Valparaiso Law School to close, citing plummeting enrollment

[VU2014]

Really unfortunate news. Valparaiso Law School is shutting its doors. From my understanding this falls on the Law School's administration for relaxing the admission standards around the time of the Financial Crisis and that hurt the Law Schools reputation. The Law School was shortsighted and that was ultimately their downfall. This is a bit of a black-eye on the University and never should have happened.

https://twitter.com/sara_randazzo/status/931245594466664448

https://www.wsj.com/articles/valparaiso-law-school-to-close-citing-plummeting-enrollment-1510860102

Valparaiso Law School to Close, Citing Plummeting Enrollment
School, which enrolled only 29 full-time incoming students in 2017, is latest victim of declining interest in law school
By Sara Randazzo
Nov. 16, 2017 2:30 p.m. ET

The tough climate for legal education has claimed another victim.

Valparaiso University, a private university in Northwest Indiana, said Thursday its board of directors voted to stop enrolling new law school students, meaning the law school will likely be wound down over the next few years.

Enrollment has plummeted at Valparaiso University Law School, once a well-respected regional school. This year's incoming class had just 29 full-time students, down from 206 in 2013.

The news follows a similar move in April by the board of Whittier College in Southern California to stop admitting new students to Whittier Law School. Both are among some 200 nationally accredited law schools in the country, a number that many industry watchers say is unsustainable in the long term.

The legal profession suffered after the last economic downturn, resulting in fewer people seeking out a law degree and difficulty for those who did graduate to find well-paying law jobs. Law schools haven't recovered from the changing market forces, and many graduates are saddled with six-figure debt loads.

Valparaiso University President Mark Heckler said Thursday that for a time, the law school thought it was immune from the trouble other schools faced. "When it hit us, it came fast," he said.

The law school has been operating at a deficit for two to three years and ran through its reserve, Mr. Heckler said. As applications decreased, it faced increasing competition from the five other law schools in the broader Chicago region, he said.

University officials will look for a possible affiliation with another law school and other options for the law school faculty, and said they are committed to ensuring the 237 existing students complete their degrees.

The school, which costs more than $40,000 a year in tuition, tried to fix its issues, offering faculty buyouts in 2016 and revamping the curriculum. But it wasn't enough.

The law school's students and faculty were being told of the board's decision Thursday afternoon. The broader Valparaiso University isn't affected.

The American Bar Association's accrediting arm censured Valparaiso Law last fall for not having stringent-enough admissions standards. This year's incoming class had high enough average grades and test scores—including a median LSAT score of 151, up from 143 in 2013—for the ABA to announce this week it had removed the censure.

The move fixed the accreditation problems, but led to the dramatic shrinkage in class size. That, in turn, contributed to the law school's financial woes.

Its graduates also had trouble finding employment. Of the 160 in Valparaiso Law's 2016 graduating class, about 36% found full-time, long-term jobs requiring a law license by 10 months after graduation, according to ABA data. Another 14% found full-time, long-term jobs where a law degree was preferred, and 25% were unemployed.

Valparaiso Law got its start in 1879 as Northern Indiana Law School, with the mission of creating an affordable, accessible legal education. Mr. Heckler said the school focused on giving a practical, more than theoretical, legal education and producing good writers.


Several other law schools have come under scrutiny by the ABA this year. For-profit Charlotte Law School closed in August after being put on probation by the accreditors for lax admissions standards and failing to come up with a workable improvement plan.

There are early indications that interest in law school may be rebounding. The number of people taking the LSAT in June was up nearly 20% compared with last year, while during the fall it was 10.7% higher, according to the Law School Admission Council.

Write to Sara Randazzo at sara.randazzo@wsj.com

[bbtds]

