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Law School Loan Forgiveness And Repayment Programs



Becoming a lawyer requires an extended commitment — potentially even seven years of full-time study beyond high school. As a result, the cost of choosing this career can be sky high, with the National Center for Education Statistics (NCES) putting the average law school debt at $145,500.

While lawyers do have the potential for a high salary, the cost of paying off student loans could be too much to handle. This guide covers the top programs for law school forgiveness, how they work and what to consider before you move forward.

What is law school loan forgiveness and repayment?

Unless you have the money to finance your law school education with cash, you’ll likely take out federal student loans and potentially even private student loans. Law school forgiveness programs are programs that will erase some of your debt after the fact, although you’ll have to meet specific requirements to qualify.

While law school loan forgiveness programs vary in scope, they usually require you to work for a government or nonprofit organization. Some law school forgiveness programs can forgive all of your debt once requirements are met, and others may only forgive part of your debt. You will usually have to continue making payments on your loans while you work toward forgiveness.

6 law school loan forgiveness and repayment programs

Whether you owe a considerable amount in law school debt already or you’re considering a career in law and wondering about your options, it’s smart to research loan forgiveness programs for lawyers ahead of time. Here are the main law loan forgiveness and repayment programs you should know about, some details on how they work and an explanation of who they’re best for.

Public Service Loan Forgiveness (PSLF)

Public Service Loan Forgiveness (PSLF) aims to forgive eligible federal student loans after participants make 120 on-time payments while on the program. To qualify, you have to repay your loans on an income-driven repayment plan, and you have to work full time for an eligible employer, which could be a federal, state, local, or tribal government or a nonprofit organization.

You also have to have Direct Loans to qualify for PSLF. If you have other federal loans, they must be consolidated with a Direct Consolidation Loan before your monthly payments will count.

Best for: Public Service Loan Forgiveness (PSLF) is best for lawyers who plan to work for the government or in the nonprofit sector. Since this plan forgives all of your remaining debt once you make 120 payments and meet all other requirements, it’s also a good option for lawyers who have a high level of debt.

Income-driven repayment plans

With income-driven repayment plans, lawyers and others can pay a percentage of their discretionary income for 20 to 25 years before having their remaining loan balances forgiven. Plans that fall into this category include Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR).

Income-driven repayment plans are not specific to the law field, so anyone can qualify provided they have eligible federal loans. You’ll pay 10 to 20 percent of your discretionary income while on these plans, though note that forgiven debts are considered taxable income in the year they’re forgiven.

Best for: If your income is low enough, your monthly payment could be as low as $0 on an income-driven repayment plan. For that reason, this option is best for lawyers with especially low incomes.

State Loan Repayment Assistance Programs (LRAPs)

Some states also offer their own Loan Repayment Assistance Programs (LRAPs) for lawyers, although relief options vary widely. States with their own LRAP program include Florida, Illinois, Indiana, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Montana, Nebraska (two programs), New Hampshire, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Texas, Vermont, Virginia and Washington, D.C. Kansas also has a LRAP program that is available in almost half of its 105 counties.

The amount of forgiveness you can qualify for depends on the state where you live and other factors. In the state of Minnesota, for example, the range of forgiven amounts is $1,077 to $5,742. In the state of Virginia, on the other hand, all participants get $5,000 in forgiveness.

Best for: Since state-based LRAPs can be used on top of other forgiveness programs you qualify for, they’re a good option for anyone who can meet their state’s requirements.

Law School-Based Loan Repayment Assistance Programs (LRAPs)

More than 100 different law schools also offer their own LRAPs. Generally speaking, these programs are available to lawyers based on income, with preference given to those who work in lower-paying law professions in the public interest.

At Boston College Law School, for example, annual awards for recipients have ranged from $500 all the way up to $7,000 in recent years. First-time applicants who attended the school in the last five years must earn less than $57,500 and work in a public interest career to be eligible. Applicants can continue receiving an award in subsequent years, but only until their incomes reach $65,000.

Best for: These programs are ideal for anyone who attended a law school that offers a LRAP, although you may not qualify unless you work in a lower-paying field.

Department of Justice Attorney Student Loan Repayment Program

Department of Justice employees can apply for this forgiveness program provided they have at least $10,000 in federal student loans and meet other criteria. Most federal student loans qualify, and you can apply for up to $6,000 in forgiveness per calendar year, with a lifetime maximum benefit of $60,000 in forgiveness.

