Loan Forgiveness Programs

• Available to J.D. alumni who borrowed from Fordham’s Revolving Loan Fund and who are employed full time in law-related positions in government (federal, state or city) or public interest 501(c)(3) organizations and have qualifying incomes below $66,850 for calendar year 2012.  The income cap is adjusted annually for inflation and career progression.
• No interest accrues and no payments need be made on the Revolving Loans for the first three years.
• One-third of the total Revolving Loan debt is forgiven at the end of the third, fourth and fifth years of participation.
• Applications are accepted between September 1 and November 1 immediately following graduation or within one month of obtaining eligible employment, but no later than three years from the date of graduation.
• Graduates employed as judicial clerks are eligible.
• The application consists of the Application, an Employer Certification Form and, if married, your spouse’s employer must complete the Spouse’s Employer Certification Form.
• Participants must be recertified semi-annually

The following forms are in PDF format:

 Loan Forgiveness Application
 Employer Certification Form
 Employer Certification Form for Applicant’s Spouse

There is a separate application for judicial clerks and the following forms are in PDF format:

 Loan Forgiveness Application for Graduates Employed as a Judicial Clerk
 Employer Certification Form
 Employer Certification Form for Applicant’s Spouse

Questions concerning this program may be directed to kkeenan@law.fordham.edu

Federal Public Service Loan Forgiveness Program (FPSLF)

If you are employed in public service for ten years and make 120 payments on your Federal loans in the Federal Direct Loan Program through any one or combination of the Standard (ten-year), Income-Contingent or Income-Based Repayment options during that ten-year period, the government will forgive any balance remaining on your loans.  Only those payments made after October 1, 2007 will count toward the required payments.  The 120 payments need not be consecutive and you must be employed in the full-time, public service position while making each of the 120 payments and when you request forgiveness.  Maintain proof of all 120 repayments and proof of your employment status during those payments.  This forgiveness will not create a new income tax liability for borrowers.     

Eligible Loans

All federally guaranteed loans are eligible, including Federal Perkins Loans, Federal Subsidized and Unsubsidized Stafford Loans, Federal Grad Plus, Federal Direct and Federal Direct Consolidation Loans.  Loans made by a state or private lender and Parent Plus Loans and consolidation loans that included a Parent Plus Loan are not eligible for FPSLF.

Fine-Print Details of the Federal Public Service Loan Forgiveness Program, not to be overlooked:

Be sure your job qualifies for Federal Public Service Loan Forgiveness.   Your job qualifies if you work full-time for the government or a 501(c)(3) non-profit organization. If you do not work for a 501(c)(3) non-profit organization or the government, you can still qualify if you provide "public interest law services" for a "public service organization." A public service organization gets at least some government funding and is not "a business organized for profit, a labor union, a partisan political organization, or an organization engaged in religious activities…."   To determine if your job qualifies for FPSLF, see 34 CFR 685.219, or go to www.FederalStudentAid.ed.gov and click on Public Service Loan Forgiveness under Repaying Your Loans. Also, you may contact the Federal Student Aid Information Center at 1-800-433-3243.

Be sure your loans are eligible for Federal Public Service Loan Forgiveness.   Only Federal Direct Loans and Federal Direct Consolidation Loans are eligible for Public Service Loan Forgiveness. If you borrowed your Federal Stafford and Grad PLUS Loans prior to 7/1/10, you borrowed those loans through the Federal Family Education Loan Program (FFELP).  To make those loans eligible for the Federal Public Service Loan Forgiveness Program, you most consolidate those FFELP loans into a Federal Direct Consolidation Loan. If you have already consolidated one or more of your Federal Loans into a FFELP Consolidation Loan, you have the right to reconsolidate those loans into a Federal Direct Consolidation Loan to take advantage of the forgiveness program.    

Be sure not to include ineligible loans in your Federal Direct Consolidation Loan.   Parent PLUS Loans are not eligible and consolidation loans that pay off a PLUS Loan are not eligible for Federal Public Service Loan Forgiveness.    

Be sure your payments are qualifying payments.   Only payments made on the Income Based, Income Contingent or Standard (ten year) Repayment Plans will count toward Public Service Loan Forgiveness.  Do not choose the Extended or Graduated repayment options, as payments under these plans will not count toward Federal Public Service Loan Forgiveness.  Under the Federal Direct Consolidation Loan Program, repayment over a term of more than ten years is sometimes referred to as "standard" repayment.  Don't be fooled. Check to be sure the payments under the payment plan you select qualify for FPSLF.  Finally, only payments made on time – those received within 15 days of the due date – will count.