Debts

Student loans are a real bitch, and declaring bankruptcy won’t even save you from them — unless you can prove you’ve got undue hardship and a “certainty of hopelessness” about you, which most people have too much pride to admit. Without government payment plans like Income-Based Repayment, Pay As You Earn, and Public Service Forgiveness, a much larger portion of our population would be living in a van down by the river, still drowning in educational debts, but too far off the grid for the bill collectors to come a-knocking.

This is why people absolutely lost their minds when the Daily Currant, a satirical online newspaper, published a story about President Barack Obama’s supposed bid to forgive all student loans. Given the responses, it looks like the youth of America is still in need of some change they can believe in…

double red triangle arrows Continue reading “Will Twerk For Loan Forgiveness! Ridiculous Responses To Obama’s Fictional Student Debt Plans”

Back in July, following the news of the possible purge of junior faculty at Seton Hall and the staff massacre at McGeorge, we wondered: “Which law school will be next?” With law school applications still in free fall, something, somewhere, had to give, and it certainly wasn’t going to be beautiful buildings, the price of tuition, the number of tenured professors, or their similarly splendid salaries.

No, the easiest way to save money — $4.4 million of it — is by dropping the unimportant human weight, and the most expendable souls seem to hail from the adjunct faculty and staff ranks at the latest law school to conduct layoffs. Which esteemed academy of legal education could it be?

We’ll give you a clue. The school is no stranger to controversy, seeing as it served as the origin of the very first law school lawsuit over deceptive employment statistics ever filed….

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This weekend, I had the unenviable task of going on Fox News and “defending” Detroit. I wasn’t sure what I was supposed to be defending: poor city government, white flight, crumbling infrastructure… the best thing anybody can say about Detroit right now is that Miguel Cabrera is still sober. My solution was to sell Detroit to Canada. Our neighbors to the north seem to do a better job of providing civic services in a business-friendly environment without the kind of gridlock and recriminations that dominate every “solution” ever offered to Detroit’s long-standing problems.

Understand, this is a city that can’t even file for bankruptcy without getting dragged into legal quicksand. Former Jones Day partner Kevyn Orr was named Detroit’s emergency financial manager just four months ago. Evidently, it doesn’t take long to look at Detroit’s books and cry uncle, but now a judge is trying to block Orr and the city from restoring financial sense.

Don’t worry, as usual there will be people making money in Detroit. It just won’t be the people who actually live there…

double red triangle arrows Continue reading “Time For The Lawyers To Pick At The Carrion That Is Detroit”

For prospective law students, the promise of merit-based scholarship money amid a broken legal market seems like an incredible deal. So what if there aren’t any jobs? You’re going to go to law school at a significantly discounted rate, or maybe even for free, so you won’t be at any real loss.

Or will you?

What law schools don’t like to tell you with regard to these frequently conditional scholarships is just how difficult it can be to keep them. When you’re banking the terms of your financial future on a law school grading curve, things can get a little tricky. Some might even describe the situation as a big racket. Thankfully, the ABA has started keeping tabs on these programs, and now there’s a wealth of information available on retention rates for scholarships of this kind.

So out of the 140 schools offering conditional scholarships, which ones are most likely to take back your law school funny money? Let’s find out…

double red triangle arrows Continue reading “The Law Schools Where You’re Most Likely to Kiss Your Merit-Based Scholarship Goodbye”

Won’t be long before law schools are getting this guy to sell you legal education.

It really bothers me when law schools resort to “used car salesmen” tactics to try to induce law students to sign up for school. Say what you will about the value of legal education, but it’s not like buying a Sham-Wow. Students can’t be influenced by “special, limited time” offers when trying to decide if and where to invest three years of their time. If nothing else, you’re entering into the lottery to win a legal career, not an iPad Mini.

Law schools that try to exploit “impulse buy” reactions to fill their seats should be ashamed of themselves. They are taking advantage of kids — twenty-somethings who don’t have lawyers or accountants or appraisers representing their interests. Law schools are at a huge informational advantage concerning the true value of their services, value that they try to hide at every turn from independent third parties. Law students are trying to cobble together what they can based on word of mouth, Google, and some published rankings. Turning the screws on these prospective students with offers that “expire in 24 hours” is a good business strategy if you are trying to sell them a toaster, but it’s a disgraceful thing to do for a place that claims to be an “institution of higher learning.”

