NYLS’s Deceptive Practices

We recently learned of an email sent to accepted students by William D. Perez, Assistant Dean of Admissions and Financial Aid for New York Law School. The email is a response to what Dean Perez considers to be misinformation about law schools in the media. In an effort to convince accepted students to reconsider NYLS, his email tries to balance out the discussion by sharing some positive facts about NYLS. You can view the entire email here (will appear in a lightbox).

Our issue is not that Dean Perez wants to allay fears about law school in general and NYLS in particular. Any school, especially one where the average debt for 2009 graduates borrowing was $119,437, should believe that its opportunities justify the cost of attendance and should share information that materially affects a prospective’s cost-benefit analysis. Our issue is that NYLS has not provided nearly enough information, either in Dean Perez’s email or in its publications, to support some of the claims made in this effort to recruit next year’s class. Next week, we will submit our concerns to Dean Perez and Dean Richard Matasar in the hopes they will act responsibly to resolve what is possibly a violation of accreditation Standard 509.

Dean Perez claims that “our graduates are getting jobs, earning money and able to repay their loans.” But available information demonstrates otherwise. At worst, Dean Perez has overstated this claim in a deceptive and irresponsible manner. At best, NYLS has failed to meaningfully portray the data he believes supports these propositions. We’ll begin by addressing the employment and salary information that NYLS provides to prospective law students, and then move on to discuss the (un)importance of loan default statistics.

Getting Jobs. Earning Money.

NYLS’s employment statistics webpage (“Statistics Page”) (source) is designed for prospective law students trying to answer questions about job opportunities at NYLS. But it takes specialized knowledge about the reporting process and access to third-party information to recognize that these numbers are misleading.

For starters, NYLS provides its nine-month employment rate (89.7%), the breakdown of its employed graduates (first table below), and some of their salaries (first and second tables below).

Salaries
Employer Type Percentage Range (Min-Max) Average
Private Practice 45.6% $28,000 – $160,000 $120,197
Coporate/Business 23.7% $50,000 – $96,000 $75,167
Government 8.2% $41,000 – $72,000 $56,054
Public Interest 16% n/a n/a
Judicial Clerkship 3.4% $42,000 – $58,200 $45,887
Academic 3.1% $40,000 – $45,000 $42,500

You might expect that this table reflects a breakdown of the 89.7% of its 440 graduates because this is the “employment rate for the Class of 2009″ as of February 15, 2010. This rate, although not unusual, is not what it seems. It’s actually an adjusted rate, which, until this year, U.S. News used for its rankings:

Employment Rate =
graduates known to be employed OR enrolled in FT degree program
+
25% of graduates whose employment status is unknown
total graduates – graduates who are unemployed and not seeking work

Based on Class of 2009 employment data submitted to U.S. News, we come to a rate of 89.6%. The result is off by .1% due to rounding error, but nevertheless confirms NYLS’s rate calculation. As such, the employer type breakdown reflects only 82.7% of the class, because those are the only graduates reporting an employer type.

Next we look at the salary information. Understanding the salary figures on this table requires understanding the size of the dataset. This is difficult based on what NYLS says about its size: “Approximately 20% of our 2009 graduates reported salary information.” There is no clarity about what the denominator is. It could be the entire graduating class (440), the number of graduates counted as employed using the adjusted rate (395, from the 89.7% rate), or the actual number of graduates with any job (364, from the 82.7% rate). We will assume that it uses 364 graduates as the denominator on the grounds that these are the only graduates who could be expected to report a salary.

From this, we know that the first table includes salaries for roughly 16% of the entire class (73 graduates). But we have no indication from the Statistics Page as to the distribution of graduates throughout employer types, other than knowing that zero graduates working public interest jobs reported a salary.

NYLS also breaks down the private practice employer type by the salaries attained. The below table breaks down the “Private Practice” row in the first table. Accordingly, this table reflects the job outcomes for 37.7% of the class, or 45.6% of the 82.7% of graduates who were employed.

Salaries
Law Firm Size Percentage Range (Min-Max) Average
501+ 20% $145,000 – $160,000 $159,500
251 – 500 6% $120,000 – $160,000 $155,000
101 – 250 4% $90,000 – $160,000 $136,667
51 – 100 4% $62,000 – $90,000 $81,750
26 – 50 3% $55,000 – $55,000 $55,000
11 – 25 11% $47,000 – $65,000 $57,000
2 – 10 51% $28,000 – $80,000 $54,583
Unknown 1% n/a n/a

The salaries are equally as problematic for this second table. Just as we cannot tell how many of those 73 graduates reporting a salary were in a particular employer type category, we cannot tell how many are working for law firms and represented in this table. Based on the distribution of salaries in the first table, at least 11 graduates were in categories other than private practice. This means that these salary figures by firm size represent at most 14% of the class when you combine all of the rows, though the number is assuredly smaller.

What does all of this mean? Although the Statistics Page includes a cautionary statement that only about 20% of graduates reported salaries, the information provided is still deceptive. It took numerous calculations and data from a third party to figure out how few graduates actually underlie these figures. Yet, when you read these tables, an unknowing prospective who is contacted by Dean Perez and told that “[NYLS] graduates are getting jobs, earning money and able to repay their loans” will see large salaries that can reasonably be taken as evidence of this advertised, short-term solvency. The method NYLS employs to present salary statistics can be persuasive to the unknowing applicant, but it clearly does not reflect reality when, for example, the advertised $159,500 salary average for graduates employed at 501+ attorney law firms reflects the average for, at most, 7.5% of the class.

