SBA Second Debt Seminar presented by GL Advisors
April 6, 2011
Student Bar Association hosts GL Advisor, for second Annual Debt Seminar – Thursday, April 21, 2011
By Jeremy M. Evans, 3L, Student Bar Association, President (2010-2011)
Cornel Catrina, of GL Advisor, began the discussion by letting the attendees know what GL Advisor is. He explained, “GL Advisor is a private business created by graduate students of Harvard Business School about ten years ago, that helps to advise college and graduate students on how to manage their debt.” To the founders of GL Advisor, “the market at the time was too much in favor of the lenders,” while college and graduate students suffered.
Several of the Thomas Jefferson School of Law students in the audience attended the mandatory Financial Aid Exit Interview/Lecture with Marc Berman the night before, and so student debt was fresh on their minds. As Cornel began his presentation, students immediately began asking questions about repayment programs and what they need to do now, in six months from now, etc. Cornel explained the Income Based Repayment (IBR) program and Public Service repayment program (both less than seven years old), each of which offers its disadvantages and advantages. For the IBR program, any remaining debt after 120 monthly payments is forgiven, but the remaining amount is taxable as income for that years tax return. For the Public Service program, the remaining debt after working for 10 years in the public service sector is forgiven, while that amount is not taxable. The monthly payments with the Public Service program are also income-based like the IBR program.
Cornel mentioned the Economic Hardship Deferment program, which is available for students who do not have an income and satisfy other factors. He added that in 2014, the federal government will lower interest rates for federal student loans. He mentioned that having an unconsolidated loan might work in a students favor now, where consolidation could occur in 2014 under lower interest rates.
Cornel closed by saying that students and graduates can plan their repayments in way as to benefit their future earnings and cash flow. He is available for comment, should you wish to connect with Cornel:
The debt seminar is something that all students should have to attend at orientation, during law school, and as they near graduation. Ignoring your debt does not relieve your debt, however, understanding and managing your debt will.