THE PROBLEM: The cost of law school tuition at the University of Wisconsin is on the rise. Average debt among UW Law graduates has risen to $64,500, a $14,000 increase in just one year. When the median public interest salary for graduates is a modest $37,917, even the most dedicated public interest student struggles to both repay educational loans and afford basic living expenses. These students are then unable to serve their communities as prosecutors, advocates for the disenfranchised, government agency representatives, and non-profit lawyers. A lack of public interest lawyers also limits the availability of legal services all over Wisconsin, skirting our profession’s commitment to serve those in need.
THE SOLUTION: Loan Repayment Assistance Programs (LRAPs)
are among the most important means to address educational debt burdens
faced by law graduates wanting to do public interest work. These
programs defray the educational debt payments of graduates who pursue
qualifying public service jobs.
CURRENT PROGRAM:
UW has a very small LRAP still operating with the seed money with which
it began in 2002. UW distributes approximately $25,000 each year. The
more people that qualify, the less each person receives. Most years,
our students receive only enough for one loan payment, while other
schools award LRAPs over several years. While the current LRAP is a
start, it is not large enough to be effective.
FREE LAW SCHOOL?
Not exactly. Students who benefit from these programs still pay a large
portion of their educational debts. Some LRAPs pay a fixed percentage
of loans; others offer stipends for a pre-determined number of years.
Typically, a student qualifies for LRAP only if s/he earns a salary
that is below a certain amount.
LRAP vs. SCHOLARSHIP: The
purpose of a LRAP is to reach all students who accept public interest
jobs and meet certain income requirements. LRAPs should distribute
funds according to a graduate’s income level. Currently, public
interest and government-bound UW students apply to a limited number of
lump-sum scholarships. Although these scholarships are useful, they are
unable to sponsor every student who pursues a low paying public
interest or government career. We need an effective LRAP to ensure that
every UW law student who takes a low-paying job in the public interest
sector will receive loan repayment assistance from UW Law School.
Increasing
Debt for New Lawyers
Current law school graduates struggle with
an increase in student loan debt from both law school and undergraduate
education, along with an increasing salary disparity between public
interest and private sector jobs. Individuals who desire a career in
public interest may be forced to abandon that goal because of these
factors and pursue a private sector position instead.
1. Increased Tuition Leads to Increased Debt
The increased burden of educational debt on
new law school graduates is due to higher law school tuition and
increased borrowing for undergraduate education. In the last decade,
tuition at UW Law School has increased 120% for resident students and
104% for non-residents. The estimated total student budget for the
2006-07 academic year at UW Law School is $44,467 for non-residents and
$26,304 for residents. Over three years, the cost of legal education
equals over $130,000 for non-resident students.
Over 85% of law school students take out
federal loans, as well as private loans, to pay increasing tuition
bills. The average law student at UW Law School graduates owing $64,500
in debt, with some students graduating with well over $100,000 in debt.
2. Public Interest Salaries Do Not Keep Pace
with Private Employers
Given the heavy debt burden most law school
graduates carry, those entering the public interest law arena will face
serious financial difficulty. Compounding the problem, public interest
attorneys enter the workforce with slightly more debt than debt burden,
Wisconsin public interest graduates are forced to spend 34% of their
income.
The situation in Wisconsin mirrors the rest
of the country. The average national salary for public interest lawyers
varies slightly according to the type of law. Civil legal services
employees earn an average of $36,000. State or local prosecuting
attorneys earn an average yearly salary of $44,000. Comparatively, the
average starting salary of lawyers in private practice is $90,000.
After five years, the average public interest salary increases to
$52,000, a paltry increase compared to private sector colleagues.
Moreover, the gap between public and private sector salaries is
growing. While the ratio of private sector salaries to public interest
salaries was 3 to 2 in the 1980s, the ratio is currently 3 to 1. The
large salary gap allows private sector attorneys to pay back their
educational debt at a faster pace. The debt many law school graduates
face may hinder them from pursuing public interest careers.
