Biden Administration Remains Under Pressure to Move Forward with Student Debt Cancellation

On May 1, 2022, which is just three months away, federal student loan payments will resume. This comes after a two-year period during which borrowers could choose whether or not they would make payments. As the date nears, the Biden administration is under pressure to make good on campaign promises to reduce student debt for millions of Americans with federal loans. Last week, 85 Democratic members of Congress sent the President a letter urging him to, “...direct the Department of Education to publicly release the memo outlining your legal authority to broadly cancel federal student loan debt and immediately cancel up to $50,000 of student loan debt per borrower.”

But it is still unclear how President Biden will move forward. During his campaign, he promised to forgive up to $10,000 per student loan borrower, but he has since expressed hesitancy to extend loan forgiveness to those attending elite schools or who obtained professional graduate degrees, and have strong repayment prospects. In a press conference last month, President Biden declined to comment on a question about student loan forgiveness. 

An article in the Wall Street Journal speculates that the Biden Administration may opt to forego blanket debt forgiveness for an alternative path, “...by starting a regulatory process, complete with input from stakeholders, to set up a debt-forgiveness program that targets people most in need.” This path may allow the administration to avoid a potential Supreme Court battle that an Executive Action may spur.

In the meantime, the administration has moved forward with more targeted loan-relief initiatives, such as a revamp of the long-standing Public Service Loan Forgiveness (PSLF) program. This would allow those who have worked for a public or nonprofit organization, and also made monthly payments for a ten-year period (120 payments) to have their loans forgiven. A revamp is exciting for current business, medical, and law students who wish to go into public service, and necessary. The original program, which dates back to 2007, burdened participants with bureaucratic hurdles, and only provided benefits to a small percentage, about 16,000 out of 1.3 million. 

A Compelling Diversity Statement will Strengthen Your Candidacy for Law School

Let’s start with some context around the importance of diversity within the legal profession. The ABA recently published a piece on why diversity matters in the law, defining diversity as “... more than just racial or ethnic diversity. The concept of diversity encompasses all persons of every background, gender, race, sexual orientation, age, and/or disability.” The article goes on to provide the perspectives of leaders within the legal industry on the importance of diversity, which we have excerpted below. 

Find the full text here. 

• Public confidence. “[R]acial and ethnic diversity in the legal profession is necessary to demonstrate that our laws are being made and administered for the benefit of all persons. Because the public’s perception of the legal profession often informs impressions of the legal system, a diverse bar and bench create greater trust in the rule of law.” (ABA)

• Quality of legal decisions. “A diverse legal profession is more just, productive, and intelligent because diversity, both cognitive and cultural, often leads to better questions, analyses, solutions, and processes.” (ABA)

• Competitive advantage. “A demonstrated commitment to diversity and inclusion can be a key aspect of a law firm’s competitive advantage when it comes to recruiting and retaining talent and pitching certain clients. Clients receive the highest quality service when their legal teams are drawn from professionals mirroring the diversity of the marketplace.” (Tiffani Lee, Partner, Holland & Knight, LLP)

• Path to leadership. “In order to cultivate a set of leaders with legitimacy in the eyes of the citizenry, it is necessary that the path to leadership be visibly open to talented and qualified individuals of every race and ethnicity,” (Justice O’Connor, Ret., noting that the nation’s leaders often come through the legal system)

• Thought leadership. “Their unique backgrounds help to ensure that a 360-degree approach is used to analyze each issue. Having a diverse legal team helps to eliminate the possibility of bias affecting your final decision.” (Robin Wofford of Wilson Turner Kosmo LLP, who also serves as chair of the National Association of Minority & Women Owned Law Firms)

For these reasons, and many more, it is critical that law schools and the legal profession are representative of the larger population. So, what does that mean for your application to law school? It means that you will want to craft a diversity statement that will show the reader your ability to connect, grow, thrive, and meaningfully collaborate in diverse environments and/or explore how you will contribute to the diversity of the incoming class. Of course, you want the piece to strengthen your candidacy, so if it feels forced or inauthentic, or if the prompt seems limited to those who identify as a racial or other minority and does not apply to you, it is best to leave it blank.  

In brainstorming possible experiences or anecdotes to include, ask yourself the following questions: 

• What traits or characteristics make you unique? 

• In what way might you be able to offer your law school cohort an unconventional perspective? 

• What are some collaborative situations in which you have experienced discomfort? Did you work with an international group on a project in an academic or professional setting, or have an internship in a foreign country where no one else in the office spoke English?

• What are some experiences that prompted an evolution in your perspective? Did you participate in a volunteer project serving an underrepresented clientele or provide services to those with disabilities or unique obstacles?

• How are your experiences likely different from those of other candidates? Did you take an unusual career path prior to applying to law school? 

Once you have a thorough brainstorm, we can help you to further develop a story that communicates to admissions committees your ability to contribute to a dynamic and diverse learning environment and grow from others’ perspectives. 

Trends in Law: Recruiting and Retaining Legal Professionals Named Key Challenge for Firms in 2022

The Thomson Reuters 2022 Report on the State of the Legal Market names the recruiting and retention of legal and professional staff as the biggest challenge for law firms in 2022. Financially, law firms have rebounded from the early days of the pandemic; in 2021 firms saw a four percent increase in growth, compared to 2020, and a one percent increase from 2019 (a more realistic comparison after the drop in demand due to the pandemic). However, law firms are facing challenges similar to those seen within the broader job market, and are not immune to the effects of the great resignation. In a 2021 survey of 55 U.S. law firms by Thomson Reuters and the Georgetown Law Center, executives named talent-related issues—lawyer recruitment and retention, poaching of staff by competitors, and increasing associate salaries—as the top three greatest risks to firm profitability in 2022. For reference, in 2020, talent-related risks did not even appear within the top five. 

As expected, associate compensation, across the market, has been increasing rapidly. At the close of November 2021, there was an 11.3 percent increase (as a rolling 12-month average) across market segments and, within the Am Law 100 elite firms, compensation increased by more than 15 percent. But firms continue to see record levels of turnover. This means that for all of the compensation outlays, the total growth in lawyer headcount is minimal (1.5 percent growth). And at the end of November 2021, across the market, turnover reached 23.2 percent (on a rolling 12-month basis), which is significantly higher than the pre-pandemic 2019 rate (18.7 percent). Among the Am Law 100 firms, turnover was slightly higher (23.7 percent) and among the Am Law 200 and mid-size firms slightly lower (22.1 and 22.0 percent, respectively). 

