- What job positions qualify for LRAP?
- Does Berkeley Law make the loan payments? How does LRAP work?
- Will I qualify for LRAP if I work part-time?
- I secured employment with a private law firm and was offered a 1-year public interest deferred fellowship with a $50,000 stipend prior to the beginning of my employment. If my placement is considered LRAP qualifying employment, will I qualify for LRAP?
- What documents do I need to submit with my LRAP application?
- When can I apply for LRAP?
- Do I need to reapply? How often?
- Can I voluntarily waive the grace periods for my loans and begin my loan payments and LRAP participation?
- What steps should I take to conclude my LRAP participation?
- I am a newly admitted student. Will LRAP still be around by the time I graduate?
- How will the reduced funding due to California’s budget crisis affect LRAP?
- Can I schedule a one-on-one appointment?
- I make over $65,000. How does that impact coverage of my payments?
- What if I am not paid (or my spouse is not paid) in U.S. dollars? How is my income calculated?
- What if my income changes after I’ve already received an LRAP forgivable loan?
- How does my clerkship impact my participation in LRAP?
- How does unemployment impact my LRAP participation?
- How does my spouse or partner’s income factor into LRAP?
- How does having children factor into LRAP?
- Why is my contract length less than twelve months?
- How do I find out what agency services my loans?
- What is negative amortization?
- What is the difference between IDR, IBR, PAYE, and ICR?
- When can I expect my LRAP forgivable loan?
- My application has been processed. When will I receive my payment?
- Can I get my LRAP funds sent directly to my bank account?
- How do I change my EFT settings?
- I received a pay raise after I submitted my LRAP application, when and how much do I need to pay back?
- Does it matter when I make my monthly payments from the LRAP funding?
- Should I report gross or net income on my application?
- When do I have to report address or income changes?
“Low Bono” and Union Coverage Pilot Program
- What is the Low-Bono Program?
- How can I find out if I’m eligible for Low Bono and Union Coverage through LRAP?
What job positions qualify for LRAP? Qualifying employment is defined as greater than half-time work for a 501(c)(3) nonprofit organization or an agency of government in law-related employment. It includes but is not limited to prosecutors, public defenders, military JAG corps, legislative staff, and administrative agency staff that make substantial use of legal skills, for example, by requiring passage of the bar or otherwise drawing heavily on law school training. Positions with other types of nonprofits, international NGOs, or foreign governments meeting the above requirements can qualify for LRAP coverage, but do not typically qualify for Public Service Loan Forgiveness (PSLF). Non-tenure and tenure track academic positions at nonprofit educational institutions, including but not limited to clinical instructors and research fellows, can also qualify. However, the incomes for these positions typically exceed the LRAP income threshold. The inclusion of tenure track academic positions begins with the Class of 2012 JSP graduates who earned their JD at Berkeley Law.
How does LRAP work? Who makes the student loan payments? If you are eligible for LRAP support, you will receive funding directly from Berkeley Law in the form of a forgivable loan for a given period of time. During that period, you make the required student loan payments to your loan servicer on a monthly basis. At the end of your LRAP contract period, you will provide proof of those loan payments, income, and employment. If your income remained the same and you made your payments as expected, your LRAP loan will be forgiven.
Will I qualify for LRAP if I work part-time? In order to be eligible for LRAP, you must be working greater than half-time as defined by your employer. To be eligible for Public Service Loan Forgiveness (PSLF), you must meet your employer’s definition of full-time and must work at least an annual average of 30 hours per week. Please note that for LRAP you are required to report gross income from all sources of income.
I secured employment with a private law firm and was offered a 1-year public interest deferred fellowship with a $50,000 stipend prior to the beginning of my employment. If my placement is considered LRAP qualifying employment, will I qualify for LRAP? LRAP is designed to solely provide assistance to graduates who are pursuing public interest work or government employment as a career. Graduates receiving such deferred fellowships do not meet the LRAP qualifying employment requirement because they have not relinquished their employment with the firm that is providing the fellowship. The employment has been deferred, but not terminated.
What documents do I need to submit with my application? Checklists for first-time and continuing applicants can be found in the “How to Apply for LRAP” page.
When can I apply? You must initially apply for LRAP within 3.5 years after graduation. Please visit “How to Apply for LRAP.”
Do I need to reapply? How often? To renew LRAP support, you should submit an LRAP application 30 days before the end date of your current LRAP contract. For more information and instructions, visit “How to Apply for LRAP.”
