Posted Jan 26, 2010 07:27 pm CST
Northwestern University Law School is offering a “dovetail” loan forgiveness program that could wipe out all of the student loans for graduates who work in the public sector.
Under a new federal program, public interest graduates pay only 10 percent of their income toward student loans. After 10 years in public service, the government forgives all of the remaining loan balance.
Northwestern Law School is offering to cover the annual payments in most cases, resulting in 100 percent forgiveness for student loans when graduates remain in the public sector for 10 years, according to a press release.
Northwestern is also offering help for students who leave the program before their 10 years are up. These students will find that their loans are greater than when they graduated, because their limited payments did not cover accruing interest or reduced loan principal. Northwestern will also pay up to 75 percent of the unpaid interest for the first five years students are in the program.
The Northwestern payments are based on a sliding scale that takes into account education debt and salary levels.
Georgetown University Law Center and the University of California’s Berkeley School of Law have similar programs.
ABAJournal.com: “Student Loan Relief on the Way For Law Grads”