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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Rise in Median Private Law School Tuition
1987 - 2007
Source: American Bar Association
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Rise in Median Public Non-Resident Tuition
1987 - 2007
Source: American Bar Association
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Rise in Median Public Resident Tuition
1987 - 2007
Source: American Bar Association
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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
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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
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Commercial and Alternative Student Loans Should be Avoided
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Design Matters
Not all LRAPs are created equal
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Questions to Ask About Any LRAP
• Is there an income cap and what is it?
• How is “income” calculated?
• Are assets considered?
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Questions to Ask About Any LRAP
• What employment qualifies?
• Must I have a law license?
• Must I be practicing law?
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Questions to Ask About Any LRAP
• Which student loans are eligible?
• Is there a minimum debt requirement?
• How is the LRAP funded?
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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?
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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?
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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?
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Employer LRAPs
Nearly always taxable as income
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College Cost Reduction and Access Act
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Eligible Debt: $115,000Starting Salary: $50,000
Monthly Payment Year 1: $430Monthly Payment Year 10: $635Total Paid: $63,220
Total Forgiven: $129,980
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Higher Education andCollege Opportunity Act (HEOA)
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