Associates’ attitudes towards work and life are clearly changing. In The American Lawyer’s 2021 Mid-level Associates Survey, which included nearly 4,000 respondents from 77 Am Law 200 firms, 27 percent said they would leave their firm for higher compensation and 60 percent said they would consider leaving their firm for an improved work-life balance. These results are likely related to a year of particularly long working hours as demand for legal services grew, in addition to the blurring between work and life due to the pandemic. The report notes that the push-back to long working hours was more apparent among younger associates, and that middle-aged lawyers (aged 40 to 60) were comfortable working 10 percent longer hours. 

In response, firms should look beyond increasing compensation to improve associate retention. Below are initiatives that some firms are exploring to curb turnover: 

• Offering more interesting or high-profile work, mentoring, and/or faster promotion sequencing

• Updating compensation metrics, moving away from billable hours, to a task and quality-oriented system

• Providing wellness, counseling, and stress-management programs

• Offering social, recreational, and team-building activities to promote a collaborative and close-knit office culture

While these activities and initiatives may start to improve associates’ firm loyalty, the Thomson Reuters report calls out a need for more meaningful change to improve retention, saying “Achieving that goal will require firms to reimagine their structures and operations in the post-pandemic world to provide the real “glue” that we know is necessary to bind people to organizations—feelings of value and meaning in their work, feeling appreciated and recognized, having opportunities for growth and personal satisfaction, and believing that they are making a contribution to something larger than themselves.“

Find the full report here: 2022 State of Legal Market Report

Elite Law Schools Provide Best Return on Investment

A Wall Street Journal analysis of federal student loan debt recently showed that elite law programs can offer the best return on investment to graduates. Among the top 20, the debt-to-income ratio averaged out to 1.0, which means that graduates were making a salary just two years out of school equal to what they had accrued in debt; the range in debt to income ratio among this elite group spanned from 0.7 at Stanford  to 1.36 at Georgetown University. 

Of note, this analysis only includes the salary and student loan debt for students who took out federal student loans and does not include private loans. The analysis reviewed the federal student loan debt accrued in 2015 and 2016 compared to the graduate’s salary two years later. 

*17 schools ranked within the top 20 were included in the Wall Street Journal analysis; Yale, Duke and Cornell were not included

More broadly, however, the Wall Street Journal found that most law degrees, excluding those from elite programs, have decreased in value over time as inflation has outpaced salary, all while tuition prices have risen dramatically. The article notes that between 1985 and 2019, adjusting for inflation, the average annual tuition for a private law school has nearly tripled according to advocacy group, Law School Transparency. And, within this context, salaries have not jumped as significantly.

According to the National Association for Law Placement, starting law salaries generally fall within two clusters: $45,000-$75,000 for public service and small firm attorneys and around $190,000 for attorneys at large firms. And, according to a Law School Transparency analysis using American Bar Association data, more than half of the entry-level jobs at the large and high-paying firms go to graduates of the top 20 ranked law programs.

Prospective law students should take into account a law program’s cost as well as the expected median salary for graduates during the school selection process. Additionally, for those students who hope to go into public service or work for a smaller firm, it may be beneficial to compare the costs and outcomes for various public and private law school options, as well as debt repayment plans that may be available for different career tracks. Similarly, those hoping to obtain a place at a large and high-paying firm should look at placement outcomes at law schools of interest to best position themselves for success. 

Related blogs:

15-Year Law School Experience Study Shows Changes in Student Demographics and Debt, Consistency in Student Satisfaction with Legal Education

ABA Report Calls for Action to Help Young Lawyers Struggling with Student Loans

National Bar Exam Results Remain Stable, but Early State-Level Reports Show Declining Pass Rates

An article published last week on Law.com proclaims that the early results for the July 2021 multi-state bar exam were “less drama-filled than the exam itself” with the national mean scaled score falling only slightly compared to 2019. The national mean score, 140.4, was released last Wednesday by The National Conference of Bar Examiners and showed a decrease of just 0.7 from the pre-pandemic July 2019 national mean of 141.1 (the last time a full national group took the test). This year’s mean was also generally on-par with 2020, when due to the ongoing pandemic, the test was administered on three different dates with reported mean scores of: 141.6, 142.7, and 137.2. And, the mean score fared better than in 2018 when the mean was 139.5. 

While all states administered a bar exam in July, due to the pandemic, 24 jurisdictions offered the test in-person and 29 offered it via full-length online exam. Online test-takers reported an experience riddled with technical difficulties. For some, the remote-testing software crashed and forced a computer restart costing them valuable time—ranging from a few minutes to an hour and a half—and causing significant added stress.  

And, despite the similar mean-score comparisons at the national-level, an article from Reuters suggests that the early state-level pass rates are emerging as “ominous” indicators. Just nine states have published results, but eight of them are reporting lower pass rates than in 2020. While the number of test-takers in each state has been relatively small, Iowa’s pass rate decreased by 12 percentage points this year (71 percent passed in July), New Mexico’s decreased by 18 percentage points (71 percent), and Nebraska’s decreased by 17 percentage points (72 percent). In North Carolina, the overall pass rate dropped from 83 percent in 2020 to 75 percent this year, despite the passing score being decreased by 2 percentage points in response to the online test’s technical problems. South Dakota, at this point, is the only state to increase its pass rate (+ 3 percentage points year-over-year) to 73 percent. 

Five out of the nine reporting states gave full, in-person exams both this year and last, and four out of five of them reported drops in pass-rates. This suggests that not all of the blame can be put upon the online test. University of Iowa law professor Derek Muller, speaking to Reuters, points to pandemic fatigue and learning loss related to law schools’ move to online and hybrid learning. “That’s showing in the results now. That’s just speculation, so I think we’re going to want to see more about it. But that’s something law schools should be looking really hard at,” he said. 

While the National Conference of Bar Examiners has already said that the bar exam will no longer be available in an online format and will return to in-person testing only, it will be interesting to see the pass results for other jurisdictions. Law schools may find it necessary to provide additional support to students.

Law Schools See Spike in Applicants

The law school application surge is real. Data released on April 22, 2021 by the Law School Admissions Council (LSAC) shows that applicants for the 2021-2022 school year are up 20.0 percent compared to the same date last year, and up 15.8 percent compared to two years ago. The data also shows that applicants, likely in response to uncertain conditions, are applying to more schools, as the number of submitted applications is up 31.6 percent compared to last year, and up 27.9 percent compared to two years ago.