Dean Perez claims that graduates are earning money, even though the school only reports what one-fifth of the Class of 2009 was earning. If his office has information on the other four-fifths, it would be a good idea to share it when making such claims, rather than lead prospectives to think that the salary information provided is reflective of actual practice. And if NYLS does not possess salary data for the other 80% of the class, then the administration needs to review its recruiting policies and determine whether these statements are designed to mislead and/or have the effect of misleading the consumer. We think they do. When only 62% of the entire class is working in a bar-required position, there’s ample room to be skeptical of the claims made by Dean Perez.

Dean Perez also claims that New York Law School had more favorable or comparable employment statistics than [Hofstra, Buffalo, Touro, Albany, CUNY, Pace, Syracuse, Fordham, Cardozo, Saint John’s, and Brooklyn]. These are important claims that require adequate evidence, regardless of the economic climate and media attention. In the context of the email, this claim is especially troublesome because it seeks to sway applicants by stating that, despite all of the criticism, this particular law school really is a worthwhile investment. That may be true (and we will not make that call), but the school cannot simply prove its value by comparing itself to the other New York schools. No school can prove its value this way without first having sufficient transparency about the post-graduation employment outcomes of its own graduates.

[See our data clearinghouse to see if you agree that NYLS has “more favorable or comparable statistics” compared to these other New York schools: NYLS, Hofstra, Buffalo, Touro, Albany, CUNY, Pace, Syracuse, Fordham, Cardozo, Saint John’s, Brooklyn.]

Paying Back Loans

Loan default rates, contrary to Dean Perez’s assumption, do not indicate the value of a program. With the federal Income Based Repayment and Income Contingent Repayment plans, no individual with federal student loans should default. Defaults merely suggest poor advice by financial aid offices and/or poor self-discipline. A graduate can make minimum wage and have significantly-reduced monthly loan payments, thanks to these programs. Both programs have their downsides: interest accumulates and can cause debts to balloon over the life of the payment plan, and in certain scenarios the debtor will be taxed on the forgiven debt at the end of the repayment period. But they are programs designed to make sure that people don’t default. If the default rates are low, the school should be applauded for providing sound financial advice, but it is hardly evidence that NYLS graduates are by-and-large doing well, particularly when we only know the salaries for 20% of the class.

Misleading The Consumer

Selective presentation is deceptive. The manner in which NYLS portrays salaries and job outcomes, while not outright lying, deceives the reader into thinking she is more informed about the employment opportunities at NYLS than she really is. Despite NYLS possessing better information (and even reporting some of that information to U.S. News), the school has declined to share information on the Statistics Page that it knows would be valuable, such as the fact that 58.4% of all 2009 NYLS graduates were employed full-time, while 45.2% were working full-time, bar-required jobs. Omission of such important, value-adding information is so obvious that it suggests NYLS actually intends to deceive. Such a perception has enormous ramifications for how people view legal education in this country. This behavior is precisely why we are prompting reform.

Law schools are sophisticated suppliers of a service; they understand what consumers want to believe as truth, particularly consumers facing full tuition costs and six figures of debt. With no incentive to do otherwise, schools hide or otherwise misrepresent the data that might scare applicants away. And when the applicants get wind of it through exposure in the media, we see responses like that of Dean Perez. Absent tougher regulations that require improved disclosure while prohibiting claims like these from being made without factual support, some law schools in the United States will continue undermining the educational purpose they are supposed to serve.

12 thoughts on “NYLS’s Deceptive Practices”

  1. You’re going to wait two months to send a letter to them? If it’s not that urgent to you, then why the story in the first place?

    Sincerely, Daniela Gruesa

  2. Daniela, I understand your concern. Many prospective students read this site and benefit from us explaining the shortcomings of current information. So while one end has yet to be achieved (them changing it), another has been (explaining the problem and generating discussion of it).

  3. Good stuff. It’s outrageous and telling that the schools won’t comply with your very simple request. Keep up this great site until you see real change, which will hopefully be soon.

  4. The NYLS gives detailed 2010 employment statistics on this page:

    http://www.nyls.edu/user_files/1/3/4/21/CSRS%20Employment%20Stats%20for%20Web%200511%20v1-rev.pdf

    It seems to address your concerns. I’m enrolling this fall as a transfer students. If these statistics are misleading, please let me know. Did you ever submit your concerns to Dean Perez and Dean Richard Matasar? In the original post you claimed you would be submitting your concerns the following week (in April), however it appears from the comment thread that you have not submitted your concerns (as of mid-June).

  5. I am sorry – statistics never tell the full truth of anything – and these lawsuits are absolutely frivolous in my opinion. I understand the concern about debt, and about jobs – but that is as much upon the students (actually even more upon the students) than anyone else. It is their choice where they go – it is their choice to even go to law school and take out that debt – and nowhere is there a stated guarantee of a job. I think you are just a bunch of disgruntled people looking to blame someone for your own short comings and using these law schools for that – it is not their fault you cannot find employment.

  6. After being unemployed for over a since graduation, I got an email from NYLS asking about my current job since “they reported I was working full-time in the legal field since graduation.”

Comments are closed.