Financial Aid
Frequently Asked Questions
- What qualifies as eligible employment for LRAP?
King Hall graduates who perform law-related work for nonprofit organizations that qualify for tax exemption under IRS Code Sections 501(c), (3), (4), or (5) or who are employed directly by a local, state, or federal government agency.
- What loans are eligible under the program?
Federal Stafford Subsidized, Unsubsidized, Graduate Plus, Perkins and Alternative loans. Includes federal loans taken out for undergraduate and other graduate-level study. Bar Study Loans are not eligible.
- Can I receive LRAP benefits if my student loans are in deferment or forbearance?
No, loans in deferment or forbearance are not eligible for LRAP.
- What is the maximum income to qualify for the program?
Beginning January 2010, the maximum annual income will be $60,000. The current maximum annual income is $53,000. Applicants must report income from all sources.
- How is my spouse or partner's income counted?
Married graduates will be treated as having the higher of (a) their respective incomes or (b) one-half of their joint income, whichever is greater. In the event that both partners are eligible for LRAP, their income and debt will be treated separately or as one-half of the total income and debt for each.
- I have children. How will this affect my LRAP benefit?
We will reduce your income by $5,000 for each dependent you claim as a tax exemption on your federal tax return.
- Is there a maximum number of years I can participate in the LRAP program?
Yes, graduates can receive benefits for a maximum of 10 years of qualifying employment.
- Am I eligible to participate if I am currently holding a judicial clerkship?
No, judicial clerkships do not qualify for the LRAP program. However, for the graduate/clerk who later accepts eligible employment, his or her tenure as a clerk will be credited toward the total number of years of program participation.
- How frequent are payments issued to LRAP participants?
LRAP payments are issued twice during the calendar year in January and July.
- How much LRAP benefit will I receive for each payment period?
Beginning January 2010, for program participants with an annual income of $40,000 or less, the LRAP loan will equal the amount necessary to cover all scheduled payments for eligible law school loans. For participants with an annual income greater than $40,000, the amount of Program assistance will be prorated, with participants expected to make an imputed contribution equal to 35% of income above $40,000.
- How long must I remain in the program before the LRAP benefits I receive are eligible for forgiveness?
Beginning January 2010 your LRAP benefit is 100% forgiven after one full year of eligible employment.
- How do I apply for the LRAP program?
Graduates should submit the following documents to the UC Davis Law Financial Aid Office:
- LRAP Application
- LRAP Employment Certification, including job description, proof of employer 501 (c) tax exempt status or verification that employer is local, state or federal government agency.
- LRAP Agreement and Certification
- A list of educational debts, including the name of each servicer; the month and year each loan went into repayment; the total amount borrowed from each loan program; and the dollar amount of the monthly repayment obligation.
- Documentation from the servicer of each educational debt listed for the applicant and/or spouse.This may be a copy of the repayment agreement, copy of a billing statement or a letter from the servicer.
- Your most recent signed Federal Tax Return including W-2 and schedules.
- Do LRAP participants need to re-apply every year?
Yes, current LRAP participants will need to establish continuing eligibility by submitting to the Law Financial Aid Office no later than May 31 of each year the following:
1. LRAP Update Form
2. LRAP Employment Certification
3. Your most recent signed Federal Tax Return including W-2 and schedules
4. Proof of student loan payments. A loan payment history can be downloaded from most lender web-sites.
- What is the deadline to apply?
King Hall graduates can apply for up to three years after graduation. The deadline to receive applications for the January payment period is November 15. The deadline to receive applications for the July payment period is May 15.
- What other loan forgiveness programs are available for Public Interest employment?
The College Cost Reduction and Access Act (H.R. 2669 and Public Law 110-84) passed in September 2007 created a new Federal Public Service Loan Forgiveness program. Borrowers repaying federal Direct Loans who work in public service professions (such as jobs in schools, charities, and government) for 10 years can cancel any federal student loan balances that remain after that period. For more information about the Public Service Loan Forgiveness program visit www.equaljusticeworks.org/ and click on Debt Relief and Loan Repayment Assistance.