When early figures emerged showing a jump in applications for the upcoming school year, some speculated that applicants submitted their materials early due to COVID-19 lockdowns. However, at this point in the admissions cycle, the number of applicants for the 2021 school year, which still has weeks remaining for some schools, already exceeds the total number of 2020 applicants. Additionally, as of April 21st, there are well over 10, 000 more applicants in 2021 than there were at the same time in 2020. According to law.com, if these trends continue, this is likely to be the largest applicant pool since 2011.

The quality of this year’s applicants is also proving formidable. The number of students receiving top scores on the LSAT increased significantly compared to last year; applicants reporting scores between 175 to 180 on the LSAT doubled, jumping from 721 to 1,442. The number who scored between 170 to 174 also increased by 54.1 percent, and 28 percent more applicants reported scores in the bands 160 to 164 and 165 to 169.

Also worthy of note is that the increase in applications is consistent across most racial groups. The number of Black/African American, White, and Hispanic/Latino applicants all increased by about 20 percent this year compared to last (22.3 percent, 20.8 percent, and 20.6 percent respectively). The largest spike, 57.2 percent, comes from Puerto Rican applicants followed by Native Hawaiian or other Pacific Islanders at 31.7 percent. The number of Asian applicants increased, but by a smaller percentage than average at 13.7 percent. A prepared statement put forth by LSAC described these increases with optimism, “We are seeing strength across all demographic groups and locations. This year looks good in terms of having a robust and diverse legal education pipeline of candidates eager to use the law to create a better world. That’s good for our society.”

Admissions officers have struggled over how to react to the influx of highly qualified candidates this cycle. Many schools expanded their wait lists and made fewer outright acceptances. Notre Dame Law School, despite making fewer admissions offers, made headlines over its decision to offer admitted students seats in its class on a “first come, first served” basis to avoid over-enrollment. On April 6, 2021, Notre Dame’s admissions officers told admitted students that the incoming class was 67 percent full and that students would need to reserve their seat with a deposit or risk losing it. Just a few hours later, the admissions team informed students that the class was at 80 percent capacity and, by the end of the day, announced that all seats had been filled and the remaining students who had been admitted would be moved to a “continued interest” list.

While there are likely many reasons behind the jump in applications, law.com notes that admissions officers and consultants are pointing to both political and economic events of the past years, including: police killings of African Americans and the resulting national focus on racial inequalities, Trump’s presidency, national discourse on immigration policy, as well as the economic impact of coronavirus and the difficulty of finding strong entry-level employment. The article also notes the added convenience of registering and taking the LSAT-flex.

Most likely, the highly competitive nature of this admissions cycle will carry over into next year as many competitive applicants unable to find a seat among their top-choice schools, will reapply in the fall. According to law.com, over 28,000 have already registered to take the June LSAT with weeks left in the registration period.

Student Loan Forgiveness Receives New Attention Under the Biden Administration

Debt is top of mind for graduate students. A Bloomberg Businessweek survey found that among 2018 graduates of prestigious MBA programs, almost half had borrowed at least $100,000 to finance the degree. The American Medical Association has long advocated for legislative action intended to ease the burden of debt on medical providers, and the American Bar Association released a report in 2020 detailing the negative impact of student debt on young lawyers’ mental health and calling for greater legislative advocacy on students’ behalf.

Late last week, when President Biden signed into law a covid relief package, he also removed a critical impediment to enacting broad-based student debt forgiveness. The bill contains a provision that allows any loan cancellation acquired between December 31, 2020 and January 1, 2026 to be excluded from taxable income. Previously, debt forgiveness (including Public Service Loan Forgiveness) was treated as additional income and taxed as such, with few exceptions. This update ensures that recipients of student debt relief are not left with large tax liabilities and are also not thrust into new tax brackets, with associated implications, due to debt cancellation.  

The counting of debt forgiveness dollars towards taxable income was a primary obstacle to broad student loan forgiveness programs. With the update now signed into law, Congressional Democrats led by Elizabeth Warren and Chuck Schumer, as well as 17 state attorneys general and consumer rights advocates are calling on President Biden to take executive action to cancel $50,000 in federal student debt per borrower. Despite this pressure, the President does not support loan forgiveness at this amount for every borrower, which he directly expressed in a CNN Town Hall last month, as it would aid people who attended elite schools or obtained professional graduate degrees and have strong repayment prospects. The Biden Administration has noted that cancelling student loans above $10,000 should be dependent on the type of loan and current income of the recipient. The President does, however, support $10,000 in blanket, federal student loan forgiveness, and he has urged Congress to legislate this action. Legislative action, he argues, will make it harder to undo. Meanwhile, he has ordered a Department of Justice review to clarify if he has the authority to cancel student loan debt via executive action. This review will be done with the White House Domestic Policy Cancel, who will also consider the best way to target loan cancellation.

While the loan forgiveness policies under consideration would not directly benefit borrowers with private or commercially held student loans, those borrowers could still benefit from the tax relief provision included in the covid relief bill. Marketwatch notes that it may help borrowers benefit from current loan relief options provided by public or private lenders as a response to the pandemic.

In an interview on student debt with the AMA, Alex Macielak, who works in student-loan refinancing, urged students to pay attention to the political discourse, “There’s a new administration. Student-loan debt is a hot topic, ... There’s been talk about forgiving loans for some people. However, how much, who would be eligible, and other important details are still in doubt. So, monitor the legislation and debate, because student loans are consistently evolving.”

15-Year Law School Experience Study Shows Changes in Student Demographics and Debt, Consistency in Student Satisfaction with Legal Education

Last week the Law School Survey of Student Engagement (LSSSE) put out a longitudinal study examining the law school experience over the last 15 years. Key findings include some areas of significant change, including increases in student diversity, growing student debt, and improvements in student learning outcomes, but also consistency in topics including job expectations and overall satisfaction with legal education. The survey includes responses from over 70,000 students at 248 law schools who participated in LSSSE surveys in 2004, 2009, 2014, and 2019.

