Student Loan Considerations: CCRAA

Are you concerned about your federal student loan debt? Be the best possible self-advocate and make sure you understand the new provisions that allow for loan forgiveness and the new income based repayment plans under the College Cost Reduction & Access Act (CCRAA). The links below can help you understand the tax consequences, short-term and long-term benefits, and other considerations as you make your repayment plans.

Kimball R. Anderson & Karen G. Anderson Public Interest Law Fellowship

Through the generous gift of Kimball Anderson and Karen Anderson, The Chicago Bar Foundation (“CBF”) awards public interest law fellowships to provide loan repayment assistance for outstanding recent law school graduates who either are presently working or have accepted an offer to work for CBF-funded public interest law organizations.

CLAAP Update

This is an important and time sensitive update about what began as the “Harkin bill,” became authorized by the Higher Education Opportunity Act of 2008, and is now entitled the Civil Legal Assistance Attorney Student Loan Repayment Program (CLAAP).

Five million dollars is now available for distribution to qualified civil legal assistance attorneys with federal student loan debt. The Department of Education will commit these funds to eligible civil legal assistance attorneys on a first-come, first-served basis. Applications are expected to be due by August 16, 2010.

As usual, the program includes some complexity. The fantastic and fabulous Heather Jarvis of Equal Justice Works has prepared and posted a comprehensive CLAAP information website and has scheduled two webinars to help civil legal assistance attorneys interested in the program.

Please help Equal Justice Works get word to your colleagues working as civil legal assistance attorneys. Please forward this announcement widely, distributing through discussion lists, and perhaps posting the announcement on your own website.

Student Debt Relief Resources

The best resource for law student centered information on Student Debt Relief measures such as Income Based Repayment (available for everyone with federal loans) and Loan Forgiveness (after 120 payments for public service, 25 years for everyone else if loans are consolidated properly) is Equal Justice Works' Student Debt Relief website. The Partnership for Public Service has also just released a new information sheet on the Federal Student Loan Repayment Program. For more information on the Income Based Repayment option, you should also check out IBRinfo, which has great information and calculators, not to mention a great YouTube! gremlin short.

IBR Applications Now Available

IBR (income based repayment) applications are now available from many major lenders, including the US Department of Education! The IBRinfo.org FAQ is a great place to get an overview of the new payment plan. You will need to contact your lender directly to apply for IBR. If you have Direct Loans through the US Department of Education, you can start here. If you're not sure who is servicing your federal loans these days, check the National Student Loan Data Center.

IBR -- Ditch Your Debt

The creative folks at IBRinfo.org have created a new cartoon based video called Ditch Your Debt Gremlin, which provides a great synopsis of how IBR (income based repayment) works, who is eligible, and how it can be used for remaining debt forgiveness through CCRAA (College Cost Reduction Access Act). This is the website that also has great calculators to assist you in decision making. The US Department of Education has also posted a fact sheet and its own calculator. IBR becomes effective July 1, 2009 so educate yourself on your options today!

IBR Repayment Information

Wondering what Income Based Repayment is? Check out this repayment option available on certain federal student loan on IBRInfo. This site is also working cooperatively with Equal Justice Works' Student Debt Resource Center, which includes a podcast series.

Student Debt Relief Resource Center

The College Cost Reduction & Access Act will become fully effective on July 1, 2009. This Act provided a new formula for debt repayment called Income Based Repayment that is available for all borrowers in properly consolidated loan programs. In addition, loan forgiveness is available for public service (defined broadly) employees. Equal Justice Works has launched a new Student Debt Relief Resources Center - check it out today!

College Cost Reduction & Access Act

In 2007, President Bush signed into law the College Cost Reduction Access Act, which provides a new reduced payment formula for all borrowers and loan forgiveness for those in public interest. Many stipulations apply (including specialized loan consolidation), and affect individuals very differently, but Equal Justice Works provides a great set of resources, including a podcast and a blog posting on making sure you employment qualifies for the forgiveness.