The federal Public Service Loan Forgiveness Program, established by Congress in 2007, offers debt relief to graduates employed in public service. The program serves graduates from many types of U.S. institutions, including law schools. PSLF provides an incentive for individuals who make long-term commitments to employment in public-interest fields. After a law school graduate has made 120 separate monthly payments toward his loans while employed with a qualifying, public-interest-law employer, the program will forgive the remainder of the individual's federal loans. PSLF covers loans incurred under the current direct loan program, as well as previous types of federal loans consolidated into an individual's direct consolidation loan.
Law school graduates may find that their own law schools offer debt relief options to qualified applicants as a way to encourage public service. Law schools with loan repayment assistance programs allow their alumni to apply for funding to cover their monthly student loan obligations. Alumni must qualify by demonstrating employment with public-interest-law organizations such as nonprofits or government offices. As part of the application process, alumni may also need to disclose the total amounts of their loan obligations and current salary information. Programs may impose a limit on the duration of an alumna's participation, such as a total of ten years as a qualified recipient of assistance from the law school.
Attorneys can also seek state-specific programs in their own states. Some state bar associations, as well as other state and local organizations, offer loan repayment help for public-interest lawyers. To receive assistance, law school graduates must work for qualifying employers such as legal aid offices or government agencies in the state. Some programs, including the State Bar of Texas loan repayment assistance program, specifically require that applicants work for organizations providing a certain percentage of their services to low-income clients. When lawyers stay with non-profit work due to improved loan repayment prospects, states benefit from their increased commitment to long-term employment with organizations that serve the public.
Some debt relief programs for lawyers focus on particular areas of law, offering debt forgiveness as an incentive to stay in specified fields. To qualify, attorneys must show that they practice a certain type of law. For example, the John R. Justice Student Loan Repayment Program assists prosecutors and public defenders employed with state and federal agencies. JRJ participants commit to at least three years as prosecutors or public defenders in return for annual financial assistance with their student loans. These types of career-specific programs encourage individuals to stay in jobs that benefit the public at large.