Demographics

Between 2004 and 2019 student demographics shifted with proportionately more students of color and fewer White students; the share of White students decreased from 83 percent to 70 percent, while the percentages of Multiracial (+8 percentage points), Black (+2), and Latinx (+3) students increased. The percentage of Asian Americans stayed the same at 6 percent. In 2004, women held a slight majority of the student population at 51 percent, which increased to 56 percent in 2019.

The average age of law students decreased slightly from 29 in 2004 to 27 in 2019. The largest changes were evident in the number of respondents under the age of 23, which made up 1 percent of the population in 2004 and jumped to 9 percent in 2019, as well as in the number of respondents between the ages of 26 to 30, which decreased from 37 percent in 2004 to 28 percent in 2019.

Finally, average LSAT scores and undergraduate GPAs were slightly lower in 2019 compared to 2004. In 2019, fewer students scored above 161 on the LSAT (15 percent in 2019, 21 percent in 2004), slightly fewer scored between 150-160 (51 percent v. 53 percent), and a higher percentage reported scoring below 150 (34 percent v. 26 percent). Similarly, reported undergraduate GPAs were lower amongst the 2019 respondents compared to those in 2004; in 2019, 40 percent reported a 3.50 and above (-2 percentage points from 2004), 38 percent reported a 3.00-3.49 (-4 from 2004), 17 percent reported a 2.50-2.99 (+3), and 5 percent reported a 2.49 or below (+3).

Debt

The population expecting to pay over $100,000 in student debt has risen significantly since 2004, with a spike occurring in 2009. In 2004, 18 percent of students expected to owe more than $100,000 in student debt (5.1 percent for public law schools, 22 percent for private). In 2009 that number more than doubled to 40 percent, and then increased to 43 percent in 2014. In 2019, 39 percent expected to owe more than $100,000 (27 percent in public law schools and 46 percent for private).

While the percentage of students expecting significant debt has increased from 2004 across all races, the number of Black and Latinx facing significant debt has grown more sharply when compared to White or Asian American students over the same time-period. In 2004, 18 percent of White students, 21 percent of Black students, and 22 percent of Latinx students expected to owe over $100,000. In 2019, 35 percent of White students, 56 percent of Black students, and 53 percent of Latinx had the same expectation.

Learning Outcomes

Students in 2019 were more positive about their law school’s contribution to various learning outcomes than in previous years.

• 45 percent responded that law school contributed to their understanding people of other racial/ethnic backgrounds, compared to 23 percent in 2004

• 58 percent responded that law school contributed to developing a personal code of values and ethics, compared to 43 percent in 2004

• 60 percent responded that law school contributed to solving complex real-world problems, compared to 45 percent in 2004

• 54 percent responded that law school contributed to developing clearer career goals, compared to 37 percent in 2004.

Job Expectations

Respondents in 2004 and 2019 responded very similarly in terms of job expectations with differences of only an occasional percentage point for the various job types: Business and Industry, Government Agency, Public Interest Group, Private Firm, and other. However, a notable difference was apparent within the private firm category. In 2004, 17 percent expected to join a small firm with less than 10 attorneys, 19 percent expected to join a mid-size firm with 10-50 attorneys, and 13 percent expected to join a large firm with more than 50 attorneys. In 2019, just 8 percent expected to join a small firm, 15 percent a mid-size firm, and 22 percent a large firm.

Law School Satisfaction

With slight variations, law school students are generally likely to rate their experience as Excellent or Good; responses ranged from 81 percent positive (2019) to 84 percent positive (2009) over the four survey years. Interestingly, while respondents rated their relationships with faculty members relatively consistently over time (78 percent positive in 2004, 76 percent in 2019), students rated their relationships with other students lower in 2019 (81 percent positive in 2004, 76 percent in 2019).

While Black women were the least likely to rate their law school experience positively in both 2004 and 2019, the percent positive did increase from 70 percent in 2004 to 75 percent in 2019. Asian American Women and Black Men saw the largest increases in positive ratings with 6 percentage point increases from 2004 to 2019 (79 percent and 85 percent in 2019, respectively).

Across sub-categories that measured satisfaction with academic advising, career counseling, personal counseling, and job search help, the numbers in each category increased slightly across the four survey years. In 2019, respondents were most positive on academic advising (71 percent positive) and reported the least satisfaction with job search help (66 percent positive). Additionally, students are more likely to take advantage of these offerings than in previous years; over 90 percent of students reported using academic advising and planning, and career counseling services, 84 percent used job search help, and 62 percent used personal counseling.

ABA Report Calls for Action to Help Young Lawyers Struggling with Student Loans

A study released this week by the Young Lawyers Division of the American Bar Association (ABA) shows that student debt is impacting law graduates’ lives and mental health. The survey, which included responses from 1,084 law school graduates from the last ten years, found that not only are almost all law school graduates impacted by student loan debt, but that it affects them personally and professionally. The study also found that lawyers of color were disproportionately impacted.

Just over 95 percent of survey respondents took out student loans for law school and more than 90 percent of respondents graduated from law school with at least $65,000 in student debt. The mean loan balance post-JD was $164,742, which includes undergraduate loan balances averaging $17,512. Notably, while about a quarter of white respondents hold over $200,000 in debt at graduation, this proportion increases to at least one third among Asian, Black, Hispanic, and Multiracial respondents.

For many, these loans also grow over time, with the reported current mean loan balance ($171,036) slightly higher than the mean at graduation. Most respondents reported that their loans were higher or the same as they were at graduation; 40.4 percent of respondents reported higher and 11.7 percent said the same. Among Black respondents, however, a staggering 67 percent reported higher debt now than at graduation. Even among the more tenured lawyers, those who graduated before 2014, 45.4 percent have higher levels of student debt currently than at graduation. Though the report acknowledges that there may be reasons explaining the increased debt, including strategic repayment plans, loan forgiveness plans, and/or unemployment, it illustrates the structural burden of such high debt.

Almost all respondents, 89.8 percent, reported making at least one personal decision based on debt. Over half of those surveyed postponed or opted not to take a vacation (58.3 percent) or postponed or decided not to buy a house (55.6 percent). More significantly, almost half of respondents, 48 percent, postponed or decided not to have children due to their debt, while about 28.8 percent postponed or decided not to get married.

Professionally, 37 percent chose a job that paid more money over a job that they really wanted, and 33.5 percent took a different career than originally expected. Among those lawyers working as corporate counsel or in private practice, over 40 percent (43.2 and 42.1 respectively) said that they took a job that pays more instead of a job that they really wanted. Similarly, large proportions of those working in government/military and public sector/non-profit (63.8 percent and 50.9 percent respectively) chose a job that qualified them for loan forgiveness over a job that they really wanted. 

