preLaw Magazine - Spring 2008 - (Page 24)

Loan forgiveness Law students who work in public service can now have a portion of their debt forgiven, thanks to the College Cost Reduction and Access Act of 2007. To qualify, graduates must have worked fulltime for 120 months in a public-service job. We spoke with Heather Jarvis, senior program manager of law school advocacy for Equal Justice Works, to answer some of the most common questions about this new program. Q: What is the reaction you are getting from current law students? A: There is a lot of excitement about this act. People who are working in public service may be able to start their forgiveness now. There are some things people need to do now make sure they are or will be eligible. A lot of people want to know which loans are eligible for income-based repayment. They need to know that all federally guaranteed student loans are eligible for income-based repayment, however, only federal direct loans are eligible for loan forgiveness for public service employees. Q: What does full-time mean for purposes of the law? A: We are not yet certain what the definition of full-time means. That will be decided by regulation [in November 2008]. It is proposed by the Department of Education that it be at least 36 hours per week, but it is not certain yet exactly how that definition will work. Q: What would happen if you leave after three years of working in public interest law to focus on family – or decide to work part-time? How does this affect your chances of utilizing the College Cost Reduction and Access Act of 2007? A: In order to qualify for loan forgiveness, a person must make 120 qualifying payments – one a month for 10 years. But those don’t have to be consecutive, so you could do three years in public service and then take off a year to raise a child and go back into full-time public service and restart payments. You could do 10 years [of payments] over 15 years. You still have to make payments on the student loans [even when not working. But] payments would be reduced – so if not working payments could be $5 per month. But if you left for a higher-paying job, loan forgiveness may not be eligible. Heather Jarvis, Equal Justice Works Will you be able to take advantage of the new debt forgiveness law? Q: How does this affect schools that currently have their own loan repayment assistance programs? A: Schools will want to maintain generous and well-funded loan assistance repayment programs because not all loans are eligible for forgiveness and not all graduates will complete the 10 years in order to qualify for forgiveness. Schools may wish to tailor programs so they are better to complement the act. And many schools are considering making the changes. But school payment programs are critically important for law graduates. Q: What other kinks does the government need to work out? A: The government needs to tell us what people will have to do to prove that they have been in public service-qualifying employment. For example, borrowers may need to have a form signed by the employee or maintain certain records to submit to the Department of Education to show they have been in public interest employment. It won’t affect what students have to do to qualify, but it will be a requirement that they will have to show the Department of Education. —Michelle Weyenberg STUDENT LOANS: LAW AND BAR Briefing cases. Briefing cases. Trying cases. Trying cases. Law school is challenging. Affording every opportunity it offers shouldn’t be. That’s why Citi offers an array of student loans for law students so you can focus on the next three years without stressing over your financial well-being in the ones to follow. TO GET STARTED, VISIT STUDENTLOAN.COM/LAW OR CALL 1.800.STUDENT. ©2008 The Student Loan Corporation. The Student Loan Corporation is a subsidiary of Citibank, N.A. Citi, and Citi with Arc Design are registered service marks of Citigroup Inc. Let’s Get it Done is a service mark of Citigroup Inc. 24 preLaw http://STUDENTLOAN.COM/LAW http://STUDENTLOAN.COM/LAW

Table of Contents Feed for the Digital Edition of preLaw Magazine - Spring 2008

preLaw Magazine - Spring 2008 Contents From the Editor For the Record Large Gender Gap Remains Among Political Hopefuls Man Charged in LSAT Scam Barry Dean Recognized New Report Examines Legal Ed Drexel Receives Accredidation New Mexico No. 1 for Hispanics A Film Journey in Law A Law Student at Last Debt Salvation Great Law Schools for Minorities Grad Opts Out of Big Firm Job Specialties Helpful Advice

preLaw Magazine - Spring 2008

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