I can only hope that anybody who received this “hard-sell” email from this law school did the smart thing and just walked away…

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The vast majority of our readers are members of the legal profession in some way — and whether you’re a prospective law student, a current law student, a young associate, or a partner, chances are you’ve all had similar worries about the future and its many uncertainties. Will you be able to find a job? Will you be able to pay off your loans? Will you even enjoy being a lawyer? One thing, however, is for sure: you’d prefer that your children not suffer the same vocational fate as you.

But when it comes to the other members of society, well, they’d just love it if their sons or daughters were to become a lawyer (or marry one). Despite what we know to be true in most cases, it seems that the people who pick up their phones to respond to survey questions have been left in the dark when it comes to the current state of lawyers and their livelihoods.

Take a wild guess at who thinks this career path is still the road to riches….

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Regular readers of this blog know that you cannot discharge student loan obligations through bankruptcy absent a showing of undue hardship. If you go broke borrowing money for expensive cars, houses, and monkeys/butlers, no problem, file for bankruptcy and start over. But if you go broke trying to better yourself through education, the government will make you beg and prove that you are sad and hopeless. Wonderful system we’ve got here.

We’ve also talked about how many people who might be eligible for undue hardship on their student debts don’t even try. The system is daunting and complicated, and I’ve argued that prostrating yourself in front of a bankruptcy court and letting them invade your life to the point of telling you how much you should be spending on your cell phone is not something that comes naturally to people with pride and dignity. This might be hard to understand for people who have never been in this situation, but I’d much rather be a “deadbeat” and have my wages garnished with the discretion on how I spend the rest than have some old judge tell me how much money I should be spending on breakfast.

When trying to get your debts discharged through bankruptcy, there seems to be no limit to what a judge can take into account to see if you are really desperate. But a recent Ninth Circuit opinion upholding a discharge by reversing the district court put one boundary on what a court can look at to determine if you’ve tried to pay your debts in “good faith.”

The court can’t look at your household and suggest that you pimp out your wife. So at least that’s something…

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‘Another tuition hike? Time for a new car!’

If liberals are to be true to our professed values, we must critically examine our own conduct, however painful and embarrassing it might be. We cannot speak truth to power yet not to ourselves. [P]rogressive law professors, I charge, have profited from a system of legal education with harmful consequences to individuals and society — while claiming (and believing) that they were fighting the system.

– Professor Brian Tamanaha of the Washington University of St. Louis School of Law, criticizing his colleagues for remaining silent while law school tuition has soared. His remarks can be found in a forthcoming essay that will be published in the Stanford Law & Policy Review.

With graduation fast approaching, maybe people are coming to the startling realization (what took you so long?) that they’re going to have to figure out a way to pay off their student loans. Sure, it was fun to have government monopoly money to play with while you were in law school — maybe you had a weekly shoegasm at DSW; maybe you repeatedly blew your wad at Game Stop — but now it’s time to face the music.

Unfortunately, when it comes to debt repayment, the soundtrack that’s playing on an infinite loop in your mind is from the shower scene in Psycho.

Whether or not you’ve got a job lined up, you know for sure that your starting salary is nowhere near high enough to allow you to both live indoors and make monthly payments to your loan servicer. You’re scared that you’re going to have to moonlight in retail, or worse yet, move back in with your parents.

All you know is that you really, really don’t want to default on your loans. Your credit will be shot. Your phone number will be scrawled on the bathroom walls at collections agencies. Your life’s work will be all for naught. What the hell are you going to do?

Don’t worry, friends. Your loan servicer has a secret to share on how to avoid the disaster of default….

double red triangle arrows Continue reading “If You Don’t ‘Like’ Your Student Loan Servicer on Facebook, You Will Default”

Amid a jobs and loan debt crisis, the push for legal education to reinvent and remodel itself upon the medical school paradigm continues to grow. From a reduction in years of schooling to legal residency programs, these and a slew of other ideas are looking better and better.

Next up to the plate: monetary incentives to practice in no man’s land. Doctors have been getting loan repayment incentives for four decades in exchange for practicing in underserved rural areas.

Why can’t lawyers do the same thing?

In recent weeks, South Dakota’s innovative plan to keep lawyers in the state and practicing in rural areas has gotten a great deal of media attention. If you’d consider hanging a shingle in a small town for five years in exchange for a yearly sum of $12,000 to pay off your debts, then this is a great idea.

There’s free money waiting for you in flyover country….

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