LRAP
Classes of 1994 through 2007
It is with great pleasure that we announce the continuation of the University of San Diego schools of Law Loan Repayment Assistance Program (LRAP) with funding for 2008 awards authorized to assist students who have chosen careers with qualifying public interest employers. Included on this page are the actual application and employer certification form and a complete program description for your review.
The primary eligibility criteria for consideration include the following:
- Employment with an IRS Code 501(c) 3 or 501(c) 4 organization
- Graduation from USD School of Law
- Minimum Loan Debt ( Law School Only) - $70,000
- Maximum Applicant Income - $50,000
There are also other factors on the application that the Governing Board will consider as it reviews applications. A full description of the program is included below.
Date of last modification: March 11 , 2008
Introduction
The importance of public interest law practice in our society cannot be overstated. Many interests worthy of protection—including those of low-income individuals, the environment, children, and other diffuse and unorganized interests—are underrepresented or unrepresented in our legal system. Public interest lawyers working for legal services and other nonprofit organizations ensure that these interests have access to representation in our legal system.
However, as law school tuition and accompanying debt burden increase across the nation, most law graduates are effectively precluded from choosing public interest law as a career. The need to repay staggering law school loans increasingly dictates career choice in favor of a job with a higher salary than most public interest positions can offer. As a result, the important interests identified above suffer progressive underrepresentation and the founding principle of equal justice is sacrificed.
As of 2006, the median nationwide salary for private attorney employment was $95,000; however, the median nationwide salary for public interest positions was only $40,000.1 Due in part to this salary discrepancy, less than 4.0% of 2006 law graduates nationwide entered the public interest field. This continues to be down from a high of 5.8% in 1978 and 3% during the 1980s.2
Across the country, law school tuition continues to increase. These increases have also occurred at USD. As of May 2007, approximately 88% of all USD law students had borrowed money. The average debt of a 2006 USD law school graduate was approximately $93,000 (that figure includes law school loans only, and does not consider undergraduate loans).
The USD School of Law prepares its students to practice public interest law through its existing civil, criminal, immigration, and environmental clinical programs, its Center for Public Interest Law, its Children's Advocacy Institute, and its dedication of some financial aid funding to summer Community Service Grants. USD law students have indicated their interest in and support for public interest law by forming the Public Interest Law Foundation and Pro Bono Legal Advocates. However, this commitment of public interest training is partially mooted by a tuition-loan burden which inhibits postgraduate practice to benefit society. Thus, the law school administration, faculty, and students believe an additional step is necessary to enable law graduates to practice the skills they have acquired in law school: the creation of a Loan Repayment Assistance Program (LRAP or Program) to assist students choosing public interest law as a career in repaying their law school loans.
1Class of 2006 Employment Report and Salary Survey (National Association for Law Placement). Back
2Id. Back
Goals of the Loan Repayment Assistance Program
- To make careers in public interest law financially feasible for USD law graduates.
- To ensure USD's competitiveness among California law schools by providing a loan repayment assistance program, which will attract students dedicated to public service.
- To enhance the provision of legal services to low-income individuals and traditionally underrepresented interests which will otherwise continue to be unrepresented and lack access to the legal system.
- To demonstrate USD's strong commitment to public interest law.
Administration of Loan Repayment Assistance Program
(Amended March 1, 2006)
A. Loan Repayment Assistance Program Governing Board
USD's LRAP will be administered by the Loan Repayment Assistance Program Governing Board generally consisting of the USD School of Law Assistant Dean of Admissions and Financial Aid, the Assistant Dean for Student Affairs, an Administrative Director from the Center for Public Interest and the President of the Public Interest Law Foundation.
B. Application Procedure
On an annual basis, applicants for initial and continuing grants from the LRAP must file an application with the USD School of Law Financial Aid Office. Applicants and continuing participants must provide proof of employment with a qualified employer, income information on a calendar year schedule, a list of educational debts (including the lender's name, the date of origination, and when debt repayment begins) and other financial obligations, a signed copy of the applicant's federal tax returns, the spouse's tax returns and salary information (if applicable), an agreement to report salary increases, and any additional information and/or documents deemed necessary by the LRAP Governing Board. Applications and supporting financial data will be reviewed and evaluated by the Financial Aid Office, who will make recommendations as to eligibility and appropriate benefit level to the LRAP Governing Board.
