paced environment. Proficiency with Microsoft Office is highly desired.
Where’s the J.D. requirement? Where’s there even the requirement of ANY degree, period? Where’s the validation for my three years’ worth of invested time and $100,000 tuition? Most importantly, where’s the pay? Oh, wait, not only are law grads still being pushed into unpaid internships, but now the search for some kind of “employment” for students has become so desperate that students are encouraged to do volunteer door-knocking for political campaigns as a way of finding “work.”
Wednesday, August 25, 2010
USA Today readers reflect on scam blogs
Scammed Hard has been busy trying to get some non-law-related interests off the ground lately, but it still came as a pleasant surprise to see the blog mentioned in this piece in USA Today about disillusioned, scammed law graduates. Articles like these have started to appear more frequently in mainstream news outlets this summer. While many casual readers of USA Today or the New York Times will likely dismiss the plight of law graduates as a bunch of lazy, over-educated whiners who just "can't get a job," it is my sincere hope that enough prospective law students are noticing the growing number of mainstream news articles cautioning against law school.
Still, to read the comments section for this USA Today article, a scamblogger could be excused for feeling that the message was falling on deaf ears. This article managed to garner more than 600 comments in 20 hours, so there is certainly no lack of interest in the topic. Still, the vast majority of commenters offer some vitriolic variation on a common theme: Boo hoo, serves you right, lawyer scum!
A lot of people are hurting in this recession. Undoubtedly, there are comments from people who have been laid off, furloughed, or are perpetually underemployed. Many are probably grappling with higher education debt while working a low-paying job that doesn’t utilize their degree. It all sounds a lot like the plight of the average law graduate, except that many of these folks hopefully aren’t suffering under $100,000 in debt and the J.D. stain on their resume that law grads are. I’d be inclined to say that “we’re all in this together.”
Sadly, a perusal of the pages and pages of comments on this article reveals otherwise. The newspaper can tell readers all about how law programs amount to three years’ worth of glittery highway robbery that leave their graduates unemployable, but it matters not to many. They’re still lawyers, and therefore evil, malformed human sludge. They all wanted to go to law school so that they could get $160k starting salaries, live the “models and bottles” lifestyle, and wake up every morning putting their foot on the neck of the little guy, grinning all the while. That sure sounds like me, and all the other law students I know! These commenters must be right…to a man, we all deserve the misery, crushing debt, and perpetual unemployment. It is our lot in life.
Let’s look at some of the most highly-rated comments, as recommended by other readers:
Still, to read the comments section for this USA Today article, a scamblogger could be excused for feeling that the message was falling on deaf ears. This article managed to garner more than 600 comments in 20 hours, so there is certainly no lack of interest in the topic. Still, the vast majority of commenters offer some vitriolic variation on a common theme: Boo hoo, serves you right, lawyer scum!
A lot of people are hurting in this recession. Undoubtedly, there are comments from people who have been laid off, furloughed, or are perpetually underemployed. Many are probably grappling with higher education debt while working a low-paying job that doesn’t utilize their degree. It all sounds a lot like the plight of the average law graduate, except that many of these folks hopefully aren’t suffering under $100,000 in debt and the J.D. stain on their resume that law grads are. I’d be inclined to say that “we’re all in this together.”
Sadly, a perusal of the pages and pages of comments on this article reveals otherwise. The newspaper can tell readers all about how law programs amount to three years’ worth of glittery highway robbery that leave their graduates unemployable, but it matters not to many. They’re still lawyers, and therefore evil, malformed human sludge. They all wanted to go to law school so that they could get $160k starting salaries, live the “models and bottles” lifestyle, and wake up every morning putting their foot on the neck of the little guy, grinning all the while. That sure sounds like me, and all the other law students I know! These commenters must be right…to a man, we all deserve the misery, crushing debt, and perpetual unemployment. It is our lot in life.
Let’s look at some of the most highly-rated comments, as recommended by other readers:
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