The Final Minority Report

Because Even Minorities Oppose Liberalism & Statism

How To: Escape Law School Debt

For anyone who has recently gone to law school but is afraid of paying back their loans, here is some helpful information:

There are several new programs that may help you to follow your dream to help people rather than bill hours, while making sure that you don’t have to take on a second job to cover your debt. The first program won’t be up and running until July 2009, but it could certainly benefit many underpaid and overdebted do-gooders. The Department of Education’s Income Based Repayment Plan essentially caps the percentage of your discretionary income you are expected to pay toward your student loan debt. (This calculator can help you determine whether you are eligible, but only the department can give you a final verdict.) Heather Jarvis of Equal Justice Works (on their very useful student loan podcast) says that an easy calculation is that anyone who owes more than their annual salary will likely be eligible. Take extra caution if you are married and filing jointly: Both spouses’ income will be counted to determine your eligibility. Also be sure to pay attention to what type of loans you have, as not all types of federal loans are eligible.

The Public Service Loan Forgiveness program is another possibility for you. This new program requires individuals to make 120 eligible monthly payments toward their qualifying student loans while working full-time in government, at a 501(c)(3), or in another qualifying profession (including early-childhood education, social work, faculty teaching in high-need areas …). At the end of that period, the government will forgive the remaining balance. This program is intricate: Be sure to read more about it or even use this checklist as a guide.

Remember, the quicker you pay back your loans, the less interest you end up paying the banks (a/k/a the government a/k/a the taxpayer a/k/a yourself)

Another good website to visit is: http://www.usnews.com/usnews/biztech/articles/070221/21loanmarketing.htm

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03/12/2009 - Posted by | Personal Debt |

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