Dear Valparaiso University Alumni,
As you may know, similar to other law schools across the nation facing declining student enrollment and severe financial challenges, Valparaiso Law School has faced a number of challenges in recent years as legal education struggles in response to the lessening demand for students in the legal job market. Based upon third-party projections, including the Law School's probable continuation of significantly decreased student enrollment, it has been determined that the Law School is financially unsustainable for the foreseeable future and its continued operation could significantly impede the University's ability to achieve its mission, vision and goals.
In light of this, the University's Board of Directors directed the University's Administration to continue to explore alternative possibilities related to the severe challenges facing the Law School. These alternative possibilities might include the possibility of affiliating the Law School with another existing law school, or relocating the Law School to another geographic market with perceived greater demand for legal education. Depending on the circumstances of such changes, approval of various accrediting organizations may be necessary.
In addition, based on a several-year process which has included efforts to seek to improve the Law School's circumstances, and analysis of the Law School's projected future financial position conducted by third-party financial consultants, the Board voted to suspend admission of a first-year law school class in Valparaiso, Indiana for the fall of 2018. The University Administration will coordinate, as necessary or appropriate, with its accrediting organizations to prepare plans to allow the opportunity for currently enrolled law students in Valparaiso, Indiana to complete their legal educations. This has been a very difficult decision, particularly due to the actions we have taken during the last several years to try to stabilize the Law School's situation.
These circumstances do not diminish the Law School's proud legacy of more than 130 years and the thousands of successful law graduates who lead and serve around the world. The Law School's situation is distinct from that of the overall University. Valparaiso University maintains strong, high quality undergraduate enrollment, high national rankings, and a track record of 96 percent of recent undergraduate alumni employed or in graduate programs. Valpo continues to thrive with the addition of several undergraduate majors in high demand career fields, expansion of housing and classroom space, and joining the Missouri Valley Conference in athletics. The future of undergraduate education remains remarkably strong.
I want to personally thank you for your dedication to Valparaiso University. Your support is one of the driving factors in the aforementioned success of the University, and your work keeps alumni forever connected.
If you have any questions, you can submit them to ValpoLawQuestions@valpo.edu and we will aim to respond as quickly as possible.

Sincerely,

Frederick G. Kraegel
Chairman of the Board of Directors

[valpopal]

Although I do not doubt the article posted, I do want to be specific about wording and mention there are still possible moves forward. My understanding is that the Board of Directors did not tell VU to "close" the law school, but to "suspend" enrollment next year and look for possible alternatives, such as affiliation partnership with another school or relocation to an urban setting. Admittedly, the likelihood of those alternatives may be very slim, and probably the law school will be closing, but I wanted the news to be accurate.

[agibson]

The university's statement is at

https://www.valpo.edu/news/2017/11/16/valparaiso-university-announces-it-is-exploring-alternative-possibilities-related-to-its-law-school-activities/

VALPARAISO UNIVERSITY ANNOUNCES IT IS EXPLORING ALTERNATIVE POSSIBILITIES RELATED TO ITS LAW SCHOOL ACTIVITIES

Board of Directors Directs University Administration to Suspend A First-Year Law School Class in Valparaiso for the Fall of 2018

Valparaiso University, a private university based in Northwest Indiana, today announced its Board of Directors directed the University's Administration to continue to explore alternative possibilities related to the severe financial challenges facing its Law School. These alternative possibilities might include the possibility of affiliating the Law School with another existing law school, or relocating the Law School to another geographic market with perceived greater demand for legal education. Depending on the circumstances of such changes, approval of various accrediting organizations may be necessary.

Based on a several-year process which has included efforts to seek to improve the Law School's financial circumstances, and analysis of the Law School's projected future financial position conducted by third-party financial consultants, the Board voted to suspend admission of a first-year law school class in Valparaiso, Indiana for the fall of 2018. The University Administration will coordinate, as necessary or appropriate, with its accrediting organizations to prepare plans to allow the opportunity for currently enrolled law students in Valparaiso, Indiana to complete their legal educations.

Similar to other law schools across the nation facing declining student enrollment and severe financial challenges, the Law School has faced a number of challenges in recent years as legal education struggles in response to the lessening demand for students in the legal job market. Based upon third-party projections, including the Law School's probable continuation of significantly decreased student enrollment, it has been determined that the Law School is financially unsustainable for the foreseeable future and its continued operation could significantly impede the University's ability to achieve its mission, vision and goals.

"This has been a very difficult decision," said Frederick G. Kraegel, Chairman of the Board of Directors of Valparaiso University. "As the need for legal education continues to be challenged, we have taken numerous actions during the last several years to try to stabilize the Law School's financial situation. Actions have included a reduction in employment levels last year in an attempt to align the school's faculty and staff to its decreased student population. Despite these efforts, it is highly unlikely that the Law School's operations will achieve financial stability."

"We are focused on ensuring fair and reasonable treatment of those impacted by this decision through an orderly and carefully considered process," Mr. Kraegel continued. "These financial circumstances do not diminish the Law School's proud legacy of more than 130 years and the thousands of successful law graduates who lead and serve around the world. It is important to note that the Law School's situation is distinct from that of the overall University. Valparaiso University continues to be financially sustainable while maintaining strong, high quality undergraduate enrollment, high national rankings, and a track record of 96 percent of recent undergraduate alumni employed or in graduate programs."

