Paul L. Caron

Tuesday, December 6, 2011

Law School Stimulus: $54.3 Billion Student Loans Through 2020

American Lawyer, Law School Debt Bubble, Part II: Data Show Feds Will Lend $54.3 Billion to U.S. Law Schools by 2020:

Two weeks ago, I used U.S. News and Official Guide data to show that in 2010, 44,245 ABA law school graduates took on $3.6 billion in student loans, a sum that increased from $3.1 billion in 2008.

Average Graduate Debt Levels (ABA)

The ABA's debt figures closely track three-year average tuition levels

Graduate Debt Levels w Tuition (ABA)

It appears legal education has been one of America's winning industries over the last 20 years, posting an estimated 6.9 percent annualized growth rate in terms of debt-revenue alone.

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The law students are just debt-revenue buckets for the law schools. "Sign here," says a flunkie, and the kids sign, and the revenue from student debt floods into the schools' bank accounts each September and January.

Posted by: Lowellguy | Dec 8, 2011 7:02:00 AM

Reject and REPUDIATE the predatory lending system that currently exists, and which has locked an entire generation into debt serfdom.

Join the momentum of the DEBTORS' REVOLT - DEFAULT EN MASSE movement.

Just walk away - tell predatory creditors to eat cake. See what happens. Deal with the consequences, and regain your dignity. You are an American, not a credit score.

REPUDIATE your "debt", collapse the predatory lending system that is an abomination to American values. Our "leaders" in government don't have the courage to protect us; so just reject it. We will rebuild from there, under fair rules.

Posted by: Jordan Kanter | Dec 8, 2011 5:54:31 AM

Sorry, there is no such thing as "debt-revenue." Debt includes living expenses which is revenue to, say, a landlord or pizza parlor.

The assumptions that aggregate debt will go up even faster than now assumes that the number of students goes up as it has over the last 20 years. This is unlikely, as this year's trend is likely down.

Posted by: JD | Dec 6, 2011 12:32:01 PM