Equal Justice Works News: Monthly Webinar WEDNESDAY (Topic–Fixing Public Service Loan Forgiveness)

October 6, 2014 at 3:59 pm · Filed under Events and Announcements, Student Loan Debt

Equal Justice Works offers free monthly webinars to educate attorneys on how federal programs like Public Service Loan Forgiveness can make public interest legal careers financially feasible. Our next webinar is on Wednesday, October 8 from 3:00 PM – 4:00 PM EDT.

There has been a spate of proposals recently purporting to “fix” Public Service Loan Forgiveness, including one proposed in a recent task force report from the National Association of Student Financial Aid Administrators (NASFAA). Unfortunately, it would gut the program by making it ineffective for many graduate and professional students.

NASFAA recommends forgiveness up to 100% of the independent undergraduate loan limit (currently $57.5K) and 50% of any remaining loan balance up to the graduate aggregate Stafford Loan limit (currently $138.5K). Let’s see how that would work for an average public interest lawyer.

Assume our lawyer has $125,000 in loans (about the average amount borrowed for a private law school) and starts a public interest job at a starting salary of $45,000 (about the mean for a public interest legal job).  If she repays her loans in Income-Based Repayment (IBR) and earns Public Service Loan Forgiveness under NASFAA’s formula, she will still have about $52,000 remaining on her loans. If she remains in IBR to ensure her payments remain affordable, she will be repaying her loans for almost 13 more years.

With tens of millions of low- and moderate-income Americans unable to afford legal services, we need dedicated public interest attorneys more than ever. NASFAA’s proposal to limit the forgiveness graduate and professional students can earn in return for 10 years of dedicated work would erode the law’s core purpose of encouraging a wide range of public interest careers. The result will be far fewer public interest attorneys, as well as teachers, social workers, nurses, and others.

To learn how Public Service currently works – and should continue working – and get information on what’s happening in Congress, register for our free October webinar.

You can also register for free webinars in November and December.

If you register but cannot attend, you will receive a recording of the webinar you can view anytime.