Can I voluntarily waive the grace periods for my loans and begin my loan payments and LRAP participation early? No, LRAP coverage begins at the end of your grace period for federal loans, which is generally in December if you graduate in May.
What steps should I take to have my LRAP loan forgiven? You should submit a forgiveness (i.e. cancellation) application within 30 days of your contract end date. For more information and instructions, visit “How to Apply for LRAP.”
How will the reduced funding due to California’s budget crisis affect LRAP? Our LRAP is funded primarily by the Professional Degree Fee and is not dependent on state funding. However, the law school budget as a whole is not unlimited.
Can I schedule a one-on-one appointment? Absolutely. We offer in-person and phone appointments. To schedule an LRAP appointment, please go to our online appointment scheduler. Our office is located at 226 Boalt Hall, University of California, Berkeley, California 94720-7200. You’ll receive a confirmation email once your appointment is scheduled. An appointment to go over your loan repayment strategy is required before entering LRAP.
My gross income is over $65,000. How does that impact coverage of my payments? Once your gross annual income exceeds the imputed contribution threshold, you are expected to pay 35% of every dollar over the threshold to your student loan payments. This is called your “imputed contribution” and is the amount that you will need to pay out-of-pocket towards your loan payments, regardless of what your student loan payment is.
**UPDATE: EFFECTIVE JULY 1, 2019, THE LRAP IMPUTED CONTRIBUTION THRESHOLD WILL INCREASE TO $70,000
|LRAP Income||Imputed Contribution %||
For instance, the second example assumes you are single and your total gross annual income is $75,000. Therefore, your monthly imputed contribution would be about $292 per month (($10,0000 x 35%)/12 months). This means that if you’re billed $500 a month from your loan servicer, you will pay $292 and LRAP will cover $208. If you’re on income driven repayment (IDR) and your loan payments increase to $600 per month, you will pay $292 and LRAP will cover $308. Your imputed contribution does not change so long as your income does not change.
Additionally, the imputed contribution is calculated per month based on your annualized income for that month. Example: Your gross annual salary is $65,000 as of March, but you receive a salary increase to $75,000 effective in April. In this case your imputed contribution is $0 in March and $292 in April.
Once your income exceeds $100,000 (minus any dependent deductions), you no longer qualify for LRAP support.
What if I am not paid (or my spouse is not paid) in U.S. dollars or I work part-time? Your income for LRAP purposes is calculated based on full-time employment in U.S. dollars. To that end, if you are working greater than half-time but less than full-time, we will adjust your income to reflect what it would be if you were working full-time. If you are not paid in U.S. dollars and you live in a foreign country, we will adjust your salary based on a real exchange rate to U.S. dollars to determine your LRAP eligibility.
What if my income changes after I’ve already received an LRAP forgivable loan? If your income changes in a given month, we use the income that corresponds to the position you held for the majority of the month. If your income is over $65,000, you may not be eligible to have 100% of your LRAP loan forgiven. This is addressed in the cancellation (i.e. forgiveness) application review. If you need to “repay” funds, you will be notified after your forgiveness application is reviewed and will have a four month interest-free grace period before interest starts accruing and you need to make payments on the amount owed. However, to help you plan financially, we recommend notifying us as soon as possible (according to the terms of the LRAP promissory note) of any changes that may impact your eligibility so that we can estimate how much of your LRAP loan will not be forgiven.
How does my clerkship impact my participation in LRAP? LRAP is designed to support graduates entering into public interest. For one-year (or less-than-two-year) clerkships, you must enter public interest employment immediately following your clerkship or you will be asked to repay the LRAP funds you received while in the clerkship. Completion of a two-year or longer clerkship (or multiple clerkships totaling two or more years) satisfies the employment requirement for LRAP. However, if you don’t finish the second year of your clerkship, you will need to enter qualifying employment (either at a 501(c)(3) or government entity) immediately following the clerkship to have your LRAP loan forgiven.
How does unemployment impact my LRAP participation? If you are unemployed during your LRAP contract, you are not eligible for LRAP during the period of time. The change in employment will be addressed through the cancellation process. If you received LRAP funds in excess of your eligibility, we will bill you for that amount.
How does my spouse or partner’s income factor into LRAP? Your annual full-time income will not be adjusted unless your spouse has a higher income, in which case we will average your gross incomes. Example: your and your spouse’s incomes are $50,000 and $80,000 respectively. Your income for LRAP purposes would be $65,000. If you also have a dependent, $6,000 would be subtracted from that figure for the first child, and $4,000 for every dependent thereafter.