[VULB#62]

Although I do not doubt the article posted, I do want to be specific about wording and mention there are still possible moves forward. My understanding is that the Board of Directors did not tell VU to "close" the law school, but to "suspend" enrollment next year and look for possible alternatives, such as affiliation partnership with another school or relocation to an urban setting. Admittedly, the likelihood of those alternatives may be very slim, and probably the law school will be closing, but I wanted the news to be accurate.

Pollyanna here!  In a wider view, this may be an unexpected opportunity for the university.  Valpo, IMO, has held to a narrow geographic model that focuses on the on-campus experience. As such it has not expanded its geographic footprint to any great degree. This is a challenge, no doubt, but challenges provide opportunities. I was struck by one phrase in Mr. Kraegel's letter:  "Relocating the law school."

The Valparaiso brand and the quality of education associated with it throughout the central Midwest coupled with a long and mostly (2008 burp excluded) successful history of producing good attorneys, would make it a player in the Chicago market.

In my admitted limited experience, friends who went into law mostly did that AFTER a few years in other occupations. But most did not do that on a FT basis — they went at night after they checked out of their day job.

Why not relocate to downtown Chicago, near public transit, and provide a high-end option for a JD?  Of course the opportunity to pursue a FT JD should also be there as well. This initiative  establishes a Valpo beachhead in Chicago that could be further leveraged by other academic paths. In that respect, on the main campus, it could be addition by subtraction in that it frees up additional facilities to enable Valpo's wheelhouse, undergraduate education, to further expand without significant investment in physical assets.

Bottom line in my view:  Prominent Chicago presence, the Law School reinvents itself within a more agile 21st century model, all of which creates greater flexibility for the Valpo Campus.

[talksalot]

Why not relocate to downtown Chicago

possibly because there are three other law schools in the loop?   

[crusaderjoe]

Curious timing of this announcement given the news regarding the lifting of the ABA censure.

Why not relocate to downtown Chicago

possibly because there are three other law schools in the loop?   

Yes, exactly.  Valparaiso already has to compete with the University of Chicago, Northwestern, DePaul, Kent, Loyola, Illinois, Notre Dame, and Indiana at a minimum for Chicago legal market entry already, aside from the other non regional "top tier" schools.  Not to mention that all of the aforementioned schools are "ranked" considerably higher than VU already.  Indianapolis would probably make more sense than Chicago.

[VULB#62]

Why not relocate to downtown Chicago

possibly because there are three other law schools in the loop?

Only three?  Super!  Boston, where I am from, has a gazillion law schools and the population is only 600,000. The point is to move into an area with a LARGE  population from which to draw only hundreds and then differentiate yourself and leverage a pretty lengthy history of success. Of course it would force our alma mater to step out of their comfort zone and do crazy things like 21st century marketing.

[VULB#62]

Curious timing of this announcement given the news regarding the lifting of the ABA censure.

Why not relocate to downtown Chicago

possibly because there are three other law schools in the loop?   

Yes, exactly.  Valparaiso already has to compete with the University of Chicago, Northwestern, DePaul, Kent, Loyola, Illinois, Notre Dame, and Indiana at a minimum for Chicago legal market entry already, aside from the other non regional "top tier" schools.  Not to mention that all of the aforementioned schools are "ranked" considerably higher than VU already.  Indianapolis would probably make more sense than Chicago.

But wait, wouldn't that pose a threat to the Butler School of Law? 

[VULB#62]

Let's face it. Unless you are Harvard, today's colleges have to change their approach to some degree. I'm not saying convert to a Grand Canyon model but at least adopt some of their promotional and marketing techniques. A good example of this is little old D-III Concordia University Wisconsin in tiny Mequon, WI.  Their sports suck, but they are everywhere in local media and billboards and they have grown their enrollment to over 5,000 for a campus that looks like a high school.   

Valpo's consistent commitment to the traditional (old) ways of doing things is putting us further and further behind progressively thinking institutions. VU does not have to go radical. But it needs to recognize the changing landscape more clearly and more quickly. It is called the acceleration of change.

Before you say it. The move to the MVC was great and is one thing that fits within the model I advocate.

However, aggressive followthrough is required to maintain that momentum. Like continuining to invest in things like the ARC, getting more people to games, finding new proactive ways to encourage applications, yaddah, yaddah.

