Economic Value of a Legal Education

Readers may be interested in Populist Outrage, Reckless Empirics: A Review of Failing Law Schools, a recent blog post by Michael Simkovic & Frank McIntyre drawing on their article The Economic Value of a Law Degree .

Simkovic & McIntyre challenge the empirical analysis underlying Brian Tamanaha’s claim that legal education is no longer a good value given current law school tuition levels. They point out numerous ways in which Tamanaha’s argument rested on apples to oranges statistical comparisons, and note flaws in other studies he relied on.

Key conclusions: “[T]he value of a law degree typically exceeds its costs by hundreds of thousands of dollars. Even at the twenty-fifth percentile, a law degree is typically a profitable investment. At current price levels, law degrees generally provide an attractive double-digit pretax rate of return.Legal education is profitable both for students and for the federal government as tax collector and lender.”

For me the most provocative idea in the post was one from Tamanaha — supported by Simkovic & McIntyre — that I hadn’t remembered: Law students are good enough loan repayment risks that law schools might consider providing loans directly to their students at lower interest rates than are currently available. A new best practice, perhaps?

3 Responses

  1. A reduced student loan rate is required to ease off the burden on students.

  2. nice article seriously a reduced load can help the student from poor family.

  3. Today, a large majority of law school students rely on education loans as a primary source of financial aid for law school. These loans must be paid back with future income; the more you borrow, the longer the debt will have an impact on your life after graduation.
    http://www.gogusestetigi.com.tr

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 514 other followers

%d bloggers like this: