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10.6 Financial Aid


Introduction to Financial Aid

 The City University of New York (CUNY) School of Law is committed to providing accessible and affordable legal education. The school offers various financial aid options, including scholarships, grants, loans, and work-study programs, to ease the financial burden of obtaining a law degree. This support helps diverse students pursue legal education and reduces financial pressure, allowing them to focus on their studies and pursue career paths in public interest law or other critical legal fields. CUNY Law aims to demystify the financial aid process and work individually with students to ensure financial barriers do not hinder aspiring lawyers' dreams and ambitions.

Types of Financial Aid

Federal Loans

For CUNY Law students, federal student loans are the primary source of financial aid due to their relatively lower interest rates and more flexible repayment options than private loans. There are mainly two types of federal loans available for students:

Direct Unsubsidized Loans

 Direct Unsubsidized Loans are available to graduate and professional students, including law school students. Interest begins accruing on these loans at the time of disbursement, and students are responsible for paying all the interest. You can postpone the payments while in school and during a six-month grace period after graduation, but interest will continue accumulating.

·       Eligibility Criteria: Eligibility does not depend on financial need. Students must be enrolled at least half-time and meet general federal student aid eligibility requirements, including being a U.S. citizen or an eligible non-citizen.

·       Borrowing Limits: Students can borrow up to $20,500 per academic year. The aggregate limit, which includes undergraduate loans, is $138,500.

Direct PLUS Loans (Grad PLUS Loans)

Grad PLUS Loans are federal loans that graduate and professional students can use to help pay education expenses not covered by other financial aid. Unlike Direct Unsubsidized Loans, Grad PLUS Loans require a credit check, although the credit requirements are less stringent than private loans. Applicants with an adverse credit history may still receive a loan through endorsements or by proving extenuating circumstances.

·       Eligibility Criteria: Applicants must not have an adverse credit history, must be enrolled at least half-time, and must meet general federal student aid requirements.

·       Borrowing Limits: The maximum amount you can borrow is the cost of attendance (as determined by the school) minus any other financial aid received. Grad PLUS Loans are helpful for covering remaining expenses after other aid forms have been exhausted.

Essential Considerations for Federal Loans:

·       Interest Rates: Federal loan interest rates are set by Congress and fixed for the loan's life. The rates for Direct Unsubsidized Loans and Grad PLUS Loans differ, with Grad PLUS Loans typically having a higher interest rate.

·       Loan Fees: Both loan types have loan origination fees, which are a percentage of the loan amount and are deducted from each disbursement.

·       Repayment Plans: Federal loans offer various repayment plans, including income-driven ones, which can adjust your monthly payments based on income. Additionally, there may be opportunities for loan forgiveness through programs like Public Service Loan Forgiveness (PSLF) for those who work in public service jobs.

·       Application Process: Students must complete the Free Application for Federal Student Aid (FAFSA) to apply for federal student loans. The FAFSA is also the key to accessing other federal and state financial aid forms.

Federal loans should be your first choice when borrowing for law school due to their favorable terms and protections. Please consider your anticipated debt and future salary when deciding how much to borrow, considering the long-term implications of your decisions.

Grants and Scholarships

Grants and scholarships provide law students with essential financial support that can be paid, making them highly sought after. These awards can come from various sources, including the school, legal organizations, foundations, and other external entities. They can be based on merit, financial need, diversity, or a specific area of legal interest.

CUNY Law provides scholarships to students based on financial need. These awards are granted to those who demonstrate financial necessity and complete the financial aid application process. Students must fill out the Free Application for Federal Student Aid (FAFSA) to qualify for these scholarships.

Various organizations and foundations offer scholarships and grants to law students. These awards are typically competitive and are based on many different criteria:

·       Merit-based: Recognizing academic excellence, leadership skills, and other achievements.

·       Need-based: Providing support to students who demonstrate financial need.

·       Diversity scholarships: Aim to increase the representation of underrepresented groups in the legal profession. These scholarships can be based on race, ethnicity, gender, sexual orientation, disability status, or other factors.

·       Scholarships for specific legal interests: These scholarships are targeted at students pursuing careers in particular fields of law, such as human rights, public interest, environmental law, health law, etc.

