Loan Repayment Assistance Programs
Fordham Law JD Loan Repayment Assistance Program
- 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 $8,900 (or the actual payments made on qualifying loans, whichever is less) for a salary of $60,000 or less for the Class of 2020.
- For every dollar earned above $60,000, the LRAP award will be reduced by 20% of the amount over $60,000.
- Income cap of $77,000 (Class of 2020). The income cap for prior graduates is slightly higher as a result of inflation and career progression increases.
- If the graduate is married and earning more than his/her spouse, the graduate's income will be used to determine qualifying income. If the spouse is earning more than the graduate, annual educational loan repayments for the spouse will be deducted from his/her income, and both salaries will be averaged.
- Net assets exceeding $25,000 will reduce the LRAP eligibility by 10% of the amount over $25,000.
- 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.
- Please contact Alison Brande with any questions or to request an application firstname.lastname@example.org or call 212-636-6815.
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.ny.gov.
Due to budget restrictions, funding for this program may not be available.
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 ($125,000 and $155,000 if you file a joint return). You cannot take the deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). For further information, see IRS Publication 970.