This may sound like advice coming from a broken record, but in case you are somehow still unaware of this very important fact, you generally cannot discharge your law school loan debt in bankruptcy. Sure, there’s an “undue hardship” exception to this steadfast rule, but it’s a difficult standard to meet.
The government will go to the ends of the earth to prove that you are capable of paying back what you owe and just unwilling to do so. To be frank, you’d probably be better off becoming totally and permanently disabled or dying, because then you or your estate would only have the ensuing tax nightmare to deal with.
Judges know that the burden of “undue hardship” is a difficult one to prove, and most of them probably think that it’s a load of crap. Unfortunately, most of them are unwilling to say so. But not this Oregon judge — she launched into a pointed, four-page critique of legal education, while ruling on a law school debtor’s attempt to discharge his student loans in bankruptcy.
No, she won’t grant you a discharge, but that doesn’t mean she has to like it. You know it’s going to be good when a judge cites to Above the Law while discussing student loans….
Hot on the heels of the news that administrations of the LSAT are down 16% from last year, we now know that the number of students applying to law school has also declined. But just how bad are the numbers? Let’s just say that applicants and applications for this cycle have “dropped precipitously.”
It would seem that people have finally gotten the message that going to law school won’t necessarily guarantee financial success, much less a job as a lawyer. These days, prospective law students are more in tune with reality, and they obviously don’t like the pictures of law school doom and gloom that have been displayed prominently in the mainstream media.
But that doesn’t mean that people are going to stop applying to law school, or even that they should. So, for these prospective law students, does news of fewer applicants mean that tuition prices will drop, too?
* Obamacare’s individual mandate may be in jeopardy, and it’s all because of that stupid broccoli debate. No, Scalia, as delicious as it is, not everyone would have to buy broccoli. [New York Times]
* Biglaw firms aren’t going away, but thanks to the recent onslaught of partner defections to small law firms, their high hourly rates might soon be going the way of the dodo. [Corporate Counsel]
* The “good” news: Northwestern Law will be limiting its tuition hike to the rate of inflation. The bad news: next year, it will cost $53,168 to attend. I officially don’t want to live on this planet anymore. [National Law Journal]
* A Littler Mendelson partner is recovering from a stabbing that occurred during a home invasion. On the bright side, at least he’s not a partner at Dewey — that’s a fate worse than being stabbed these days. [Am Law Daily]
* Law school applicants are dropping like flies, but some law schools were able to attract record numbers of students. UVA Law must have some real expertise in recruiting collar poppers. [The Short List / U.S. News]
* “I have a suggestion for you; next time, keep your [expletive] legs closed.” O Canada, that’s the basis of one crazy class action suit, eh? Dudley Do-Right would never treat a female Mountie like that. [Globe and Mail]
Our ongoing ATL School & Firm Insider Survey (take it here!), asks current law students, among other things, “What do you expect to do after you graduate?” A whopping 71% tell us that they expect to work for a firm. (This percentage was consistent across class years.) That this proportion is so high, and so at odds with the NLJ findings, can mean some combination of two things:
The ATL student readership skews heavily toward that minority of students who will actually snag Biglaw gigs.
Many (if not most) expectations of law firm employment will be dashed against the reality of a contracting job market. In other words, a majority of students think they are in the fortunate minority
After the jump, we’ll look at how wide the gap between student expectation and market reality is, even at the “go-to” schools:
Which law school helped her land a fabulous Biglaw job?
The general economy started to turn around last year, but the legal job market remains sluggish. In 2011, many top law schools sent fewer graduates into first-year associate jobs at the nation’s largest 250 law firms than they did in 2010. That’s the bottom-line finding of the National Law Journal’s annual survey of which schools the NLJ 250 firms relied on most heavily when filling first-year associate classes.
The results of the survey should be interesting to current law students and law firm attorneys. And they’re of possible practical import to prospective law students who are now choosing between law schools (or deciding whether to go to law school at all, based on a cost-benefit analysis that pits tuition and student loans against post-graduate job prospects).
