TBA Law Blog


Posted by: Stacey Shrader Joslin on Aug 25, 2022

President Joe Biden has unveiled his long-awaited student loan forgiveness plan, which erases $10,000 from the balance of qualifying federal loans — including law school debt — and $20,000 for those who received Pell grants as undergraduates. The initial reaction from law graduates has mostly been: “$10K doesn't make a big difference,” Reuters reports. And for some that is true. Law school graduates average up to $138,500 in debt, and many starting salaries will surpass the $125,000 income cap for participation. But experts say, solo and small firms lawyers could benefit, and other provisions — such as an income-based repayment option and planned elimination of negative amortization — could save attorney borrowers far more over time.