How does having children factor into LRAP? Your income for LRAP purposes will be reduced by $6,000 for the first dependent and $4,000 for any thereafter. To be considered a dependent, the individual must be claimed on your most recent tax return. Please note child support is considered income for LRAP purposes.
Why is my contract length set for less than 12 months? There are multiple reasons why an LRAP contract length may be less than 12 months. We try to align LRAP contract periods with your income-driven repayment plan and any anticipated changes in family, job, or monthly payment amount. This is ensure that your LRAP forgivable loan is as accurate as possible from the onset. We may also occasionally need to reduce the length of LRAP contracts to ensure funding for all qualified participants.
How do I find out what agency services my loans? If you are unsure on the agency that services your loans, you should review your loans at www.nslds.ed.gov as it will list your loan servicer. Once you’ve located your loan servicer, you can create an online account to access your balance, make payments, and download payment histories.
What is the difference between IDR, IBR, PAYE, and ICR? IBR and PAYE are examples of income-driven repayment plans (IDR). You apply for an income-driven repayment plan with your loan servicer, and they will calculate a payment that is 10-15% of your discretionary income from the prior year. This is the monthly payment that is used to calculate your LRAP forgivable loan amount. (Only the graduating classes of 2012 and prior are eligible for coverage under the standard 10-year repayment plan.) Please note that income contingent repayment (ICR) is NOT eligible for LRAP support.
When can I expect to receive my LRAP forgivable loan? LRAP applications are processed in the order received. It can take between 3-6 weeks for your LRAP application to be processed and for you to receive funding. If your application is incomplete or you have an address change, this process may take longer.
My application has been processed. When will I receive my funds? If you have EFT set up, it can take a couple of days for the funds to be deposited into your account. If you don’t, a paper check should arrive in approximately two weeks.
Can I get my LRAP funds sent directly to my bank account? Yes! We strongly encourage you to set up EFT (electronic funds transfer) to receive your LRAP forgivable loan funds directly into a bank account of your choosing! This not only prevents checks from getting lost in the mail, but also means that you receive your funds faster. Be sure to complete the form as a vendor, and include a voided check when mailing your authorization form. Follow the EFT authorization instructions for UC Berkeley vendors. This is a separate EFT account/process than when you were a student.
I received a pay raise and my new salary will push me over the $65,000 threshold. When and how much do I need to pay back? Please send your updated gross income information to email@example.com. When your cancellation (forgiveness) application is being processed, the LRAP team will re-calculate your eligibility and notify you of the portion of your LRAP loan that is ineligible to be forgiven. If you are required to repay funds, you will be given at least a month in advance notice, and there is a four-month interest-free period before payment is required.
Does it matter when I make my student loan payments from the LRAP funding? Yes, it does matter. In order to receive LRAP funds you must be enrolled in an eligible repayment plan and make monthly, regularly scheduled payments within that LRAP contract period. Payments made outside of the LRAP contract period will not be counted in the forgiveness review. Late payments do not count as qualifying payments for PSLF purposes. If you are enrolled in the IDR track and plan to pursue Public Service Loan Forgiveness, it’s critical that you make your payments on time, when a payment is due, and for the amounts required by your income-driven repayment plan. Late payments do not count for PSLF, and neither do lump sum payments (unless you specifically request not to be put on a paid ahead status). We encourage everyone pursuing PSLF to become familiar with the PSLF requirements and reach out with any questions.
Should I report gross or net income on my application? Please provide us with your gross income before any taxes, deductions, adjustments, etc. While you don’t have to report the value of stocks, bonds, or rental properties, you do have to report income earned from any investments including interest, dividends, and rental profit. Be sure to email firstname.lastname@example.org regarding any changes to income.
What is the Low-Bono Program? The Low-Bono Program is designed to provide LRAP support for graduates from the class of 2010 through 2021 working for either a union or a plaintiffs’-side firm that predominantly provides services to underrepresented members of society in the following types of practice areas:
- Civil and human rights law
- Criminal law
- Employment law
- Housing law
- Immigration law
In addition, LRAP guidelines mandate that at least 50% of the work of the firm and the applicant involve providing legal services on a pro bono, reduced-fee, or court-awarded fee basis to underrepresented persons or organizations.
- Offer letter
- Name and website of the firm
- The firm’s complete area of practice
- Fee structure (sliding scale/contingent fee/etc.) – Who is paying these fees?
- Who is being served? What is the approximate percentage of pro/low bono clients/services?
- What is your anticipated salary?
- A personal statement describing what brought you to public interest, your prior public service experience, and what you see yourself doing over the next five years.
last updated April 25, 2019