The LRAP Governing Board will review all applications for grants from the Program and the recommendation of the Financial Aid Director thereon, and award grants based upon the amount of funding available during a given year and each applicant's financial need. Each LRAP Governing Board member has an equally weighted vote. The LRAP Governing Board is authorized to adjust overall Program eligibility criteria based upon changing economic conditions and the amount of funding available to the Program.
All Program applicants authorize the LRAP Governing Board to request completion of financial information forms and submission of relevant financial documentation. Failure of any applicant to comply with these requirements on a timely basis may result in termination or denial of Program eligibility.
C. Nondiscrimination Policy
The LRAP Governing Board must consider the application of any law graduate who meets the threshold requirements in Section IV below, and must make benefit decisions based solely upon the applicant's individual financial need and the amount of Program money available. The ideology of the nonprofit organization by which the graduate is employed may not be considered in determining Program eligibility or benefit level.
Eligibility Requirements
(Amended March 1, 2006)
A. Eligible Classes
USD's LRAP is available to law graduates in the graduating class of 1993 and thereafter.
B. Eligible Employment
Graduates are eligible to participate in the Program if they (a) work in full-time law or law-related positions with a nonprofit organization qualifying for tax exemption under section 501(c) 3 or 501(c) 4 of the Internal Revenue Code, and (b) earn an annual salary of $50,000 or less at time of initial application for LRAP participation. At this time, employment with government agencies (including courts) is not qualifying employment.
C. Minimum Debt Requirement
Because one of the objectives of the Program is to help those burdened with the largest debts, a graduate must have a minimum law school debt at the initial application of $70,000 (including private loans). Undergraduate debt may not count toward the minimum debt requirement; however, it will be considered in determining the level of Program benefits available to an eligible graduate.
D. Calculation of Program Benefits
It is the intent of the USD LRAP to vary program benefits based on the graduate's ability to repay law school loans and the amount of funding available for LRAP purposes. For example, an unmarried graduate with no assets making $30,000 per year in qualifying employment might be assisted to a greater degree than would a married graduate who makes $45,000 per year in qualifying employment and has spousal income assistance. Participating graduates will be required to complete standard financial aid forms and submit relevant financial documentation requested by the LRAP Governing Board. The calculation of program benefits will consider, among other things, the graduate's adjusted gross income (AGI) from federal tax forms, spousal income (if any), assets, number of dependents, and other financial obligations. If, based upon the above calculation, the Governing Board determines that a graduate is capable of repaying 100% of his/her loan obligation, then Program eligibility is terminated. Additionally, if a graduate's AGI exceeds $65,000 annually, program eligibility is terminated.
Loan Deferral And Loan Forgiveness
(Eliminated in March, 1999)
Revised Program Terms
(Amended March 1, 1999) (Amended March 1, 2000) (Amended March 1, 2006)
- Participation in the Loan Repayment Assistance Program generally requires qualifying employment of at least one year before payment is authorized and applicant must show proof of actual loan repayment.
- The program will pay a grant in one lump sum upon certification of eligibility. Since the program awards a grant, IRS regulations require that a form 1099 be issued at the end of the calendar year of the grant.
- All grant recipients are encouraged to contribute to and support the Loan Repayment Assistance Program at the School of Law. While there is no longer a requirement of repayment, recipients are encouraged to contribute to the continuation of the program when they are able to do so.
- It is the hope of the committee to award up to five(s) grants of $2,000 to $8,000 each year. The exact amounts of the awards and the number of awardees will depend on the number of approved applications and available funding for the entire year.
