Anna Alaburda filed a lawsuit accusing her law school of fraud when she couldn’t find a job. What do you think of her case?
 
Personal Finance
Guidance from Michelle Singletary
 
 
Degree and debt but no job

Anna Alaburda filed a lawsuit accusing Thomas Jefferson School of Law of fraud when she couldn’t find a job.

As Katie Lobosco of CNNMoney reported, Alaburda, who graduated in 2008, passed the bar on her first attempt. But three years after graduating, she still hadn’t found work in the legal field. She felt misled by the law school, which had reported 80 percent of its recent graduates found jobs within nine months.

“A handful of other law school grads have brought similar cases against their alma maters in the past five years, but Alaburda’s is the only one that made it to trial,” Loboso reported.

Alaburda ended up with more than $150,000 in debt. And those jobs the school reported? Many weren’t in the legal field.

“Central to the case was whether the school had presented accurate data to U.S. News and World Report as part of the publication’s annual ranking of law schools,” reported Gary Warth of the San Diego Union-Tribune. “While the report showed the number of graduates working to be about the same as other law schools, the data included people who were in jobs unrelated to the law profession. Some were working in salons, restaurants, as valets and selling books or tractors, according to evidence during the trial.”

One juror took issue with how the employment data was compiled, telling a reporter, “I found it kind of appalling.”

Still the jury ended up rejecting Alaburda’s claim she was misled about the employment data.

“Thomas Jefferson stood by its employment figures,” wrote Elizabeth Olson for the New York Times. “Its lawyer, Michael Sullivan, argued that earning a law degree was not a guarantee of a well-paying job.”

As Olson reported, “Entry-level legal jobs began shrinking after the 2008 economic slowdown, and law graduates were left saddled with six-figure debt loads and limited job prospects.”

During the trial Sullivan, the law school’s attorney, testified: “I’m not here to tell you a law degree is a guarantee of career success, is a guarantee of riches. It’s not. No degree is.”

There it is. And it’s why so many students and their parents need to stop piling up on debt for a degree.

Color of money question of the week
Do you think the jury let the law school off the hook? Send your comment to colorofmoney@washpost.com. Please include your name, city and state. Unless comments are particularly sensitive, I like to identify commenters. Put “Degree and debt but no job” in the subject line.

Live Chat Cancelled
I’m away so there won’t be a live chat today. Here’s the link for last week’s discussion. NerdWallet’s Liz Weston was my guest and she answered a lot of questions about credit scoring.

Color of Money Columns
Here are my columns for the past week:
In financial spring cleaning, here’s what to keep

Why your finances need to be part of your spring cleaning

Rodney Brooks on Retirement
I have a plan for my second act.

Do you?

This week Rodney Brooks, who writes the Post’s retirement column, talked about having plans for a career encore before you retire from your first job.

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As Brooks pointed out, surveys find that 80 percent people expect to work in retirement but only 20 percent do.

Why don’t more people find work in retirement?

“The reasons are many, but unexpected health problems and age discrimination are right up there,” Brooks writes. “But people age 50 and up who have left jobs — voluntarily or not — and successfully found their Second Act jobs or careers have something in common. Most developed a Plan B while they were still working — just in case.”

So how do you prepare for an encore career?

Here are some tips.

Snakes on a plane or the IRS: Which scares you more?
For last week’s Color of Money Question I asked: Do you fear the IRS, and if so, why?

Hank Parker of Hanover, N.H. laid out a number of reasons what he’s not afraid of the IRS. He wrote: “1. We have been audited several plus times and always ended up with no bill, usually the IRS owed us a few dollars that they never refunded. 2. I was taught to not take every cent of permitted exclusions in case something was disallowed so that there would not be a chargeable underpayment. 3. We normally extend our final submittal so the final draft is not rushed, with plenty of time to check everything.”

Waneta Achaj of Alexandria, Va. wrote: “Not particularly afraid of the IRS (or snakes for that matter). For starters, my finances are usually simple enough that as long as I don’t try to play games, my returns aren’t interesting enough to be worth auditing. Second, one year I received the dreaded Letter. It wasn’t an audit, just asking about some income that they said hadn’t been included. It was enough to be worth paying a couple of hundred dollars for a tax accountant’s time. He agreed that the income was reported (It was unclaimed money from the state; there isn’t a line on the tax form for that one.), called the IRS, and cleared it up. Keep all your receipts in order, don’t take advice from anyone who isn’t a tax professional (or a good tax program), and save your fears for the really scary things. Like bees and wasps.”

“I am WAY more afraid of the IRS than just about anything else,” wrote Karen C. Reidelbach of Virginia, who wrote that an honest mistake in a business she ran put her in the crosshairs of the IRS.

Joan Culver of Annandale, Va. said she doesn’t fear snakes or the IRS. She wrote: “I do my taxes to the best of Turbo Tax’s ability and pay what is required. And snake? My daughter breeds them, many several feet long. So no fear there either. My biggest fear is that I will lose the two 145 year old oak trees in my yard.”

Fred Shaw of Laurel, Md. wrote: “I do not fear the IRS. I do not push the limit of the tax deductions. I have a generally simple tax return and all my information is reported to the IRS. I feel the risk to reward is too high to push the limits with the IRS. I also do not fear snakes on planes.”

“I do not fear the IRS, but am wary of them,” wrote Lorna Gilkey of Alexandria, Va.. “I have been completely honest on my taxes from the moment I became a working adult. Not claiming ‘fishy’ deductions, other people’s children or other fraudulent things means the likelihood of an audit is near zero. On the other hand, I am EXTREMELY afraid of snakes! And snakes on a plane – both the reality and the horrible movie – are very scary!”

Readers may write to Michelle Singletary at The Washington Post, 1301 K St. NW, Washington, D.C., 20071, or michelle.singletary@washpost.com. Personal responses may not be possible, and comments or questions may be used in a future column, with the writer’s name, unless otherwise requested. To read previous Color of Money columns, go to washingtonpost.com/business.

 
More Personal Finance News
In financial spring cleaning, here’s what to keep
Most of that paper can go with little worry. But a few documents are worth saving, for a time.
 
Why your finances need to be part of your spring cleaning
Going through your financial papers once a year forces you engage with your information.
 
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