Law schools revenues soar as they take in millions from tuition and fees, as supply exceeds demand.

(From McClatchy-Tribune Regional News - The Oregonian, Portland, Ore.)

Byline: Jeff Manning

America's higher ed system, the envy of the world, is creating a new debtor class.

College grads now leave owing more than $26,000 on average. Grad students can owe much more. Law students commonly finish owing $100,000 to $150,000.

The federal student loan portfolio exploded in the last decade from $295 billion in 2002 to $848 billion in 2011. It amounts to a vast transfer of wealth from the taxpayer to the nation's colleges, leaving students to repay the loans.

That flood tide of federal money has attracted some unusual players. Consider the case of Phoenix School of Law, …