Miscellaneous Provisions
(Amended March 1, 1999) (Amended March 1, 2006)
A. Exception to Full-Time Requirement
The LRAP Governing Board is authorized to make exceptions to the full-time employment requirement in Section IV (B) above for a maximum of two years, so long as the employment is not less than half time. A graduate applying for this exception must already be a participant in the Program, having satisfied the full-time employment requirement upon initial application. Examples of acceptable justifications for an exception to the full-time employment requirement include child or elder care responsibilities.
B. Funding
It is anticipated that the administration, students, and alumni will engage in fundraising to support the LRAP. Funds raised for LRAP shall be expended exclusively on LRAP, and shall not be diverted to other uses.
C. Community Defenders, Inc.
On August 31, 1994, Community Defenders, Inc. made a one-time contribution of $36,093.33 to USD's LRAP. These funds are restricted to eligible LRAP applicants who are working in indigent criminal defense.
D. Participation
Graduates are eligible for funding from the LRAP program for a maximum of five years. Students who leave LRAP approved programs and to an approved program and file for funding again can participate for a total of 5 years.
E. Application
In order to be considered for continued funding, participants in the LRAP program must complete the annual application process and continue to have their eligibility confirmed by the LRAP Governing Board.
F. Previous Recipients
As of March 1, 1999 all loans subject to loan forgiveness under previous program guidelines are converted to grants.
G. Disclaimer
By implementing this Program, the University of San Diego School of Law makes no guarantee as to the future funding or permanent existence of this program. The School of Law 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.
Important Dates
The tentative* timetable for Governing Board review of applications is the following:
April 25, 2008 |
Applications should be postmarked by this date |
May 12-21, 2008 |
Application Review Process |
Week of June 16, 2008 |
Application Notification |
June 23, 2008 or after |
Disbursement of Funds (Actual date will be individually determined.) |
*The dates listed are for maximum consideration. Applications submitted at the other times during the year will be considered on funds available basis. Applicants will generally be notified within 90 days of application.
Please note that incomplete applications or applications with missing data will not be considered. This includes missing Employer Certification information and copies of all requested tax information.
Non-USD Loan Repayment Programs
Currently, there are few significant federal options for public interest attorneys to receive help with their educational debt. Some public interest attorneys, however, may qualify for some federal loan repayment assistance. The following describes the LRAP options available at the federal level. Additional information about other LRAP resources can be found on the USD web-site under Financial Aid.
Perkins Loan Forgiveness
Attorneys working in a nonprofit child or family service agency with high risk children from low income families may qualify to have some of their Perkins Loans (not Stafford) forgiven under 34 CFR (Code of Federal Regulations) Section 674.51. Attorneys who believe they may qualify should write to the Perkins Loan officer at their law school, citing this section of the code and requesting loan forgiveness.
Prosecutors working in an agency that enforces criminal law may qualify to have some of their Perkins Loans (not Stafford) forgiven under 34 CFR (Code of Federal Regulations) Section 674.57. Attorneys who believe they may qualify should write to the Perkins Loan officer at their law school, citing this section of the code and requesting loan forgiveness. Public defenders do not currently qualify for this assistance.
Employees of Federal Agencies
Under rules issued by the Office of Personnel Management (OPM), federal agencies may now offer loan repayment assistance. The rules allow agencies to pay up to $6,000 a year, $40,000 total, per person. To receive the benefit, the applicant must sign an agreement to work for the agency for not less than three years. Agencies that may begin offering this benefit include the Department of Justice, Commerce Department, General Services Administration, Social Security Administration, the National Aeronautics and Space Administration and the Veterans Affairs Department. Other agencies may follow. To determine if a specific agency is offering the benefit, please contact that agency directly.
Links to non-USD loan repayment information:
www.equaljusticeworks.org/finance/
www.abanet.org/poladv/priorities/loans.html
College Lost Reduction and Access Act of 2007 (CCRAA)
The CCRAA creates a new loan forgiveness option for borrowers who hold public service jobs. Borrowers who meet requirements outlined in the law may be eligible to have a portion of their student loan debt forgiven. Further information about this program can be found at www.equaljusticeworks.org/finance. Click on the “resource center” tab.
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