When searching for and applying to external scholarships, it's essential to start early, pay close attention to application deadlines, and tailor your application to align with the scholarship's criteria and values. Please be prepared to submit essays, recommendation letters, and transcripts and to show how receiving the scholarship will help you achieve your legal career goals.

Federal Work-Study Programs

Federal work-study programs and school-specific employment opportunities offer valuable ways for law students to finance their education while gaining professional experience. Here's an overview of how these programs typically work:

Federal Work-Study Programs

Federal Work-Study (FWS) provides part-time jobs for students with financial needs, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the student's law study.

 ·       Eligibility: Students must demonstrate financial need through the Free Application for Federal Student Aid (FAFSA) to qualify for FWS. Eligibility also depends on the school's funding level and the student's financial aid package.

 ·       Pay and Hours: The amount a student can earn through FWS is determined by their financial need and the school's funding. The pay will at least be the current federal minimum wage, but it might be higher depending on the job and the skills it requires. Students are paid by the hour, and schools must pay students at least once a month.

 

·       Types of Jobs: FWS jobs can be on-campus or off-campus. On-campus jobs often involve working for the school, while off-campus jobs are usually with nonprofit organizations or public agencies, and the work performed is in the public interest. We offer work-study positions in our legal clinic or other law-related roles, providing students with valuable professional experience.

 

School-Specific Employment Opportunities

In addition to federal work-study, we offer employment opportunities that might be outside the federal program. These include:

 

·       Research Assistant Positions: Law professors often hire law students to assist with legal research, writing, or other academic projects. These positions can provide deep insights into specific areas of law and valuable mentorship from faculty.

 

·       Administrative Roles: We have a variety of administrative positions available for students, from working in the admissions office to assisting in the library.

 

·       Legal Clinics: Students may work in our legal clinic by supervising attorneys and providing legal services to the community. While some of these positions may be volunteer-based, others might offer pay or work-study funding.

 

·       Teaching Assistantships: Some positions assist in teaching first-year courses or other classes, such as legal writing.

 

Benefits of Work-Study and Employment Opportunities

 

·       Professional Experience: These jobs provide students with valuable work experience, which can be particularly beneficial in competitive job markets.

 

·       Networking Opportunities: Working on campus or in roles connected to the student's field of study offers opportunities to build professional relationships and gain mentors.

 

·       Financial Support: Earning money while studying can help reduce the amount of debt students accumulate during law school.

 

·       Skill Development: Students develop transferable skills, such as research, writing, and interpersonal communication, that can benefit their future legal careers.

 

Students interested in these opportunities should contact the law school's financial aid office to learn about available positions, application processes, and deadlines.

 

Review the Federal Work-Study requirements at https://www.law.cuny.edu/admissions-and-aid/tuition-financial-aid/available-programs/work-study/.

 

Private Loans

When considering financing your legal education, private loans should generally be seen as a last resort after all other funding sources, such as scholarships, grants, federal student loans, and work-study opportunities, have been thoroughly explored. However, there are circumstances where private loans may be necessary to cover the remaining expenses. Here's some advice on when to consider private loans and critical considerations when selecting private lenders:

 

When to Consider Private Loans:

 

1.     After Utilizing Federal Aid: Federal student loans typically offer lower interest rates, more flexible repayment plans, and loan forgiveness programs. Only consider private loans after you've maximized your eligibility for federal aid.

 

2.     Gap Financing: If there's a gap between your financial aid package and the total cost of your education (including living expenses), private loans might be necessary to cover the shortfall.

 

3.     Cost-Benefit Analysis: Consider whether the investment in your education, financed partially by private loans, will likely yield a return in future earnings. It is essential in fields like law, where salaries vary widely.

 

Key Considerations When Selecting Private Lenders:

 

1. Interest Rates and Fees: Compare interest rates (fixed vs. variable) and fees (origination fees, late fees, etc.) across different lenders. Even a slight difference in interest rates can significantly affect the total amount you'll repay over the life of the loan.

 

2. Repayment Plans: Look for flexibility in repayment plans. Some private lenders offer grace periods, the ability to make interest-only payments while in school, or graduated repayment options.