[78crusader]

Thoughts on Law School closing:

(1) The law school administration relaxed its admission standards which ultimately caused the downfall.  But the VU administration isn't without blame here.  They are charged with the responsibility of overseeing all schools within the University.  They should have picked up right away on the relaxed standards, absentee professors, and low bar passage rate and taken swift corrective action;

(2) The law building will be repurposed.  This presents an opportunity but also more than a fair share of challenges.  The building (and the Law Clinic) will have to undergo some remodeling.  This will not be inexpensive -- a couple million dollars, perhaps, coming at a time when at least a portion of the much-needed fieldhouse could be built for under $10 million.  The two colleges that need new homes are nursing and business.  However, the law building is on the fringe of campus and I don't think the professors and students of these two colleges will be enamored with the idea of being shunted off to such a remote (and unattractive) area, which, I will note, does not feel particularly safe to me at night.  In addition, the law building has a 'connectivity" problem.  The rest of campus feels far away from these buildings;

(3) This closure is going to hurt VU's reputation and enrollment for several years at least.

Paul

[valpopal]

This closure is going to hurt VU's reputation and enrollment for several years at least.

At this point, that is my main concern.

[vu72]

There is hope.  This from the Times article this morning:

VU President Mark Heckler said Thursday he is working quickly to resolve the situation. Maintaining American Bar Association accreditation is critical, he said, so he is hoping the faculty will remain at the school rather than jumping ship.

"There's been no decision to close the law school," he emphasized.

[wh]

There is hope.  This from the Times article this morning:

VU President Mark Heckler said Thursday he is working quickly to resolve the situation. Maintaining American Bar Association accreditation is critical, he said, so he is hoping the faculty will remain at the school rather than jumping ship.

"There's been no decision to close the law school," he emphasized.

As everyone knows, a common first sign of a small business failure is a hastily posted sign at the the front door that says "closed for remodeling."  99 times out of a hundred, that means the owner is out of cash, can't meet payroll, and is looking for help from the bank or a buyer while the business is technically still viable.  That's exactly what's going on here.  When you announce that you're "suspending" enrollment for the next school year, you are eliminating all revenue sources necessary to keep your faint business hopes alive. Simply put, YOU'RE DONE!  Saying no decision has been make to close the law school is Heckler's equivalent to "closed for remodeling."  He's trying to forestall the ABA pulling its accreditation while there are still students in the program.  If they pull it now, remaining students are out the door and revenues drop to zero overnight.  Moreover, once the doors close, that ends any (slim to none) hopes of someone wanting to acquire the program. 

[VU2014]

I can't believe the administration let it come to this. Instead of relaxing law school admission requirements to keep enrollment up they should have bit the bullet and try make it through the lean years of the economy with a smaller enrollment. VU undergrad is still strong but they let the law school slide.

It makes you wonder what they are going to do with the land and law building. I lived in one of the fraternity houses near the law school. I never felt unsafe in that area of campus. It is tucked away all the way at the edge of campus. The building wasn't very attractive and felt very outdated. Maybe they could build a new college of business and nursing building over there. It's actually a pretty nice plot of land over there, but it is a 7-10 minute walk from there to student union (not bad at all).

Its about time they move the Fraternity Houses (probably didn't help sell potential law students seeing frats across the street) and build the "Greek Row" they've been talking about. Problem is from my understanding is that two of the Fraternities own the land/buildings but they have a binding agreement that the University has the right to buy the land if the fraternity chose to sell, which they want to but the University has been dragging their feet about where & when they will allow them to build new houses. The Fraternity houses suppose to be built across the street from the Sorority house near the ARC. Another issue is the University doesn't want to pay fair market value for the land. The University is known to throw nickels around like manhole covers.

It will be interesting to see if they choose to reboot the Law School. It seems unlikely at this point. What do you think the University will eventually do with the old Law School building and land over there? It has a lot of potential, imo.

[M]

I believe the VU nursing program is kicking ass, maybe they could grow that and repurpose the building for their needs.

[vu72]

I can't believe the administration let it come to this. Instead of relaxing law school admission requirements to keep enrollment up they should have bit the bullet and try make it through the lean years of the economy with a smaller enrollment. VU undergrad is still strong but they let the law school slide.

