Tuesday, May 10, 2011

The Slow Down.

"The message" has resonated with law schools who are slowing down the rapid expansion of past decades past because they now realize that law schools may not be so profitable. University of Delaware has put the kibosh on opening a law school after consulting..... drum roll, please!  

The ABA.
Delaware acted after talking to American Bar Association officials, who have noted a drop in both student interest and law-firm placement. Delaware also reviewed state plans to cut back higher-education subsidies.
Wow.  Truth Serum?  What happened?  I guess they've gotten the message loud and clear.

Also, if you went to school in the 90s as I did, you may already know a new building has always been a traditional and surefire way to join the first tier.  Not anymore it seems.  Drexel has decided against building a new facility:

The university concluded a law school would initially lose $160 million a year.
"We are not prepared to ask the Board for approval to incur that kind of deficit," according to a report by a committee assembled by UD president Patrick Harker that studied the proposal.
Did anyone here know that universities were rated, the same way that mortgage backed securities were? A lot of good that did us, by the way.  That Moody's... they are so honest!  
I didn't know they were rated, but I guess it makes sense, since Universities are primarily money making machines.  Never mind that most don't have shareholders--we all know that there are investors who are interested in the likelihood of a good return on the investment.  Well, now that you know, what do you think the rating for Drexel is?  It went from AAA to AA last week.  Still a better investment that most junk bonds, but worth noting.  Moody's reasons for the downward slide?

The university, which grew rapidly and raised academic standards under then-president Constantine 'Taki' Papadakis, faces "escalating" debt and "tepid financial resource growth," Moody's says. While Drexel's tuition income is "solid," other high-rated schools have "stronger cash flow."
Anyone willing to wager bets as to when this over-valued behemoth will go under?  Let's hope it's soon.


  1. There was a public law school that went bankrupt. It happened sometime in the last 15 years. I cannot remember the name at the moment.

  2. Angel,

    The kids who attend this waste pile defend it to the death. I suppose that they cannot admit the folly and idiocy of attending a brand new law school.

    Because going to a piece of trash with no alumni base is a great idea, right?!?!

  3. "[Anon] grew rapidly [but] faces "escalating" debt and "tepid financial resource growth," Moody's says. While [] income is "solid," other [individuals] have "stronger cash flow.'"

    I wanted to make sure, but this seems to fit the vast majority of the overeducated and underemployed. Looks like it does..

  4. This may be the first time I've ever heard of a university scuttle its plans to open up a new law school (er, cash cow). It really doesn't make much sense since they surely would have been able to fill all of their seats with somebody, even if they were charging $35,000+/year.

  5. They probably cut the law school because of a combination of state funding issues and the knowledge that there won't be a rich income base from which to solicit alumni donations.

    If they were still placing everyone in $160,000 a year jobs, they know that many of these people will be awash in pheromones towards their old school while needing a good place to make a charitable donation to help their income tax situation.

    Who knows? Maybe this trend will do more in the future than simply kill future law schools. Maybe when the successful geezers of old die off without replacements to write those big checks, something will happen. In my former school's case, it is highly plausible not simply because there is a growing army of disillusioned folk who are being killed by student loan debt. Since the practice of law is a caste system, most of the students that have graduated from my school within the past 15 years have been effectively barred from taking their place at that table.

  6. Thomas M. Cooley Law school is opening another campus in Tampa Bay within a year. They are continuing to expand.

  7. completely off topic but I am watching In Plain Sight on USA and just saw a preview for a new show that starts next mouth, Suits. Its about a new recruit at a big law firm that hasn't even gone to law school (but apparently has passed the bar - NY) Maybe if I haven't been reading your and others blog, I might have been all excited for the show but all I can think is oh great another show that is gonna glamourize the law profession and probably make more doey eyed students think that can actually happen.

  8. Suits and Franklin and Bash, why? Please post on their message boards and blogs that the practice of law is nothing like this. It is a no fun profession with a big debt load.

  9. Fuck all of them. I'm so lost and worthless.

    Dear God how I wish I never went to a Law School.

  10. @ Anon. 5-15-2011 10:39
    Of course Cooley is going to continue expanding; they don't give a pickled shit about the market, just about getting as many suckers in before everything collapses and the leaders have to flee to Brazil like escaped Nazis. And they will act "shocked" as they have to pack quickly and run to their private jets as the pitchfork and torch-wielding mobs chase them, howling for their blood.

  11. I wouldn't judge Suits too quickly. They may do a good job showing how bad the profession is.

    As for Ally Mcbeal.... we can just imagine how many young women's lives were ruined by that fiction.



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