 

3. Co-signer Requirements: Many private loans require a co-signer with good credit, which can lower your interest rate. Understand the responsibilities and risks for you and your co-signer.

 

4. Loan Forgiveness and Discharge Options: Private loans rarely offer forgiveness programs, unlike federal loans. However, some lenders might provide discharge options in cases of death or disability. Understand your lender's policy.

 

5. Customer Service: Research the lender's reputation for customer service. Access to responsive and helpful customer service can be crucial, especially if you encounter financial difficulties during repayment.

 

6. Flexibility During Hardship: Some lenders offer deferment or forbearance options in case of financial hardship, though these can vary widely. Please look at the terms and conditions.

 

7. Loan Consolidation and Refinancing Options: Future opportunities to consolidate or refinance your loans can affect your long-term financial planning. Some lenders offer competitive refinancing options that could lower your interest rate or monthly payments.

 

In conclusion, private loans for legal education should be considered cautiously and carefully. If you determine a private loan is necessary, exhaust all other financial aid forms first and thoroughly research and compare private lenders. Always read the fine print and understand the full implications of borrowing through private loans, considering your career ambitions and potential earnings.

  

 

APPLYING FOR FINANCIAL AID

 

The 2024-25 academic year FAFSA will be available on December 31. ISIRs will be sent to institutions by the end of January 2024.

 

FAFSA Guide – learn about all things FAFSA

 

FINANCIAL AID TO-DO LIST

 

December

Request an FSA ID from the Department of Education

 

Complete your 2024-2025 FAFSA using the IRS data retrieval process.

  • To apply for financial aid for the academic year 2024-2025, complete your FAFSA and use the IRS data retrieval process. It will help streamline the application process and ensure your information is accurate.

 

Please look at your Student Aid Report carefully.

  • I would like you to thoroughly review your Student Aid Report to ensure that there are no errors or discrepancies. Please take the time to examine the document carefully and make any necessary corrections or updates. Our school code is G31913.

 

January

Request an estimated award letter from the Law School.

  • We will send estimated award letters to all future students who completed a FAFSA after January 1, 2024.

  • Final award letters are sent through CUNYfirst after enrollment.

 

After Matriculation

Could you set up your CUNYfirst Account? *

  • Students admitted to the Fall 1L class will get CUNYfirst access and an award letter in early July.

Receive Entrance Counseling and a Master Promissory Note

  • If you accept student loans, you must complete online Entrance Counseling and a Master Promissory Note (MPN) at studentaid.gov. Check your "To-Do List Items" to see if any action is required.

Sign up for Direct Deposit to expedite your loan funds.

 

CUNYFIRST FINANCIAL AID TOOLS

If you receive Financial Aid, you can view all your information using CUNYfirst Financial Aid Tools.

CUNYfirst announcements are sent to your law school email address, so be sure to check your email often for updates and instructions on using CUNYfirst Financial Aid Tools.

In CUNYfirst, you can check your "To-Do List Items" to see if additional documentation is required to finalize your award package. You can learn more about CUNYfirst and Student Self-Service here.

  • In CUNYfirst, click the link to view, accept, and decline your awards.

  • If you don't see an award notification, check the "To-Do List" for instructions.

  • Please respond quickly to avoid packaging and disbursement delays if you need to do anything.

  • Accept or decline all financial aid offered and review the award against semester charges.

  • Please review your billing statement to ensure that it shows all of the Tuition and Fee charges for your current semester enrollment status.

 

CUNY STUDENT FORMS

CUNY Student Forms is our new portal, allowing students to sign and upload documents electronically! This new technology means you can securely submit your financial aid documents without entering the campus Financial Aid Office. As you and our staff of financial assistance work through the forms, the CUNY Student Forms software will send you updates in real-time with documentation based on your answers. Once you have submitted all your forms to resolve outstanding financial aid tasks, the integration with our other CUNY applications will update CUNYfirst in real time.

 

Process for Reapplying for Financial Aid Each Year

  1. Complete the FAFSA Annually: CUNY Law students, like all students seeking financial aid, must complete the Free Application for Federal Student Aid (FAFSA) every year. The FAFSA is the key to accessing federal student aid, including loans, grants, and work-study programs. Submitting the FAFSA as early as possible each year is essential.