An Effective Loan Repayment
Assistance Program
In the past decade, law schools across the
nation have taken action to promote and preserve public service law by
developing school based LRAPs. For students struggling with
mortgage-sized debt payments, LRAPs make pursuing public interest
careers a feasible reality by providing vital financial assistance
after graduation. LRAPs distribute funding in the form of grants or
forgivable loans to graduates employed in public service positions
whose salaries are below a designated range. This assistance offsets
graduates’ loan repayments and makes it possible for them to sustain a
living wage and continue their service to the community.
Currently there are few LRAP options for UW
graduates. The federal government’s loan assistance programs are
significantly limited for lawyers, especially those entering employment
outside of direct government service. The state of Wisconsin has not
established a LRAP, and private funding sources such as fellowships are
rare. The law school is the most logical and effective source to fill
this void in funding.
UW Law School would benefit
from an effective LRAP in the
following ways:
1. Funding an Effective LRAP Will Enable UW Law School
Graduates to Pursue Public Interest Careers
By supporting law school graduates with an
effective LRAP, UW Law School would enable a new generation of public
interest lawyers to begin working in their communities. Due to high
educational debt, public service employers often struggle to find
qualified lawyers who are able to take relatively low-paying positions.
In a recent ABA survey of government agencies and public interest
employers, 68% of respondents cited difficulty recruiting attorneys due
to academic debt and low wages. An LRAP would alleviate this burden on
public interest organizations, especially those in Wisconsin, ensuring
their ability to deliver high quality legal services. By funding an
effective LRAP, UW Law School supports both its own graduates and the
larger community.
2. Funding an Effective LRAP is Integral Piece of UW
Law School’s Commitment to Law In Action
Through its innovative Law In Action
approach, the UW Law School fosters the view that “the law is a
profession grounded in service to society.” The Law School’s mission is
to provide “teaching, legal scholarship, and public service, inspired
by our distinctive law-in-action approach and our commitment to
justice.” As explained by Dean Davis, “Law In Action reminds us that in
teaching and research, no matter how interesting we find a legal
theory, we always need to ask, ‘How does this affect people’s lives in
the real world?’”
The Law School’s commitment to Law In Action
is evident. Many professors develop their courses entirely around the
idea of Law In Action. Additionally, by building an extensive clinical
program, UW Law School allows students to practice legal skills prior
to graduation and, in the process, students interact with Wisconsin
residents who have significant legal needs. The Law School provides
significant financial support to students who take unpaid summer
internships with public interest organizations.
These programs, among others, demonstrate
the Law School’s commitment to Law In Action. For students, a result of
this pedagogy is a heightened awareness of the problems faced by
low-income and underrepresented individuals. Therefore, the Law In
Action curriculum often encourages students to enter public interest
careers. By funding an effective LRAP, UW Law School would enable
students to enter public interest after graduation, and pursue the
ideals fostered by Law In Action.
3. Funding an Effective LRAP Supports the Wisconsin Idea
As a state funded institution grounded in
the spirit of the Wisconsin Idea, UW Law School plays a unique role in
the area of public service. From its inception, the University has been
considered a fundamental source of statewide community support and a
conduit for public service resources. In recent years, the Law School
has transformed the Wisconsin Idea into the “Global Idea- the idea that
we serve the university, the local community, the state, the nation,
and the world.” The Law School, as a state institution informed by the
Wisconsin Idea, has a responsibility to prepare a generation of lawyers
to serve the citizens of the state. Wisconsin citizens have unmet legal
needs. Not all people can afford to hire an attorney, particularly the
burgeoning immigrant population in Wisconsin. A functional LRAP program
would enable a new generation of lawyers to enter public service,
including non-profit legal aid agencies, and help meet the legal needs of Wisconsin citizens.
4. Funding an Effective LRAP will Satisfy the Desires of Alumni
Alumni want a stronger LRAP. In a recent
survey of Law School alumni, in response to an open-ended question,
respondents specifically requested that the Law School establish a
tuition forgiveness program for public interest lawyers. Additionally,
the Public Interest Law Section of the Wisconsin Bar has repeatedly
supported the expansion of the current LRAP. If the Law School made
fundraising for LRAP a priority, it is likely these alumni would
increase their donations. By funding an effective LRAP, UW Law School
would foster good will with its own alumni.
