LRAP eligibility and application procedures
Franklin Pierce Law Center established the Loan Repayment Assistance Program (LRAP), for JD graduates who take low paying public interest law jobs. Pierce Law recognizes the high debt loads that face many JD graduates and wanted to enable those graduates to still pursue their public interest law careers.
Application Procedures
We are no longer accepting applications for the 2008 LRAP.
Applications will be available for the 2009 LRAP by March 1, 2009 with a deadline of June 1, 2009.
Applications for the 2008 calendar year are now available. Deadline for application is April 30, 2008. Graduates must include with their application:
- a completed application form;
- statement(s) from loan creditor(s) verifying all law school loans (copies of loan statements are sufficient);
- a copy of your and/or your spouse/domestic partner's 2007 federal tax return;
- if you are in private practice, an essay not to exceed two typewritten double spaced pages explaining why you qualify for loan forgiveness.
FORM
- 2009-10 Phinney Fund/LRAP Application will be forthcoming.
Eligibility
Qualifying Employment
The Fund covers JD graduates who are practicing law full time in the public interest area. Public interest is defined as: Jobs with federal, state or local governments, qualified not–for–profits, including legal services programs, as well as legal aid, prosecutors and public defenders offices. Half–time or part–time employment may be covered on a pro–rata basis.
Jobs with private law firms generally do not qualify and, if found acceptable, recipients may be required to report loan forgiveness as taxable income. Work undertaken outside the United States may qualify as a public interest job under the terms of the Fund and will be considered on a case–by–case basis by the Fund Committee.
Currently, federal and state court judicial clerkships are not considered qualifying employment under the Fund. However, a graduate continues to qualify on a deferred basis if s/he engages in a state court judicial clerkship, and immediately subsequent to the clerkship engages in qualifying public interest employment.
Length of Eligibility
Graduates are only covered under the plan for five years; deferred years are not included in this five year period.
Income Eligibility
Graduates with an annual income over $45,000 are not eligible. This amount may change by an amount determined by the Fund Committee in each year.
Income for married graduates will be the greater of the two incomes or one–half of the joint income. A $4,000 allowance for the first dependent child and a $2,500 allowance for each additional child will be made against gross income.
Default/Loan Forbearance or Deferral
For the purpose of receiving funds from this program, a graduate must be making educational loan payments. Graduates who are in default on educational loans are not eligible to receive funds. Graduates who had deferred or received a forbearance on their loans, must be in repayment status in order to receive loan repayment.
Loans Covered
The plan covers all eligible law school loans. Eligible loans are defined as all loans taken to cover the annual law school budget (cost of tuition, books, living expenses, etc.) as determined each year by the Financial Aid Office. Bar study loans are also considered eligible loans. The program does not cover private loans from friends and family.
Calculating Annual Awards
The Director of Financial Aid calculates the qualified graduate's debt to income ratio based on the reported debt and income of the graduate and the graduate's spouse (if applicable). The Director then calculates what the graduate's annual loan payment would be, using the rates for 20 year consolidated loans. Qualified graduates are then awarded up to 50% of their annual loan payments, not to exceed $3500 annually. Preference is given to graduates with the highest debt to income ratios and lowest salaries. The amount of the awards is also dependent on the total number of applicants and the funding available.
Fund Administration
The LRAP Fund Committee
The Committee will be appointed by the Dean. It will be composed of faculty, staff, alumni and the Dean or his or her designee. The committee will annually review the program and suggest changes as appropriate. Certain features of the program may change over time to reflect the impact of the school and it's experience with the program.
Program qualification and fund distribution is coordinated by the Career Services and Student Financial Services Departments and applicants should contact Mary Sheffer, msheffer@piercelaw.edu, in Career Services for more information. Applications are available at the Student Financial Services, Career Services and Social Justice Institute web pages.
Selection of Recipients
Loan repayment assistance is not guaranteed for any JD graduates. Selection of the recipient and the amount of award depend on the availability of program funds. The Fund Committee retains its discretion to adjust the awards based on the funds available.
Disbursement Procedures
Disbursements will be made in the form of a six month forgivable loan that is usually disbursed in April and November. If the participant has remained in qualifying employment, the award is granted 100% forgiveness upon the next disbursement. The loan will be forgiven pro rata if the participant works less than six months in a qualifying position. Upon leaving a qualifying position, any remaining balance due on the loan will be payable in full within six months.
Plan Revisions
The total amount of dollars committed to the Fund will be reviewed annually. Pierce Law reserves the right to make any changes in the program provisions and funding in any given year.
Tax Information
Assistance under this plan may be non–taxable under 26 U.S.C. section 108(f) for participants who work for government entities or 501(c)(3) not–for–profit organizations. Pierce Law is not in a position to give individual advice on these matters; participants should seek their own professional advice.