  2. Review and Update Information: When you apply again, please ensure all information on the FAFSA is current and accurate. Changes in income, family size, or the number of family members attending college can affect your aid eligibility.

  3. Respond to Requests for Additional Information: The financial aid office may request additional documentation to verify the information in your FAFSA or clarify certain aspects of your application. I would appreciate it if you could quickly respond to these requests.

  4. Monitor Your CUNY Law Email and Financial Aid Portal: Important financial aid notifications, including award changes, document requests, and renewal reminders, will likely be communicated through your school email or a dedicated financial assistance portal.

 

Maintaining eligibility for financial aid requires careful attention to academic performance, enrollment status, and the reapplication process. For the most accurate and specific information about financial assistance at CUNY Law, it is recommended that you contact the school's Office of Financial. The school provides personalized advice and information tailored to your situation.

 

Policies and Procedures

It is essential that you understand the policies and procedures related to financial aid disbursement and adjustments. Understanding these policies and procedures is crucial to effectively managing financial aid and addressing situations that could impact financial aid packages. Here's a general overview of these elements:

 

 

 

Disbursement of Aid

Financial aid is typically disbursed at the beginning of each semester to cover tuition, fees, and other educational expenses. Any excess funds are returned to the student for additional educational needs.

 

Conditions:

Before disbursement, students are often required to complete specific requirements, such as entrance counseling for loans, signing a Master Promissory Note (MPN), and maintaining satisfactory academic progress (SAP).

 

Adjustments to Aid:

Changes in enrollment or financial circumstances can lead to adjustments in the financial assistance package. Receiving external scholarships or grants may also require adjustments.

 

Maintaining Eligibility for Financial Aid

Maintaining eligibility for financial aid at the School of Law is essential, just as at most institutions. This depends on meeting specific academic and enrollment criteria and following the annual financial aid application process. Understanding these requirements is crucial to ensuring continuous financial support throughout your law school journey. Below is a general overview of the practices that likely apply to CUNY Law, although specific details can vary and should be confirmed with the school's financial aid office.

 

Academic Requirements

  • GPA: Students must maintain a minimum grade point average (GPA) to remain eligible for financial aid. Students must retain a 2.5 or higher on a 4.0 scale for our law program.

  • Satisfactory Academic Progress (SAP): Beyond GPA, CUNY Law students must meet Satisfactory Academic Progress standards, which include completing a certain percentage of attempted courses. SAP standards are designed to ensure that students are making adequate progress toward degree completion within a reasonable timeframe.

 

Please review the GPA and SAP policies at https://www.law.cuny.edu/admissions-and-aid/tuition-financial-aid/satisfactory-academic-progress/.

 

Enrollment Status Requirements

  • Full-Time vs. Part-Time Status: Financial aid eligibility often depends on your enrollment status. Full-time students might have access to more financial aid, while part-time students are typically eligible for assistance on a prorated basis. It's essential to know how changing your enrollment status from full-time to part-time or vice versa can affect your financial aid package.

  • Changes in Enrollment: Dropping classes or withdrawing from the semester can affect your financial aid eligibility. It's important to discuss any significant changes in enrollment status with a financial aid advisor to understand the implications.

 

Withdrawing from Classes and The Return of Title IV (R2T4) Funds

The Return of Title IV (R2T4) Fund's policy is a federal regulation that applies to students who receive federal financial aid and who withdraw, drop out, are dismissed, or take a leave of absence from an institution before completing more than 60% of the enrollment period for which they were charged. This policy is crucial for students and institutions alike, as it governs the calculation and return of federal funds disbursed to students who still need to complete their enrollment period.

 

 

Key Points of the Return of Title IV Funds Policy

 

  1. Determination of Earned Aid: The R2T4 policy stipulates that students earn their federal financial aid in proportion to the amount of time they are enrolled during the payment period. If a student withdraws or leaves before completing 60% of the enrollment period, a portion of the federal funds awarded may need to be returned to the Department of Education.

