Student Loan Bubble

Dominique Strauss-Kahn

* Dominique Strauss-Kahn’s lawyer has a challenge for you: “I defy you to tell the difference between a naked prostitute and any other naked woman.” [Dealbreaker]

* It’s not often that Cravath partners leave for other firms, but it happens. Jeffrey Smith, former head of the environmental practice at Cravath, recently decamped for Crowell & Moring. [Am Law Daily]

* Former Bush Administration DOJ official John Elwood, now a partner at Vinson & Elkins, breaks down the Office of Legal Counsel’s recently issued opinion on recess appointments. [Volokh Conspiracy]

* Blawging, Flawging & the Mathematical Theory of Information. Also: what do laser hair removal in D.C. and lemon law in Wisconsin have in common? [Associate's Mind]

* Are Americans finally waking up to the higher education bubble? [Instapundit]

Professor Ann Althouse: birthday girl.

* It appears that Joseph Rakofsky, whose handling of a criminal case drew critical comment, struggles on the civil side too. Justice Emily Goodman returned a proposed order of his with this notation: “Decline to sign. Papers are incomprehensible.” [New York Personal Injury Law Blog]

* If you’re a trusts and estates lawyer or a reader of fiction, consider checking out this well-reviewed new novel by Patrick James O’Connor, which takes the form of an extended last will and testament. [Amazon (affiliate link)]

* Happy Birthday, Professor Althouse! [Althouse]

[A] law school could literally burn a huge sum of money and, as long as the flames were meant to teach something to the students — the craziness of the U.S. News algorithm, perhaps? — the school would benefit in the rankings.

New York Times journalist David Segal, responding to a reader’s question in relation to his series of articles about the economics of law schools. Segal’s latest article, For Law Schools, a Price to Play the A.B.A.’s Way (our coverage here), concluded the series.

(Additional excerpts from Segal’s responses, after the jump.)

double red triangle arrows Continue reading “Quote of the Day: Tuition Money Well Spent?”

* The American Bar Association can’t handle law schools, yet Obama trusts them to vet potential judicial nominees. Well, seems like they’re doing a bang-up job with that, too. [New York Times]

* First the New Jersey bar exam results, and now more MF Global drama. Angry investors want to know if a lawsuit will help Jon Corzine remember where he put the missing $600M. [Bloomberg]

* Law school debt increased by $475M between 2008 and 2010. Grab a raincoat, because this bubble’s going to burst soon, and it’s not going to be pretty (except for Cooley Law; they’ll be rich). [Am Law Daily]

* And on that note, what on earth was Cornell Law thinking? Did they fail to realize that their Cooley rankings would plummet if they decimated their library square footage? [Cornell Daily Sun]

* UC Berkeley: “We never like to hurt our students.” Yeah, apparently that’s what the police are for. Occupy Berkeley protesters are suing the school over police brutality allegations. [Huffington Post]

Two petitions of possible interest showed up in our inbox today:

1. In favor of student loan forgiveness: This petition, reminiscent of Elie Mystal’s call for a student loan bailout, “strongly encourage[s] Congress and the President to support H. Res. 365, introduced by Rep. Hansen Clarke (D-MI), seeking student loan forgiveness as a means of economic stimulus.” (We mentioned H.R. 365 in Morning Docket.)

2. In favor of law school transparency: This petition, posted by Professor Paul Campos over at his formerly anonymous blog, calls for “the American Bar Association to require all schools it has accredited to release clear, accurate, and reasonably comprehensive information regarding graduate employment, by for example implementing the proposals outlined in Part III of the Law School Transparency Project’s white paper, A Way Forward: Transparency at U.S. Law Schools.”

We might have more to say about these petitions later. For now, we’ll just pass along the links (and you can argue the merits of these petitions in the comments).

Want a Real Economic Stimulus and Jobs Plan? Forgive Student Loan Debt! [SignOn.org]
Law School Petition [Inside the Law School Scam]

Earlier: Student Loan Bailout. Just Do It.
The Tenured Law Prof Turned ‘Scamblogger’ Reveals Himself

We write about depressing news for law students and law school graduates all too often these days, which is a very, very sad thing. We know that you don’t want to be reminded about the impending doom you may soon face. We really do wish that we had more positive news to report. But in this economy, it’s just not possible.

Gone are the days when earning a JD meant having automatic employment prospects. Gone are the days when having student loans wasn’t completely debilitating. These days, the JD has taken on a new meaning. It doesn’t just mean Juris Doctor anymore. These two are a little more fitting: Job Dilemma and Jumbo Dumbass.

The Connecticut Law Tribune has come out with an informative piece just in time for new 1Ls to realize that they may have embarked upon a six-figure mistake….

double red triangle arrows Continue reading “In This Economy, What’s the New Meaning of JD?”

Are there people out there who don’t think we’re heading for a student loan default crisis? That’s a serious question. I’m wondering if there are actual professionals out there who think that student debts are a safe bet? If so, can those people be exiled to one of the PIGS countries where they can breed in their natural habitat?

Today we have more evidence that the student loan market is headed for disaster. We live in a world where the cost of education has become completely disassociated from the value that the education provides. The tuition is too damn high, and there aren’t enough high paying jobs available for all of the young people with enormous debt.

For many recent college graduates, default is inevitable. The numbers are starting to catch up with reality….

double red triangle arrows Continue reading “The Student Loan Bubble: Only Stupid People Will Be Surprised When It Bursts”

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