Lifting the Burden: Law Student Debt as a Barrier to Public Service

52 StateOVERVIEW OF STATE LOAN REPAYMENT ASSISTANCE AND FORGIVENESSPROGRAMS FOR PUBLIC SERVICE LAWYERSState LRAPs currently exist in Arizona, Florida, Maine, Maryland, Minnesota, NewHampshire, North Carolina and Texas. 99 Tennessee previously administered aprogram, which has since been discontinued. State Bar Foundations administer theArizona, Florida, Maine and New Hampshire programs, which are funded primarilywith IOLTA funds. The Maryland State Government administers the Marylandprogram, which was created by statute. The Minnesota and North Carolina programsare administered by independent 501(c)(3) organizations. The Texas program isadministered by the Texas Access to Justice Commission, an independent entitycreated by the Texas Supreme Court and staffed by the State Bar of Texas.In 2001, the California and Texas legislatures enacted legislation creating statewideLRAPs, but neither legislature has appropriated funds. The California program is notoperational. In September 2002, the Texas Access to Justice Commission announcedthat it received private donations to create a temporary program until state fundingbecomes available and the legislative program becomes operational. In 2002, Georgiaenacted legislation creating a statewide LRAP, but the legislature did not appropriatefunds to support the program. Therefore, the program is not operating.Recognizing the importance of this issue to the profession, a number of state andlocal bar associations, such as the New York State Bar 100 and Washington State BarAssociations, have created special committees to explore the debt issue and developsolutions. 101 The issue has also caught the interest of local bar foundations. In June2002, the Chicago Bar Foundation announced a donation of $100,000 to establish theAnderson Fellowship, a ten-year public interest fellowship that will honor and assistrecent law school graduates working in public service in the Chicago-area withrepayment of their law school loans. 102 In January 2003, the Bar Association of SanFrancisco teamed up with Student Trust Inc. to establish the BASF Student LoanConsolidation Program. 103 The program focuses on new Bar members and allowsthem to refinance and consolidate their student debt, often reducing their monthlypayments and in many cases, lowering their overall interest rates.To encourage and support LRAP efforts by state, local and territorial bar associationsand foundations, in May 2003, the Commission released State LRAP Tool Kit: AResource Guide for Creating State Loan Repayment Assistance Programs for PublicService Lawyers. The Tool Kit includes information about the existing statewideState99The Massachusetts Legal Assistance Corporation (MLAC), a non-profit corporation established by state statuteto fund civil legal services in Massachusetts, set up a Loan Forgiveness Fund in July 2001 to lend money toattorneys and paralegals employed by MLAC’s grantees in order to refinance student loans of those attorneysand paralegals. MLAC grantees may choose to nominate employees to receive loans from the LoanForgiveness Fund, which MLAC will forgive upon completion of required service. MLAC will then reduceeach grantee’s overall grant by the total amount of approved loans to its employees.100The New York State Bar Association recently approved creation of a pilot NYSBA Loan RepaymentAssistance Program. The New York Bar Foundation has granted $25,000 in seed money to help start theprogram. Government and civil and criminal legal services jobs constitute qualifying employment. However,preference will be given to lawyers in civil legal services jobs until more funding is procured. The Bar iscurrently creating a loan application packet and program description and expects to solicit applications inFall/Winter 2003. The first funds will be distributed in 2004.101New York State Bar Association supra note 36.102Chicago Bar Foundation Announces Kimball R. and Karen G. Anderson Public Interest Law Fellowship, ChicagoBar Association Record, June/July 2002.103San Francisco Bar Offers Help with Law School Debt, Bar Leader, July/August 2003 at 5. For additionalinformation, visit http://www.sfbar.org/about/benefits.html.