Best for: This program is available to lawyers with at least $10,000 in federal loan debt who work for the Department of Justice.

John R. Justice Student Loan Repayment Program

This loan forgiveness program applies to lawyers who have eligible federal student loans. You must also work full time in an eligible position to qualify, which typically includes working for a nonprofit organization or as a public defender. Qualified applicants can receive up to $4,000 in loan forgiveness per year, with a maximum benefit of $60,000 in debt relief.

Best for: This loan forgiveness program is geared toward lawyers who want to work as public defenders.

How to apply

Applying for a loan forgiveness program will look different for each program you’re considering. With that in mind, you’ll want to read through the terms and conditions of your program from start to finish, taking the time to read every word of fine print.

Generally speaking, you’ll need to work in a public interest position to qualify — potentially even for several years to a decade or more. You will likely need to have specific types of federal student loans as well, and you may not qualify at all if you have the wrong type of loans.

Applying for loan forgiveness requires you to fill out an application and submit proof that you’re met all of the program requirements. This could include proof of employment, proof of income, student loan statements and more.

Next steps

If you’re struggling with law school debt and not sure where to turn, any of the forgiveness programs outlined here could help. Just make sure you read the fine print so you know what you’re getting into and that you have the right type of student loans and career to qualify.

If you mostly have private student loan debt, then you may not be eligible for many traditional loan forgiveness programs. In that case, you may also want to explore the option of refinancing your student loans in order to secure a lower interest rate, a lower monthly payment or both. Depending on your income and other factors, may even be able to qualify if you have bad credit or no credit history.

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Is The No Credit Check Loan The Best Option For You? | Branded Voices



If you need extra cash and have considered applying for a loan even with a bad credit score, you might have already heard about the no credit check loan.

Image by Bermix Studio 

Many people opt for a no credit check loan as their last resort. Like any other loan options, a no credit check loan has its pros and cons. Knowing if this is the best option for you allows you to go consider both its advantages and disadvantages. 

But is it your best option? Is there another way to acquire cash without looking into your credit record?

The Advantages

Here are the other advantages of a no-credit loan:

No Credit Checks

You are considering this loan option because the lender will not bother to check your credit report. It doesn’t matter whether you have a good or a bad credit score as long as you are eligible and can comply with their requirements. 

This benefit is one reason why this loan option attracts many borrowers, especially those who don’t have an impressive credit score and those who are still building their credit records.

Other loan options will require you to provide a good reason why you are acquiring the loan. 

For example, lenders will ask you how you will use the loaned money aside from knowing your capability to repay the money you owe.  But with the no credit check loan, lenders will ask you this kind of question during your application. 

The Disadvantages 

Just like any other options available out there for you, a no credit check loan also has its disadvantages. These things may be huge factors for some consumers, while to others, they’re just minor inconveniences you need to deal with. 

Higher Interest Rates

One of the most common and obvious disadvantages of a no credit check loan is its higher interest rate. Since the lenders will not bother looking at your credit history and rating, they will impose a higher interest rate on your loan. 

The higher interest rates imposed are due to risks they take in lending you their money without even knowing if you can pay it back. This is a common rule for all lenders who offer a no credit check loan. 

Required a Minimum Loan Amount 

If you only need a small amount, a no credit check loan may not be the best option for you. Lenders require a minimum loan amount when you apply for a no credit check loan. Most personal loans with no credit check will require you to loan a higher amount than other loan options such as payday loans and single-payment loans. 

May Require A Collateral

Lenders may require you to have collateral as an assurance for the money you are borrowing from them. It is also to secure their part if ever you cannot pay back the cash you borrowed from them. If you default on your loan, the lender will forfeit the collateral. Collateral can be in the form of any valuable assets such as a house, vehicles, and jewelry.

Quick Process 

Another positive thing when acquiring a personal loan with no credit check is the speedy process. You can get the money in just a few minutes or hours as long as you comply with all of their requirements and are eligible for the loan.

Reminders Before Applying for This Loan 

There are things that you should watch out for when opting for this loan type, especially if you do it online, such as:

  • Watch Out For Fake Lenders

This is the risk associated with a no credit check loan. Some criminals use this to lure their victims for phishing and identity theft. Make sure that you choose a legitimate lender and never give out personal information prematurely. It is best to ask someone you trust for a recommendation or for help with securing a loan from a trusted lender.

  • Prepare The Requirements Ahead Of Time 

It is best to prepare all the requirements before applying for the loan to help you acquire the money quickly. Check your chosen lender’s website or print ads for a list of requirements they will need. 

