Student Loans

The Harvard Law Financial Aid Situation (With Emails)

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We mentioned in Morning Docket that Harvard Law School is cutting back on loan forgiveness to students bound for public interest jobs. The news that HLS is gutting a major initiative that it started just last year is pretty shocking, and we figured you’d like to see the full email from HLS Dean Martha Minow.
First, some background on what HLS was going to do. The Public Service Initiative was launched in 2008. Under the program, HLS would waive 3L tuition for students that committed to public interest jobs for five years after graduation.
It was a pretty good idea. If you are running up the huge HLS bill but you don’t want to go into Biglaw — or BIglaw doesn’t want you — the program would allow you to take the job you want/can get without ruining your financial future.
The problem, apparently, was that way too many HLS students either decided to forgo Biglaw or couldn’t get in the door. The Harvard Crimson reports:

When the program was launched last fall, administrators were unsure how much student interest to expect. Yet, last year, over 110 first-year students indicated their interest in the program–50 percent more than the targeted number–according to then-Law School Dean Elena Kagan.

There are two main takeaways from this overwhelming response: 1) It sure seems like a lot of students end up in Biglaw not because they want to, but because it’s the only way for them to pay off their huge debts. What a surprise. 2) There are a whole lot of 1Ls — at the second best law school in the country — who don’t think they’ll be able to snag Biglaw jobs.
So in response to this information, HLS cuts the program. Brilliant. Let’s get some student reaction and look at Minow’s email after the jump.


Given that the program was a good idea and apparently a necessary idea, what should we make of the HLS decision to cut the program? One student figured it this way:

Harvard is broke. Broke. F***********!

Another student was concerned about the timing of the announcement:

As if [1Ls] didn’t have enough to worry about going into finals during a recession (and a day before the Dec. 1st start date for apps!).

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And now it’s time for my obligatory advice: “if you are thinking of going to law school as a way to improve your economic situation, please think again.”
Below, the full email from HLS Dean Martha Minow.
HARVARD LAW SCHOOL — MEMO — STUDENT FINANCIAL AID
Dear students,
Faculty and staff at the school are mindful that the job market challenges for law students also bring new pressures on those of you–the vast majority of HLS students–who depend on financial aid. Fewer available jobs, lower salaries, deferred starting dates–all these things affect how much money students need to borrow, how soon students can begin repaying loans, and whether students can afford to pursue public interest and government jobs.
These are sobering and real challenges arising precisely at the same time that the school’s own resources are sharply constrained. We are doing all that we can to stretch shrinking resources and want to enable students to make plans, and where possible, reduce anxiety.
My purpose here is to give you an update about some adjustments to our financial aid programs, so that you know what to expect and can plan accordingly. Ken Lafler and our Student Financial Services staff will be able to answer more detailed questions about your personal situation, and to work with each of you individually.
As a threshold matter, although the endowment will produce $2.5M less in financial aid support than was expected 18 months ago, I have made sure that HLS nonetheless plans to increase its total financial aid spending by $2.7M.[1] With regard to need-based financial aid, I can happily say that the School is as committed to a strong and competitive need-based aid program as ever, and has no plans to reduce its base of need-based grant funding.
Beyond that, in order to make sure that the available funds equitably reach those with varied kinds of needs, we have reviewed every element of our financial aid program and have planned now some modifications to the levels and terms of assistance in some of our other programs of financial support, including LIPP, SPIF, and the Public Service Initiative (PSI). These are summarized below.
Low Income Protection Plan (LIPP)
HLS remains fully committed to the Low Income Protection Plan. Indeed, we are expanding its coverage in response to the current economy. Graduates–including deferred associates–who enter qualifying employment at any time can continue to count on help from LIPP to repay their eligible loans. In addition, we will expand LIPP benefits to help new graduates most in need. LIPP assistance has historically been available only to those working in paid positions. For the classes of 2010 and 2011, we will extend LIPP benefits to those working without pay in full-time public service positions that would otherwise be deemed “qualifying employment” under the terms of the program.
We recognize that many other law schools, facing this challenging time, are finding that they have to reduce benefits and are restructuring their loan repayment assistance program accordingly. We have decided that here at Harvard Law School, this is a crucial time to increase our already strong commitment to expanding students’ career choice through loan forgiveness. In addition, with the recently announced creation of the Holmes Public Service Fellowships, which will fund one year of public service work for approximately 12 graduates during 2010-11, we seek to enlarge public service opportunities for students even in this tight job market. The graduates receiving these fellowships of course will also be eligible to receive LIPP assistance during the term of the fellowship.
Summer Public Interest Funding (SPIF)
We will continue to offer Summer Public Interest Funding (SPIF) to all JD and SJD students in the summer of 2010, but, in order to preserve this vital opportunity, we are offering this funding for a maximum of 8 weeks instead of the 10 weeks of the recent past. SPIF will continue to provide a base of guaranteed funding to all students regardless of financial need. The weekly SPIF pay will be $550 for 2Ls and SJDs, $500 for 1Ls, and $375 for students who do not receive financial aid during the academic year. Students will be able to supplement SPIF funding with pay from the employing organization or other fellowships up to a cap of $6,500 for 1Ls and $8,000 for 2Ls and SJDs.
This adjustment in SPIF terms is necessitated by not only the other funding that we are offering such as the expansion of LIPP but also the dramatic increase in the number of students seeking summer funding. The number of students receiving SPIF rose from 375 in 2008 to 495 in 2009 and is expected to exceed 600 in 2010. Despite such increases, we remain one of few law schools that offer guaranteed summer funding to all law students. We need to make adjustments so that we can continue to do so.
Public Service Initiative
In 2008, we launched the Public Service Initiative (PSI) as a pilot program to provide tuition grants in exchange for student commitments to pursue postgraduate public service regardless of students’ financial need. We remain committed to this program for current students despite the economic downturn, but we are not likely to extend it to future incoming classes. Hence, currently enrolled students (and those admitted last spring who deferred) who elect to participate will remain eligible and will receive the promised PSI benefits in full, provided that they meet the obligations of the program. Meanwhile, I have appointed a PSI Task Force that is currently examining how best to use our resources to enhance and promote public service and government career opportunities for future incoming classes. Together, we will develop a successor initiative to offer to students admitted after the fall of 2009. Details of the successor program will be announced by March 2010 to assist the admitted students in their law school decision.
In the weeks and months ahead, we have one clear goal: We want to make sure every available dollar assists students in managing this challenging economic time so that financial difficulties do not unduly constrain career choices nor cause distractions from students’ work and lives. Our priority is to make sure that we offer all of these programs in the most equitable and most effective ways and our commitment is to offer you timely and clear information that you can use in making plans. Please do not hesitate to ask all your questions–we will do our very best to get you all the information you need and to provide you with as much financial security as possible in this time of economic turbulence.
Best wishes,
Martha
Earlier: Harvard Law School To Reduce Public Service Funding

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