Do Law Firms Offer Student Loan Forgiveness? Explore Your Options

• Law firms don’t offer student loan forgiveness, but you still have options like Public Service Loan Forgiveness and Income-Driven Repayment through the federal government.

• Some large law firms provide student loan repayment assistance as part of their benefits package, which can help reduce your loan balance over time, but it’s not the same as forgiveness.

• President Biden has introduced broad-based forgiveness plans, but they’re currently facing legal challenges, so relying on existing federal programs is the most reliable way to manage your student loans right now.

It’s understandable to hope that a law firm, especially a large one, might offer student loan forgiveness as part of its benefits. After all, law school debt can be overwhelming, and finding relief is a top priority for many law professionals.

But law firms don’t directly offer student loan forgiveness. Most forgiveness programs come from the federal government, such as Public Service Loan Forgiveness (PSLF) or Income-Driven Repayment (IDR) forgiveness. These programs are designed to help borrowers, particularly those in public service, reduce or eliminate their student loans after meeting specific requirements.

President Biden has introduced broad-based forgiveness plans aimed at helping even more borrowers, but these efforts are currently tied up in legal challenges. For those looking for immediate relief, existing programs like PSLF and IDR remain the most reliable paths to forgiveness.

While law firms themselves don’t provide forgiveness, they may offer student loan repayment assistance as part of their benefits package. These programs help reduce your loan balance over time by providing monthly contributions toward your debt.

Law professionals can access several federal forgiveness programs designed to help reduce or eliminate student loan debt. Below, we’ll break down the key programs available, including PSLF and IDR Forgiveness.

1. Public Service Loan Forgiveness

The PSLF Program is a valuable option for lawyers working in public interest roles, such as those employed by government agencies like the DOJ or nonprofit organizations, including public defender’s offices. This program fully forgives your remaining federal student loans after you make 120 qualifying monthly payments (typically over 10 years).

And the best part? The forgiveness is tax-free at the federal level.

To qualify for PSLF, you must:

• Be employed full-time by a qualifying employer, such as a government or nonprofit organization.

• Be enrolled in a qualifying repayment plan, such as an Income-Driven Repayment (IDR) plan.

• Make 120 qualifying monthly payments on Direct Loans.

Also, if you’ve been working in a qualifying public service role since the PSLF program began in October 2007, you may be able to receive credit for those past periods, even if you haven’t applied for PSLF before. This can significantly reduce the time you need to make payments going forward.

Related: Is PSLF Retroactive?

2. Income-Driven Repayment Forgiveness

For everyone else who doesn’t work in public service, there’s Income-Driven Repayment forgiveness.

Whether you’re in solo practice, working in big law, or just starting your career after law school, you’re eligible for this type of forgiveness. Under an IDR plan, your monthly payments are adjusted based on your income and family size, and any remaining balance is forgiven after 20 or 25 years of qualifying payments.

Key IDR Plans:

• Income-Based Repayment (IBR)

• Income-Contingent Repayment (ICR)

• Pay As You Earn (PAYE)

• Saving on a Valuable Education (SAVE)

The SAVE Plan replaced REPAYE but is currently blocked due to a federal court ruling. Borrowers enrolled in SAVE are placed in forbearance, and no new enrollments are being accepted. For more details on the SAVE Plan block, read our full article here.

Forgiveness Terms:

• PAYE forgives loans after 20 years.

• ICR, IBR, and SAVE forgive loans after 25 years.

IDR Forgiveness takes longer than PSLF, but it offers significant relief for lawyers who don’t meet PSLF requirements. IDR plans are available to all federal student loan borrowers and offer flexibility if your income changes over time. But any forgiven balance may be subject to taxes, so be sure to plan accordingly.

3. Federal and State Loan Repayment Assistance Programs (LRAPs)

While federal programs like PSLF and IDR offer loan forgiveness, many states offer Loan Repayment Assistance Programs (LRAPs) specifically designed to help lawyers in public service roles, such as public defenders or nonprofit legal aid attorneys. These programs provide financial assistance to pay down student loans rather than forgiving the debt entirely.

Key State Programs Include:

• Florida: The Florida Bar Foundation’s Loan Repayment Assistance Program (LRAP) for civil legal aid lawyers.