Even though this loan option does not require a credit check, it does not mean you are guaranteed approval. If the lender finds out that you are not eligible for a loan, your application will be denied. 


Asking yourself if a specific loan option is good for you is one of the proper ways to assess if you should apply for it or not. This practice should be observed in applying for no credit check loans and other loan types available. Remember, not all loans are suitable for you. One loan may work better for others but may not work the same for you. Hence, be prudent and choose the loan option that suits best with your financial needs.

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Learn to avoid these credit card habits before you regret making costly mistakes



Picture used for illustrative purposes only. Many still decide to confront bad credit card habits only after they are thousands of dirhams in debt.
Image Credit: Reuters

Dubai: Many still decide to confront bad credit card habits only after they are thousands of dirhams in debt. Here we discuss some lessons many regretted not learning before making mistakes that proved costly.

Although credit cards offer convenience, security, and rewards, overspending with a credit card and the interest and fees can bury you financially. So it’s important to know whether you possess such habits in the first place.

Four questions to ask yourself first

If you don’t know whether you have a bad credit card habit here are four questions to ask yourself to find out. If the answer to any of the below is yes, you are inching towards a credit card debtpile.

1. Do you pay only interest fees or minimum payments when you send in your credit card payment?

2. Have you ever paid your credit card late because you didn’t have the money for the payment?

3. Do you use your credit card when you don’t have enough cash?

4. When your issuer raises your credit limit, do you spend more because you can?

Bad credit card habits

While common mistakes include habitually paying your credit card late and taking out costly cash advances on your credit card, here are some uncommon-yet-dire mistakes that may slip under any user’s radar.

Habit #1: Missing out unauthorised or fraudulent charges

Keep in mind that one of the main benefits to reading your credit card statement is, it is one of the best ways to catch unauthorised charges and billing errors.

Don’t check your credit card statement for your balance and payment information, review the entire statement to verify your account activity.

By routinely checking your online or physical statement, you can also find out well before hand if your credit limit was lowered since you last checked – as it can change because of your credit habits or your credit history.

Habit #2: Paying only the minimum can cost you dearly

It is evidently easier to make the minimum payment and this is a habit credit card companies profit from as well.

Although paying just the minimum is more convenient than to figure how much extra you can pay towards your outstanding credit card bill, keep in mind that when you’re making only the minimum payment, you’re not making much progress toward paying off your credit card bill.

Moreover, unless you have a very low balance or a zero per cent interest promotion, you’re probably paying much more in finance charges than you have to.

Habit #3: Using your credit card more than your debit card

While it’s recommended you use your credit card to amass cashback rewards or points and also pay off your credit card balance every month, you shouldn’t opt to use your credit card over your debit card, if those aren’t the reasons why you would go about using them.

Your debit card is your direct access to the funds you should use for everyday purchases, like groceries, gas, clothing, and other expenses. If you use your credit card, it should be a decision with a plan for paying off what you’re charging on the card.

Habit #4: If you are transferring balances just to avoid payments

Although promotions like balance transfers are a widely recommended strategy to pay off a high-interest rate balance on your credit card, matter experts reveal that if you’re in the habit of pursuing such promotions to avoid paying payments on your credit card, this leads to amassing long-term debts.

Financial planners reiterate that many don’t realise that balance transfers typically have fees that will increase your overall balance if you’re never making payments toward the transfer. Moreover, if you’re making purchases on the card with such a promotion, the problem gets bigger.

Expert tips to take control of these credit card habits

Lesson #1: Pay your credit card in full each month

The best way to keep your credit utilisation ratio low and avoid costly interest charges is to pay your credit card balance in full each month – which also means you also don’t incur any large due.

It’s effective to control spending by not spending more than you can comfortably pay down each month, as this helps you reduce the likelihood of developing long-running credit card debt.

If you want to take in one step further, setting a monthly spending limit that’s well within your budget increases the chances that you’ll actually be able to zero out your monthly balance and avoid interest charges.

Lesson #2: Keep your credit utilisation ratio low

What it means by ‘credit utilisation ratio’ is essentially the link between your credit card balances and your aggregate spending limit. For example, a Dh2,000 balance on a credit card with a Dh5,000 credit limit equates to a 40 per cent credit utilisation ratio.

As a rule of thumb, your credit utilisation ratio shouldn’t exceed 40 per cent, and keep in mind that high ratios may adversely impact your credit score.