Perhaps most importantly, the report calls out the emergence of mental health as a theme in the responses of survey participants, despite participants not being prompted to discuss their mental health. The survey included an open-ended question that asked how student debt has impacted respondents’ lives, and the responses consistently mentioned stress, anxiety, mental wellness, depression, and anger. The report summary noted that the responses were “jarring” in both content as well as the frequency in which mental health and related issues were mentioned.

The ABA calls the report “a call to action” and urges a new approach to student loan advocacy, stating that if changes are not made soon, entering the profession could become cost prohibitive.

Rather than Grant Diploma Privilege, New York State Opts to Provide Remote Bar Exam

Late last week, the New York Court of Appeals announced that it would be offering an online bar exam in October, as a one-time, emergency option in lieu of an in-person exam. Earlier this month, the state cancelled the September in-person test due to coronavirus-related safety concerns, without communicating an alternative. Since then, law grads, state lawmakers, and all 15 NY law school deans have increasingly pressured the state to grant “diploma privilege,” which provides law school graduates licensure without having to sit for the bar exam. The proponents behind the push, which is also occurring in jurisdictions throughout the nation, argue that while an in-person test constitutes a health risk, delays in examinations and licensure can put financial pressure on graduates with student loans. At this point, just four states – Louisiana, Washington, Oregon, and Utah – have decided to grant diploma privilege.

The New York Court of Appeals established a court-appointed working group to consider the various licensure alternatives, including diploma privilege. The group, however, found the remote exam to provide the best alternative to the in-person exam, noting the role that exam-based licensure plays in promoting consumer confidence. In its announcement, the court made the point that the bar exam “provides critical assurance to the public that admitted attorneys meet minimum competency requirements, emphasizing New York’s immense candidate pool as well as the degree of variation in legal curricula across the country.” The working group did remark that the online test was the best option, but not without its shortcomings. To minimize those, the working group consulted with experts in security, technology, and psychometrics to “ensure broad access, mitigate security risks, and establish a reliable grading methodology.”

New York is among a growing number of jurisdictions, including California, Illinois, Pennsylvania, Ohio, Massachusetts, New Jersey, Connecticut, Maryland, Washington D.C., Vermont, New Hampshire, Kentucky, Texas, Arizona, Oregon, and Tennessee that have opted to provide the October online bar exam. The working group further recommended that New York look into offering reciprocity to other states and jurisdictions offering the online option, which would mean that the bar exam scores could be transferred to other jurisdictions for bar admittance. Six localities, New Jersey, Maryland, Massachusetts, Kentucky, Tennessee, and Washington D.C. have established reciprocity and New Hampshire, Vermont, Ohio, and Illinois have also expressed interest in pursuing reciprocity agreements.

Women of Color Report Lower Satisfaction with Law School

Amidst ongoing Black Lives Matter protests in the U.S., a recently released report seeks to understand the experiences of women of color in law school. And it finds that minority women are significantly less likely than white women to be satisfied with their law school experience, at 82 and 89 percent, respectively. Just 30 percent of minority women and 33 percent of minority men report that they are “extremely satisfied” with their experience compared to 39 percent of white women and 44 percent of white men.

The report, titled Women of Color – a Study of Law School Experiences, was released by the Center for Women in Law and the NALP Foundation, and was conceived in response to the underrepresentation and departure of women of color in legal organizations, especially law firms. The sponsoring organizations wanted to explore the possibility that early barriers and imbalances in opportunity for women of color created disadvantages that impacted their careers over time. The study leading up to the report looked at disparities in the law school experience, social and academic, between women of color, white women, white men, and men of color. The survey period ran from 2017 to 2018 and included over 4,000 students from 46 law schools; 773 were women of color which included Asian/Pacific Islander, Black/African-American, and Hispanic/Latina.

Key findings:

• About one-third of women of color said that they have seriously considered leaving law school (31 percent), while about a quarter of white women, white men, and men of color said the same (24 percent, 22 percent, and 26 percent respectively). Among the minority women who said they considered leaving, most cited “do not enjoy law school” (45 percent), “financial debt” (38 percent), and “not a good fit socially” (35 percent) as the primary reasons.

• When asked to assess race relations, just 40 percent of women of color rated their law school positively compared to 70 percent of white men, 59 percent of men of color, and 58 percent of white women. Among the women of color, Hispanic/Latina’s ratings were the most positive and 25 percentage points higher than Black/African American women, and 13 percentage points higher than Asian/Pacific Islanders.

• Fifty-two percent of minority women reported they experienced comments or interactions by students and/or faculty that negatively impacted their academic performance, compared to just 21 percent of white men, 34 percent of minority men, and 41 percent of white women. Women of color were also less likely than white women to say that they frequently felt comfortable raising their hand in class to ask questions.

• At 71 percent, women of color were the least likely cohort to report having discussions with professors about their career plans and future goals, which was six percentage points below white women who were the most likely to engage in such discussions. However, 85 percent of women of color reported meeting one-one-one with professors to discuss coursework or grades.

• Similar numbers of students across demographics said that they expected to practice law after graduation: women of color (90 percent), white men (89 percent), white women (88 percent), and men of color (87 percent).

NALP Foundation President Fiona Trevelyan Hornblower, via Bloomberg law, said that law schools, “can use this data to intervene and develop strategies to support students, to advance their success, both in law school and beyond.”

New Department of Education Data Shows that Only 11 Law Schools Report Positive Debt-to-Earnings Ratio for First-Year Graduates

Late last week, the American Bar Association Journal reported that “most law students earn less money per year after graduation than the amount they borrowed for law school.” This is based off data recently released by the U.S. Department of Education. The article goes on to share that graduates from only 11 law schools reported higher median first-year earnings compared to median federal debt for graduates in 2015 and 2016. Further, the median debt-to-income ratio among law schools is 1.86, which means that graduates took out a median of 86 percent more in loans during law school than the median amount received in their first year working after graduation; median debt upon program completion for graduates was about $110,000 and median first-year earnings were about $53,000. 