It makes you wonder what they are going to do with the land and law building. I lived in one of the fraternity houses near the law school. I never felt unsafe in that area of campus. It is tucked away all the way at the edge of campus. The building wasn't very attractive and felt very outdated. Maybe they could build a new college of business and nursing building over there. It's actually a pretty nice plot of land over there, but it is a 7-10 minute walk from there to student union (not bad at all).

Its about time they move the Fraternity Houses (probably didn't help sell potential law students seeing frats across the street) and build the "Greek Row" they've been talking about. Problem is from my understanding is that two of the Fraternities own the land/buildings but they have a binding agreement that the University has the right to buy the land if the fraternity chose to sell, which they want to but the University has been dragging their feet about where & when they will allow them to build new houses. The Fraternity houses suppose to be built across the street from the Sorority house near the ARC. Another issue is the University doesn't want to pay fair market value for the land. The University is known to throw nickels around like manhole covers.

It will be interesting to see if they choose to reboot the Law School. It seems unlikely at this point. What do you think the University will eventually do with the old Law School building and land over there? It has a lot of potential, imo.

A couple of things.  First, the fraternity houses (Phi Psi and Sigma Chi) will be breaking ground in the spring, across from the Sorority Complex, at least that is the current plan.  The University owns a LOT of land--350+acres including all but one house on Linwood Ave, which is owned by my 97 year old aunt.  The Master plan calls for closing Linwood off which would leave a very large contiguous parcel available.  For what?  Good question.  One idea that was mentioned by one of the College Deans while I was on campus at homecoming, was to build a retirement village for alumni.  Interesting idea.  What a great place to settle down in retirement with relatively low cost of living, access to all the academic and cultural activities of the University, D1 athletic events and a wonderful small town environment an hour from Chicago.  Sign me up!!

[M]

That is a really neat idea.

[FWalum]

One idea that was mentioned by one of the College Deans while I was on campus at homecoming, was to build a retirement village for alumni.  Interesting idea.  What a great place to settle down in retirement with relatively low cost of living, access to all the academic and cultural activities of the University, D1 athletic events and a wonderful small town environment an hour from Chicago.  Sign me up!!

That is a really neat idea.

Ditto, I often say that campus life is wasted on the young.  As vu72 opined, this would be a super cool environment and would keep a person active and involved.  Has this been tried at any other schools?

[M]

Cougars on the prowl.

[VU2014]

One idea that was mentioned by one of the College Deans while I was on campus at homecoming, was to build a retirement village for alumni.  Interesting idea.  What a great place to settle down in retirement with relatively low cost of living, access to all the academic and cultural activities of the University, D1 athletic events and a wonderful small town environment an hour from Chicago.  Sign me up!!

An interesting idea. So would the University be selling or renting homes to alumni? Would it be like a condo setup and only VU alumni buy a condo in the building? I wonder how much "relatively low" cost of retirement living would be because the University obviously would be seeking revenue from this potential project. Just a really interesting idea.


I've seen some people speculate online that the University is trying to "merge" (sell off) the Law School to a school like Purdue. That is one potential reason for President Heckler's comments that he they aren't official closing the Law School and he's just trying to keep the accreditation in place.
https://twitter.com/ahaffner1/status/931555063146958848

[vu72]

One idea that was mentioned by one of the College Deans while I was on campus at homecoming, was to build a retirement village for alumni.  Interesting idea.  What a great place to settle down in retirement with relatively low cost of living, access to all the academic and cultural activities of the University, D1 athletic events and a wonderful small town environment an hour from Chicago.  Sign me up!!

That is a really neat idea.

Ditto, I often say that campus life is wasted on the young.  As vu72 opined, this would be a super cool environment and would keep a person active and involved.  Has this been tried at any other schools?

Apparently so!

https://www.aplaceformom.com/blog/9-3-14-seniors-head-back-to-school/

[VU2014]

Interesting given the recent the news. Maybe Valpo is looking for a similar scenario from a larger school.

https://twitter.com/PekalaLaw/status/932678502704443392

[valpopal]

It will be interesting to see the enrollment consequences of this changing trend at law schools as reported in the Wall Street Journal:



Law Schools Say: Please Come, No LSAT Required
More schools no longer require students to sit for grueling test and are letting applicants take GRE in effort to draw from broader pool of students
https://www.wsj.com/articles/law-schools-say-please-come-no-lsat-required-1512556201?mod=e2tw

[historyman]

But wait, wouldn't that pose a threat to the Butler School of Law? 

I saw a bumper sticker the other day about the Butler School of Law. BUTSoL.