Monday, June 22, 2015
ABA Task Force on Financing Legal Education Advocates Disclosure, Experimentation and More Empirical Research (Michael Simkovic)
The ABA Task Force on Financing Legal Education’s report was released last week. I was among the people who testified before the Task Force last summer, and the report cites both my presentation and my research with Frank McIntyre on The Economic Value of a Law Degree. Consistent with our research, the report notes that challenges facing legal education are similar to challenges facing higher education more generally, and notes extremely low student loan default rates for law school borrowers.
The report is forthright about the limitations of existing data and careful in its recommendations—most of which relate to:
- disseminating existing information more clearly (especially about student loan repayment options),
- gathering better information going forward (especially about tuition and scholarships), and
- structuring “experiments” in legal education (e.g., relaxation of accreditation rules) as field experiments that facilitate causal inference by trained social science researchers.
The report notes that legal education appears to be responding to market forces. After declines in applicants, law schools reduced capacity and offered more scholarships. Actual tuition increases have been lower than widely publicized increases in sticker tuition because of increased use of scholarships (tuition-discounting), although net-tuition has still increased faster than inflation as measured by CPI-U.
The ABA Task Force on Financing Legal Education report urges the legal profession to support federal student loan forgiveness programs that encourage public service.
Some student loan forgiveness programs have been criticized by politically powerful, media savvy, and well-funded think tanks, which claim that these programs will be costly for taxpayers. (I am skeptical of many of the think tank estimates for empirical and mathematical reasons, but that is a discussion for another day). Loan forgiveness programs may be revisited in upcoming budget negotiations. Many are expecting reduced funding for higher education to help fund increased military spending.
The Task Force on Financing Legal Education’s report is a major improvement over last year’s report from another Task Force assembled by the ABA, The Task Force on the Future of Legal Education. This year’s report is both better researched and more cautious in its claims and recommendations.