This week brings an update on the student-loan front: Congress has decided to do something. No, not the total loan forgiveness that some are asking for, but a couple of things that should help, particularly for those who pursue public-interest careers.
The National Law Journal had the story last week, and FindLaw's Strategist followed up with a summary of the key provisions. The College Cost Reduction & Access Act, which was actually signed into law last year and takes effect July 1, includes two programs that can help law graduates struggling with debt from certain types of loans made or subsidized by the federal government. The first will allow people in qualifying types of jobs -- essentially, public-interest lawyers -- to have their loans forgiven after making payments for 10 years. The second will allow people who meet certain income qualifications to have their monthly payment capped at a percentage of income, and to have debt forgiven after 25 years.
The Project on Student Debt also has created a site, IBRinfo, that describes in fairly clear terms the nature of the two programs, and attempts to direct users to an application process -- no small feat considering that the public-service forgiveness program does not appear to have an application process in place yet.
The National Law Journal had the story last week, and FindLaw's Strategist followed up with a summary of the key provisions. The College Cost Reduction & Access Act, which was actually signed into law last year and takes effect July 1, includes two programs that can help law graduates struggling with debt from certain types of loans made or subsidized by the federal government. The first will allow people in qualifying types of jobs -- essentially, public-interest lawyers -- to have their loans forgiven after making payments for 10 years. The second will allow people who meet certain income qualifications to have their monthly payment capped at a percentage of income, and to have debt forgiven after 25 years.
The Project on Student Debt also has created a site, IBRinfo, that describes in fairly clear terms the nature of the two programs, and attempts to direct users to an application process -- no small feat considering that the public-service forgiveness program does not appear to have an application process in place yet.
Continue reading Student Loan Update: Maybe You'll Get a Handout After All.