So let’s look at the top 10 law schools, ranked by the percentage of their 2011 juris doctor graduates who landed jobs at NLJ 250 firms (i.e., “Biglaw”)….
Now comes the time when law schools tell students that the 2012-2013 academic year will cost more than the 2011-2012 academic year, even though the schools will be providing no additional professional help to struggling graduates.
Some law schools will blame it on state budget cuts to education. Other schools will blame it on weak fundraising. Still others will give you a song and dance about how the increases are necessary to hire top professorial talent, and then there will be some schools who offer the unsaid, “we’re doing it because we can and you’ll just borrow more money to pay us.”
We don’t track every tuition hike, because just about every law school raises tuition every year for one reason or another. But when a law school is brazen enough to raise tuition by a higher rate than other institutions at the university — and expects law students to be too stupid to notice how they’re getting taken advantage of — we tend to notice…
* Merry Christmas! House Republicans will get one less lump of coal in their stockings this year after accepting a two-month extension of unemployment benefits and payroll tax cuts. [New York Times]
* Another birther lawsuit has been thrown out, but Orly Taitz won’t be stopped. She’s like the Energizer Bunny of questionable litigation. She’ll keep appealing, and appealing, and appealing… [Los Angeles Times]
* John Edwards is trying to delay his criminal trial, claiming to have a mystery medical diagnosis. What kind of disease does karma hand you for cheating on your sick wife? [New York Daily News]
Let’s start with the bad news. The bad news is that the Regents, who run the show for the University of California (UC) system, approved an increase in system-wide student fees for the coming year. It’s for a shade over $1,000 — $1,068, to be precise.
The good news: Berkeley Law, at the behest of Dean Christopher Edley Jr., is effectively reversing the fee hike for its students. Boalt Hall is issuing an immediate “scholarship” to each student, in the exact amount of the fee increase.
Let’s take a look at Dean Edley’s email — which explains the situation, and has a cute and clever closing — and explore what might be motivating the administration….
Do you know an easy way for moderately priced public law schools to make even more money? Charge more for tuition. Do you know an easy justification for jacking up tuition rates? Say that you are moving to a “private funding model” while you bemoan the lack of public support for your institution.
After that, it’s all profit baby!
The big news in the law school hot stove league is that another major public law school is toying with moving to a private funding model. The logic for eschewing public funds for an increase in private dollars is, as always, disingenuous. But hey, as long as the law school keeps paying its tithe to the university, few will object to increased gouging of prospective law students…
What your law school dean does when alone at the office.
I, for one, do not think that a person’s salary can or should be used as a proxy for determining whether or not that person is committed to any particular cause. I don’t think people who fight for the poor need be poor themselves. I don’t think people who work for the state should be relegated to the kind of salaries that will convince the best and brightest to never work for the state. I just don’t think a person’s salary is all that indicative of a person’s commitment to doing the right thing.
That said, it doesn’t look good to be putting other people in financial distress while you enjoy a large paycheck, especially when you are in a position of public trust. When you are in a leadership position at a public university, you are expected to be looking out for your students, not just your own bank account.
The salaries of deans from public law schools don’t prove that these people are placing themselves above the needs of their students. They don’t really reflect anything — other than the going rate for a law school dean, in a competitive market for talent. But man, they don’t look good. In fairness, they look awful, given that we’re living in a world where many of these deans are raising tuition on students who for the most part won’t even be able to dream of making the kind of money these deans pull down.
So take a look, but try to remember that if you were in the deans’ shoes, you’d act no differently. You’d take every penny that was offered to you…
Jiminy jillickers! ATL editors are going all over the place over the next month or so. Or at least all over the Eastern Seaboard. If we aren’t heading to your neck of the woods on these trips, never fear, we may hit you up on the next time around. We’ve already hit up Houston, Chicago, Seattle, San Francisco, and Los Angeles in the past year.
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
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