Missouri's New Loan Repayment Assistance Plan
William M. Corrigan, Jr.
My student loan is an albatross around my neck."
"I was lucky to have only $36K upon graduation. I took the highest paying job I could get and paid off my loans in about five years. Once debt-free, I left the corporate scene and am now in public interest, where I always wanted to be."
"Student loan debt is the constant cloud that hangs over my head. I work in the public sector because that is the path I chose; however, it is difficult to pay my bills. One-half of my bi-weekly salary goes to paying off my loans . . . . I live paycheck-to-paycheck, and I may have to get a second job."
These statements are from young lawyers who are members of The Missouri Bar's Leadership Academy. They illustrate the dire decision that new law school graduates sometimes face - servicing their student debt over servicing the public interest.
Law School Debt - A National Problem
In August 2003, the American Bar Association's Commission on Loan Relief Payment and Forgiveness issued its final report entitled, "Lifting the Burden: Law Student Debt as a Barrier to Public Service." This report was the culmination of a two-year study.
The commission reached a number of disturbing conclusions.
Many law school graduates face a disheartening dilemma. Despite their deep commitment to ensure access to justice for all citizens, many law students find that the rising cost of a legal education forces them to forego any form of public service.
According to the commission's report, ". law school debt prevented 66% of student respondents from considering the public interest or government job."
The reason is simple - tuitions for law schools have increased significantly. According to the ABA's commission, from 1992 to 2002 the cost of living in the U.S. rose 28%. However, the cost of tuition for public law schools increased by 134%, and the cost of tuition for private law schools rose 76%. As a result, in 2002, almost 87% of law students borrowed money to finance their legal education.
Not surprisingly, the ABA Commission found that salaries for public service lawyers have not kept pace with the rising law school debt that burdens students. By comparison, the entry level salary in the private sector has far outpaced the salaries in the public sector.
Moreover, the report found that high student debt prohibits many law graduates from pursuing public service careers. "As law school tuitions and student debt have sharply escalated, fewer and fewer law school graduates can afford to take the comparatively low paying public service positions that are available in government agencies or with prosecutor, public defender or legal services offices."
The ABA commission also reported that public service employers are reporting serious difficulties recruiting and retaining lawyers. "Many public service employers report having a difficult time attracting the best qualified law students. Alternatively, those who do hire law graduates find that, because of educational debt payments, those whom they do hire leave just at the point when they provide the most valuable services."
The conclusion of the ABA commission was as follows:
Lawyers with dreams of serving their communities as prosecutors, public defenders or civil legal aid lawyers are unable to use their skills to do so. The profession is thus unable to promote and provide meaningful access to legal representation for all. When governments cannot hire new lawyers and/or keep experienced ones, the governments' ability to protect the public safety is challenged. The inability of poor and moderate-income persons to obtain legal assistance can result in dire consequences to the individuals and the communities in which they live.
A Missouri Problem, Too
The high law school debt level is not only a national problem, but a problem in Missouri, too. The four law schools in Missouri recently reported the following average debt level of their students on graduation:
1. University of Missouri - Kansas City -- $51,384
2. University of Missouri - Columbia -- $52,334
3. Saint Louis University -- $69,796
4. Washington University -- $81,955
Because this dilemma is impacting Missouri lawyers and citizens, a joint committee of The Missouri Bar and the Missouri Bar Foundation was appointed to analyze whether having a loan repayment assistance program (LRAP) made sense in Missouri.
The committee was chaired by Sherry Doctorian (Jefferson City) of The Missouri Bar Board of Governors. Other members of the Board of Governors serving on the committee included Dan Ryan (Kansas City), Dick Halliburton (Kansas City) and Dana Tippen Cutler (Kansas City). Two members of The Missouri Bar Young Lawyers' Section, Megan Phillips (St.Louis) and Jon Baris (St.Louis), also served. From the Trustees of The Missouri Bar Foundation, Richard Brownlee (Jefferson City), Doreen Dodsen (St.Louis) and Larry Ward (Kansas City) served on the committee. Finally, Stephen Murrell from The Missouri Bar staff was the liaison, and did a tremendous amount of work in researching and drafting Missouri's LRAP. Because of the escalating debt of Missouri law school graduates, the committee concluded that there is clearly a need for Missouri to adopt an LRAP.
I am pleased to announce that the Missouri Bar Foundation and The Missouri Bar Board of Governors recently voted to create Missouri's Loan Repayment Assistance Program.
Missouri's Loan Repayment Assistance Program - How Does It Work?
The program provides financial aid to law school graduates who work in the government sector (including a prosecuting attorney's office and public defender's office), legal aid, or other qualifying non-profit organizations. The aid will be given to graduates who qualify, based on need, in the form of a new and forgivable loan that will help them repay their annual educational debt in exchange for a period of practicing law in the government sector or legal aid. Upon completion of the required service obligation, the new loan will be forgiven. Missouri's LRAP limits the number of years that a new lawyer is eligible to participate in the LRAP.
In summary, Missouri's Loan Repayment Assistance Program will assist new lawyers who are committed to public service by providing financial assistance.
We Need Your Help
Many of us graduated from law school with debt. However, the debt levels that our newer lawyers are experiencing are much higher than the lawyers who graduated more than 10 years ago.
In order for this program to be successful, we need your help. We need your tax-deductible financial contribution.
Many Missouri lawyers and law firms have been blessed with financial success. We ask that you consider sharing your success by contributing to this most worthy program, which will enable new lawyers to pursue public service.
You can send a tax-deductible contribution, payable to the Missouri Bar Foundation, to the following address: The Missouri Bar Foundation, Loan Repayment Assistance Program, P.O. Box 119, Jefferson City, MO 65102.
I have repeatedly stated during my term as Missouri Bar president that public service has always been, and will continue to remain, one of the noblest aspects of our profession. In order to help ensure the continuation of that great tradition, it is incumbent upon all Missouri lawyers and law firms that have been blessed with financial success to support the next generation of lawyers who desire to serve the public, but are unable to do so because of their debt burden.