NLADA was disappointed by reports that the White House budget – expected next week - will include plans to eliminate Public Service Loan Forgiveness (PSLF) and impose harsher conditions on borrowers on income-driven repayment plans. These programs make it financially viable for committed and talented lawyers, in addition to social workers, teachers, nurses, and others, to choose to enter and remain in public service.
The impact these of proposals on justice in America would be catastrophic, as the quality and the amount of representation available to low-income and indigent people would decline sharply, making justice even less equal than it is today. Civil legal aid and public defender programs rely on the program to attract talented attorneys and other expert staff who would otherwise be unable to afford to pay their student loans and provide for themselves and their families.
A 2015 survey conducted by NLADA revealed that even if loan forgiveness were just capped, roughly half of attorneys employed at these programs would be forced to leave for a position with a higher salary, and what the government is set to propose is even more dramatic than that. Protecting PSLF is a critical issue for NLADA. Obama administration efforts to reform PSLF failed to gain traction in Congress, and we are working in close partnership with a diverse group of stakeholders from the legal, academic, and healthcare communities to ensure that this vital program continues to be protected on Capitol Hill.
It is not clear that any changes could be applied retroactively, but we and our partners are developing strategies aimed at preventing the government from reneging on the promises it made to the hundreds of thousands of people who have already been making qualifying payments.
NLADA Mutual Insurance Co., RRG
