From the Bottom to the Top and Back to the Bottom Again.

The following is a comment that was left on a recent post and I thought it was worth re-publishing a tail for the the weary:

I was denied my law license in Illinois for 7 years because I was unable to pay even the minimum payment for my student loans. I eventually enlisted the help (because I certainly couldn't pay his fees) of a solo practitioner who suggested I consistently make a payment to the loan holders and keep a record of those payments. Every six months or so I kept petitioning the Illinois Character and Fitness Committee to reconsider my application. I sat - alone - before a literal tribunal of attorneys, all physically seated higher than the chair reserved for the applicant, and was insultingly told I would never receive my license unless I could get some "rich relative" to pay my loans. What rich relative? My parents' home is valued at less than 1/2 what my student loans have risen to be. After 7 years of rejection, 7 years of falling behind on the compound interest, of being hounded by a rotating rogue's gallery of debt collectors, of watching my law school classmates pass me by, gaining experience while I languished in a legal editorship, I finally broke through to some sypathetic someone on the committee and got my license. Now 11 years later, I've worked my way up through the associate ranks of a mid-sized Chicago firm. I had been groomed for the last year as the next potential partner. My boss was telling me for a year how wonderful my prospects looked and to expect an invitation to sign on as a partner come the December 2010 reviews. Long story short: the partnership was pulled out from under me at the last possible second, not for the quality of my work, not for my aptitude, but because my long-fought troubles with student loans had somehow rendered me "financially unfit" to handle the Firm's multi-million dollar lawsuits. In other words, if I couldn't handle my own money, why should they trust me with the Firm finances? (Somehow the 6 years of killing myself to prove that I was worthy enough to consider for partnership wasn't enough.) Just weeks before the partnership determination was to be made, I received the second of 2 garnishments on my wages for my defaulted student loans. The default came to the attention of the Firm ironically through the collection counsel that the Firm uses to collect fees from delinquent clients. So, even though I had spent years dutifully paying at least something on my student loans, my career, such as it is, was once again derailed by the student loan anvil that I will apparently drag around after me for the rest of my life. I, once again, have little hope for the future. I work in "limbo" at the moment, never sure whether I will be bounced out on my ass as one of the partnership candidates who just didn't pan out. My Firm has a small army of such underlings who are all routinely treated with disdain and shoveled shit cases/files to discourage their continuing at the Firm. I want to leave, but honestly probably won't be able to secure another job anywhere nearby that might pay me the meager salary that I already do collect. Stupidly, I went trolling sites online that compared the salaries of 1st year associates in the Chicagoland area. Six years into my job at this Firm, I still don't make the 1st year salaries of most of the top-rated, top tier firms. I just don't know what to do.

I am not sure what you're supposed to do at this point.  In my opinion, if what you've told me is true, you've proven yourself to be a competent attorney--you may even be excellent.  It's a great accomplishment to be offered partnership.  I can't believe the partners at your firm reneged.  It's a shame that they can't see past your financial woes.  I wonder... What if one of the partners lost everything in a divorce because he was irresponsible and married his money-grubbing secretary without a pre-nuptual agreement.  What if a lawyer had a garnishment for child support?  Babies happen, yes--but isn't a child out of wedlock the epitome of irresponsibility?  What if a lawyer were sued as a result of a simple car accident?  Where is the line?  
Apparently, it's with student loans.  
The divine irony is that young people sign their lives away at about the same time they max out their first Discovery Card.  But, unlike the credit card debt, they can't shake the student loans.  Think long and hard before you pull out student loans.  It's not something you worry about later.  It's the gift that keeps giving, much like herpes.  Just when you think the flare ups are done, it comes back at the most inopportune times.  
Wait!  I have an idea.  Do your parents have any organs they can donate?  Do you?  Apparently, parents of an indebted college grad offered up their organs on craigslist for $200,000.00  (Thanks Tipster!) That's a real parental contribution that FAFSA doesn't take into account.  I remember, when times were good, reading about Indian people that sold their organs to marry off their daughters. The concept was so alien to me.  Not anymore.  It's right up there with selling eggs to infertile rich people--or the use of your womb for 9 months.  In other words, if there is a market for organs--American's will reconsider the utility of that other kidney in the very near future.

Anyone know where I can sign up for Cairo style protests?  We're long overdue.

The Myth of Partnership

I realize that most of my readers can only dream of working at a large firm--so what happens once you get there is probably beyond the scope of what you can think about today, when you're unemployed and living in your parent's basement.

However, it's something that should be discussed in light of the theme here: the law school scam.  When you sign up for law school, when you're a bright eyed and bushy tailed lemming, you think about the prospect of making partner.  That's the way that you decided you may make your millions.  You have a chance, right?  Wrong.

When I signed up for the dream, I was told that you could potentially make partner in five years. I understood the "over and out" Cravath System--probably not as well as I know it today.  But the chance, the glimmer of hope, was there.

Since then, the track for partnership has lengthened:
An associate may have to wait as long as 9 years before the decision is made as to whether the associate "makes partner." Many law firms have an "up or out policy" (pioneered around 1900 by partner Paul Cravath of Cravath, Swaine & Moore[2]): associates who do not make partner are required to resign, either to join another firm, go it alone as a solo practitioner, go to work in-house in a corporate legal department, or change professions (burnout rates are very high in law[3]). [as per Wiki]

Fast forward several years, to when I was working in Big Law. I noticed that the only people who seemed to become partners were outsiders.  The criteria for becoming a partner seemed to change from working hard and making your billable hour requirements, to your ability to bring in business.  I will be the first person to say that law firms are inept at business.  However, this trend makes sense.  It just sucks for those who devote 9 years of their life and their most productive years, only to be pushed out by a stranger to the firm. I guess it's the difference between those who appreciate Derek Jeter as a home grown Yankee to A-Rod, a great import.  Some people say that A-Rod will never be as loved as Jeter, because he's not really a Yankee in the way that Jeter is.

Then, in combing the news on google, I noticed the trend to take in high powered outsiders with influence and clients is the way to become partner at a large firm.

So, how does this tie into the scam?  If the partnership track has lengthened from five years, to nine and then perhaps not at all, why has the cost of a law school education quadrupled?  I'm not saying that everyone that goes to law school thinks they are going to become partner, or even wants to.  However, if it's not longer a part of the plethora of options as a J.D., why would you pay more for the J.D.?

Do you know anyone who has made partner at a top 200 law firm?

Food for thought.