The Young Texas Lawyer

No other topic is more dear to a recently admitted attorney’s heart than student loans. They are both the key to getting one’s license, but also an albatross for those forced to borrow. For those that took the initial taste from the government and went back to private lenders for more, the pain is even greater. In what appeared to be a surprise to most, the National Law Journal is reporting that the American Bar Association has started lobbying the government to let unemployed graduates convert private loans into federal ones. The change could allow them to defer repaying those loans for as long as three years.

It’s a good start, but does not go far enough. The program should extend to employed graduates as well. Essentially, allowing all law graduates to borrow from the federal government to immediately pay off any private debt, since most private loans carry no prepayment penalty, would make much more sense. Borrowers could then enjoy the deferral benefits of federal loans and only have one lender to worry about.

It makes perfect sense, would ease the burden on lenders, and would generate revenue for the federal government. The only problem with the plan is that it makes too much sense, and like most things mired bureaucracy, that might be enough to kill it.