  2. Calculation of Earned vs. Unearned Aid: The amount of aid that a student has earned is calculated on a pro-rata basis. For example, if students complete 30% of the payment period, they earn 30% of the aid they were initially scheduled to receive. The remaining 70% of unearned aid must be returned to the federal programs.

  3. Institutional vs. Student Responsibility: The R2T4 calculation determines the amount of federal aid that the institution must return and the amount, if any, that the student must return. Schools must return the lesser unearned Title IV funds or institutional charges multiplied by the unearned percentage. Any amount of unearned grant funds a student must return directly is considered an overpayment.

  4. Order of Return: Federal regulations specify how funds must be returned to financial aid programs. Typically, funds are returned in the following order: Unsubsidized Direct Loans, Direct PLUS Loans, and other Title IV assistance for which the return of funds is required.

  5. Post-Withdrawal Disbursement: If it is determined that a student withdrew after having earned more aid than was disbursed, the student may be eligible for a post-withdrawal disbursement of the earned aid that was not received.

  6. Notification: Institutions must notify students of their R2T4 policy and the financial implications of withdrawing from all courses. They must also inform students of post-withdrawal disbursement eligibility within a specified timeframe.

 

Student Actions and Considerations

  • Notification of Withdrawal: Students planning to withdraw from their program should notify the financial aid office as soon as possible to understand the economic implications.

  • Understanding the Impact: Withdrawing from courses can affect your financial aid eligibility for the current semester and future aid under the Satisfactory Academic Progress (SAP) standards.

  • Loan Repayment: Unreturned amounts that become a debt owed by the student may affect loan repayment terms, including the start of the repayment period.

 

The return of Title IV Funds policy emphasizes the importance of completing enrolled courses to maximize the benefit of federal financial aid. Students considering withdrawal or facing circumstances that might lead to withdrawal should consult with the Office of Financial Aid to fully understand the potential impact on their financial aid and academic progress.

 

Please review the school's policy at https://www.law.cuny.edu/admissions-and-aid/tuition-financial-aid/withdrawing-from-classes-or-school/.

 

Financial Aid for Special Circumstances

Financial aid is crucial in supporting students' educational pursuits, and there are provisions to adjust aid based on exceptional circumstances that may affect a student's economic situation. Additionally, specific resources and types of aid are available for international students and students with disabilities.

 

Financial Aid Adjustments for Special Circumstances:

Students who experience significant changes in their financial situation after submitting their Free Application for Federal Student Aid (FAFSA) can request a reevaluation of their financial assistance package. Exceptional circumstances that might warrant a reevaluation include:

  • Loss of employment or a significant reduction in income.

  • Medical expenses are not covered by insurance.

  • Death of a primary wage earner.

  • Divorce or separation.

 

Process:

Students should contact the Office of Financia Aid to discuss their situation and learn the required documentation to request a reevaluation. The process, often called "Professional Judgment," involves submitting a formal appeal and documentation of the changed circumstances. The law school has procedures and deadlines for these requests, so acting promptly and providing detailed information is essential.

 

Aid for International Students:

Financial aid options for international students in the U.S. are more limited compared to those available to U.S. citizens and eligible non-citizens, but there are still several resources:

  • Institutional Aid: The law school offers scholarships for international students. However, it does not provide any federal aid or loans.

  • Private Scholarships: Various organizations and foundations offer scholarships to international students. Websites like the International Education Financial Aid (IEFA) can help students find these opportunities.

  • On-Campus Employment: International students on F-1 visas are typically allowed to work on campus up to 20 hours per week during the school term under certain conditions, providing a source of income to help fund their education.

 

Resources for Students with Disabilities:

The law school assists students with disabilities to ensure equal access to educational opportunities. Financial aid resources may include:

 

  • Vocational Rehabilitation Programs: Students with disabilities may be eligible for assistance through state vocational rehabilitation programs, which provide funding for education and other services.

  • Accommodations and Support Services: Beyond financial aid, the law school provides accommodations and support services to help students with disabilities succeed academically, including note-taking assistance, extended test time, and specialized equipment or software.

