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In order to build on its pioneering tradition
of encouraging students to pursue public interest careers, Rutgers School
of Law-Newark established a Loan Repayment Assistance Program (LRAP)
for graduates who make a long term commitment to public interest employment.
This program was developed to provide financial assistance to help defray
law school debt obligations for graduates who have chosen to pursue lower
paid Public Interest/Public Service careers. It is intended to support
and increase the number of Rutgers Law School-Newark graduates serving
the public sector and the people and causes traditionally under-represented
by the bar. The continuing commitment of our students, support of our
faculty and administration, and generosity of our alumni has helped to
build and strengthen our program over the years. In fact, in their
Financing the Future: 2004 Report, Equal Justice Works cited our
program as having the largest growth of any law school LRAP in the country.
They also recognized Rutgers Law School-Newark, along with the University
of California-Berkeley, the University of Michigan and the University
of Virginia as the top four public law schools in per student LRAP spending.
The LRAP is available for all Rutgers Law School-Newark
graduates from the class of 1997 and forward who are employed in law-related
public interest positions, and whose income does not exceed maximum levels
established by the LRAP Board. Graduates are eligible to receive Program
funds for a maximum of five years. The LRAP Board's current policy is to
ensure that each applicant who qualifies receives a proportionate share of
the LRAP funds available for disbursement.
Awards will be made in the form of a loan, and as
such will not be considered as taxable income to the recipient. This LRAP loan indebtedness will be forgiven upon fulfillment of
qualifying public interest employment usually without adverse federal
income tax consequences to the recipient as provided in applicable
provisions of the Internal Revenue Code. In order to qualify to
receive Program funds, graduates must submit an LRAP application and
all required documents each year; sign a Promissory Note in the amount
of the annual LRAP loan; apply the loan proceeds toward the re-payment
of law school educational debt; and promptly advise the LRAP Office of
any change in employment and/or financial condition. Award
amounts are subject to the availability of funds and the number of
applicants eligible in each award period.
ELIGIBILITY: LRAP eligibility and
participation is based on three factors; employment in a
qualifying public interest position, income/financial eligibility, and
law school educational debt.
● Qualifying Public Interest Employment. The
applicant’s primary employment must be in a law-related
public interest position. Law-related means that the position
must substantially utilize the legal training and skills of the
graduate. Public interest is defined as work with:
1) a not-for-profit
organization whose primary purpose is to serve or advocate on behalf of
individuals or organizations whose interests are not adequately
represented by the private sector or the government and that qualifies
for tax exemption under IRS Code §§ 501(c)(3) or
(c)(4);
2) any local, municipal, county, state, or federal government agency or entity.
A graduate who is employed as a Public Interest
Fellow, whose employer is paying his/her loans under the terms of the
fellowship, shall receive credit toward his/her public interest
commitment while serving as a fellow. Public Interest Fellows who do
not receive complete loan repayment from their fellowship would be
eligible for LRAP funds if they meet Program eligibility
requirements. However, Fellowship benefits must be the primary
provider; LRAP funds would be a secondary provider. A graduate
who is employed as a Judicial Clerk and who is intending to work in the
public interest following the clerkship is eligible for loan repayment
assistance as long as his/her salary does not exceed the LRAP salary
cap. If the clerkship salary exceeds allowable maximums, only
time credits will be earned for the duration of the clerkship.
● Income/Financial Eligibility. In order to qualify
for initial LRAP benefits, an applicant’s qualifying income
may not exceed $49,000 for single filers, or $76,000 for joint
filers. This salary cap will be increased by $2,000 for each
additional year of LRAP-eligible public interest employment demonstrated by the
applicant. Qualifying income is determined by adjusting an applicant’s
projected income by the factors described below. If the
applicant’s circumstances show a special need not accounted for in the
following deductions, the LRAP Administrator may adjust the qualifying
income as appropriate to reflect a more accurate income projection for
the year. Qualifying factors are:
1. Child Deduction: A deduction
equal to the IRS dependent allowance in any given year will be allowed
for each dependent child.
2.
Undergraduate/Postgraduate Educational Debt: Although the LRAP
cannot help repay prior educational debt, qualifying income will be
reduced by the annual amount paid in this debt service provided the
required documentation is submitted. With documentation, income
will also be reduced by the annual amount of educational debt service
of a spouse/partner.
3. Child Care Expenses:
Documented child care expenses, up to a maximum of $5,000/year, will be
subtracted from qualifying income.
4. Medical Deduction:
Medical deductions allowable for tax purposes are recognized as
essential expenditures and are deductible.
5. Adjustments to
qualifying income may also be made in cases where an applicant
demonstrates sizable net worth. (Net worth is defined as total
assets minus total debt.)
The LRAP Board reserves the right to adjust the
income cap to take into account reasonable cost of living increases
and/or other extenuating circumstances.
● Qualifying Educational Loans. Only indebtedness
incurred for and applied toward an applicant’s law school
education, such as Stafford, Perkins and other private educational
loans, qualifies for repayment assistance. LRAP does not assist
in repaying any prior educational debt, bar loans or other indebtedness. For
purposes of determining maximum qualifying indebtedness, an applicant’s
“cost of attendance” as calculated by the Rutgers University Financial
Aid Office shall apply.
LEAVES OF ABSENCE. Upon Board approval, a participant may be
eligible to take up to two years leave of absence from the Program for
family care, relocation, debilitating injury or illness, etc.
During the period of approved leave, he/she is not eligible for
repayment assistance; however, upon resuming qualifying employment, the
graduate will again be considered eligible for Program
assistance. Requests for a leave of absence must be made in
writing and submitted to the LRAP Administrator.
ADDITIONAL PROVISIONS. Applicants must submit an application and
all required documentation to the LRAP Office by the application deadline each year in which they wish
to be considered for an award. Recipients have a continuing responsibility to
provide updated personal, financial and/or employment information to remain
eligible for assistance. If a recipient voluntarily leaves public
interest employment before fulfilling his/her commitment, the LRAP
Board reserves the right to request repayment of the LRAP loan(s). If a
recipient involuntarily leaves public interest employment before
fulfilling this commitment (e.g., lay-off), he/she is not
eligible to receive Program funds during the lay-off period; however,
if he/she returns to qualifying employment within a reasonable time,
he/she will be entitled to reconsideration for assistance without
penalty. If a prior recipient becomes ineligible due to a salary
increase that exceeds maximum income limitations, the recipient
will not be eligible for further LRAP funds, but will continue to
receive credit towards his/her public service commitment if employment
in the public interest continues.
For further information, please call
the Rutgers Law School-Newark LRAP Office at 973/353-1702
or email the LRAP Administrator at nfornarotto@kinoy.rutgers.edu
Revised 10/29/07 From
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