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Loan Repayment Assistance Program
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Loan Repayment Assistance Program
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LRAP Application Deadlines November 1st and May 1stNext LRAP Application Deadline – November 1, 2011 Attention all NEW PARTICIPANTS - Please plan ahead and start the application process NOW since you are required to consolidate your federal loans with Direct Lending. There will be no extensions to this deadline. ATTENTION ALL CURRENT AND POTENTIAL PUBLIC SERVICE EMPLOYEES
Additional Information on the Federal Loan Forgiveness Program:
Continuing LRAP II graduates, please click here for further LRAP II program information.
Georgetown Law’s faculty approved a plan that will enable graduates who work in the public sector for 10 years – and earn up to $75,000* a year in LRAP qualifying employment – to have all of their federal law school loans forgiven. Georgetown Law’s new version of its Loan Repayment Assistance Program (LRAP III) dovetails with the federal government’s new Public Service Loan Forgiveness Program, which became fully effective this year. As a result of the two programs, Georgetown Law students who work for U.S.-based government agencies or nonprofit 501(c)(3) organizations for 10 years after graduation in a legally related capacity (JD degree must be preferred or required), and whose LRAP qualifying income remain less than $75,000*, can borrow the entire cost of attending law school in the form of federally-guaranteed loans and have all of their loan repayments reimbursed by Georgetown Law and the remaining principal balance forgiven by the federal government. Georgetown Law benefits would continue on a diminishing basis for incomes exceeding $75,000*. Under the new federal law, federally-guaranteed loans can be repaid, after graduation, through a new income-based repayment plan that generally limits repayment to approximately 10% of the borrower’s annual income. At the end of 10 years of public service, the federal government will forgive the remaining balance. The Georgetown Law faculty decided that the Law Center will reimburse out-of-pocket repayments for its graduates in eligible public service, effectively ending loan repayments for those who spend 10 years working in modestly paid public interest fields. Current students and those who entered the program in 2010 will receive the full benefit of this plan. *The $75,000 income threshold is for single or married participants (with income earning spouses) filing separate tax returns, and not receiving any other loan repayment assistance from another entity. Married students interested in public service employment within the next year should strongly consider filing their 2010 federal tax returns separate from their spouses. The Federal Income Based Repayment (IBR) calculation will utilize your spouse's income if you file jointly. To reduce your payments as much as possible, only including your income (unless your spouse is not working) and filing separately is the best course of action. If you decide to file your federal taxes jointly and your spouse has an income, we will use your income only and the household size to calculate your IBR payment and LRAP III award. If you have a non-working spouse and/or dependants the amount of income you can earn to receive 100% LRAP coverage is $75,000 + 150% of the HHS Poverty amount for each additional person (current amount for tax year 2009 is $3,740). Starting with the January through June 2010 term, the only student loans that will be covered under the LRAP III program will be federal guaranteed student loans and up to $100/month for Bar Loans.
NEW! LRAP III APPLICATION PROCESS
More information on the Loan Repayment Assistance Program LRAP II Participants Only
History of LRAPGeorgetown Law began the Loan Repayment Assistance Program (LRAP) in 1986 to assist JD graduates in pursuing careers in the field of public interest law within the U.S. as well as international opportunities. Graduates who qualify for LRAP benefits receive assistance with monthly student loan payments in the form of interest-free loans from Georgetown Law. In 1996 the program expanded to include government employees. Since that expansion, the program was divided into two segments: LRAP I, which was open to public interest employees, and LRAP II, which was open to anyone who qualifies for LRAP I and also to government employees. Then the Law Center faculty voted to approve changes that will greatly enhance the program as well as simplify things for prospective LRAP applicants. Effective in May 2007, LRAP I and II were combined into one program, LRAP II, that has the best features of each. Awards are administered to participants as loans that are forgiven after six months. Thus as long as a participant in LRAP remains in his/her eligible employment during the six month term, and qualified for funding, he/she would receive forgiveness for that loan at the end of the six months. In November 2009 the Law Center faculty approved our new LRAP III program which is for new 2010 participants (explained above).
Who may apply for all LRAP programs?Consideration is granted to JD graduates who apply within two years of graduation. Applications submitted more than two years after graduation must be accompanied by a letter of appeal explaining why the graduate is applying outside the two-year window. Such applications will be sent to the LRAP committee and if approved will be awarded as funds permit after all on-time applications have been evaluated. A graduate participating in a judicial clerkship or who are Law Fellows enrolled as students with loans not in a repayment status, which prevents the submission of an application within two years of graduation, may be granted a one-time extension until the next application deadline. Applications for LRAP are available in October of each year, with a deadline to apply by November 1st annually. Mid-year applications are available in April of each year, with a deadline to apply by May 1st. If the 1st falls on a Saturday, Sunday, or holiday, all materials will be considered timely if they are received by the next business day.
