The Lawyer Bubble, A Profession in Crisis.

• Author: Mandell, David
• Position: Book review

The Lawyer Bubble, A Profession in Crisis.

By Steven J. Harper

Every prospective lawyer should read Steven J. Harper's recent book, The Lawyer Bubble. After 30 years of litigating, Harper has a warning for those considering three years of law school. Today's law graduates are entering a profession whose bubble is bursting as surely as the real estate and dot com ones did before. A new lawyer faces decades of paying off student loans with limited chance of landing the high-paying career path promised by law school recruiters or loan officers. Even those fortunate enough to find an associate position at a large corporate firm may be cast aside when the firm retrenches or collapses.

How did this happen? Harper has a variety of culprits including academic administrators, lenders, and Congress. Universities found that law schools can be lucrative, with high tuition costs providing an endless revenue stream. Harper believes law schools, even the most prestigious ones, entice students by not providing accurate information about employment opportunities. Students cannot enroll without paying tuition, but the cost is beyond the means of most. Needing a source of funding, law schools found a willing partner in lenders. Eager lenders turned to Congress to make student loans profitable and risk free. Congress directed the federal government to guarantee these loans thereby eliminating the risk. With the federal government responsible for unpaid debts, lenders offer them to virtually anyone who asks. Lenders did not stop with getting the federal government to absorb their bad loans. They used their lobbying clout to prevent student loans from being discharged in bankruptcy. Collection agencies are unleashed on students after graduation. The easy loan environment makes law school highly profitable for universities, lenders...