Rep. Nadler Joins LSNYC in Announcing LSC Grant to Address Student Loan Crisis

September 22, 2015, NEW YORK—New York Congressman Jerry Nadler and Legal Services Corporation President Jim Sandman today joined leaders of Legal Services NYC to announce that the legal aid provider has received a 24-month $346,738 LSC Pro Bono Innovation Fund grant to address student debt issues for low-income individuals.

The project will enlist volunteers who are transactional lawyers at large firms and corporations, as well as law students and others, to help secure appropriate debt discharges, consolidation, and income-related relief.

“For more than 40 years, Legal Services Corporation has fought against poverty and sought justice for low-income residents by providing them with high quality free legal help on various civil legal cases ranging from housing, domestic violence to public benefits issues,” said Congressman Nadler. “Today I’m proud to join LSC and announce these grants from the Pro Bono Innovation Fund.  Grants such as the $346,738 to Legal Services NYC, will address student debt issues, which has reached crisis level in our country today.”

Low-income people are often targeted by predatory, for-profit trade schools that make misleading promises about the training offered and job prospects post-graduation. Students can take on tens of thousands of dollars in debt to attend, but are left without much to show for it, and without the means to repay their loans. Other low-income people attend legitimate schools, but fall on hard times because of disability or unemployment. This project seeks to assist all these individuals with their debts. 

“We are grateful to Congress for funding this competitive grant program to increase pro bono support for civil legal aid,” said LSC President Jim Sandman. “The grants we are funding will expand the resources available to serve low-income people, engage more private lawyers in rewarding pro bono work, and leverage our federal appropriation.”

“We are so grateful to the Legal Services Corporation for this funding,” said Raun Rasmussen, Legal Services NYC’s Executive Director. “This new advocacy project will help hundreds of young adults eliminate or reduce crushing debt, allowing them to keep wages at a sustainable level, to re-enter the credit market, and to get relief from the unrelenting pressures of collection agencies.”

Other members of New York’s congressional delegation applauded the grant:

Rep. Charles Rangel (NY-13): “I applaud the Legal Services Corporation for their tireless efforts to empower communities in the fight for justice. Obtaining higher education is crucial for students to gain better job opportunities, and we must do everything to protect them from enrolling in schools where they are forced to take out huge loans with little in return. The LSC’s support for Legal Services NYC will go a long way in providing critical legal assistance to those who are most vulnerable and will help protect our students from misleading job training programs.” 

Rep. Yvette Clarke (NY-09): “Legal Services NYC has a record of distinguished service to the people of the Ninth Congressional District of New York, which I am honored to represent. I and members of my staff have often worked with Legal Services NYC to coordinate assistance to the families of Brooklyn. This grant will allow Legal Services NYC to represent individuals who have been victimized by for-profit trade schools that have used misleading information about the training available and the ability of graduates to find a job. I am certain that their efforts to secure debt discharges, consolidation, and income-related relief will provide these individuals with an opportunity to restore their finances that would not have otherwise been available.”

Rep. Joe Crowley (NY-14): “Unfortunately, there are too many low-income students being taken advantage of by unscrupulous trade schools that leave them in debt and ill-prepared to seize new job opportunities. That’s why organizations like Legal Services NYC are critical – to provide relief and protect vulnerable New Yorkers who are simply seeking a quality education to get ahead. I’m thrilled that they’ve been awarded this much-needed grant to help them do just that and I thank Legal Services Corporation for ensuring the resources are there for programs like these to help some of the people that need it most.”

Rep. Daniel Donovan (NY-11): “Thank you to Legal Services Corporation (LSC) for allocating funds to protect the vulnerable from predatory practices. As the former District Attorney, I know the legal aid services in New York City are second to none, and I’m confident Legal Services NYC will put this grant to good use. In Congress, I’m proud to have voted to protect LSC’s funding, and will continue to do all I can to support their critical mission.”

Rep. Eliot Engel (NY-16): “Legal Services NYC does remarkable work providing pro bono legal representation to people from low-income communities. With their help, New Yorkers who have been the victims of fraud will finally be able to get relief. I am pleased Legal Services Corporation has awarded this grant to Legal Services NYC. Their support will help make sure my constituents get their day in court.”  

Rep. Carolyn Maloney (NY-12): “I am thrilled to congratulate Legal Services NYC for receiving a Legal Services Corporation 2015 Pro Bono Grant for $346,738. Legal Services NYC has been there to help people who have been persuaded by unscrupulous predatory, for-profit trade schools to take on student loan debt they will never be able to afford. All too often students are left with thousands of dollars in federal debt instead of a degree that will open the door to a bright future. Additionally, sometimes disability or unemployment causes people to fall behind and they need legal help. This grant will go a long way in helping Legal Services NYC continue their great work assisting low-income students who are having trouble paying off student loans.”

Legal Services NYC is one of 15 recipients of LSC’s $4 million Pro Bono Innovation Fund, a competitive grant program that invests in projects that identify and promote replicable innovations in pro bono for low-income legal aid clients. This is the second year LSC has awarded the funds.

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