• National Law Journal, Law Schools Pick Up Loan Tab for Graduates Pursuing Public Interest:

Public interest graduates from several high-profile law schools won't be have to pay anything toward their student loans under recently revamped loan repayment assistance programs. [UC-Berkeley and Georgetown] have announced improved forgiveness programs that will cover all law school loan debt for many of their graduates who go on to work in public interest law for at least 10 years, making their legal education essentially free. …

The loan forgiveness programs at Georgetown and Berkeley are designed to complement the College Cost Reduction & Access Act — a federal program intended to help borrowers manage their student debt that went into effect in July. The federal program is especially helpful for public interest workers, because the government will forgive the loan balance after the borrower has made payments for 10 years. Loan forgiveness applies to lawyers working at nonprofit organizations, government agencies and legal aid organizations.

Under the income-based repayment portion of the new federal program, monthly loan payments are capped at about 10% of the borrower's income, which is important because public interest lawyers generally make far less than their counterparts at law firms. A survey last year by the National Association for Law Placement found that public interest attorneys can expect starting salaries of about $41,000

Both Berkeley and Georgetown will pay the entirety of those capped monthly payments for 10 years, until the federal government forgives the debt. … Some public interest lawyers who graduate from Berkeley and Georgetown and make relatively high salaries won't be eligible for full loan coverage, however. Berkeley's revamped program will pay all loan costs for graduates making up to $65,000 a year. Graduates earning between $65,000 and $100,000 will receive loan assistance on a sliding scale. At Georgetown, the new program covers all loan payments for those making $75,000 or less. Graduates making more than $75,000 will receive loan assistance on a sliding scale. [See also ABA Journal, Georgetown Antes Up $1M to Offer ‘Free’ Tuition to Public Interest Grads.]

• Harvard Crimson, Harvard Law School To Reduce Public Service Funding:

The latest round of financial readjustments hit Harvard Law School yesterday when Law School Dean Martha Minow announced a mix of cuts and expansions to programs that assist students interested in pursuing public interest careers.

In an e-mail to the student body, Minow announced the suspension of the Public Service Initiative, a program launched in 2008 that waives third-year tuition for students if they commit to five years of public service after graduation. The school also plans to decrease the amount of per-student funding for summer public interest work but will further expand loan repayment assistance for graduates. [See also ABA Journal, Harvard Law Students Clamor for Public Interest Jobs, Forcing Program Cuts; Above the Law, The Harvard Law Financial Aid Situation (With Emails); American Lawyer, Harvard Scrapping Public Service Reimbursement Program.)