O’Melveny Pro Bono Team Advises the Flywheel Fund for Career Choice on Funding Agreements to Help Reduce Student Debt for Stanford Law Students

FOR IMMEDIATE RELEASE

SILICON VALLEY—December 12, 2023—An O’Melveny pro bono team advised the Flywheel Fund for Career Choice, a nonprofit organization that seeks to reduce student debt and expand career choices for law school students, in developing the funding agreements for the 2023 Class of Flywheel Fellows at Stanford Law School.

The funding was announced on December 11.

Created by alumni of Harvard and Stanford law schools, the Flywheel Fund is a pioneering new program created to encourage more graduates of America’s most demanding law and professional schools to pursue careers of public service. It provides an alternative “choice architecture” for law school finance and education, replacing traditional interest based debt (up to $170,000 at Stanford) with income share loans (ISL) that link repayment to post-graduate income.

The O’Melveny pro bono team advising the Flywheel Fund was led by partner Nate P. Gallon, counsel Martin Mayo, and associate Kayla Tanaka.

O’Melveny’s award-winning pro bono program regularly takes on pressing issues, including education, immigration, housing, women’s rights, foster care, veterans affairs, racial justice, criminal justice reform, and voting rights. For additional information, visit our pro bono page.

About O’Melveny

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Contact:

Brandon Jacobsen
O’Melveny & Myers LLP
+1 213 430 8024
bjacobsen@omm.com

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Flywheel issued the following announcement:

Flywheel Fund Continues to Redefine Choice and Reduce Student Debt for Talented Law School Students

Pilot Program at Stanford Law School offers a new model for financing professional education to expand career choice

December 11, 2023 (Palo Alto, Calif.) – The Flywheel Fund for Career Choice, a pioneering new program created to encourage more graduates of America’s most demanding law and professional schools to pursue careers of public service, announced today the 2023 Class of Flywheel Fellows at Stanford Law School (“SLS”). The 10 new Fellows, totaling almost 5 percent of the first year class, represent the third cohort of SLS students selected for this innovative program.  

Following the tremendous student response to the first two cohorts of Fellows, Stanford Law School (“SLS”) has agreed to provide the financial support necessary to fund this latest cohort. This infusion of funds marks a significant milestone for the program, which previously was powered by philanthropic contributions outside of Stanford, and reinforces the Law School’s commitment to empowering graduates to pursue impactful, mission-oriented careers.

“Piloting a potentially innovative new model for financing a legal education is part of our overall efforts to support a variety of career tracks for our students,” said Frank Brucato, Chief Financial Officer at Stanford Law School. “We are delighted that so many students expressed interest in the program and the desire to participate and continue to explore how to help the program expand.”

The non-profit Flywheel Fund for Career Choice was created by alumni of Harvard and Stanford Law Schools to reduce the impact of law school debt on the career decisions of law school graduates. This debt is an important factor in the phenomenon of “public interest drift” that misallocates talent in the legal profession, fuels mental and other health issues among practicing attorneys, and prevents law schools from realizing their broader public service mission.  Stride Funding Inc., renowned for its innovative approaches to higher education financing, serves as the financing administrator, underscoring its commitment to making education accessible. O’Melveny & Myers LLP, the noted international law firm, served as pro bono counsel to Flywheel for the necessary agreements.

Elliot Schrage, Chair of the Flywheel Fund noted, “We created the Flywheel Fund to address the perverse incentives in our current system of financing education distorts the career outcomes for law school students. By introducing a new model that reduces the financial pressure of debt repayment, we empower these talented graduates to commit their time and talent to mission-oriented careers. We are pleased with our progress at Stanford and look forward to rolling out similar programs at other law and professional schools.”

The Flywheel Fund’s unique approach to funding higher education involves upfront investments in students, linking repayment to future income, and recycling funds to finance the education of future cohorts. The program aims to expand opportunities for graduates considering public interest or service careers, both in the legal field and beyond. Ongoing discussions with top law  and professional schools on both the East and West Coasts highlight the program’s innovative nature. Additionally, conversations with professional schools outside the legal field underscore the potential for this program to advance diverse public service missions.

“By linking my loan repayment to my income, Flywheel has taken a huge weight off my shoulders,” said Emily Dwyer, Class of 2026. “I [now] feel confident that I am going to be able to jump straight into the kind of work that I want to do without worrying that my salary isn’t high enough to pay off my loans. [A] lot of doors have opened for me and I am very grateful for this opportunity.”

“Since Flywheel launched our pilot program with Stanford Law School, Fellowships have been awarded to approximately 5 percent of each entering class. This number significantly underestimates actual student interest,” Schrage added.  “Approximately 15 percent of each class completed formal applications. The pilot project has also been accompanied by a long-term research project approved by Stanford’s IRB consisting of a random controlled trial using “matched pairs” of applicants to help identify future innovations and areas for expansion.”

The Flywheel Fund provides an alternative “choice architecture” for law school finance and education, replacing traditional interest based debt (up to $170,000 at Stanford) with income share loans (ISL) that link repayment to post-graduate income. For more information about the Flywheel Fund or the program supporting Stanford Law Students please visit www.flywheelfund.org/students.

1 Stride Funding or FinWise Bank’s loans are not endorsed by Stanford University. Stride Funding and FinWise Bank are not affiliated with Stanford University. Loans may be issued by Stride Funding, Inc or FinWise Bank, a Utah-chartered bank, Member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

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About The Flywheel Fund for Career Choice

The Flywheel Fund for Career Choice is a nonprofit organization created by alumni of Harvard and Stanford law schools. It seeks to expand career choices for law school students, enabling them to pursue public service or other lower-income careers more quickly after graduation. Stanford does not endorse the Flywheel Income Share Loan. The Flywheel Fund is not affiliated with Stanford University nor Stanford Law School. Learn more at www.flywheelfund.org.

About Stride Funding

Stride Funding Inc. is a mission-driven company committed to making education affordable and accessible through flexible forms of financing. Stride Funding has been recognized as a visionary leader for its innovative funding arrangements and commitment to career support. Learn more at www.stridefunding.com.

Media Contacts:

For Flywheel Fund for Career Choice:
Arik Ben-Zvi
Breakwater Strategy
arik@breakwaterstrategy.com
(202) 270 – 1848

For Stride Funding, Inc:
Morgan Viehman
morgan@stridefunding.com
(214) 775-9960

For O’Melveny & Myers LLP
Nate P. Gallon
gallon@omm.com
(650) 473-2604