Trial Over Law School’s Job Statistics Symbolizes an Industry Gone Wrong

March 14th, 2016 / By

Originally published online and in print in the National Law Journal.

In May 2011, Anna Alaburda filed a lawsuit against Thomas Jefferson School of Law alleging that the school in San Diego lured students with deceptive and fraudulent employment statistics in violation of California consumer protection laws. With the trial starting last week, Alaburda’s case highlights how far the law school transparency movement has come in reforming U.S. legal education.

Outsourcing, automation and a ­thriving legal tech industry have ­fundamentally changed the legal profession. Law firms large and small closed or laid off huge swaths of attorneys in the wake of the Great Recession. Even recently, in Febru­ary, Milwaukee’s largest minority-owned firm, Gonzalez Saggio & Harlan, abruptly discontinued its business, laying-off more than 100 attorneys and 200 staffers. Many remaining jobs on the legal market are temporary or paying low wages.

But Alaburda’s claims about an unknown glut of law school graduates predate the financial crisis. After graduating from New York University in 2002 and working for several years, she started law school in 2005. Her lawsuit reflects several decades of unethical marketing from law schools of all types.

When Alaburda applied, Thomas Jeffer­son and the American Bar Association reported a graduate employment rate north of 80 percent. In court documents, she alleges that she relied on reports about Thomas Jefferson’s success in deciding to enroll.

To say she should have known better is to miss the cultural context in which she made her decision. Until only recently, “education debt is not bad debt” dominated career advice that college provides a positive return on investment. Law school especially has been portrayed as a ­ticket to financial security or even wealth. Students are told to and, indeed, want to trust the institutions they’re seeking to attend for higher education. To mistrust schools, your advisers and common wisdom required a divergent leap of faith.

Alaburda decided to attend law school before The New York Times, Wall Street Journal, National Public Radio, The Wash­ington Post and hundreds of other publications covered misleading employment statistics. Coverage of law school deception started in earnest in April 2010 in this very publication — nearly five years after Alaburda started law school. That fall, after decades of conditioning, law school enrollment peaked while thousands of recent and not-so-recent graduates began to realize they were not alone in feeling duped. Against an overwhelmingly positive cultural backdrop, they misplaced their trust.
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Harvard Transfers Don’t Spell Financial Trouble, But Several Law Schools’ Bond Ratings Do

January 29th, 2016 / By

This article was originally posted on Bloomberg.

Is the law school crisis affecting Harvard? Probably not. The school did choose to take 55 transfer students last year, the fourth largest transfer class in the country. In the prior four years the school took between 30 and 34 transfers each year. Its higher than usual acceptance of transfers has fueled speculation that it was compensating for an original applicant pool that wasn’t strong enough. Whether that’s so or not, several indicators that may show a school faces financial duress have each remained steady at HLS between 2011 and 2015.

  • First-year enrollment: enrollment ranged from 555 to 568 over the last five years. Applications were down 18 percent and yield declined from 66 percent to 60 percent, which indicates that several peer schools are making more competitive offers. Still, the school netted just one fewer first-year student this year compared to last and three more than in 2011.
  • Admissions credentials: the median LSAT score did not change from 173 (99th percentile) and the median undergraduate GPA declined just .03 from 3.89 to 3.86.
  • Tuition increased an average of 4.6 percent each year. Scholarship increases did not keep pace with tuition increases, indicating that the school took in more money each subsequent year.
  • There’s no talk about trouble with Harvard’s endowment, or any indication that Harvard Law has liquidity issues.

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