5. Funding an Effective LRAP will Increase the Number of Applicants
Prospective students are becoming more
sophisticated in their assessment of law schools and consider the
availability of LRAPs in their decision-making process. Additionally,
law school guides routinely include LRAPs in their evaluations of
universities and their financial aid programs. For example, Equal
Justice Works recently partnered with Newsweek to create an e-guide
which makes it easier for students to compare how supportive law
schools are of public interest students, including the presence of an
effective LRAP. Wisconsin is not currently listed in the e-guide. By
building a strong LRAP, UW Law School will demonstrate its commitment
to public service and attract the most qualified public interest
students.
6. Funding an Effective LRAP Will Diversify the Student Body
Students of color, first generation and
returning students often face greater socioeconomic pressure before
entering law school. Therefore, those who wish to pursue public
interest careers may need additional support. An effective LRAP would
attract students with diverse backgrounds who wish to pursue public
interest careers. Without an effective LRAP, these students may choose
to attend other law schools with greater debt support.
7. Funding an Effective LRAP Will Provide Positive
Exposure for the University
Academic debt is a topic that is attracting
a large amount of media attention. By expanding its LRAP, the UW Law
School will attract positive attention for both the Law School and the
University in general. News agencies could profile public interest
lawyers and their positive impact on the community. Graduates would be
able to point to LRAP as the program that made their career possible.
Positive exposure would encourage new donors to the school and help
ease political pressure to cut the University’s budget.
Wisconsin’s Current Loan Repayment Assistance Program is Ineffective
Five years ago, UW Law School dedicated seed
money to begin a modest LRAP for graduates who pursue careers in public
interest law. Today, the LRAP remains the same, consisting of
approximately $25,000 per year of diverted interest on a general
scholarship fund. Each year since 2002, the school has divided this sum
in the form of one-time grants to qualified LRAP applicants.
1. UW Law School’s Current Loan Repayment Assistance Program
In order to obtain a UW Loan Repayment
Assistance Grant, graduates must meet several criteria. First,
applicants must submit detailed documentation about law-school related
debt as well as a personal statement and résumé
demonstrating a commitment to public interest work. Next, applicants
must verify that they have obtained “qualifying employment.” This means
they must have a legal position with a non-profit organization or
local, state, or federal government agency. Graduates who accept
judicial clerkships or public interest jobs outside the non-profit and
government sectors are not eligible for grants. Finally, applicants
must show that they receive a “qualifying salary.” In order to receive
a grant, applicants must have an annual salary (including bonuses and
non-cash benefits such as housing) of $38,000 or less. In some cases,
however, applicants may receive a reduced grant if their salary exceeds
$38,000. The current program al
lows graduates almost one full year to secure qualifying employment.
Students who graduated in 2006 do not need to submit employment
verification until April 2007.
Once the LRAP Committee has determined the
eligibility of applicants, committee members calculate how to divide
the $25,000. The grants funds are divided so that each recipient
receives an equal number of monthly loan payments. Therefore, a
graduate who has a higher monthly loan payment will receive a larger
grant than one who has a lower payment. If too many applicants are
eligible, resulting in grants that are less than two monthly loan
payments, the LRAP committee will disburse the funds based on
demonstrated financial need.
2. The Drawbacks of the Current Program
With only $25,000 available each year, the
current LRAP only provides assistance to graduates only during the
first year after they finish school. Most graduates face ten or more
years repaying law school debt. Furthermore, the distributed grants
that are distributed are small. Furthermore, the distributed grants are
small. Since 2004, the grants have ranged between $845 and $2,507. If
the number of qualifying graduates increases, each participant receives
a smaller payment. While any assistance repaying loans is appreciated,
these amounts are only a drop in the bucket when compared to high debt
burdens law school graduates face.
Wisconsin’s Competitors have Responded to
Increasing Debt by Developing Well-Funded Loan Repayment Assistance
Programs
UW Law School has fallen behind its peers.
