Your Law School Can Shut Down. Your Debt Can't.
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This episode of LSAT Unplugged + Law School Admissions Podcast delivers a stark warning about the growing instability of U.S. law schools, using the closure of Golden Gate University School of Law as a cautionary tale. The host highlights that at least 16 accredited law schools have shut down or lost accreditation since 2016, with enrollment declines, plummeting bar passage rates, and financial strain creating a vicious cycle that often ends in closure. A new federal law—the One Big Beautiful Bill Act—introduces an earnings test that could cut off federal student loans to programs where graduates don’t earn above a certain threshold, disproportionately impacting lower-ranked schools with lower average salaries. This, combined with reduced Grad PLUS loan limits and states like Texas and Florida moving away from ABA accreditation, creates a perfect storm for law school viability. The host urges prospective students to rigorously vet schools using ABA disclosures, focusing on bar passage rates (ideally above 80%), employment outcomes, institutional stability, and debt-to-income ratios. He emphasizes the LSAT as the most powerful lever for securing better outcomes, offering free tutoring to help students improve their scores and avoid high-risk schools. The episode also addresses common student concerns—waitlist chances, GPA importance, online degrees, gap years, and career paths—while advocating for strategic, data-driven decision-making in law school admissions.
Check a law school’s bar passage rate—aim for 80% or higher; below 75% puts you at risk of accreditation loss.
Use the ABA Required Disclosures website to identify schools on probation or noncompliance lists.
The new federal earnings test could cut off federal loans if graduates don’t earn above bachelor’s-level salaries, threatening low-performing schools.
Grad PLUS loans will be capped at $50,000/year and $200,000 total—many law schools charge more than this.
Non-ABA accredited schools limit your ability to practice in most states; consider geographic mobility when choosing.
…and 3 more takeaways available in PodZeus
The Golden Gate Closure: A Wake-Up Call
“Every dollar they borrowed is still owed. The school is gone, but the loans are not.”
The Pattern of Law School Closures
The host details the widespread trend of law school closures since 2016, listing schools like Arizona Summit, Whittier, Florida Coastal, and Cooley. He explains the cycle: declining enrollment → lower bar passage rates → shrinking class sizes → less revenue → worse outcomes.
The New Federal Earnings Test: A Game-Changer
“Under the new test, your school fails even though you're employed and doing real legal work.”
State-Level Accreditation Shifts and Geographic Risks
Texas and Florida have dropped the ABA as their sole accreditor, and Ohio and Tennessee are considering it. Graduates from non-ABA schools face geographic restrictions—only practicing in one state. This limits long-term career flexibility.
How to Vet a Law School: A Data-Driven Approach
“If a school's graduates earn $55,000 a year and you're borrowing $150,000 to attend, that's a pretty deep hole you may never climb out of.”
“If a school's graduates earn $55,000 a year and you're borrowing $150,000 to attend, that's a pretty deep hole you may never climb out of.”
“Under the new test, your school fails even though you're employed and doing real legal work.”
“Every dollar they borrowed is still owed. The school is gone, but the loans are not.”
Host
LSAT
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ABA
organization
Unplugged Prep
organization
Golden Gate University School of Law
other
YouTube
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LSAC
organization
TikTok
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Cooley Law School
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One Big Beautiful Bill Act
other
other
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