Loan Repayment Assistance Programs and the College Cost Reduction and Access Act
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Loan Repayment Assistance Programs and the College Cost Reduction and Access Act June 2009
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Loan Repayment Assistance Programs and the College Cost Reduction and Access Act. June 2009. Rise in Median Private Law School Tuition 1987 - 2007. Rise in Median Public Non-Resident Tuition 1987 - 2007. Rise in Median Public Resident Tuition 1987 - 2007. Average Amount Borrowed. - PowerPoint PPT Presentation
Transcript of Loan Repayment Assistance Programs and the College Cost Reduction and Access Act
Loan Repayment Assistance Programs and the
College Cost Reduction and Access Act
June 2009
Rise in Median Private Law School Tuition
1987 - 2007
Source: American Bar Association
Rise in Median Public Non-Resident Tuition
1987 - 2007
Source: American Bar Association
Rise in Median Public Resident Tuition
1987 - 2007
Source: American Bar Association
Average Amount Borrowed
Academic Year Public Private2006-2007 $57,170 $87,9062005-2006 $54,509 $83,1812004-2005 $51,056 $78,7632003-2004 $48,910 $76,5632002-2003 $45,763 $72,8932001-2002 $46,499 $70,147
Source: American Bar Association
2008 National Median Starting Salaries
Law Firm 51-100 $103,500
Law Firm 26-50 $87,100
Law Firm 2-25 $77,500
State AG’s Office $50,000
Public Defender $47,435
Local Prosecutors $45,675
Civil Legal Services $40,000
Sources: NALP 2008 Public Sector & Public Interest Attorney Salary Report and NALP 2008 Associate Salary Survey
Commercial and Alternative Student Loans Should be Avoided
Design Matters
Not all LRAPs are created equal
Questions to Ask About Any LRAP
• Is there an income cap and what is it?
• How is “income” calculated?
• Are assets considered?
Questions to Ask About Any LRAP
• What employment qualifies?
• Must I have a law license?
• Must I be practicing law?
Questions to Ask About Any LRAP
• Which student loans are eligible?
• Is there a minimum debt requirement?
• How is the LRAP funded?
Questions to Ask About Any LRAP
• Is there a limit on how long I can participate?
• Is there a cap on total assistance?
• How are other LRAP benefits considered?
Questions to Ask About Any LRAP
• How much assistance does the program provide?
• Loan or a grant?
• What service obligation to I have and for how long?
State-Based LRAPs
• Is there a program where I want to practice?
• What employment is covered?
• Must I live in the state?
• Are graduates of state law schools given preference?
Employer LRAPs
Nearly always taxable as income
College Cost Reduction and Access Act
Eligible Debt: $115,000Starting Salary: $50,000
Monthly Payment Year 1: $430Monthly Payment Year 10: $635Total Paid: $63,220
Total Forgiven: $129,980
Higher Education andCollege Opportunity Act (HEOA)
