The US Government has decided that student loan debt has reached a point where action is needed. For the first time in our nation’s history, student loan debt has risen past credit card debt. At the current rate, a lot of people will be paying off their loans when their kids go to college. Congress is making an effort to curtail higher education practices. This action would hold law schools accountable for the information they provide to prospective students.
Colleges have been accused of providing inflated numbers to prospective students for quite some time. These numbers include inflating the income level of graduates, the percentage of graduates who are employed after graduation and a failing to disclose the total cost of education.
The American Bar Association (ABA) is urging Congress to act by providing competitive and flexible terms for federal student loans. Specifically, Resolution 111-A is calling for loan forgiveness programs for students who go into work for the private sector, and raising the federal income tax deduction for qualifying student loans. At the same time, Resolution 111-B is asking law schools to revise their standards by, “requiring law schools to provide on their websites, and in other reasonable methods of communication, more data on employment and placement of graduates.”
Such action is critical; however, the action should come directly from state bar associations who are responsible for regulating the industry. The decision to attend law school is a difficult one with a lot of pros and cons to weigh. Action needs to be taken so that those who wish to make such a decision are armed with the correct information to base their decisions.
Information gathered from: http://www.abajournal.com/news/article/aba_asks_u.s._govt_to_address_heavy_student_loan_debts/