Posted Apr 15, 2010 10:23 AM CDT
By Debra Cassens Weiss

Students considering taking out a loan for law school in future years should take a look at provisions in the new health care law that could make repayment easier.

Under the law, new borrowers who take out direct federal loans can have loan payments capped at 10 percent of their discretionary income, down from a 15 percent cap established in a 2007 law, the National Law Journal reports.

The new law takes effect in 2014, and applies only to students who have never taken out a federal student loan, according to the NLJ.

Qualifying students who go on to public interest jobs will have their loans forgiven if they stay in the jobs for 10 years or more and make income-based loan repayments during that time, Georgetown University law professor Philip Schrag told the NLJ.

Even students who don’t take public interest jobs can qualify for the 10 percent cap, and their loans may be forgiven after 20 years, compared to 25 years under the 2007 law, the story says.

Currently, students who want to take advantage of the loan forgiveness provisions must have direct federal loans, or must consolidate their loans. Under the new law, the federal government will make loans directly and eliminate the private loan middleman, making it easier for students to take advantage of the loan forgiveness program.

Recent law graduate Michael Spivak exemplifies the tough road ahead for students who take out massive loans to make it through school. The Minnesota resident took out about 20 loans for $160,000 and figures he will owe $1,000 a month for the next 25 years to pay it all back, Finance & Commerce reports. He is still unemployed.

“In 2004 when I was applying [to law schools] it was assumed that you graduated and made a boatload of money,” he told Finance & Commerce. “Now I try not to think about paying back my loans too much.”

The ABA website has information on the association's efforts to get students loan relief.