Using the same Department of Education data, Law.com published a debt-to-earnings ratio for the U.S. News and World Report’s Top 14 law schools, as well as for New York-based law schools. We have compiled the data into some charts below for both the top-ranked, as well as NYC-based schools. They show the debt-to-income ratio, median first-year earnings for graduates, and median federal debt incurred for 2015 and 2016 graduates. It is important to note that these data points do not include private loans, loan interest, or borrowing for undergraduate or other graduate programs. So, the ratios may show slightly more positively than the full debt-load that many law school graduates are facing.

If you are considering law school, and you will be paying your own way through federal or other loan programs, you will want to assess this data during your school selection period. Ultimately the program that will best fit your needs should balance strong academic rigor and meaningful experiential learning opportunities with your future debt burden. The debt-to-income ratio rankings, as you can see, do not line up exactly with the school’s academic rankings, and the median debt and median earnings should be one of the many factors in your decision-making process. Additionally, these figures may provide insight into how much time you will want to spend researching fellowships and scholarship opportunities that can also ease the total cost of your schooling, particularly if you’re interested in pursuing lower paying career paths, such as public interest law.

Law School Graduates Enter Best Job Market Since Recession

Employment outcomes for the law school class of 2018 are showing a rebound back to pre-recession levels according to selected findings released by the National Association for Law Placement earlier this summer. The full report, Jobs & JDs: Employment and Salaries of New Law School Graduates — Class of 2018, is expected to be released in October 2019.

The employment rate, which has increased over the past three years, is up to 89.4 percent from 88.6 percent in 2017 among those with a known employment status, despite the total number of jobs declining by about 150 overall compared with 2017. Seventy-one percent of graduates obtained full-time, long-term, bar passage required work, which is even higher than rates measured prior to the recession. And, the number of employed 2018 graduates seeking a different job, 13.2 percent, is the lowest percentage recorded since 2002 and down 11.4 percentage points from the class of 2011’s record high of 24.6 percent.

James G. Leipold, NALP’s Executive Director says, “Certainly, the overall employment rate has improved because of two intertwined factors. First, and most importantly, the smaller graduating class has meant that there is less competition for the jobs that exist. Second, large law firm hiring has increased steadily since 2011, adding more than 1,900 jobs in seven years.”

Despite the positive employment report, Kaplan Bar Review Survey results released earlier this week show that most recent law school graduates say the job search process was more time consuming than they expected. Fifty-two percent of the 417 surveyed say the search required more time than anticipated while only 11 percent say it required less time. The remaining 37 percent say the amount of time required was in line with their expectations. Additionally, the survey asked respondents to grade their alma mater’s career services for their support with assisting them in finding a job. While 23 percent of those surveyed graded their alma mater an “A” and 30 percent a “B”, 23 percent gave a “C” and a combined 25 percent gave marks of a “D” or an “F”. 

Students were more positive regarding their alma mater’s ability to prepare them with the necessary legal skills. When students were asked to grade their alma mater on how well it equipped them to successfully transition from a student to a legal professional, the marks were considerably higher. One-third of students gave their school an “A”, 45 percent a “B”, 16 percent a “C” and only 6 percent a “D” or “F”.

Anecdotally, students shared that while grades are important, they may have overinflated their importance in finding a job while also underestimating the value of networking. Students said that they wished they had known to start early and to focus more on networking throughout law school and the job-search process, including using social media connections.

Commenting on the survey results, Vice President of the Kaplan Bar Review, Tammi Rice, advises that, “The job market for newly graduated lawyers has not been this strong since the start of the Great Recession, which is promising, but that doesn’t mean that jobs are just going to fall into their laps. It requires networking, starting the process early, and often passing the bar exam, as many employers won’t hire you until you’ve secured your license. We encourage all recent law school graduates to take advantage of the resources and guidance your alma mater’s career services office can provide you. They have a vested interest in seeing their graduates succeed, so they want to be helpful as you look to land a job that requires that you passed the bar.”

Law School Students Still Not Receiving Adequate Mental Health Support

Forty percent of recent law school graduates say that their school is not doing enough to support students’ mental health and assist students struggling with the stress and pressure of law school. An additional 31 percent do not know, while only 29 percent answered favorably, saying that they feel their school is doing enough. This is according to the Kaplan Bar Review survey results released earlier this month, which include data gathered from over 300 recent law school graduates. Despite the well-documented struggles that law students face and the recommendations for sweeping reforms put out by the American Bar Association in August 2017, there have been few noted improvements. Tammi Rice, vice president, Kaplan Bar Review commented on the survey results saying, “What students are telling us is that law schools need to do a better job of providing the kinds of services that they need for self-care, and also communicating how those services can help them. This is an important conversation to have. We have to conquer the stigma traditionally associated with mental health, particularly in the legal community… May, in particular, can be an emotionally taxing month in the life of law school graduates, as it is when they begin preparing to take the July bar exam…”

 The Kaplan Bar Review survey also asked students for their opinions on the state bar examiners’ ability to inquire about past mental health and addiction issues. Seventy-four percent of students were opposed to the bar examiners’ application asking if the applicant has ever been treated for a mental health issue. At 61 percent, there were fewer, but still a strong majority who were opposed to the bar application asking about past treatment for a substance abuse issue.

 These high numbers were no surprise in the wake of last year’s successful movement to update the mental health questioning on the Virginia Bar application. Law school students, who saw the questioning as a barrier to getting treatment because of the stigma, organized and sent letters to the Virginia Board of Bar Examiners, who were examining the mental health questions. After receiving a recommendation from a Supreme Court of Virginia committee coupled with “valuable input” from lawyers, judges, law school deans, and students, the bar has—as of January 1, 2019—eliminated the question asking applicants to disclose past mental health treatment. The board also edited another question to focus on conduct and behavior. “Knowing that the students who hope to one day join the Virginia Bar will not have to experience fear of ramifications for disclosing any treatment they sought during law school on their bar applications is a wonderful thing,” said Catherine Woodcock, last year’s Student Bar Association president at Washington and Lee University. “The more we normalize and encourage sound mental health and wellness, the better we will be as a profession.” In January, the Michigan Supreme Court also gave notice that it is studying “whether questions regarding mental health should be included on the personal affidavit that is part of the application for the Michigan Bar Examination, and if so, what form those questions should take.”

