Posts Tagged ‘predatory’

Cornell Journal of Law & Public Policy: Predatory Student Loan Lenders, Middle Class Hope for Upward Mobility, the Legal Industry and the Inevitable Bubble

As some potential law students continue to await LSAT scores, law school admissions or are wondering whether or not going to law school will give them that one chance at a better life, it would benefit you to read the following:

Being led to the slaughter

A law journal article: 20 Cornell Journal of Law & Public Policy 67 (2010)
Options for Student Loan Borrowers: A Derivatives-Based Proposal to Protect Students and Control Debt Fueled Inflation in the Higher Education Market, Michael C. Macchiarola; Arun Abraham

O.k. so this article is 72 pages, obviously I won’t delve into the entire piece but I am placing some introductory quotes in which the author is direct with failing legal industry and how the student loan industry are basically predators. He specifically discusses law schools and new lawyers are a bad investment. the author is a ‘distinguished lecturer.’ The author is a law professor and is honest enough to basically state that going to law school isn’t worth it. Do you 0Ls get it? one of your potential professors is telling you that LAW SCHOOL IS A BAD INVESTMENT!

Here are the Table of Contents for a very brief overview:
INTRODUCTION                                                                                                                                                                                                                                                    I. THE RUNAWAY COSTS OF AMERICAN LEGAL EDUCATION
By the Numbers
The Causes: A Combustible Mix of Accreditation,Rankings, Peculiar Incentives and Federal Encouragement
A Brief History of the Law School and Its Accreditation
The Rankings Game
The Peculiar Incentives of the Law School Faculty
The Federal Government and the Student Loan Market
The Scope of Government Involvement
Crisis in the Market and the Emergence of SAFRA
Income-Based Repayment and More of the Same
“For-Profit” Schools and a Way Forward

THE DISAPPOINTING REVENUE PICTURE FOR LAW SCHOOL GRADUATES
INFORMATION ASYMMETRIES AND ENTERPRISE LIABILITY
Informational Asymmetries Abound
Applying Lessons from Enterprise Liability Theory

Now for some introductory quotes:
Runaway tuitions and the burdensome student debt required for most Americans to obtain a post-secondary degree are under scrutiny like never before.4 Evidence is beginning to mount that, for too many students, debt-financed education represents a stifling encumbrance instead of the great investment that society’s collective commonsense has long advanced.5 Such a finding is unsurprising in light of the fact that, for too long, the value of education has been reflexively embraced without adequate examination of its cost. (p. 69-70)

As most bloggers have been stating, the cost is not worth the proposed benefit with all of the practical variables: economy, shrinking industry, inflation, lower salaries, loan payments and their capitalized interest as well as the time and psychological warfare this field demands.

The cost of attending law school, for example, has increased at two to three times the rate of inflation over the last three decades.11 The promise of accessible loans has made loan eligible middle- and lower-income students an easy mark for unabashed, aggressive student-loan marketing.12 “The end result,” in fact, “has been an unprecedented, debt-fueled wealth transfer from students of modest means to the increasingly prosperous higher education industry and opportunistic student loan lenders.” (p. 71-72)

Now deemed “McLaw” this along with LPOs and general outsourcing has set the middle class population in a cycle of perpetual financial slavery. Upward mobility is not founded in usurious personal debt. Do not think of the titles. Do not think of prestige. Think of your life and happiness and with any common sense you will decide not to attend law school.

Does Prince George’s Need a Law School?: An Article in The Washington Post

Are you kidding me? Maryland is one of the smallest states in the country already has two law schools and borders Washington, DC and Virginia. The question is does America needs another law school? What really bothers me is that African-Americans make up the majority and has since pretty much of the inception of Prince George’s County, Maryland. Since the 1990s (we’ll leave historical racial discrimination alone for now) the housing market, specifically banks have already raped the pockets of these residents by giving them subprime loans. No, they qualified for better loans but because they were black the banks decided to give the worst terms to them:  
The Seattle Times, ‘Judge dismisses Baltimore suit against Wells Fargo,’ The Associated Press January 7, 2010. http://seattletimes.nwsource.com/html/businesstechnology/2010726364_apuswellsfargosubprimelawsuit.html?syndication=rss 
The New York Times, ‘Memphis Accuses Wells Fargo of Discriminating Against Blacks,’ Michael Powell, December 30, 2009. http://www.nytimes.com/2009/12/31/us/31wells.html (last visited January 16, 2010)
WBALtv.com, ‘City Tries To Push Forward Wells Fargo Lawsuit: City Claims Wells Fargo Used Predatory Lending On Blacks,’ June 29, 2009. http://www.wbaltv.com/money/19897079/detail.html
The New York Times, ‘Bank Accused of Pushing Bad Mortgage Deals on Blacks,’ June 6, 2009, Michael Powell http://www.nytimes.com/2009/06/07/us/07baltimore.htm?adxnnl=1&adxnnlx=1260291635-M9E2ycPY47KMy84bjX/QWA 
NAACP Press Release, March 13, 2009, NAACP Files Landmark Lawsuit Today Against Wells Fargo and HSBC
http://www.naacp.org/news/press/2009-03-13/index.htm . The point is that blacks haven’t recovered from this last recession, the being taken advantage of when they think they finally have an opportunity to make it and here comes the law schools, ready to exploit them in another way. NO! Anyway, here’s the article:
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http://voices.washingtonpost.com/annapolis/2009/04/legal_studies.html
The General Assembly has nixed a study of a D.C. United soccer stadium in Prince George’s this year, but here’s something they’ve given the go-ahead to study: A possible law school in the Washington area.
Del. Justin D. Ross (D-Prince George’s) worked with Del. John L. Bohanan Jr. (D-St. Mary’s), the chair of the education subcommittee of the House Appropriations Committee, to insert language in the state budget authorizing the study. The budget now asks that the University system study the “feasibility and logistical costs and benefits” of launching a branch of the University of Baltimore’s law school in the D.C. area. The report is to be submitted to the legislature by Sept. 1.
Ross said his goal is to look at creating a law school in Prince George’s County, a reasonable place for a law school, he said, because of the University of Maryland’s undergrad campus in College Park and the federal courthouse in Greenbelt. U-Md.’s law school is located in Baltimore.
“I think it could be a great success for the University of Baltimore law school and the county,” he said.
 
By Rosalind Helderman  |  April 13, 2009; 10:32 AM ET
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NOTICE HOW THEY WANT TO PUT THE FOURTH TIER LAW SCHOOL [http://grad-schools.usnews.rankingsandreviews.com/best-graduate-schools/top-law-schools/rankings/title+University%20of%20Baltimore
IN THE MAJORITY BLACK MIDDLE CLASS COUNTY INSTEAD OF University of Maryland (Tier 1) Law School [http://grad-schools.usnews.rankingsandreviews.com/best-graduate-schools/top-law-schools/rankings/c_final_tier+1/title+University%20of%20Maryland],
which would make more sense, since the University of Maryland (Terps) College Park is already there.  BLACK PEOPLE DON’T LET THEM EXPLOIT YOUR IGNORANCE! The article towards the very end makes it appear that ONLY UM has a law school, wrong both UM and UB already exists in Baltimore, Maryland!