Debt Relief for Law School Grads | 11.16.09

Posted in Graduate Loans, Private Student Loans, Student Loan Links By Student Loan Network Staff

Law School GraduationDebt relief could be on the horizon for recent law school graduates. The American Bar Association has proposed extending debt relief to law school graduates who have not been able to find a job because of the recession. While most unemployed graduates can already defer their federal loans or qualify for income based repayment, the ABA’s proposition suggests letting graduates convert their private loans into federal loans so that they can receive the same benefits.

Many law school students graduate with $50,000 to $100,000 worth of debt. Most of this debt comes from a combination of federal and private loans. Private loans can rarely be deferred because of unemployment or economic hardship like federal loans can. The ABA is proposing allowing students to borrow additional money from the government to pay off their private loans. This would leave them with an additional federal loan that they could defer for up to three years or roll into their income based repayment plan.

This plan is in infancy stages and no one knows exactly how it would be accomplished. However, if passed it would definitely be a huge help to many law school graduates who might otherwise default on their private loans and hurt their credit forever.

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2 Responses to “Debt Relief for Law School Grads”

  1. Jay says on December 24, 2009 at 3:40 pm:

    This is a reasonable responsible solution. Unlike the Wallstreet bailouts. And this solution is actually for real people with no protection, not corportions who drive the law.

    Reply To This Comment
  2. Debt says on November 26, 2009 at 10:00 pm:

    Great update for student law graduates. I’ll post this at my site.

    Reply To This Comment

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