Law schools and legal professionals still have considerable ground to cover in increasing awareness of mental health needs within the profession. However, kicking off this month, is “Minds Over Matters,” a year-long deep dive into the mental health and well-being of law professionals by Law.com and its affiliate professionals. This site and its affiliate ALM partners, which cover a wide-ranging scope of legal topics are looking to “more deeply cover stress, depression, addiction, and other mental health issues affecting the legal profession. We aim to create a place for open dialogue, to shine a light on these issues that have so long been stigmatized, and to hold the profession accountable to work toward change. With ALM’s broad coverage of the legal profession, we think we are uniquely situated to address these issues.”

All prospective law students, recent law graduates, and legal professionals should stay abreast of these trends and follow the work showcased on law.com. Prospective law students will want to be conversant on these issues for interviews and as they consider the cultural fit of various law school programs. Current students and recent law graduates will want to educate themselves on how to begin cultivating their own wellbeing despite the stress of law school and their upcoming professional lives. These groups may also want to look out for opportunities to engage with and make changes within their own state’s board of bar examiners. As seen in Virginia, a group of engaged students can make a difference.

For First Time Since 2010, Number of First-Year Law Students Has Increased Meaningfully

New student enrollment at law schools is up 2.9 percent from 2017, according to ABA data released last Friday. The number of first-year law matriculants at 122 schools is the same or higher than last year, while only 81 reported decreased class size. Total law school enrollment is up 1.2 percent from 2017, and enrollment in J.D. related programs, such as LLM, masters, or certificate programs, also increased by 8.2 percent year-over-year.

The increased enrollment is not surprising given the increase in law school applications during the 2017 application cycle, 8 percent, which was the first significant increase in law school applications since 2010. While some schools have ended up with significantly larger numbers of admitted students, others have become more selective. Within the top 25 schools, according to the U.S. News and World Report 2019 Rankings, 24 saw an increase in applications and all but two reported lower acceptance rates for applicants compared to 2017. On average, the acceptance rate for the top 25 was 21.4 percent in 2018 compared to 24.5 percent in 2017. Despite the increased selectivity, most of the top 25 schools did have slightly larger first-year classes than they did the previous year, with increases ranging between 1 and 157 students.

A law.com article predicts, based on early indicators, that the application pool will continue to grow for the 2019 matriculating class. LSAT numbers in June and July 2018 were up 30 percent compared to 2017; a similar uptick in LSAT-takers in the summer of 2017 preceded the higher application numbers seen this year.

Find data from all ABA accredited schools here: http://www.abarequireddisclosures.org/Disclosure509.aspx

12 New York Law Schools See Decrease in Bar Pass Rates

For first-time test takers in July 2018, the New York State Bar pass rate decreased at 12 of 15 New York law schools compared to July 2017. The decreases ranged from a minor 1.6 percentage points at Cornell to 16.2 percentage points at Touro. Nine of the programs’ pass rates fell below the statewide rate of 83 percent, which also decreased by three points from 2017. Graduates from just three New York law schools, NYU, Columbia, and Albany, increased their pass rate.

When asked about the pass rates by representatives from the New York Law Journal, law school deans spoke about the programs they are implementing to support students taking the bar, as well as interventions they’ve put in place for students perceived to be at-risk for failure.

"The faculty and I have been implementing extensive reforms involving changes in the classroom, curriculum and culture of the school. We expect these changes to be reflected favorably in future results. Some of the changes are still being implemented. We intend to accelerate their implementation effective immediately. We will be re-examining in minutest detail everything we do, in and outside of the classroom, to assure that the continued implementation of reforms, from evidence-based teaching to curricular reform, is successful." Harry Ballan, dean of Touro College Jacob D. Fuchsberg Law Center

“As dean, my leadership approach is to think in terms of a multi-year strategic plan, and one of my very highest priorities remains to increase and maintain the bar passage rate. We have also had many successes across all areas of the law school in just these last two years — job placement, building enhancements, our medical-legal partnership and veterans clinic—and I believe that we have a comprehensive Raising the Bar program and an extensive plan in place for future bar successes,” Gail Prudenti, dean of the Maurice A. Deane School of Law at Hofstra University

 "I won’t be satisfied with Cornell’s performance until we achieve a 100% pass rate.  And we have taken steps to provide academic support to law students we perceive to be at risk for failing the bar." Eduardo M. Peñalver, dean, Cornell Law School. 

Take-aways for Current and Prospective Law School Students--

For current students:

• Speak with recent graduates of your law school to find out how prepared they felt taking the bar exam. Ask how they would have changed their preparation method and if they have recommendations to share.

• When interviewing with firms, find out how they support associates who are taking the bar. Also, take advantage of your summer position to speak with new full-time hires who are preparing for the bar to learn from their experiences.

• Familiarize yourself with programs your school offers and seek outside programming, if necessary, to ensure you will be prepared. The American Bar Association bar prep page includes resources and discounts for bar prep courses.

For prospective students:

• During the school-selection process, be sure to consider the bar pass rate. Past bar pass rates are available from the Internet Legal Research Group and are included as a small component in the U.S. News and World Report Law School Rankings.

• When you visit or communicate with program representatives, ask how they currently assist third year students and graduates in preparing for the exam and what new initiatives they may be implementing.

Want to Achieve Your Goals? First, Define Your Personal Brand.

In a Forbes article, writer Greg Llopis said that people often confuse the notion of a personal brand with having a curated social media page. In truth, however, social media is just one portion of a much larger idea. Your personal brand is how you express the compilation of experiences you’ve had, what you have to offer, and your intentions going forward. While social media accounts should align with your brand, they do not define it.

Llopis says, “Every time you are in a meeting, at a conference, networking reception or other event, you should be mindful of what others are experiencing about you and what you want others to experience about you.” This awareness of others’ experience allows you the freedom to put forward your most authentic self, rather than letting nerves or other outside influences change how you respond in a situation.

Spending time defining your personal brand will pay dividends as you move forward in your career, whether that means creating an exceptional grad school application, building a compelling resume, prepping for an interview or career-fair, or working towards the next promotion. It will not only allow you to be a proactive planner and decision maker, it will also act as a filter when you evaluate various career options.

To begin defining your personal brand, consider the following:  

1.       Your past experiences

Have you ever been so engaged in a pursuit that time seemingly disappeared? What have you found most difficult?  Which experiences stand out as those which prompted an evolution in your perspective? What are you most proud of? When have you felt most fulfilled?

