The Decline of For-Profit Law Schools in the US: A Decade of Change

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Aspiring Attorneys Face Shrinking Options Amid For-Profit Law School Exodus

Introduction

A decade ago, the American Bar Association accredited six for-profit law schools, collectively enrolling over 5,000 aspiring attorneys across the United States. However, a series of challenges and evolving demands have significantly impacted this landscape. Currently, the number of such institutions has dwindled to just around 900 students, and it appears the for-profit model may face further declines.

  

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A Shift in the Legal Education Landscape

In 2013, the for-profit law school sector was thriving, with six accredited institutions offering legal education. However, in recent years, this landscape has seen a substantial transformation. Half of these schools have closed their doors due to waning demand and accreditation issues, while one has transitioned to non-profit status. The Charleston School of Law is now actively pursuing non-profit status, leaving only one remaining for-profit American Bar Association-accredited law school in the country: Western State College of Law at Westcliff University in Irvine, California. Currently housing about 300 students, there have been no indications of plans to change its for-profit status.

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The Charleston School of Law’s Transition to Non-Profit Status

Charleston School of Law, the other remaining for-profit law school for the time being, recently submitted a request to the American Bar Association for approval to convert to a non-profit institution. An ABA spokesperson has not disclosed when this request will be considered. As of now, Charleston School of Law has approximately 600 students.

Once the American Bar Association grants its approval, Charleston School of Law intends to seek similar endorsements from the U.S. Department of Education and the South Carolina Commission on Higher Education.

Becoming a Nonprofit: Advantages and Fundraising Potential

One of the primary benefits of transitioning to a nonprofit model is the ability to accept charitable gifts and donations. Charleston law dean Larry Cunningham announced on October 19 that achieving nonprofit status would significantly enhance the South Carolina school’s fundraising capabilities. Atlanta’s John Marshall Law School made a similar transition in 2021, with fundraising cited as a motivating factor.

For-Profit Law Schools and the Enrollment Decline Challenge

For-profit law schools, which primarily rely on tuition revenue, have endured severe challenges brought about by a sustained decline in law school enrollment between 2010 and 2017. During this period, the number of first-year law students nationwide fell by 21%. The impact was felt acutely by the three for-profit law schools operated by InfiLaw, all of which closed in response.

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The InfiLaw schools were criticized for their high tuition fees and poor employment outcomes. In addition, they faced accreditation hurdles. The Charlotte School of Law closed its doors in 2017, followed by the closure of Arizona Summit Law School in Phoenix in 2018. Jacksonville’s Florida Coastal School of Law, which boasted nearly 1,300 students in 2013, succumbed to closure in 2021.

The Charleston School of Law’s Near Acquisition and the Path to Nonprofit Status

In 2015, InfiLaw nearly acquired the Charleston School of Law amid financial troubles. However, this move was met with strong opposition from students, alumni, and faculty. Instead, local attorney Ed Bell, along with two other long-time owners, purchased a stake in the school to prevent its sale or potential closure. These owners are now donating the school to the nonprofit Charleston School of Law Foundation, marking a pivotal step in the institution’s quest for non-profit status. This transition is expected to strengthen the school’s financial stability and open new avenues for fundraising, allowing it to adapt to the changing landscape of legal education in the United States.

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