National Jurist - March 2009 - (Page 38) Minimizing your debt load Minimizing debt and financing your legal education begins with thorough research about your options. Experts emphasize that students have to do their part in getting informed about their finances. For example, students should become experts in their own student loans and should be aware of all their repayment options, said Jarvis. They also must do their research on various financing options and loan terms. Students can start in their law school’s financial aid office. “Every student’s financial situation is different,” explains Marc Berman, director of financial assistance at Thomas Jefferson School of Law. While some students are 100 percent dependent on student aid, others come to law school with some outside resources. Plus, students’ financial needs may vary depending on their work, family and personal situations. And that makes individual financial counseling all the more important. Law school financial aid officers can help students assess their need, discover and research options, come up with a budget and apply for aid. They can also provide financial counseling. Moreover, financial aid officers can help when something unexpected comes up during the school year, said Berman. Rather than turning to credit cards, students may be able to adjust their aid packages if the unexpected event increased their cost of attendance. For D. Chad Johnson, part of finding the right combination of aid meant looking for in-state tuition and scholarships. Like most law students, the third year at Indiana University Maurer School of Law — Bloomington was concerned with minimizing student loans when he started law school, particularly as his wife gave birth to the couple’s first child while Johnson was in school. Staying in-state was Johnson’s first step in minimizing his postgraduation debt. Federal work-study programs can provide another option for minimizing debt loads, said Berman. Working during law “Every student’s financial situation is different.” — Marc Berman, director of financial assistance at Thomas Jefferson School of Law Loan Forgiveness Update Also quickly taking hold are loan forgiveness programs. Under the federal government’s forgiveness program, which is part of the College Cost Reduction and Access Act, Jarvis said students must enter employment in government or nonprofit public interest work and work full-time for ten years, and they must make 120 monthly loan payments; the rest of the loan is then forgiven by the federal government. Only federal direct loans are eligible, Jarvis said, but many people may be eligible to consolidate their other loans in order to take advantage of the program. In addition to the federal program, Jarvis adds that many law schools, states, and even emplo yers offer their own loan forgiveness programs. “Make sure you understand the terms of the repayment program,” said Jarvis, as well as what’s required of you before you can take advantage of the program. Matasar cautions that many law schools don’t have adequately funded loan repayment programs. As with any other financial decision or option, Matasar says it’s essential for students to do their research—find out how many people are helped by the program, what participation entails, what the terms of the program are, and what conditions are attached. To navigate loan forgiveness programs: Research your options early. Become familiar with the terms of the programs that interest you, including any specific steps you need to take in order to take advantage of the program. school in general can help students to ultimately borrow less, whether it’s part-time work or a full-time job combined with part-time law study. In addition, working can help build students’ resumes and help them network, Berman adds, which can ultimately lead to increased career opportunities. Finding lower-cost alternatives may be one other way to minimize students’ ultimate debt load. So, if you’re accepted at a school that has lower tuition costs but is generally regarded similarly by employers as your higher-priced alternative, going with the less expensive alternative will allow you to have less debt at the end, said Matasar. Still, both Matasar and Jarvis recommend that before enrolling at a school, students look not only at the school’s price tag, but also the amount of aid the school may provide. “Many excellent schools provide financial aid for those with need,” said Jarvis. “It’s not always true that the most expensive law schools are the most costly in the final analysis. It’s important to do enough research to understand that the cost of the law school can be offset by the financial aid.” To get informed and minimize debt: $Research any scholarships that your school may offer, along with any private scholarships from other organizations that may be available to you. and research ways to minimize your borrowing. $Look carefully at your financing options $Consider lower-cost alternatives, but factor financial aid offered by a school — not just the sticker price — into your final analysis. school, if applicable. $Consider working while you’re in law $Meet with your school’s financial aid officers for help. 38 THE NATIONAL JURIST March 2009
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