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Student Loan Cap

https://www.law.com/dailybusinessreview/2018/04/18/proposed-student-loan-cap-could-devastate-law-schools/

Will this mean that more schools will be forced to shut down? Perhaps, less students would apply to law school if this came to pass.

Comments

  • LSAT_WreckerLSAT_Wrecker Legacy Member
    edited April 2018 4850 karma

    Sounds like an interesting article. I could only read the first sentence without giving them an email address.

    I think this is a similar article, not behind a wall:

    https://www.usnews.com/education/best-graduate-schools/paying/articles/2018-02-14/proposed-student-loan-changes-may-deter-law-school-applicants

    ETA: According the article, the proposed legislation caps federal graduate student loan borrowing to $28,500 a year. That might put a huge crimp on many students' law school calculus. There has already been discussion in other threads about the negative impact that the proposed elimination of the public service student loan debt relief will have across many professions (a topic my wife - the community clinic mental health provider - and I follow closely) .

  • AudaciousRedAudaciousRed Alum Member
    2689 karma

    More likely, it'd just mean more students would have to go the private loans path. Just another way to hand private companies some more business. And yeah, I think it'd make it more difficult for people to get higher education (masters and up), and make more people leery of taking on student debt from private entities, so there would likely be fewer applicants. Especially if they handicap or do away with the public service student loan relief programs.
    I really wish members of Congress would wear their sponsors on their suits like Nascar drivers do on their jump suits. It wouldn't really stop them, but at least it might help the public better understand why they keep screwing everyone over.

  • JPJ July2021JPJ July2021 Monthly Member
    1532 karma

    As someone who will be paying for law school myself and plans once taking out loans, this terrifies me. It’s another way for law school to only be accessible to wealthy people. Yes, private loans are around but they are more expensive and harder to get.

  • Leah M BLeah M B Alum Member
    edited April 2018 8392 karma

    Agreed with @Emily2122. If this came to pass, it would mean I could pretty much only attend a law school where I received full tuition. That basically would only cover living expenses at most schools. I won’t go down the private loan path - those are awful. People get stuck in really horrible deals and private loans can’t be put on the income based repayment plans that federal loans have. That cap combined with eliminating or capping PSLF could mean almost no more PI lawyers. Or you’d have to have family wealth or something to be able to do it. Haven’t looked at these articles yet but I’ve read that it’s possible med school students would be exempted. Seems really crappy that they might exempt med school but not law. When the trickle down happens leaving us with no PDs because no one can afford to do that anymore, people will realize how vital it is to make law school more accessible.

  • AudaciousRedAudaciousRed Alum Member
    edited April 2018 2689 karma

    @"Leah M B" said:
    Agreed with @Emily2122. If this came to pass, it would mean I could pretty much only attend a law school where I received full tuition. That basically would only cover living expenses at most schools. I won’t go down the private loan path - those are awful. People get stuck in really horrible deals and private loans can’t be put on the income based repayment plans that federal loans have.

    Yeah. Just trying to come up with figures for bare minimum living expenses, I'm probably looking at 10-15k a year in housing, basic food allowance, books, etc. I can't fathom how much CA or NY would run.
    Private loans also have weird issues with the debt not ending with your death or disability. Every case I have ever heard of with the college student dying and the parents still being on the hook (or suing the student's estate) was from private loans.

    When the trickle down happens leaving us with no PDs because no one can afford to do that anymore, people will realize how vital it is to make law school more accessible.

    People will realize this fact far too late.

  • tylerdschreur10tylerdschreur10 Alum Member
    1465 karma

    More related to PSLF, but want to follow up on the likely effects of PI lawyers. This is the brilliance of PSLF, and why it must be preserved! It all but eliminates the financial barrier to a public interest legal career! It's better than a scholarship because it forces you to put in 10 years to get your loans forgiven. It opens doors for prospective lawyers without trust funds, and it provides a massive incentive to do good, necessary work.

  • Leah M BLeah M B Alum Member
    8392 karma

    @tylerdschreur10 said:
    More related to PSLF, but want to follow up on the likely effects of PI lawyers. This is the brilliance of PSLF, and why it must be preserved! It all but eliminates the financial barrier to a public interest legal career! It's better than a scholarship because it forces you to put in 10 years to get your loans forgiven. It opens doors for prospective lawyers without trust funds, and it provides a massive incentive to do good, necessary work.

    Absolutely. It enables people to attend law school and incentivizes serving the public. It's a win-win. I understand the problem that it's been more expensive than anticipated, but I think we need to find a way to mitigate that while saving the program. I could understand some sort of cap being put on it, but I truly hope it doesn't get eliminated completely. I think it would really hurt the number of lawyers who are able to pursue low-paying paths that help us all as a society. Ultimately, I think we need to just find a way to make law school as a whole less expensive. But of course, that's more of a pipe dream.

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