Financial advisors recommend aiming for a 30 per cent credit utilisation ratio, as that gives you some leeway to cover urgent one-off expenses, which can come unexpectedly as a result of maybe losing your job during the ongoing pandemic.

Lesson #3: Setting up customised spending alerts

If controlling your credit card spending is burdening you, it has been widely advised to set up customised spending alerts.

This will let you know when you’ve made an abnormally large payment or exceed a certain balance threshold and you also can pair these data alerts with security alerts to help flag any sham spending patterns.

Lesson #4: Using credit card rewards and points to your advantage

If you have a rewards credit card, you can use it to your advantage. If you have a pure cash back credit card, use any cash rewards you receive to put toward your account balance or directly deposit it into your savings account.

Alternatively, if you have a rewards points credit card, you can use your rewards to buy discounted gift cards to the stores you know, which will help save on future purchases without having to use your credit card.

If not, you could always redeem your reward points for cash redemption to put into savings or towards your account. However, ensure you know when your rewards expire to get the most out of them financially.

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When Can I Get an Auto Loan After a Repo?



There’s nothing saying you can’t apply for an auto loan immediately after a repo, but the tough part is actually being able to qualify for the loan. Since many auto lenders don’t approve borrowers with a repo that’s less than a year old, you may have to consider in-house financing.

Repossessions and Your Next Car Loan

Unfortunately, most traditional auto lenders don’t work with borrowers that have a recent repo on their credit reports. When we say traditional, we’re referring to lending institutions such as banks, credit unions, online lenders, and the captive lenders of some automakers. These lenders often require a good credit score and clean credit reports.

Where does that leave you? Well, likely in-house financing is the next logical step if you need a car loan after a repossession.

More on In-House Financing

Buy here pay here (BHPH) dealerships use in-house financing. This way of auto financing involves working with the dealer who’s also your lender. There’s no need to find a third-party lender or preapproval – the dealer takes care of all that. This setup can be convenient, and often, borrowers are able to walk away with a vehicle the same day they first set foot on the lot.

Since these dealers may not check your credit reports to determine your eligibility for auto financing, your recent repossession generally isn’t an issue. If you can meet income requirements, prove you have stable work, secure auto insurance, and prove your identity, you might get into a vehicle after a repo with in-house financing.

Here are a few more details on in-house financing:

  • Used cars only – BHPH dealers only offer used vehicles. However, used cars are a good option for bad credit borrowers. They’re almost always less expensive than a brand-new car, and affordable is a good price when you need to get back on your feet after a repo.
  • Anticipate a higher interest rate – Without a credit check, lenders are taking a risk approving a car loan without knowing much about your credit history. To make up for this, they tend to assign higher interest rates. A high interest rate may be considered a good trade-off for an auto loan with bad credit in many cases, especially if you heavily rely on a vehicle to get by.
  • Credit repair may not be an option – If you get an auto loan with a lender that doesn’t check your credit, it’s a possibility that your on-time payments aren’t going to be reported to the credit bureaus. If you want to repair your credit with a car loan, ask the lender about their credit reporting practices before you sign on the dotted line.
  • Down payments are required – Few things are certain in the auto lending world, but one thing you can count on is needing a down payment if your credit is less than perfect. BHPH dealers often require a down payment of up to 20% of the vehicle’s selling price.
  • Prepare your documents – While a BHPH dealer may not check your credit, they’re likely to ask about your income and possibly your work history. You need proof of income to qualify for a car loan, no matter what lender you work with, so prepare at least a month of computer-generated check stubs. If you don’t have W-2 income, have copies of your last two to three years of tax returns.

Looking Forward After a Repo

When Can I Get a Car After a Repo?After one year, your auto loan options open up a little bit more and you’re more likely to qualify for a subprime car loan. Subprime lenders are equipped to assist bad credit borrowers. These lenders offer you a chance for credit repair because they report their loans and work with poor credit borrowers.

If you need a vehicle quickly, a BHPH dealership could be your first step in getting back on the road. Once some time has passed, and your repossession loses some impact on your credit reports, you can try for an auto loan that has the potential to repair your credit.

Here at Auto Credit Express, we know a thing or two about bad credit auto loans, and we have a nationwide network of dealerships that assist bad credit borrowers. We aim to match consumers to dealers in their local area that help with credit challenges. If you’re in need of auto financing, start right now by filling out our free auto loan request form. We’ll look for a dealer in your local area at no cost and with no obligation.

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