2.       How you engage with others and the world

What strengths have you developed over time? What are your greatest weaknesses? How have you dealt with adversity? What feedback do you consistently receive when working with others? How do think others experience you? What five adjectives would you use to describe yourself? Do you think others would use the same five adjectives? If not, which would they use?

3.       Your future goals.

What type of work do you enjoy? What type of work do you aspire to do? What would you like your professional relationships to look like? What sort of environment do you think you would thrive in? What is your ideal work-life balance? What aspects of a position are most important to you and where are you willing to compromise? What are your short- and long-term goals?

Once you’ve refined your brand, you can start to put it into action to determine which opportunities will (and will not) be a good fit for you. Just remember to express a consistent message everywhere, including on social media. Recruiters or admissions officers should never be surprised by what they see online, rather the content should provide further depth on the person they know.

Considering Public Interest Law? Lucrative Fellowships and Loan Assistance Programs Available

Public interest law can provide incredible fulfillment and satisfaction, but the cost of law school is significant and the salaries for public interest lawyers are lower than those going into private practice.

U.S News and World Report recently published average entry-level salary data for all ranked law schools.  Law graduates in 2016 who entered the private sector averaged just under $85,000, while those from a top 15 ranked institution averaged $180,000. Those entering the public sector, however, collected a much lower average of $53,500. Graduates from the top 15 ranked schools who accepted public sector positions averaged slightly more, at $65,000.  

Luckily, there are a plethora of scholarships, fellowships, and loan repayment assistance programs, which may be available to you. So, when evaluating specific law schools, don’t forget to fully evaluate the following: 

• Tuition and Scholarship Opportunities: While it is advantageous to attend a top-tier school, you may want to expand your list to include those programs more likely to offer scholarships to students interested in public interest law. That is, if you feel ready to commit to that career path.
• School Fellowships: Many top-tier law programs grant fellowships, which pay for summer and post-graduate public interest employment, to those interested in pursuing public interest law.
• Loan Repayment Assistance Programs (LRAP) or Low Income Protection Plans (LIPP): The LRAP is more common and is generally limited to those working in public interest law, while the LIPP works more like scholarship money that is received after graduation. Over 100 law schools have an LRAP in place, and the American Bar Association has compiled a list of programs. When considering a school’s LRAP, consider if an LRAP is funded through a specific endowment or designated fund and how many applicants typically receive LRAP funding. Most schools are not able to provide funding to all applicants.
• Public Service Loan Forgiveness (PSLF): The PSLF provides debt forgiveness to those who work for a qualifying government, non-profit, or public interest organization, and who make 120 qualifying student loan repayments while working for that organization. There is some uncertainty regarding the future of this program, however. It has been slated for elimination in two of the President’s proposed budgets.
• Other Federal Repayment Adjustment programs: There are other existing repayment programs based on income, such as the Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), and Income-Based Repayment (IBR). These adjust monthly payments based on your income.

While public interest law may require some additional planning in terms of selecting and paying for law school, there are many resources available for prospective law students who feel passionate about pursuing this career path. Some additional research during the school selection and application period can go a long way towards making your dream come true.

More Pre-Law Students Striving to Work for Public Interest

The “Trump Bump” theory is real. Earlier this year, Kaplan Test Prep released the results of a survey of over 500 pre-law students and found that 30 percent of respondents said the 2016 election impacted their decision to apply to law school. “We’ve seen significant jumps in both LSAT takers and law school applications over the past admissions cycle, which has fueled speculation about how much impact, if any, the 2016 election and subsequent political climate has had on this year’s law school admissions landscape. We now have an answer: It’s significant,” said Jeff Thomas, executive director of pre-law programs at Kaplan.

Survey data released by BARBRI Law Preview, which includes responses from 500 pre-law students expected to matriculate into the Class of 2021, demonstrate a similar finding. When asked to provide a primary reason for attending law school, the top two most selected options “I have always wanted to be a lawyer” and “I want to advocate for change of social policies in the United States” garnered almost identical responses at 38.2 percent and 37.6 percent, respectively. The survey also found that almost 98 percent of respondents plan to practice law after graduation, with the plurality of respondents selecting public interest (13.5 percent) as the type of law which they want to practice. The next most selected choices were business (corporate) law (12.2 percent) and criminal law (12.0 percent). Furthermore, when asked where they would like to practice law, over half of the respondents reported that they would want to practice law as an attorney working for the government (33.9 percent) or for a non-profit/non-governmental organization (22.5 percent). 39.8 percent reported wanting to work for a private firm.

Lynn Page, a pre-law advisor at Northwestern University provides anecdotal evidence supporting the BARBRI survey findings when describing the students who she advises and their goals in a recent Chicago Tribune article. “If it’s not immigration (law), it’s an interest in public interest law. Most students are interested in civic engagement (and) social justice” she said.  

The Latest Law School Employment Rates from The American Bar Association

A helpful resource for prospective law students, The American Bar Association Section of Legal Education and Admission to the Bar published a report detailing the employment of 2016 law school graduates based on different employment classifications, including Bar Passage Required and JD Advantage (without bar passage).

For the graduating class of 2016, 64.5 percent of law school graduates were hired into Bar Passage Required employment, an increase of two percentage points from 2015 (62.4 percent). Additionally, 14.1 percent were hired into JD Advantage positions and only 8.8 percent were described as Unemployed/Seeking, both statistics slightly improved from 2015.

We have compiled the list of Top 20 Schools based on the percentage of graduates who reported having a full-time, long-term position in a Bar Passage Required role for the class of 2016. The graph also shows the percentage of students who held full-time, long-term JD Advantage Positions as well as the percent of students who are classified as Unemployed (Seeking). This chart shows that there are many law schools with excellent job placement, which may help to inform and broaden your search. 

Additionally, the ABA report includes information on what types of employment graduates are obtaining. The graph below shows the same schools, but with the percentages of full-time, long-term employees in various legal industries. If you are confident in the career path you are seeking after law school, it is worthwhile to see where previous graduating classes have found employment. It can provide valuable insight into the existing alumni network you will have access to.

Use the links provided below to find additional school-level and detailed information on employment for the class of 2016.

Individual School Summary Reports (Includes information on the size of law firms where graduates are employed): http://employmentsummary.abaquestionnaire.org/

Summary Class of 2016 Employment: https://www.americanbar.org/content/dam/aba/administrative/legal_education_and_admissions_to_the_bar/statistics/2016_law_graduate_employment_data.authcheckdam.pdf