Attorney Shortage Leads One State to Offer Student Loan Relief

Some Ohio student loan borrowers are in luck because the state plans to wipe out thousands in student loan debt this year.

The new debt relief comes via the Rural Practice Incentive Program courtesy of the Ohio Department of Higher Education and offers new licensed attorneys working in rural areas a chance to clear some of their debt.

“This program is meant to address an overall lack of legal representation in rural Ohio,” Ohio Department of Higher Education Chancellor Mike Duffey told The Columbus Dispatch. “It is a win-win not only for those newly licensed attorneys who have loans to repay, but also those communities where their expertise is most needed.”

While 75 percent of Ohio lawyers practice in the state’s seven biggest counties, many of the rural areas lack access to high-quality legal services. A little more than half of Ohio’s population lives in the smaller counties and are often unable to find an attorney when they need one.

“Every Ohioan should have access to justice,” Ohio Supreme Court Chief Justice Sharon L. Kennedy said. “Working together, we will close the gap in legal services in Ohio.”

Under the program, lawyers who work as state public defenders, county prosecuting attorneys, for a county public defender commission or a joint county public defender commission and have been licensed for eight years or less can earn the student loan forgiveness. They also must represent low-income clients in what the state defines as an “underserved community.”

Additionally, attorneys might qualify if they work as a counsel appointed by the court or chosen by a low-income client, as long as they work in that underserved community for at least 520 hours a year. Students in their last year of law school and those who were admitted to practice law in Ohio for less than eight years are also eligible.

To earn the student debt erasure, they must commit to working at least three years. If selected, they can see loan repayment of up to $10,000 a year for at least $30,000 total.

“This is a strategic move aimed at addressing the shortage of lawyers in rural Ohio,” Athena Kan, the CEO of career training platform Dreambound, told Newsweek. “It’s similar to how doctors working in rural areas or public defenders also get loan repayment assistance. Both of those programs have worked well to bring more talent and, importantly, retain the talent.”

Kan added that for many, this type of program will keep them serving those underserved areas long after they receive the loan forgiveness.

“Law school especially needs this,” Kan said. “So many people go to law school and hope to give back to their local communities, but they end up finding that the only way they can pay for their crushing law school debt is to work at a big law firm for a few years.”

Lawyers in this program must be a citizen, national or permanent resident of the United States and can’t be enrolled in another state or federally funded student loan forgiveness plan. Applications must be submitted before March 15.

Some have expressed doubts about the Ohio program.

“Sadly, this Ohio program is disappointing,” Michael Lux, the founder of the Student Loan Sherpa, told Newsweek. “Participants are not allowed to participate in income-driven repayment plans or Public Service Loan Forgiveness. Thus, this program only makes sense for attorneys who have smaller debt amounts.”

The American Bar Association estimates that the average law school graduate has $130,000 in student loans. So for the average attorney, pursuing an income-driven repayment plan and Public Service Loan Forgiveness is preferable to this program, Lux said.

Other Help Available

Ohio isn’t the only state that’s offered some sort of student loan forgiveness to borrowers, depending on their industry and location.

At least 30 other states have similar types of medical professional student loan forgiveness programs, typically for those working in rural or underserved communities. But even if that doesn’t fit a specific situation, there are some options.

“States are coming up with creative new solutions to attract talent, including student debt relief,” Aaron Smith, the co-founder of student loan benefits tech platform Savi, told Newsweek. “Public-sector attorneys often face very high student debt burdens, so this program could have a real impact.”

Federally, President Joe Biden has approved a new $5 billion plan in which 74,000 borrowers will see relief, including 44,000 who have worked 10 years in public service. And 30,000 of the student loan holders affected have been repaying their loans for at least 20 years but were not able to find help through income-based plans.

Biden previously said that loan holders with less than $12,000 in debt who have been repaying for 10 years will also see their debt canceled, starting this month.