Law schools ranked both above and below Wisconsin have established
successful LRAPs. The only peer institutions that do not have LRAPs are
the University of Washington, George Mason University, Indiana
University- Bloomington, and the University of Florida. LRAPs are
available at every other peer school ranging from the nineteenth-ranked
law school to the law school ranked forty-third. Five of UW Law
School’s major competitors have effective programs: University of
Minnesota (ranked 19th), University of Iowa (ranked 22nd), University
of Illinois-Urbana Champaign (ranked 27th), Fordham University (ranked
32nd), and University of California-Davis (ranked 34th). In addition,
the only other law school in Wisconsin – Marquette University – has a
LRAP that is more effective than UW Law School’s. By establishing a
fully-funded LRAP, UW Law School can better compete with its peer
institutions.
University of Minnesota
The University of Minnesota is unique
because it participates in a state-wide LRAP operated by LRAP
Minnesota. The LRAP is funded by donations from the area law schools,
firms, and attorneys. The law schools donate all proceeds from the
annual “5k Race for Justice” to the LRAP. The salary cap to receive
funds from the program is $45,000. Awards are calculated based on a
formula that considers adjusted household income and debt load. During
the 2005-06 academic year, the average award was $4,380. Qualifying
employment includes non-profit, governmental, or international
organizations, and Native American tribal agencies. However, preference
is given to applicants who provide direct legal services. Recipients
are eligible to receive awards for up to fifteen years.
University of Iowa
The Iowa LRAP has many positive components
to consider when building a LRAP model. If students need to take out a
loan above the maximum federal loan amount, Iowa will give the students
loans through the Iowa Law School Foundation. Twenty-five percent of
these Foundation loans are forgiven after one year in qualifying
employment. After the third year of employment, the entire remaining
balance is forgiven. The salary cap is 125% of the standard maintenance
allowance set by the U.S. Office of Personnel Management. The allowance
accounts for increases in living costs for people located in “high
cost” communities.
University of Illinois-Urbana Champaign
Similar to the University of Minnesota, the
salary cap at Illinois is $45,000 and eligible employment includes
full-time law-related jobs at either non-profit or governmental
organizations. No maximum award exists because the amount awarded
depends on a formula based on income, the cost of living, and debt
burden. The school gives each program participant a forgivable LRAP
loan. Students pay off their law school loans with this LRAP loan.
After three years in a qualifying public interest position, 25% of a
recipient’s LRAP loan is forgiven. The loan continues to be forgiven at
a rate of 25% per year. The loan is 100% forgiven after six years in a
qualifying position.
Fordham University
Fordham has a generous LRAP. The salary cap
for recipients is $52,000. However, eligible employment is restricted
to non-profit organizations. The maximum amount awarded is $8,700 total
when the qualifying income is $41,000 or less. If a participant earns
above $41,000, the LRAP loan is adjusted. Public interest lawyers can
receive payments for up to five years. Loan forgiveness begins after
one year.
Fordham also operates a separate Loan
Forgiveness Program for graduates who borrowed from its Revolving Loan
Fund. Participants of the Loan Forgiveness Program must have a
qualifying income below $59,000 and work in government or public
interest. The interest-free loans begin to be forgiven at a rate of 33%
each year after three years of participating in the Program.
University of California-Davis
UC-Davis’s LRAP has a low salary cap of
$40,000. Eligible employment is limited to non-profit organizations. No
maximum award is stipulated. Awards are distributed in the form of
interest-free loans. Beginning the third year of qualifying employment,
loans are forgiven at a rate of 25% per year.
Marquette University
Marquette
established a LRAP in 2001. Similar to other schools, the salary cap is
$45,000, qualifying employment includes non-profit organizations and
governmental offices, and payments take the form of a forgivable loan.
If a participant’s income rises above $45,000 after the first year in
qualifying employment, then the LRAP award is reduced by a certain
percentage. However, participants will lose their award if their income
rises above $50,000. As long as participants remain in qualifying
employment, loans are forgiven at the end of the year in which the loan
is given. Participants can receive awards for up to 10 years.