 

Action Steps:

  • Contact the Office of Financial Aid: If you're facing financial hardships or circumstances, your first step should be to contact the Office of Financial Aid. We can guide you through requesting aid adjustments and inform you about available grants, scholarships, or other forms.

  • International Students Office: International students should check with the Office of Financial Aid for scholarship information and other financial resources.

  • Disability Services Office: Students with disabilities should connect with Student Affairs for disability services and financial aid to learn about financial aid options, accommodations, and other available support services.

 

Understanding and accessing these resources can significantly impact students' ability to fund their education and access the support they need to succeed academically.

 

 

 

Budgeting and Financial Management

Managing living expenses on a student budget, particularly in a city as costly as New York, requires careful planning and financial literacy. Developing and adhering to a budget can help our law students minimize debt and focus on their studies. Here are some tips for budgeting and managing living expenses, along with information on financial literacy resources and workshops that can be beneficial.

 

Budgeting and Managing Living Expenses

Track your monthly expenses to understand where your money goes. Then, create a budget that covers your essential needs, such as rent, utilities, groceries, transportation, and course materials. Remember to allocate a small amount for savings and emergencies.

 

Use budgeting tools and apps to help you track your spending and stay within your budget. Examples include Mint, You Need a Budget (YNAB), and PocketGuard.

 

Limit discretionary spending by identifying areas where you can cut back, such as dining out, subscriptions, and entertainment. Look for student discounts and consider cheaper or free alternatives for leisure activities.

 You can save on textbooks by buying used books, renting them, or using digital versions. Also, does our library have copies available for loan?

 Plan meals and cook at home to save money and eat healthier. Meal planning can help you avoid impulse buys and reduce food waste.

 Maximize public transportation. It can be more affordable than owning and maintaining a car, especially in a city setting, considering parking, insurance, and gas costs.

 Please use financial literacy and workshops, including on-campus workshops, online resources, credit counseling services, our school's financial aid office, and professional financial advisors. Financial literacy and practical money management skills are crucial for law students, helping them navigate school with less financial stress and laying a solid foundation for future financial well-being. Watch for resources and support offered by CUNY Law and other organizations dedicated to student success.

 For more information on Financial Literacy, visit our website at https://www.law.cuny.edu/admissions-and-aid/tuition-financial-aid/financial-literacy/.

 Loan Repayment and Forgiveness

Navigating loan repayment and exploring forgiveness options are crucial steps for law graduates managing their student loan debt. Federal student loans offer repayment plans tailored to different financial situations and forgiveness programs for those in specific public service careers. Here's an overview to help law graduates understand their options.

 Repayment Plans for Federal Student Loans

Federal student loans offer several repayment options, allowing borrowers to choose or switch plans as needed to fit their financial circumstances:

 1. Standard Repayment Plan: This plan requires fixed payments over ten years and has the lowest total interest paid compared to extended plans.

 2. Graduated Repayment Plan: Payments start lower and increase every two years, designed to complete repayment within ten years (up to 30 years for consolidated loans).

 3. Extended Repayment Plan: This plan allows fixed or graduated payments over 25 years, reducing monthly payments but increasing the total interest paid.

 4. Income-Driven Repayment Plans (IDR): Monthly payments are a percentage of your discretionary income. There are several types of IDR plans, including Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR). These plans offer loan forgiveness after 20-25 years of qualifying payments.

Loan Forgiveness Programs Relevant to Law Graduates

1. Public Service Loan Forgiveness (PSLF): This program forgives the remaining loan balance after ten years of qualifying public service employment and 120 qualifying payments. Eligible jobs include positions in government organizations, nonprofit organizations, and other public service jobs. This program is mainly for nonprofit graduates pursuing careers in public interest law, government, or nonprofit sectors.

2. Loan Forgiveness for Lawyers: Some states and organizations offer employment assistance programs (LRAPs) for lawyers in public interest law or underserved areas. These programs often provide annual funding to help repay loans.

3. Income-Driven Repayment (IDR) Forgiveness: If you're not in a public service position, remember that IDR plans offer forgiveness after 20-25 years of qualifying payments, depending on the specific plan.

