An article by Scott Jaschik, More Testing, Less Logic? (Inside Higher Ed) comments on an article by Anne VanderMey, GMAT: The MBA Job Seeker’s Best Friend (Business Week). VanderMey reports on a disturbing trend in the MBA job market:
For a select group of companies, mostly top consulting, finance, and banking firms, employers routinely look to MBA graduates’ GMAT scores as a reliable standard measurement of academic prowess…. Particularly when jobs are tight, and every element of each résumé takes on added weight, test scores can be the difference between an interview and the dustbin.
According to both VanderMey and Jaschik, some schools are advising students to retake the GMAT.
VanderMey observes that while employers looking for people to do “heavy quantitative lifting” find the quantitative portion of the GMAT useful, the real problem is that GPAs are not always useful:
Many MBA programs have grading systems that vary widely or are solely pass-fail, making it difficult for recruiters to compare applicants from different schools, and others don’t provide grades at all. Even at schools where grades are released, grade inflation may render As and Bs poor markers for actual skill. The tests can be a boon by virtue of their standardization….
The problem with GPAs is that they are not objective measures of performance. Rather, they just sort each cohort of admitted students. The strength B-school cohorts vary from school to school, and even from year to year.
Jaschik suggests that the problem is more acute at lower-ranked B-schools:
At the very top ranked business schools, … “companies assume that everyone there is strong, and don’t care about their scores as much. McKinsey or Goldman Sachs is going to hire 20-30 grads from there every year.” But … at other business schools, “where Goldman may only hand out a few job offers, they’ll look more carefully at everything in a student’s profile (including the GMAT) to determine who the lucky few will be. That’s not a knock on those lower-ranked schools; I think it’s just the reality of the situation.” (quoting Scott Shrum, director of admission consulting research at Veritas Prep, a “high end GMAT test-prep company”).
Jaschik’s main focus is on the use of GMAT scores for purposes other than as a guide to first-year MBA grades. He argues that testing companies, such as the GMAC (presumably, the Graduate Management Admissions Council), should more actively resist the use of test scores for purposes other than admission.
U.S. News uses LSAT scores of entering classes as one of the factors in its rankings of law schools. The LSAC and the ABA also report the LSAT profiles of entering classes in their annual Office Guide to ABA-Approved Law Schools. Of course, they also provide a wealth of additional data about each law school.
Has anyone heard of law firms and other employers of lawyers using LSAT scores in evaluating job applicants?
posted by Gary Rosin


Law-School Debt Loads
Monday, January 18th, 2010In her article, “Linking Debt and Income,” Inside Higher Ed, January 18, 2010, Jennifer Epstein reports that the U.S. Department of Education recently proposed that vocational and for-profit colleges meet minimum standards for debt-to-income ratios for recent graduates. The average debt repayment could be no more than eight percent (8%) of expected earnings in the field. The presumptive expected earnings would be the 25th percentile of incomes in the field for which they had been trained.
How would that work for law schools? Going to law school is expensive, and often financed with debt. The 2009 Survey Results of the Law School Survey of Student Engagement tells us that 29% of the students surveyed expected to graduate with law-school related debt of at least $120,000. The following chart from page 14 of the 2009 Annual Survey of law students shows the law-school debt levels expected by current law students.
According to the May 2008 Occupational Employment and Wage Estimates of the Bureau of Labor Statistics (National Cross-Industry Estimates [.zip file]) the 25th percentile of annual income for lawyers was just under $75,000. That would make the maximum annual payment just under $6,000. Assuming a modest ten percent (10%) interest rate,* the maximum average school debt would be just over $45,000.
But over two-thirds of students surveyed in 2009 by LSSSE expect to graduate with law school debt of $60,000 or higher. According to Epstein, schools that don’t meet the eight percent (8%) of presumptive earnings could show
The following chart from the National Association of Law Placement shows the distribution of salaries of the Class of 2008:
Class of 2008, Distribution of Salaries (NALP)
The overall median of $72,000 is just under the May 2008 25th percentile of lawyer salaries ($75,000), so there is no wiggle room there.
Should law schools start reporting salary and debt-load information for its recent graduates?
posted by Gary Rosin
*Interest rates on guaranteed student loans in repayment are now about 2.5%. I’ll have to check on the current average for non-guarnateed loans. In event, current interest rates are abnormally low.
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