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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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If You Want Consumers to Lose, Network Regulation is a Must – Digital Transactions



After the current U.S. Congress was sworn in, a predictable chorus of merchants, lobbyists, and lawmakers demanded new interchange price caps and other government mandates to decrease credit card interchange fees for merchants. The tired attacks on credit cards are an easy narrative that focuses almost exclusively on the cost side of the ledger, while completely ignoring the cards’ important role in the economy and the regressive effects of interchange regulation. 

To lawmakers blindly acting on behalf of retailers, regulation is a brilliant idea—regardless of how it affects their constituents. For decades, they have promised these interventions would eventually benefit consumers. But the lessons from the Durbin Amendment in the United States and price cap regulation in Australia is clear. Although some policymakers bemoan the current economic model, arbitrarily “cutting” rates for the sake of cuts completely ignores the economic reality that as billions of dollars move to merchants, billions are lost by consumers. 

For the uninitiated, let’s break down what credit interchange funds: 1) the cost of fraud; 2) more than $40 billion in consumers rewards; 3) the cost of nonpayment by consumers, which is typically 4% of revolving credit; 4) more than $300 billion in credit floats to U.S. consumers; and 5) drastically higher “ticket lift” for merchants. 

Johnson: “To lawmakers blindly acting on behalf of retailers, regulation is a brilliant idea—regardless of how it affects their constituents.”

These are just some of the benefits. If costs were all that mattered, American Express wouldn’t exist. Until recently, it was by far the most expensive U.S. network. Yet, merchants still took AmEx because they knew the average AmEx “swipe” was around $140, far more than Visa and Mastercard. 

Put simply, for a few basis points, interchange functions as a small insurance policy to safeguard retailers from the threat of fraud and nonpayment by consumers. Consider the amount of ink spilled on interchange when no one mentions that the chargeoff rate for issuing banks on bad credit card debt exceeds credit interchange.

Looking abroad, interchange opponents cite Australia, which halved interchange fees nearly 20 years ago, as a glowing example of how to regulate credit cards. In truth, Australia’s regulations have harmed consumers, reduced their options, and forced Australians to pay more for less appealing credit card products. 

First, the cost of a basic credit card is $60 USD in many Australian banks. How many millions of Americans would lose access to credit if the annual cost went from $0 to $60? Can you imagine the consumer outrage? 

In a two-sided market like credit cards, any regulated shift to one side acts a massive tax on the other. For Australians, the new tax fell on cardholders. There, annual fees for standard cards rose by nearly 25%, according to an analysis by global consulting firm CRA International. Fees for rewards cards skyrocketed by as much as 77%.

Many no-fee credit cards were no longer financially viable. As a result, they were pulled from the market, leaving lower income Australians, as well as young people working to establish credit, with few viable options in the credit card market.

Even the benefits that lead many people to sign up for credit cards in the first place have been substantially diluted in Australia because of the reduction of interchange fees. In fact, the value of rewards points fell by approximately 23% after the country cut interchange fees.

Efforts to add interchange price caps would have a similar effect here in the U.S. A 50% cut would amount to a $40 billion to $50 billion wealth transfer from consumers and issuers to merchants. For the 20 million or so financially marginalized Americans, what will their access to credit be when issuers find a $50 billion hole in their balance sheets? 

The average American generates $167 per year in rewards, according to the Consumer Financial Protection Bureau. Perks like airline miles, hotel points, and cashback rewards would be decimated and would likely be just the province of the rich after regulation. Many middle-class consumers could say goodbye to family vacations booked at almost no cost thanks to credit card rewards.

As the travel industry and retailers fight to bounce back from the impact of the pandemic, slashing consumer rewards and reducing the attractiveness of already-fragile businesses is the last thing lawmakers and regulators in Washington should undertake.

Proposals to follow Australia’s misguided lead in capping interchange may allow retailers to snatch a few extra basis points, but the consequences would be disastrous for consumers. Cards would simply be less valuable and more expensive for Americans, and millions of consumers would lose access to credit. University of Pennsylvania Professor Natasha Sarin estimates debit price caps alone cost consumers $3 billion. How much more would consumers have to pay under Durbin 2.0?

Members of Congress and other leaders should learn from Australia and Durbin 1.0 to avoid making the same mistake twice.

—Drew Johnson is a senior fellow at the National Center for Public Policy Research, Washington, D.C.

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Increase Your Credit Score With Michael Carrington



More than ever before, your debt and credit records can negatively impact you or your family’s life if left unmanaged. Sadly, many Americans feel entirely helpless about their credit score’s present state and the steps they need to take to fix a less-than-perfect score. This is where Michael Carrington, founder of Tier 1 Credit Specialist, comes in. Michael is determined to offer thousands of Americans an educated, informed approach towards credit restoration.

Michael understands the plight that having a bad credit score can bring into your life. His first financial industry job was working as a home mortgage loan analyst for one of the nation’s largest lenders. Early on, he had to work a grueling schedule which included several jobs seven days a week while putting in almost 12-hour days to make $5,000 monthly to get by barely.

“I was tired of living a mediocre life and was determined to increase the value that I can offer others through my knowledge of the finance industry – I started reading all of the necessary books, networking with industry professionals, and investing in mentorship,” shares Michael Carrington. “I got my break when I was able to grow a seven-figure credit repair and funding organization that is flexible enough to address the financial needs of thousands of Americans.”

