Summary of New State Loan Forgiveness Program for Public Interest Attorneys

August 24, 2009

Author: Kristin Brown Lilley

New York State Loan Forgiveness Program for Public Interest Attorneys

Who is eligible to apply for this program?

Any attorney who is admitted to practice in New York State, has been licensed to practice for no more than eleven years, and has worked at least four years in full-time employment, thirty-five hours a week, as either a district attorney or indigent legal services attorney is eligible. Periods of full-time employment while the attorney is awaiting admission to the New York bar are counted.

Who is considered an indigent legal services attorney?

An eligible indigent legal services attorney is one employed full-time by a public defender’s office, a not-for-profit office established to provide legal services to the indigent in New York State, or an office that provides a combination of civil and criminal representation and legal services to the indigent in New York State.

How much assistance can an eligible attorney receive?

An eligible attorney can receive a retroactive payment of $3,400 each year for a maximum of six years, from the fourth through the ninth years of full-time employment, for a maximum award totaling $20,400. It is important to note that this assistance will be considered taxable income in the year it is received.

What types of loans qualify for this program?

Qualifying loans include any undergraduate or law school loans, federal student loans (direct loans), loans made by entities subject to government examination, New York State student loans, Title IV student loans, and bank loans. Loans that do not qualify include undocumented loans, credit cards, private loans from family or friends, or PLUS loans.

How are the funds distributed?

Each year funds for this program will be distributed based on two-tier priority system. First priority will be given to attorneys who received an award from the program in the previous year. Second priority will be given to new applicants to the program, and this tier of recipients will be chosen based on a lottery system.

How do I apply for this program?

Attorneys can apply for this program online at: http://www.hesc.com/content.nsf/SFC/5/District_Attorney_and_Indigent_Legal_Services_Attorney_Loan_Forgiveness_Program. Applicants will be asked to complete the web supplement, and return the web supplement confirmation with necessary documentation including a letter from the attorney’s employer and current loans statements. Once you have been accepted into the program, you will be given preference throughout your eligibility period, assuming adequate funding remains available.

How do other loan forgiveness programs affect this program?

Other LRAP or loan forgiveness program awards will be applied to the eligible principle balance each year.  The only way this will affect you is if your loans are paid off before your eligibility period ends.

The application deadline for this program is October 1. 

For more information go to http://www.hesc.com/content.nsf/SFC/5/Loan_Forgiveness