2006 Press Releases

Press Release

Thursday, October 19, 2006


Law school establishes new loan forgiveness program

UC Berkeley Contact: Janet Gilmore, Media Relations
(510) 642-5685
jangilmore@berkeley.edu

Boalt Hall Contact:
Helaine Schweitzer, Boalt Hall Communications
(510) 642-6936
hschweitzer@law.berkeley.edu

BERKELEY – When Claudia Medina began studying law at the University of California, Berkeley, School of Law three years ago, she did so not with dreams of becoming an attorney at a lucrative law firm - but of using her law degree to advocate for tenants' rights.

That dream, however, could have turned into a financial nightmare for Medina, and other students like her, who graduate with student loan debts of almost $100,000 or more while embarking on public interest legal careers. Starting salaries for these jobs can be as low as $25,000 a year.

Officials at the School of Law (Boalt Hall), aware of the growing loan burden that some students face and the temptation to sacrifice public service legal careers for private sector careers with much higher salaries, have established a new loan forgiveness program to address such situations.

Under the program, which gets underway next month with the filing of the first set of applications from graduates of Boalt Hall's Class of 2006, new graduates can apply to have up to $100,000 in loans forgiven - that is, paid for by Boalt Hall - if they are employed in government or public interest jobs that make substantial use of their law degrees and pay salaries of $58,000 or less. In addition, alumni with incomes above that level who work in qualifying legal careers may have a portion of their loans forgiven. The first set of applications is due by Nov. 15.

Former students accepted into the program then submit to the law school, every six months, documentation of their employment, salary and loan payments. The law school will pay up to 100 percent of the loan payments for qualifying alumni every six months, as long as they remain eligible, until up to $100,000 in loan payments are paid off by Boalt Hall over a period of up to 10 years

The program is being funded through a combination of professional degree fees paid by all Boalt Hall students and by alumni donations being generated during Boalt Hall's ongoing capital campaign.

Boalt Hall Dean Christopher Edley was a driving force behind the program, along with former students like Medina who lobbied law school administrators and served on financial aid committees at the law school.

"California's top public law school and its graduates should be vitally engaged in the critical issues facing the state and the nation," said Edley. "Our students should have the freedom to follow their dreams after graduation, whether those involve litigating intellectual property rights at a leading law firm or corporation, or providing legal services to underserved communities in a non-profit organization. Our new Loan Repayment Assistance Program - in many respects the most generous in the nation - will preserve our graduates' freedom of career choice by paying up to 100 percent of their legal education debt in low-paying jobs."

Medina, who is now working in Los Angeles as a tenants' rights advocate and is helping to support her mother and younger siblings, said that without the new program, "I would be making less that $40,000 a year and using that salary to pay off a $90,000 debt, plus interest, while at the same time providing for my family in a very expensive Los Angeles rental market. It would have been a tough situation for my family. I don't even like to imagine how we would have had to make do.

"Most students that graduate with an excessive amount of student debt are forced to pursue high paying firm jobs, when that was not necessarily what they wanted."

The new loan program is a major overhaul of a previous loan forgiveness program that was much less generous - it covered only up to $55,500 in loan debt and capped qualifying salaries at $52,000 - and covered fewer public service careers.

Under the new program, legal careers that qualify include not only jobs in government but work with non-profit organizations as well as public interest work that could include policy advocacy. The jobs must require a law degree or make substantial use of the graduate's legal training.

The newly overhauled Loan Repayment Assistance Program, or LRAP, is comparable to such programs offered by elite law schools elsewhere in the country, according to Laurent Heller, Boalt Hall's director of strategic planning.

"For the vast majority of students pursuing low-income, public interest work, ours will be the best law school loan forgiveness program in the county," said Heller. "If your loan debt is under $100,000, our program is the most generous in the nation."

And while Heller said the average Boalt Hall graduate has had law school debts of approximately $60,000, that figure has been going up in recent years as the UC system has increased professional graduate school fees. Indeed, students interviewed said it is not uncommon to leave Boalt Hall with six-figure loan debts.

During the current academic year, Boalt Hall students who are California residents pay $25,476.60 in fees and spend an average of $20,851 for books, supplies and living expenses. Nonresident students pay an additional $12,245 in tuition.

Heather McGhee, a second-year law student at Boalt Hall who has done public policy research and advocacy and plans to stay on that career path after law school, is encouraged by the new program.

"The lawyers who became the great public servants and advocates of previous generations were able to do so in part because they had little to no debts," said McGhee. "They could take risks with outside-the-system advocacy; they could take middle-class public sector or public interest jobs. I think that the Financial Aid Committee and Dean Edley looked into the future and saw that unless Boalt and other leading schools change the system, the public will suffer tremendously."

The most recent directory of law schools from the National Association for Legal Career Professionals shows that Boalt Hall leads other elite law schools in the nation with 13 percent of its graduates being placed in public interest legal work.

Still, the majority of Boalt Hall graduates, about 65 percent, go into private practice jobs where salaries at a large law firm can begin at $125,000, compared to public interest law salaries that can start as low as $25,000- $35,000, according to Heller.

The new loan program provides a means to add fairness to the system as well as to enable students to have career choice and serve the greater good, he said.

"As a public law school, our mission includes public service," said Heller. "And the mission of UC, of UC Berkeley, is public service, making a difference in the world. These changes to the LRAP program will ensure that our graduates continue to make this vital contribution to California and the nation."