With his vast experience in the business world, establishing himself as a well-respected business leader, Michael Carrington felt he had the power to help millions of Americas in restoring their credit. Michael learned the FICO system, stayed up to date on the Fair Credit Reporting Act (FCRA), found ways to improve his credit score, and started showing others.

The Tier 1 Credit Specialist uses a tested and proven approach to educate their clients on everything credit scores. Michael is leveraging his experience as a home mortgage professional, marketing executive, and global business coach to inform his clients. He and his team take their time to carefully go through their client’s credit records as they try to find the root of their problem and find suitable financial solutions.

The company is changing lives all over America as it helps families and individuals to repair their credit scores, gain access to lower interest rates on loans and get better jobs. What Tier 1 Credit Specialists is offering many Americans is a chance at financial freedom.

Michael Carrington has repaired over $8 million in debt write-ups and has helped fund American’s with over $4 million through thousands of fixed reports. “I credit our success to being people-focused,” he often says. “The amount of success that we create is going to be in direct proportion to the amount of value that we provide people – not just our customers – people.”

Because of its ‘people-focused goals, the Tier 1 Credit Specialist is determined to help millions of Americans achieve financial literacy. It is currently receiving raving reviews from clients who are completely happy with the credit repair solutions that the company has provided them.

Today, Michael Carrington is continuing with a new initiative to serve more Americans who suffer from bad credit due to little or no access to affordable resources for repair.

The Tier 1 Credit Socialist brand is changing the outlook of many families across America. To do this, the company has created an affiliate system that will provide more people with ways of earning during these tough economic times.

As a well-respected international business leader and entrepreneur with numerous achievements to his name Michael Carrington aims to help millions of Americans achieve the financial freedom, he is experiencing today. Tier 1 Credit Socialist is one of the most effective credit repair brands on the market right now, and they have no plans for slowing down in 2021!

Learn more about Michael Carrington by visiting his Instagram account or checking out the Tier 1 Credit Specialist website.

Published April 17th, 2021

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Does Having a Bank Account With an Issuer Make Credit Card Approval Easier?



Better the risk you know than the one you don’t.

When it comes to personal finance, nothing is guaranteed. That goes double for credit. That’s why, no matter how perfect your credit or how many times you’ve applied for a new credit card, there’s always that moment of doubt while you wait for a decision.

Issuing banks look at a wide range of factors when making a decision — and your credit score is only one of them. They look at your entire credit history, and consider things like your income and even your history with the bank itself.

For example, if you defaulted on a credit card with a given bank 15 years ago, that mistake is likely long gone from your credit reports. To you and the three major credit bureaus, it is ancient history. But banks are like elephants — they never forget. And that mistake could be enough to stop your approval.

But does it go the other way, too? Does having a bank account that’s in good standing with an issuer make you more likely to get approved? While there’s no clear-cut answer, there are a few cases when it could help.

A good relationship may weigh in your favor

Credit card issuers rarely come right out and say much about their approval processes, so we often have to rely on anecdotal evidence to get an idea of what works. That said, you can find a number of stories of folks who have been approved for a credit card they were previously denied for after they opened a savings or checking account with the issuer.

These types of stories are more common at the extreme ends of the card range. If you have a borderline bad credit score, for instance, having a long, positive banking history with the issuer — like no overdrafts or other problems — may weigh in your favor when applying for a credit card. That’s because the bank is able to see that you have regular income and don’t overspend.

Similarly, a healthy savings or investment account with a bank could be a helpful factor when applying for a high-end rewards credit card. This allows the bank to see that you can afford its product and that you have the type of funds required to put some serious spend on it.

Having a good banking relationship with an issuer can be particularly helpful when the economy is questionable and banks are tightening their proverbial pursestrings. When trying to minimize risk, going with applicants you’ve known for years simply makes more sense than starting fresh with a stranger.

Some banks provide targeted offers

Another way having a previous banking relationship with an issuer can help is when you can receive targeted credit card offers. These are sort of like invitations to apply for a card that the bank thinks will be a good fit for you. While approval for targeted offers is still not guaranteed, some types of targeted offers can be almost as good.

For example, the only confirmed way to get around Chase’s 5/24 rule (which is that any card application will be automatically denied if you’ve opened five or more cards in the last 24 months) is to receive a special “just for you” offer through your online Chase account. When these offers show up — they’re marked with a special black star — they will generally lead to an approval, no matter what your current 5/24 status.

Credit unions require membership

For the most part, you aren’t usually required to have a bank account with a particular issuer to get a credit card with that bank. However, there is one big exception: credit unions. Due to the different structure of a credit union vs. a bank, credit unions only offer their products to current members of the credit union.

To become a member, you need to actually have a stake in that credit union. In most cases, this is done by opening a savings account and maintaining a small balance — $5 is a common minimum.

You can only apply for a credit union credit card once you’ve joined, so a bank account is an actual requirement in this case. That said, your chances of being approved once you’re a member aren’t necessarily impacted by how much money you have in the account.

In general, while having a bank account with an issuer may be helpful in some cases, it’s not a cure-all for bad credit. Your credit history will always have more impact than your banking history when it comes to getting approved for a credit card.

For more information on bad credit, check out our guide to learn how to rebuild your credit.

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