Paul L. Caron

Tuesday, September 3, 2019

ABA Employees Are Eligible For Public Interest Loan Forgiveness Program, Perhaps Paving Way For Employees Of Other Non-Legal Service Providers, ABA Secures Loan Forgiveness Status After 3-Year Battle:

ABA Logo (2016)The American Bar Association has come out ahead in its legal fight to ensure that all of its employees qualify for the federal government’s Public Service Loan Forgiveness program.

The ABA has been battling the U.S. Department of Education in court since December 2016, when it filed a lawsuit in the U.S. District Court of the District of Columbia after several employees were informed by the servicer of their government-issued student loans that the ABA is not an eligible employer under the loan forgiveness program.

But the ABA said this week that the loan servicer has reversed course and sent letters to those borrowers stating that it had made an error and that the ABA is a qualified employer for the program. That decision paves the way for any ABA employee to have their federal loans forgiven after 10 years, provided they meet the many criteria laid out under the program.

It also could have implications beyond the ABA, with more lawyers and other public services workers in nontraditional settings becoming eligible for forgiveness.

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Awesome. So the ABA employees can just be denied for some other reason, hence the 99.5 rejection rate for applicants for forgiveness. If that doesn't stop them, the Govt will just pull the plug on the program.

Posted by: JM | Sep 3, 2019 12:29:02 PM