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Law.com Proposed Student Loan Cap Could Devastate Law Schools

https://www.law.com/2018/04/18/prop osed-student-loan-cap-cou jdcumlaude04/20/18
Before 2006, people had to take our private loans to exceed downwardslope04/20/18
Do you think that private lenders gonna step in to lend in t triplesix04/20/18
If they do, rates will be very high. supercalifragilisti04/20/18
Even when I went, they were fairly easy to get at top tier l downwardslope04/20/18
Lol as it should be... Law schools should have a competitive triplesix04/20/18
ATL is shilling for lawl schools now? triplesix04/20/18
One would think a law-focused website could actually cite or soupcansham04/20/18
"But in the end, this problem is better resolved through tou 6figuremistake04/20/18
I fully support this for numerous reasons, but the number 1 thirdtierlaw04/20/18
IBR being eliminated would topple the entire system very qui um1l04/20/18
IBR ~= PSLF. IBR and ICR existed way before loan forgiveness downwardslope04/20/18
A law school needs two basic things: 1. A building to sit dietcoke04/20/18
If the ABA had any balls, they would be talking about a Code maverick04/20/18
I know that many people believe that private lenders are mor chrissands04/21/18
If the ABA had any balls, they'd yank the accreditations for caj11104/21/18
I’ve advocated ending ALL government student loans and pri qdllc04/21/18
I have a friend and he went to one of the overpriced law sch jdslug04/22/18
Ahhh. The Georgetown SOL business model. This sort of BS lawyer197204/22/18
jdcumlaude (Apr 20, 2018 - 10:40 am)

https://www.law.com/2018/04/18/proposed-student-loan-cap-could-devastate-law-schools/?slreturn=20180320103736

sorry for membership wall.

here is the ATL summary of same.

https://abovethelaw.com/2018/04/congress-plans-to-take-away-your-student-loan-money-what-happens-to-legal-education-then/

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downwardslope (Apr 20, 2018 - 10:49 am)

Before 2006, people had to take our private loans to exceed the cap. Even then, people still took out private loans because there was no PSLF and the gradplus terms were awful.

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triplesix (Apr 20, 2018 - 11:10 am)

Do you think that private lenders gonna step in to lend in the current climate of effective default rate hovering around 40%?

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supercalifragilisti (Apr 20, 2018 - 11:41 am)

If they do, rates will be very high.

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downwardslope (Apr 20, 2018 - 12:03 pm)

Even when I went, they were fairly easy to get at top tier law schools and much harder to get down in the ranks.

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triplesix (Apr 20, 2018 - 12:46 pm)

Lol as it should be... Law schools should have a competitive admission instead of current heart beat and ssn requirement.

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triplesix (Apr 20, 2018 - 10:50 am)

ATL is shilling for lawl schools now?

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soupcansham (Apr 20, 2018 - 11:34 am)

One would think a law-focused website could actually cite or link the bill.

Google cached version of the Law.com article: https://webcache.googleusercontent.com/search?q=cache:ZuHr8qdiK0wJ:https://www.law.com/2018/04/18/proposed-student-loan-cap-could-devastate-law-schools/+&cd=3&hl=en&ct=clnk&gl=us&client=firefox-b-1

I think this is the bill: https://www.congress.gov/bill/115th-congress/house-bill/4508?q=%7B%22search%22%3A%5B%22Promoting+Real+Opportunity%2C+Success+and+Prosperity+through+Education+Reform%22%5D%7D&r=1

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6figuremistake (Apr 20, 2018 - 11:52 am)

"But in the end, this problem is better resolved through tougher accreditation than cutting off federal loans. There’s no reason to push the dream of being a lawyer further out of reach for poor and middle-class students looking at mid-tier law schools just to put the squeeze on the RNPs."

The dream of being a lawyer? Those chumps stuck in the bottom tier schools probably weren't going to be lawyers anyway - some of these schools have 9 month unemployment rates that rival what was seen during the Great Depression.

At best, these kids (if they can pass the bar) are looking at a life of doc review or low level law while servicing $200k loan balances. If the bill is as catastrophic as claimed, this is nothing but a blessing for these potential students.

I can understand the scam deans playing the "woe on the poor and disenfranchised" card, but why is ATL carrying their water?

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thirdtierlaw (Apr 20, 2018 - 1:45 pm)

I fully support this for numerous reasons, but the number 1 reason is the hope that half the law schools fold. Every current and future attorneys would benefit greatly.

I'm certain the ABA will push back on this, but can you imagine if the ABA actually cared about supporting the profession? They'd be all over something like this.

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um1l (Apr 20, 2018 - 4:08 pm)

IBR being eliminated would topple the entire system very quickly. They can't really do that for existing borrowers because it's in the promissory note. The government should probably cap these loans to schools as part of a major reform deal where existing debtors get forgiveness and the schools have their slush funds eliminated for good.

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downwardslope (Apr 20, 2018 - 4:12 pm)

IBR ~= PSLF. IBR and ICR existed way before loan forgiveness programs existed, but people were able to consolidate at much lower rates. The payments were much more affordable than GradPLUS or even the current graduate Stafford rates.

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dietcoke (Apr 20, 2018 - 7:34 pm)

A law school needs two basic things:

1. A building to sit in.

2. An old person to explain doctrines that are roughly the same as the Wikipedia summaries.

THAT'S IT. Where is all this money going? I mean, I know the answer. Overpaid poorly productive faculty, huge unnecessary buildings, excess staff, volumes of books nobody reads in the library, etc.

There's nothing stopping the individual schools from financing their prestigious tuition rates. Let them take on the risk if they're so sure they're producing marketable graduates.

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maverick (Apr 20, 2018 - 9:12 pm)

If the ABA had any balls, they would be talking about a Code of Professional Responsibility for law schools.

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chrissands (Apr 21, 2018 - 10:58 am)

I know that many people believe that private lenders are more prudent than the feds, but I have seen private student loans in the tens of thousands of dollars for cooking schools, bartending, and graphic design.

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caj111 (Apr 21, 2018 - 1:27 pm)

If the ABA had any balls, they'd yank the accreditations for at least 50+ law schools that shouldn't be operating, some of which never should have been opened.

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qdllc (Apr 21, 2018 - 11:26 pm)

I’ve advocated ending ALL government student loans and private education loans, if allowed, would be fully subject to bankruptcy after 5 years of repayment.

The flow of easy credit is why education costs have gone up so fast, and since everyone can pay for college, employers have abdicated most all responsibility for training their own workers.

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jdslug (Apr 22, 2018 - 3:45 pm)

I have a friend and he went to one of the overpriced law schools and the overpriced law school pays the student's PSLF payments. So the school "could" charge $70,000 (or $700,000) per year, have hime take out the max student loan and say that is "tuition" and then pay the persons PSLF payment for 10 years at 500$ per month or $6000 per year or $60,000 per 10 years.

For the student it is a win because the school pays the loan under PSLF.

For the school it is a win because they collected all that tuition.

That is actually a great business model to offer to pay the loan's of students with debt that you create through "tuition".

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lawyer1972 (Apr 22, 2018 - 6:28 pm)

Ahhh. The Georgetown SOL business model.

This sort of BS by the schools has been used to justify pulling the plug on the PSLF Program.

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