General Eligibility Criteria for all LRAP programsJD Graduates owing outstanding balances on their Georgetown University student account are not eligible to apply for LRAP funds until the balance owed is paid in full. Graduates in arrears on student loan payments are not eligible to participate in LRAP until all accounts are brought to a "current" status. LRAP funds cannot be used to bring a participant's account status current. LRAP coverage will be provided, only for loans borrowed to pay for credits earned within a students' degree requirements and must be loans certified by the Financial Aid Office. If your loans are consolidated under IBR with non-Georgetown Law Federal loans, then these will be covered as well up to the standard 10 year payment on Georgetown Law Federal Loans. Your LRAP funding is for loans that are in a repayment status. It cannot be used to pay any student loan in a deferment or forbearance status.
Loan Repayment Schedule used for LRAP Calculation:
If a graduate chooses to pay his or her federal loans on an accelerated timeline, LRAP eligibility will still be calculated based on the repayment schedules above.
Types of Eligible Employment for all LRAP programsLRAP provides assistance to JD graduates who are employed or self-employed, on a full-time, paid basis, in a law-related capacity by a non-profit 501(c)(3) organization, non-profit international organization, or by a federal, state, local or tribal government agency. (JD degree must be preferred or required.) Some examples of eligible employment include: Asylum Aid , The Children's Law Center, Catholic Legal Immigration Network Inc., Legal Aid, Public Defender Offices, Washington Legal Clinic for the Homeless, Rocky Mountain Legal Defense Fund, ACLU, District Attorney, County Prosecutor, etc. Judicial clerkships are NOT considered to be eligible employment for LRAP since it is not a guaranteed public service track. Law Fellows who are enrolled as students are also NOT eligible for LRAP since their student loans are not in an eligible repayment status. However, a graduate participating in a judicial clerkship or law fellowship which prevents the submission of an application within the two-year window may be granted a one-time extension until the next application deadline.
Disbursement of Funds for All LRAP ProgramsLRAP funds are disbursed twice a year. They are disbursed directly to the participant every six months and in advance of loan payments being due. For example, funds released in mid-December go towards loan payments for January through June. Funds released at mid-year, go towards loan payments for July through December. To receive the December disbursement, a complete and on-time online application, and required documentation materials (available to participants in September/October with a November 1st deadline) must be submitted for evaluation. Any application received without all documentation will be considered incomplete and will not be reviewed until all of the necessary documentation has been submitted by the deadline.
Special Considerations for All LRAP ProgramsLeave of Absence: Participants may take a leave of absence from the program for up to a maximum of two years. Participants are responsible for their student loan payments during the deferment period. If you place your loans into forbearance during the leave period, any interest that accrues will not be covered by LRAP. The time spent on a leave of absence will not be counted towards LRAP forgiveness if it’s requested within a six month term. You may owe money back to the program for the term you were awarded. LRAP Appeals: In certain instances, an applicant may have an employment opportunity or other scenario which does not fall within published LRAP guidelines. In such cases, graduates should submit an appeal of special circumstances to the LRAP Committee for review. All Committee submissions are anonymous and Committee members who are able to identify the appellant are asked to excuse themselves from the voting process. Submissions should be sent well in advance of the first of the months listed below and should be accompanied by supporting documentation. Committee meetings are held as follows:
LRAP Awards for All LRAP ProgramsEligible participants receive LRAP benefits directly in the form of six month loans. At the completion of each six month loan, the award is granted 100% forgiveness. The amount awarded is 100% of a participant’s need, based on the LRAP calculation. Since each award is provided as a loan, with a legally binding promissory note, and LRAP participants are employed by a non-profit or government agency, when the loan is forgiven it is not considered a taxable event by the IRS.
Applying for all LRAP ProgramsLRAP applications are available annually in October and are due NO LATER THAN November 1st. The mid-year application is available in April with a deadline date of May 1st. If the 1st falls on a Saturday, Sunday, or holiday, all materials will be considered timely if they are received by the next business day. All sections of the online application must be complete as well as mailing or faxing required documentation. The applicant is responsible for submitting a complete application by the established deadline. If qualifying employment has been secured before the deadline, but the position does not begin until after the deadline date, the LRAP committee will make every attempt to review applicant eligibility based on the availability of funds. However, applicants should submit all other relevant paperwork by the published deadlines. For renewal applicants that may not be eligible for LRAP funding who wish to stay active in the program, please submit a copy of your Employer Certification every May 1st and November 1st.
We recommend that you submit your LRAP application in its entirety once your consolidation process is complete and you’ve received your IBR payment schedule. LRAP APPLICATIONSThe next LRAP deadine is November 1, 2011. NEW PARTICIPANTS
RENEWAL PARTICIPANTS
Required Documents for complete applications should be faxed or submitted to: Fax (Toll Free): (866) 316-2950 Financial Aid Office/LRAP Committee Other Contact Information:
News You Can Use: February 2011
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