Toll Loan Forgiveness Program

Penn Law is happy to announce some important improvements that have been made to the Toll Loan Forgiveness Program. In 2005, the Dean approved a plan that made the following significant changes to Toll Loan Forgiveness Program:

1. The income eligibility formula was increased to better serve more Penn Law graduates. The new formula is detailed in Section I (D) of the program Guidelines will help graduates at a variety of income levels to choose public sector employment and still pay their substantial law school debts.
   
   
2. The cap on the amount of Toll Loan Forgiveness Program assistance a participant can receive each year was increased from $10,000 to $12,000 per year.
   
   
3. The forgiveness structure was changed to allow for interest-free forgivable loans in all years of participation. Participants should check with their tax advisors regarding taxability of the forgiveness of these loans. Section 108(f) of the Internal Revenue Code (IRC) details the requirements for tax-free forgiveness. Participants who are working for or under the direction of a governmental unit or an organization described in 501(c)(3) of the IRC generally will not have this forgiveness added to their gross income.

Graduates accepting clerkships before entering qualifying employment may have their Toll Loan Forgiveness Program eligibility extended for up to two years.

We hope you will agree that these improvements will help fulfill Toll Loan Forgiveness Program's mission of giving graduates the choice to pursue public sector careers without being hindered by their law school indebtedness. Know that we will continue to evaluate the program. We welcome your comments and questions.