Wednesday, November 29, 2017
Republican Education Bill Would Boost Profits for Private Student Lenders and Raise Financing Costs for Students (Michael Simkovic)
House Republicans recently voted along party lines in favor of a tax bill that specifically targeted higher education institutions and students for tax hikes, while providing large tax cuts for corporations and wealthy individuals. The Wall Street Journal reports that House Republicans are proposing an additional higher education bill that would make the terms of federal student loans less flexible and less generous and limit federal student loan availability. Specifically, the bill would eliminate Public Service Loan Forgiveness and reduce the availability of flexible repayment plans for all borrowers. It would also cap maximum borrowing from the federal government at a lower level.
These measures, if enacted, would be a boon to private student lenders like Sallie Mae, who would be able to both increase their prices and increase their market share as federal student loans become less competitive and less available. Consequently, expected financing costs for students will likely increase, to the detriment of both students and educational institutions.
According to a study by the Government Accountability Office and the Department of Education, loans to graduate and professional students are the most profitable in the government's portfolio--even after income based repayment and debt forgiveness. Capping loans to these attractive borrowers may reduce the overall profitability of federal student lending, and pave the way for arguments for more cuts to federal lending in the future.
The bill reportedly will also reduce regulation of for-profit college sales and marketing, and provide greater funding for 2-year degrees and apprenticeship programs. Labor economists who have studied 2-year degrees and apprenticeship programs typically find that these programs provide relatively low benefits (in terms of increased earnings and employment) compared to 4-year college degrees and graduate degrees, even after accounting for differences in the costs of these programs and differences in student populations. Thus, increasing funding for apprenticeships while reducing funding for 4-year degrees and advanced degrees is likely to impede economic growth.
These educational priorities, may however, provide Republicans with political advantages. Political scientists and pollsters have found that as education levels increase--after controlling for income, race, sex, and age--individuals become more likely to identify as Democrats and less likely to identify as Republicans. The association is particularly pronounced among scientists and others with graduate degrees.
Tuesday, November 28, 2017
Wednesday, November 22, 2017
Here's a video of the session from a couple of weeks ago as part of the HLS bicentennial. Opening remarks about Langdell are by John Goldberg (Harvard), who is followed by Catherine Wells (Boston College), me, Anthony Sebok (Cardozo), and Henry Smith (Harvard). For those interested, my remarks on "Langdell, Wissenschaft, Realism" begin at 19:20. I found Smith's remarks about the role of a firmer law/equity distinction in Langdell's views especially interesting.
Tuesday, November 21, 2017
MOVING TO FRONT (ORIGINALLY POSTED NOVEMBER 24, 2009--I HAVE UPDATED CERTAIN NUMBERS)--SEE ALSO THE COMMENTS, WHICH HAVE HELPFUL ADDITIONAL SUGGESTIONS
With luck, some of you seeking law teaching jobs will get offers of tenure-track positions in the next couple of months; a handful of offers have already been extended this season (2017-18). What then? Here's roughly what I tell the Chicago job candidates we work with that they need to find out, and in the interest of having it written down in one place and for the benefit of others too, here it is (not in order of importance):
1. You will want to get (in writing eventually) the basic salary information, obviously, and the nature of summer research support and the criteria for its award (is it automatic for junior faculty? contingent on prior publication [if so, how much?]? awarded competitively (if so, based on what criteria/process)?). You should also find out how salary raises are determined. Are they, for example, lock-step for junior faculty? Fixed by union contract? (Rutgers faculty, for example, are unionized, a huge advantage and why they are among the best-paid faculty, not just in law, in the country.) Is it a 'merit' system, and if so is it decanal discretion or is their a faculty committee that reviews your teaching and work each year?
2. You should ask for a copy of the school's tenure standards and get clear about the expectations and the timeline. Does any work you have already published count towards meeting the tenure standard?
3. What research leave policy, if any, does the school have? A term off after every three full years of teaching is a very good leave policy; some schools have even better policies, most have less generous leave policies. (If there is a norm, it is a term off after every six years.) Many schools have a special leave policy for junior faculty, designed to give them some time off prior to the tenure decision. Find out if the school has such a policy.
4. One of the most important things to be clear about is not just your teaching load, but what courses you will be teaching precisely. You should ask whether the school can guarantee a stable set of courses until after the tenure decision. Preparing new courses is hugely time-consuming, and you also get better at teaching the course the more times you do it. As a tenure-track faculty member, having a stable package of, say, three courses (plus a seminar) will make a huge difference in terms of your ability to conduct research and write. In my experience, most schools will commit in writing to a set of courses for the tenure-track years (and do ask for this in writing), but some schools either won't or can't. In my view, it's a good reason to prefer one school to another that one will give you the courses you want and promise them that they're yours, while another won't--a consideration that overrides lots of other factors, including salary.
Story here. UIC has a medical school, but no law school, while John Marshall is a free-standing law school. If the acquisition occurred, it would be the only public law school in Chicago, and, assuming there was some tuition discount for state residents, it would put particular pressure on private law schools in the city like DePaul and Chicago-Kent.
Monday, November 20, 2017
Friday, November 17, 2017
Following up on my previous post, Republican Tax Hikes Target Education,
[U]nder the House’s tax bill, our waivers will be taxed. This means that M.I.T. graduate students would be responsible for paying taxes on an $80,000 annual salary, when we actually earn $33,000 a year. That’s an increase of our tax burden by at least $10,000 annually.
It would make meeting living expenses nearly impossible, barring all but the wealthiest students from pursuing a Ph.D. The students who will be hit hardest — many of whom will almost certainly have to leave academia entirely — are those from communities that are already underrepresented in higher education. . . .
The law would also decimate American competitiveness. . . .
Graduate students are part of the hidden work force that drives some of the most important scientific and sociological advancements in the country. The American public benefits from it. Every dollar of basic research funded by the National Institutes of Health, for example, leads to a $1.70 output from biotechnology industries. The N.I.H. reports that the average American life span has increased by 30 years, in part, because of a better understanding of human health. I’d say that’s a pretty good return on investment for United States taxpayers."
Thursday, November 16, 2017
Valparaiso Law School to begin winding down operations (at least in Indiana) due to financial pressures
Tuesday, November 14, 2017