It's debatable how much the loan thing contributes to the overall price or rate of attendance. 7% sucks for a loan, it's not like they're supply-siding it. I'd put it more on students aren't the best decision makers when the choice is between "attend school or get a job". Not to mention that a large percentage of attendees at the ivies have parents who can pay the bill.

Also, it's worth noting that maybe not for this student, but for last year's class, starting law school in Sep 2008 looked like a great idea and graduating in 2011 looks terrible.

That said, I'm generally on board with the whole 10,000 lawyers at the bottom of the sea sentiment. If this is a market correction, good.