Law Students

S&P’s December Report Says Law School Future Dismal, But Management Holds the Key
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Standard & Poor’s December report on the credit ratings of law schools titled “As Law School Demand Drops, Credit Quality among U.S. Schools Diverges,” focuses on three principal findings. First, the report finds that law schools are using different strategies to respond to the drop in demand. Second, the report finds the credit quality gap widening between standalone and composite law schools (integrated within bigger organizations like universities). And third, the report finds that only strong management provides the key to a successful future for law schools.

While dealing with the different strategies used by law schools, the report observes that law school education “will continue to be beneficial for many graduates, but it can involve significant financial risks and opportunity costs…. With a high cost of attendance and weak job prospects upon graduation, fewer recent potential law school students have been willing to assume those risks.”

  
What
Where


And one of the conclusions of the report is that the number of law school applicants will continue to dwindle and affect the demand metrics. At the same time, growth in the number of ABA-approved law schools will result in greater competition among law schools vying with each other for better students. Even in the face of steep decline in demands for legal services and in the numbers of law school applicants, the number of ABA-approved law schools has continued to rise from 183 in the school year 2000-2001 to 201 in 2012-2013.

The report says S&P believes the law school “sector faces significant credit risks” given the recent decline in operating performance. However, the key to overcoming the situation is in the hands of the management and different law schools are adopting different strategies to cope with the situation.

The research finds high management attentiveness to operating performance and strategies “to develop new legal education models, such as part-time enrollment” are positive credit factors if accompanied with strategic planning. Law schools will need to take difficult decisions about how to right-size their operations to fit current and future enrollment levels.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

National Firm seeks seasoned Corporate M&A partner in Austin with Big Law experience

USA-TX-Austin

Culhane Meadows PLLC, one of the largest non-traditional (remote-workplace) law firms in the country...

Apply now

National Firm seeks seasoned Corporate M&A partner in Houston with Big Law experience

USA-TX-Houston

Culhane Meadows PLLC, one of the largest non-traditional (remote-workplace) law firms in the country...

Apply now

National Firm seeks seasoned Corporate M&A partner in Dallas with Big Law experience

USA-TX-Dallas

Culhane Meadows PLLC, one of the largest non-traditional (remote-workplace) law firms in the country...

Apply now

Trusts and Estates Paralegal

USA-PA-Philadelphia

We are looking for a paralegal with a 4-year degree and paralegal certificate, or equivalent experie...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Litigation Associate Attorney

USA-CA-San Francisco

San Francisco office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with 1+ y...

Apply Now

Civil Defense Litigation Attorney At Law

USA-MO-Olivette

Olivette office of our client seeks civil defense litigation attorney at law with 1-10 years of expe...

Apply Now

Labor and Employment Law Associate Attorney

USA-CA-Walnut Creek

Walnut Creek office of our client seeks labor and employment law associate attorney with 5-7 years o...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top