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UCLA School of Law Postgraduate J.D. Loan Repayment Assistance Program (LRAP)

UCLA School of Law. UCLA School of Law Postgraduate J.D. Loan Repayment Assistance Program (LRAP) And its Interaction with the Federal Public Service Loan Forgiveness. Spring 2010. What is LRAP?.

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UCLA School of Law Postgraduate J.D. Loan Repayment Assistance Program (LRAP)

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  1. UCLA School of Law UCLA School of Law Postgraduate J.D. Loan Repayment Assistance Program (LRAP) And its Interaction with the Federal Public Service Loan Forgiveness Spring 2010

  2. What is LRAP? • UCLA’s Loan Repayment Assistance Program (LRAP) is designed to aid UCLA Law J.D. graduates, who are engaged in public interest work, meet their monthly educational loan payments by providing them with a forgivable loan, which could reduce and in some cases entirely eliminate the scheduled monthly loan payment obligation to lenders.

  3. Qualifying Employment • LRAP provides financial support for recent J.D. graduates employed in public interest or public service setting that makes substantial use of legal skills • LRAP supports the applicants who are employed full-time at a nonprofit organization or an agency of government in a law related employment • Positions in private firms, even if doing public interest, are not qualifying

  4. Eligible Loans • Federal Perkins Loan • Federal Stafford Subsidized Loan • Federal Stafford Unsubsidized Loan • Graduate PLUS Loan • Private Law Loan • Bar Loan

  5. Program Guidelines • $105K Allowable Debt • $80K Annualized Income Ceiling (for married applicant spouses income may be taken into consideration) • $10K Accumulated Assets per year allowed ($20K for married applicants) • No Applicant Contribution on Annualized Income of $55K or lower • Applicant’s Contribution equals 35% of income above $55K • Contribution Point to increase by $1K per year starting with the 3rd year of participation

  6. Program Guidelines (Cont.) • Dependent Children Allowance: $6K for one dependent child, $4K for each additional dependent child • Highest interest rate covered; 8.25% • Repayment schedule cannot be shorter than 10 years • First application must be submitted within 3 ½ years of graduating • Maximum length of LRAP participation is10 years

  7. Case Sample: Joe Bruin • Married applicant without dependents; Class of 2007 • Spouse is employed, however income lower than the applicant’s • Employed with Homeland Security as Senior Policy Analyst • Applicant’s total law school debt: $104,948 • Applicant’s annualized income: $67,368 • $12K in assets • Monthly loan payments per applicant: $1,276 • Monthly loan payments per LRAP guidelines: $1,217 • Year participating in LRAP: 3rd

  8. Loan Indebtedness Worksheet: Joe Bruin

  9. Calculation Worksheet: Joe Bruin~Standard Option~

  10. Standard Option vs. IBR Option • Standard Option refers to UCLA School of Law LRAP • IBR Option refers to the use of UCLA School of Law LRAP after taking advantage of the Federal Public Service Loan Forgiveness Program • Classes of 2010 and earlier will have the choice between two Options • Classes of 2011 and Beyond must utilize the IBR Option

  11. IBRApprox. Maximum AGI to Qualify for IBR at Specified Debt(2009 Poverty Guidelines) Assumptions: - Interest rate = 6.8% - Household size of 1 residing in 48 contiguous states

  12. UCLA School of Law Loan Repayment Assistance Program (LRAP)—Spring 2010Summary of the Two Options Available to Students From the Class of 2007 Through The Class of 2010* *For the Class of 2011 and beyond, all participants must use the IBR Option.

  13. Case Sample: Josephine Bruin~IBR Option~ • Applicant is single without dependents; Class of 2009 • Employed with The Legal Aid Society as a Staff Attorney • Applicant’s total federal loan debt: $184,294 • Applicant’s annualized income: $44,699 • $3K in assets • Monthly loan payments per applicant: $536 • Monthly loan payments per LRAP guidelines: $536 • Year participating in LRAP: 1st

  14. Loan Indebtedness WorksheetJosephine Burin ~IBR Option~

  15. Calculation Worksheet: Josephine Bruin~ IBR Option~

  16. Loan Indebtedness WorksheetJosephine Bruin ~Standard Option~

  17. Calculation Worksheet: Josephine Bruin~Standard Option~

  18. Summary: Josephine Bruin • IBR Option will allow for Josephine’s entire educational loan debt to be considered for LRAP: $199,294 while the Standard Option would only cover $105K • Josephine’s out-of-pocket monthly loan payment under the IBR Option is zero, while under the Standard Option she would be responsible for $808 on law school debt and approximately $295 on federal loans obtained prior to law school

  19. UCLA’s Loan Repayment Assistance Program Please contact us with any UCLA School of Law Office of Financial Aid Tiffani Mitsuda Biljana Vuletic (310)825-2260 finaid@law.ucla.edu www.law.ucla.edu/lrap

  20. Loan Indebtedness WorksheetJoe Bruin ~IBR Option~

  21. Calculation Worksheet: Joe Bruin~IBR Option~

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