With the mortgage market in shambles, some firms are using a tool known as forgivable loans to attract associates. These loans can be a tremendous encouragement for candidates who might not qualify for a mortgage due to outstanding student loans. For example, a firm might offer an associate a $10,000 forgivable loan to defray down payment and closing costs on a home if they join the firm. The loan might be forgiven over a period of time such as three years if the associate continues with the firm. The portion forgiven is taxable to the associate in the year in which it is forgiven. The loan must be repaid if the associate leaves the firm prior to its forgiveness.