Changes make loan repayment assistance program more generous and available to more graduates
—By Lori Craig
Students have more reason to consider careers in public service or government thanks to a revamping of the school’s loan repayment assistance program (LRAP).
The changes implemented this year make the program more generous and available to a larger number of graduates. The program now allows graduates with nonprofit and government jobs who earn more than $55,000 to participate in the program, while those who earn less may keep more of their money.
LRAP Highlights: -No salary cap -Simplified rate structure -Loan forgiveness in -Who qualifies: |
Under USC Law’s LRAP, created in 1987, qualifying graduates are expected to apply a percentage of their earnings to their annual obligations for educational loan repayments, while USC Law makes a loan for the remainder of those obligations. If a graduate continues to work in qualifying employment for five years, his or her entire LRAP loan will be forgiven.
This year’s major change is the elimination of the salary cap. In past years, any graduate who earned more than $55,000 could not qualify for the program. With the cap eliminated, graduates with significant educational debt and salaries greater than $55,000 may qualify for assistance. Additionally, even if graduates reach an income level where they can no longer borrow from the school, they can continue to earn time for loan forgiveness.
Also, the formula for expected contribution by graduates was simplified by eliminating a seniority allowance and a cost-of-living distinction.
“We have based the program off a higher cost of living because we found that virtually all of our participants were in high-cost-of-living areas,” Bingham says.
Another significant enhancement is that graduates who earn $40,000 or less will not be expected to contribute toward their monthly loan payments; LRAP assistance will cover 100 percent of their loan payments.
Law school administrators hope to see more participation in the program, and they encourage graduates who aren’t sure they qualify to ask.
“We’re always willing to consider requests for exceptions or to be as flexible as we can be within the constraints of the funding we have available and within the constraints of what we’re trying to achieve,” Bingham says.
For full details and to apply to the program, click here, or locate LRAP on the Quick Links drop-down menu on the USC Law home page. Information and application packets also are available in Room 104. The LRAP year runs from Oct. 1 to Sept. 30 and a new application for assistance is required each year. Applications are now being accepted for the 2008-09 year.