2 thoughts on “It is irresponsible to send advisees to law school

  1. FWIW, I read a somewhat similar article (sorry – can’t remember the source) that suggested student loan availability and interest rates should be tied to the potential future earnings of the student’s discipline. Engineering and computer science majors, for example, would have a lower rate than liberal arts majors. The basis of the argument was that commercial lenders adjust interest rates and other loan terms based on the credit-worthiness of the borrower, so why shouldn’t that same approach be used when structuring student loans.

    Please note I am not passing judgment on the ‘value’ (however you desire to define ‘value’) of a liberal arts or other degree. But on a purely pragmatic basis it does have a certain amount of appeal. After all, if it is irresponsible to send advisees to law school — a position I heartily agree with — might it not also be irresponsible to facilitate students majoring in a field with similar post-graduation prospects?

  2. I totally agree with giving different rates to different degrees as I feel that positive externality of education varies by the type of degree you hold. I actually wrote about this back in April –> (http://www.jamestierney.com/too-much-education/) The reason why this isn’t in practice is because most of the time you need to pay back the loans no matter what, even if you file for bankruptcy. From ECMC.org

    “In the majority of cases, student loan debt is not dischargeable (forgiven) in bankruptcy, so you will have to repay them. You may have read that student loans can be discharged when paying them would place an “undue hardship” on the borrower. But undue hardship is difficult to prove and it is ultimately up to the bankruptcy courts to make the determination.”

    Since lenders don’t have as much risk when giving out students loans they do not have an incentive to charge different rates for different people. At least that’s what I got out of my brief research…

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