Loan Repayment Assistance Programs

• Repayment assistance for your Federal and private education loans approved by Fordham.
• You must be employed full time in an eligible law-related position in a non-profit, public interest organization qualified under Section 501(c)(3) of the Internal Revenue Code.  Law-related positions must include employment that substantially utilizes your legal training and skills.  Lobbying activities and government employees are not eligible.
• Maximum LRAP of $8,700 for a salary of $49,000 or less.
• For every dollar earned above $49,000, the LRAP award will be reduced by 20% of the amount over $49,000. 
• Income cap of $64,000.
• Net assets exceeding $25,000 will reduce the LRAP eligibility by 10% of the amount over $25,000.
• Graduates who have Fordham Revolving Loans and who are eligible for Fordham's LRAP will receive the same benefits for their Revolving Loans as if they were enrolled in Fordham's Loan Forgiveness Program.  (Revolving Loan borrowers need only complete the LRAP application.)
• Awards are in the form of a forgivable loan, so there is no tax consequence.
• Awards are made on a calendar year basis.
• Applications are accepted between September 1 and November 1 immediately following graduation or within one month of obtaining eligible employment, but no later than three years from the date of graduation.
• The application consists of the Application form, an Employer Certification Form and, if married, your spouse's employer must complete the Spouse's Employer Certification Form.
• Applicants must be recertified every six months.
• The following forms are in PDF format:
   Loan Repayment Assistance Program Application
   Employer Certification Form
   Spouse's Certification Form  
     

• The loan repayment assistance is in the form of a loan to assist in the repayment of Law School Federal and private loans for the two-year clerkship period.
• Loans are awarded in six-month intervals.
• No interest will accrue on these loans during the clerkship period, plus six months thereafter.
• Interest will begin to accrue on the total loan award at the rate of 4% per annum at the end of the grace period.
• The repayment term will depend on the amount borrowed and will be based on the current Revolving Loan Repayment Schedule, but not to exceed 15 years.
• Graduates who have borrowed through Fordham's Revolving Loan Fund are entitled to a no-interest deferment on these loans during the clerkship period. 
• The following are in PDF format: 
   Loan Repayment Assistance Program Application Clerks 
   Employer Certification Form
   Employer Recertification Form

THE PHILIP AND ADELE GORDON PUBLIC SERVICE LOAN REPAYMENT ASSISTANCE PROGRAM

Established through an anonymous gift, this program enables two graduates to begin their legal careers by pursuing work in govenrment or public service without regard to their educational debt.  Loan repayment assistance awards totaling $12,500 annually are renewable for up to five years so long as the recipient continues working in eligible public service employment and has remaining law school debt.  Two graduates are currently enrolled in this Program, and. therefore, it is unavailable at this time. 

FEDERAL LOAN REPAYMENT ASSISTANCE PROGRAMS:

John R. Justice Student Loan Repayment Program

The John R. Justice Student Loan Repayment Program (JRJ) provides loan repayment assistance for state and federal public defenders and state prosecutors who agree to remain employed as public defenders and prosecutors for at least three years.  Prosecutors and Public Defenders who are employed full time may receive up to $10,000 in any calendar year in Federal student loan repayment assistance, not to exceed a total of $60,000 per borrower.

You cannot be in default on any of your Federal loans and you must sign a written agreement specifying that you will remain employed as a prosecutor or public defender for a required period of service not less than three years unless involuntarily separated. An additional agreement may be entered into for a successive period of service which may require you to remain employed as a prosecutor or public defender in order for you to obtain additional benefits. However, the successive period may be for less than three years.

Priority will be given to those who have the least ability to repay their loans, and awards are subject to the availability of funding.

This program will be administered concurrently with the District Attorney and Indigent Legal Services Attorney Loan Forgiveness Program by the New York State Higher Education Services Corporation.  For further information and an application, go to https://www.hesc.com.

U. S. Office of Personnel Management

In order to recruit or retain certain federal government employees, federal agencies may pay federal student loan holders up to $10,000 a year to be applied toward loan repayment, not to exceed $60,000 for any one employee.  An employee receiving this benefit must sign a service agreement to remain in the service of the agency for a period of at least three years.  Federal employees should inquire of the employing agency for a description of its program. 

Federal Income Tax Deduction for Interest Paid on Student Loans

The Taxpayer Relief Act of 1997 established a deduction for student loan interest paid which can reduce the amount of income subject to tax.  As amended, the Act allows borrowers to deduct up to $2,500 of the interest paid on their federal and non-federal post-secondary education loans.  The amount of the interest deduction is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $60,000 and $75,000 ($120,000 and $150,000 if you file a joint return).  You cannot take the deduction if your MAGI is $75,000 or more ($150,000 or more if you file a joint return).  For further infromation, see IRS Publication 970.