Saturday, April 28, 2012
That's the prediction Professor Nancy Rapoport (UNLV) made to a Bloomberg Law reporter during the recent American Bankruptcy Institute meeting in D.C. When asked if Congress might amend the bankruptcy laws to allow heavily indebted law students to discharge their educational loan obligations, Professor Rapoport, who also serves on a Congressional committee considering changes to the bankruptcy code, said that's unlikely. So what government relief, if any, can debt-burdened law grads expect? Professor Rapoport says that Congress could provide some debt relief to those who work in under-served, rural legal markets as a more palatable compromise but at present that's speculation on her part.
On the other hand, Professor Rapoport does expect that some law schools will close as a consequence of the student loan crisis. Demand will remain high for the elite schools that possess the "right stuff" but marginal schools will see their revenue stream dry up as students decline to take on lots of debt in exchange for the limited job opportunities these schools offer.
Hat tip to the TaxProf Blog.