• Maine: The Maine Justice Foundation provides loan repayment assistance for attorneys working in Maine who meet certain criteria.

• Indiana: The Indiana Bar Foundation’s Justice Richard M. Givan Loan Repayment Assistance Program supports civil legal aid lawyers earning up to $70,000 annually.

• Illinois: The Chicago Bar Foundation’s Sun-Times Public Interest Law Fellowship offers LRAP awards.

• Maryland: The Janet L. Hoffman Loan Assistance Repayment Program through the Maryland Higher Education Commission.

• Massachusetts: The Massachusetts Legal Assistance Corporation offers LRAP for civil legal aid attorneys.

• Minnesota: LRAP-MN provides loan repayment assistance for qualifying lawyers.

• New York: The NYS District Attorney and Indigent Legal Services Attorney Loan Forgiveness (DALF) Program.

• Oregon: The Oregon State Bar offers a loan repayment assistance program.

• Texas: The Texas Access to Justice Foundation provides loan repayment assistance.

These programs typically aim to retain talented lawyers in public service by easing their student loan burden. But these programs are not loan forgiveness programs like PSLF or IDR. Instead, they offer financial assistance—often capped annually—to help lawyers make their monthly payments. As a result, they don’t eliminate the loan balance and typically aren’t available to those working in private practice or corporate law.

No, law firms don’t completely pay off student loans or offer loan forgiveness like the federal government’s programs. But if you’re concerned about managing your debt, there’s good news: some large law firms provide student loan repayment assistance as part of their benefits package.

These programs don’t eliminate your loan balance in one go, but they can make a significant impact over time. Firms like Orrick, Herrington & Sutcliffe and Kirkland & Ellis offer direct monthly payments toward your loans, helping reduce the balance while you work.

In some cases, these payments are capped annually, and certain service requirements may apply, meaning you’ll need to stay at the firm for a set period to maximize the benefit.

While it’s more common at large corporate firms, student loan repayment assistance can ease the financial burden, especially if forgiveness or other federal programs don’t work for your situation.

• Monthly Contributions: Firms contribute a set amount toward your loans each month, often focused on federal law school debt.

• Annual Caps: Some firms limit how much they’ll pay in a year, so it’s important to understand your firm’s specific policy.

• Service Requirements: You may need to remain with the firm for a certain period to fully benefit from the program.

If your firm doesn’t offer repayment assistance, or if you want to explore other options, consider student loan refinancing. Depending on your income, credit score, and loan type, refinancing can help reduce your interest rate and speed up repayment. For those in private practice or big law, this can be an effective strategy to pay off debt faster.

While law firms don’t offer loan forgiveness, you still have actionable solutions to manage and reduce your student loan debt over time.

If you don’t qualify for Public Service Loan Forgiveness or state-based Loan Repayment Assistance Programs, and if your income is too high that IDR Forgiveness doesn’t make sense, look to refinance your loans.

For lawyers in private practice or those earning high salaries in “big law,” refinancing can help you pay off your student loans faster and reduce interest costs.

By refinancing, you could potentially secure a lower interest rate, which reduces the total amount of interest paid over time. This strategy is particularly useful if your income is stable and you want to aggressively pay off your loans.

When Refinancing Makes Sense:

• High Income: Refinancing is most effective for lawyers who have a high and stable income.

• Private Practice or Big Law: If you’re not eligible for federal forgiveness or LRAPs, refinancing can be a smart alternative.

• Good Credit: A strong credit score is essential to qualify for the best refinancing rates.

Things to Consider:

• Losing Federal Benefits: Refinancing federal student loans with a private lender means you’ll lose federal protections like income-driven repayment and forbearance. But losing these benefits might make sense if you’re refinancing high-interest PLUS Loans for a lower rate and you have the job stability and income to pay off the new loan.

• Faster Debt Payoff: This strategy is most useful if you can afford higher monthly payments to eliminate your law school loans quicker.

Understanding student loan forgiveness and repayment options can feel overwhelming, especially when the right choice depends on your unique financial situation. Programs like PSLF, IDR, and employer repayment assistance offer relief, but figuring out which path is best for you can be challenging.

If you’re unsure about your options or need help creating a strategy to pay off your loans, book a call with a student loan expert. We’re here to help you make informed decisions and take control of your financial future.