Purpose
The King Hall Loan Repayment Assistance Program (LRAP) was established in 1990 to assist recent graduates entering public interest/public benefit legal employment with educational loan repayment. In the past, it was difficult for many graduates to seriously consider this worthwhile and rewarding employment option because of educational debt burden and the corresponding payments. The LRAP program has effectively removed the employment barrier by offering interest free loans to qualified graduates.
UC Davis Law's LRAP is a forgivable loan program. Twice during the calendar year LRAP recipients apply for a forgivable loan that covers a six month loan period--January through June and July through December. Recipients use the LRAP proceeds to make regularly scheduled student loan payments to the holders of their education loans. At the end of the six month loan period recipients submit documentation which confirms loan payments were made on time and in the amounts previously agreed upon.
After one full year of eligible employment, the previous LRAP loan is forgiven and a new six month LRAP loan is issued. This cycle repeats every six months as long as the recipient remains eligible for LRAP.
LRAP recipients are required to re-establish eligibility every six months by submitting an updated application. Once continued eligibility is established and the prior loan is forgiven a new promissory note will be issued for the next loan disbursement.
To participate in the program for the January-June eligibility period, graduates should submit their application by November 15. To participate in the program for the July-December eligibility period, graduates should submit their application by May 15.
The LRAP loans are used to make monthly or quarterly educational loan payments. Upon the completion of two years of public interest/public benefit employment, the School begins to forgive the interest-free loans at the rate of 25 percent per year. At the end of five years of qualifying employment, the LRAP effectively becomes a grant program and all loans are forgiven.
Eligibility
King Hall graduates from the class of 1990 and beyond are eligible to receive benefits if they borrowed federal and private educational loans for the J.D. Program. In addition, federal and alternative loans received for undergraduate and other graduate-level study are considered part of the total debt eligible for repayment assistance. Regents or private Bar loans are not eligible for repayment assistance. Loans must be in repayment status to qualify for LRAP funding. Loans in forbearance or deferment are not eligible for LRAP assistance.
Eligible Employment
Assistance is provided to King Hall graduates who perform law-related work for nonprofit organizations qualifying for tax exemption under IRS Code Sections 501(c)(3), (4), or (5) or who are employed directly by a local, state, or federal government agency. Graduates who accept eligible employment AFTER a judicial clerkship will have their tenure as a clerk credited toward the total number of years of Program participation. The Program will not disburse benefits to graduates while they are performing judicial clerkships.
Income Ceiling
Graduates earning an annual income of $53,000 or less are eligible for program benefits. Beginning January 2010 the ceiling changes to $60,000 or less. Applicants must report income from all sources.
Additional Information
- Graduates must apply for the Program within the first three years following graduation.
- Eligible participants may enter the Program at any time.
- Program participants will be issued two checks per year. Participants who leave the Program before LRAP loans are totally forgiven will be required to repay the un-forgiven part of these loans.
- Interest will start to accrue as soon as the participant leaves qualifying employment.
- The receipt of a loan under this Program may create taxable income in the year of receipt or in the year any loan amount is forgiven or is terminated by the Program. For more information, refer to IRS Publication 970 - Tax Benefits for Education.
Policy of Non-discrimination
In evaluating applicants for LRAP, the School of Law shall not discriminate on the basis of the applicant's race, color, national origin, religion, sex, sexual orientation, handicap, or age, nor on the basis of an otherwise eligible employer's social, political, or ideological orientation.
Disclaimer
By implementing this Program, the UC Davis School of Law makes no guarantees as to the future funding or permanent existence of this Program. The Law School reserves the right to terminate or modify the Program or any of its provisions at any time. Benefits will be paid only to the extent that funds are available and the Program continues to exist.
In the event of insufficient funding, applicants with greatest need and lowest income will be funded first.
Application Forms
Please read the LRAP Bylaws for more detailed information. If you have questions the LRAP Bylaws do not address, please call 530-752-6573 or send email inquiries to financialaid@law.ucdavis.edu.