Debt Management Strategies and Resources

 1. Understand Your Loans: Keep track of your loan details, including balances, interest rates, and servicer contact information. The National Student Loan Data System (NSLDS) can help you track federal loans.

2. Consider Consolidation: Direct Loan Consolidation can simplify repayment by combining multiple federal student loans into one, with a single monthly payment. However, weigh the impact on forgiveness eligibility and average interest rates.

3. Explore Repayment Assistance: Beyond forgiveness programs, look for employer-based repayment assistance, state-based LRAPs, and federal programs for specific professions.

4. Stay Informed on Policy Changes: Student loan policies and programs can evolve, so stay informed about any changes affecting your repayment strategy. 

5. Seek Advice: For tailored guidance, utilize resources like the Federal Student Aid website at Studentaid.gov, financial aid offices, and financial advisors specializing in student loans.

 Effective loan management requires understanding your options, making informed decisions about repayment plans and forgiveness opportunities, and staying proactive about managing and reducing your debt. These strategies and resources can provide a pathway to financial stability and loan forgiveness for law graduates, especially those in public service.

 Saving on a Valuable Education (SAVE) Plan

President Joe Biden's administration proposed the Saving on a Valuable Education (SAVE) Plan as part of broader efforts to make higher education more affordable and reduce student loan debt burden. The SAVE Plan aimed to overhaul existing income-driven repayment (IDR) plans for federal student loans, consolidating them into a more simplified and generous structure. This initiative was part of policy changes and proposals to enhance the federal student loan system's fairness and manageability.

 Key features and goals of the proposed SAVE Plan included:

Simplified Income-Driven Repayment Plan

  • Lower Monthly Payments: The plan proposed significantly lowering monthly payments for federal student loan borrowers by reducing the percentage of discretionary income used to calculate monthly payments. For many borrowers, this means halving the amount they owe each month compared to existing IDR plans.

  • Increased Discretionary Income Protection: The plan aimed to increase the income protected from loan repayments, potentially ensuring that lower-income borrowers might not have to make any payments.

  • Faster Path to Forgiveness: The SAVE Plan offered a quicker path to loan forgiveness, with the potential for remaining debt to be forgiven after 20 years of payments and even sooner for those who borrowed less.

Enhanced Support for Vulnerable Borrowers

  • The initiative aimed to provide better protections for borrowers at risk of delinquency and default by automatically enrolling those behind on payments into the IDR plan.

Focus on Undergraduate Loans

  • The plan mainly focused on making undergraduate loans more manageable, with more generous terms proposed for these borrowers than those with graduate student debt.

Implementation and Legislative Support

  • Borrowers enrolled in the REPAYE plan will be automatically transferred to the SAVE plan. Although the new plan's regulations will come into full effect on July 1, 2024, the Biden administration has already implemented several aspects of the SAVE plan to assist student loan borrowers facing financial difficulties.

Potential Impact

  • The SAVE Plan could substantially reduce the financial strain of student loans for millions of Americans, making higher education more accessible and helping to alleviate the long-term economic impact of borrowing for college.

 It's important to note that policy proposals can evolve, and their implementation can depend on various factors, including legislative approval, regulatory processes, and the political climate. For the most current information on the SAVE Plan and its status, checking official resources such as the U.S. Department of Education's website or recent news updates would provide the latest details.

 The CUNY School of Law Financial Aid Office provides assistance and information regarding financial aid options, application processes, and more. Here are the contact details and resources for further assistance:

 CUNY School of Law Financial Aid Office Contact Information

 The financial aid office commits to responding within 48 hours, providing a swift channel for inquiries and support.

 Online Resources

Visit the CUNY School of Law Financial Aid page for more detailed information and resources on financial aid options, including scholarships, loans, and work-study programs. Visiting the CUNY School of Law's official website at https://www.law.cuny.edu/admissions-and-aid/tuition-financial-aid/ and navigating to the 'Tuition & Financial Aid' section will give access to comprehensive financial aid resources, including application guidelines, eligibility criteria, and FAQs.

 For current students, these resources are invaluable for planning and managing the financial aspects of law school education.

 This information seeks to cover all the essential aspects of financial aid that CUNY Law students need to know, providing a comprehensive resource as part of the student handbook.

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