Loan Repayment Assistance Programs and the College Cost Reduction and Access Act June 2009

Rise in Median Private Law School Tuition Source: American Bar Association

Rise in Median Public Non-Resident Tuition Source: American Bar Association

Rise in Median Public Resident Tuition Source: American Bar Association

Average Amount Borrowed Academic YearPublicPrivate $57,170$87, $54,509$83, $51,056$78, $48,910$76, $45,763$72, $46,499$70,147 Source: American Bar Association

2008 National Median Starting Salaries Law Firm $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: $115,000 Starting Salary:$50,000 Monthly Payment Year 1:$430 Monthly Payment Year 10:$635 Total Paid:$63,220 Total Forgiven:$129,980

Higher Education and College Opportunity Act (HEOA)