A judicial clerkship is a prestigious start to a legal career, but it usually pays far less than a law firm job — and you may be carrying a large law school balance. Income-driven repayment keeps your loan payments affordable during a clerkship, and because most judges are government employers, those payments can count toward forgiveness. This guide explains how income-driven repayment works for law clerks in 2026.
Why Law Clerks Should Use Income-Driven Repayment
Many law graduates owe $150,000 or more, while a clerkship salary is modest, especially compared with private practice. Income-driven repayment, often called IDR, ties your monthly payment to your income instead of your balance, so a clerk's payment is usually a manageable few hundred dollars a month rather than the much larger standard amount.
Clerkships Often Count Toward PSLF
Here is the part many clerks miss: federal and state judges are government employers, so a judicial clerkship is usually qualifying employment for Public Service Loan Forgiveness. That means each month of your clerkship, paid on an income-driven plan, can count toward your 120 qualifying payments. A one- or two-year clerkship can bank one or two years of PSLF credit before you even start the rest of your career.
Confirm your court's employer status with the official PSLF Help Tool, and certify your employment when your clerkship ends so the time is recorded.
Your 2026 Income-Driven Options
Rankings
Compare Private Student Loans
Compare private student loan rates, repayment flexibility, and borrower protections side by side.
- Rank #1Editor's Pick
undergraduate • graduate • parent
College Ave
Best for: Students who want flexible repayment options and no origination fees
- 0.25% rate reduction with auto-pay
- Four in-school repayment options
- No application, origination, or prepayment fees
- Borrow from $1,000 up to 100% of cost of attendance
Apply NowRates
Lowest Rate 2.49%
2.49% - 17.99% fixed APR, 3.89% - 17.99% variable APR
Disclosures+
College Ave's student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2) As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (APR): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 6/15/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
For loans in 2026, the main income-driven plan is the Repayment Assistance Plan (RAP), which sets payments at 1% to 10% of income with a $10 minimum and waives unpaid interest each month. Income-Based Repayment (IBR) also remains available and may produce a lower payment for some clerks. Either keeps your clerkship-year payments low while counting toward forgiveness.
Think Ahead to What Comes After the Clerkship
What you do next shapes your strategy. If you move into public-interest work or government — a public defender's office, legal aid, or an agency — you can keep building toward PSLF, and your clerkship months already count. If you head to a private firm, those firm years will not count toward PSLF, but your clerkship credit is not lost, and an income-driven plan still helps you manage payments until you decide whether to pay aggressively or refinance.
A Law Clerk's Repayment Checklist
- Confirm your loans are federal Direct Loans; consolidate older FFEL or Perkins loans if needed.
- Enroll in an income-driven plan as soon as your grace period ends.
- Verify that your court qualifies for PSLF and certify your employment when the clerkship ends.
- Decide your post-clerkship path, since it determines whether to keep pursuing PSLF.
- Recertify your income each year.
The Bottom Line
For law clerks, income-driven repayment keeps payments affordable on a clerkship salary, and because judges are government employers, those payments usually count toward Public Service Loan Forgiveness. Enroll in an income-driven plan, certify your clerkship employment, and let your post-clerkship plans guide whether you keep building toward forgiveness. Even a short clerkship can give you a head start.
Considering law school or a clerkship path? Create your free CollegeLens plan to map your costs and borrowing, and file your FAFSA to access federal Direct Loans.
— Sravani at CollegeLens
Want this in your inbox?
The Family Money Talk Guide is the next read. Sent free.
We will not share or sell your email. Unsubscribe anytime.