LRAP- PSLF- IBR- Comparison- Chart by ps94506

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									                                                                     c o m pa r i s o n o f b e n e f i t s :
                                    k i n g h a l l l o a n r e p ay m e n t a s s i s t a n c e p r o g r a m ,
                                               Federal public service loan Forgiveness
                                                                 a n d i n c o m e - b a s e d r e pay m e n t


                 Uc Davis Loan repayment           federal public service Loan                           federal income-based
                 assistance program (LRAP)         forgiveness program (PSLF)                            repayment program (IBR)

program          The UC Davis Loan                 Through the College Cost Reduction and                Through the College Cost
Description      Repayment Assistance              Access Act of 2007, Congress created the              Reduction and Access Act of 2007,
                 Program (LRAP) is to provide      Public Service Loan Forgiveness Program               Congress also created the Income-
                 financial support to recent       (PSLF) to encourage individuals to enter              Based Repayment program (IBR),
                 graduates employed in the         and continue to work full-time in public              which significantly reduces
                 public or nonprofit sectors       service jobs.                                         monthly payments for high debt/
                 where salaries are typically                                                            low income borrowers with
                                                   Under this program borrowers may
                 lower than in the private                                                               “partial financial hardship.”
                                                   qualify for forgiveness of the remaining
                 sector.                           balance due on their eligible federal                 You are considered to have a
                 Graduates who have                student loans after they have made 120                partial financial hardship if the
                 accumulated significant debt      payments on those loans under certain                 annual amount due on all of your
                 for their education may feel      repayment plans while employed full                   eligible loans, as calculated under
                 constrained in their choice       time by certain public service employers.             a standard repayment plan with a
                 of employment by the need                                                               ten-year repayment period, is more
                                                   The 120 payments do not have to be
                 to repay that debt. LRAP                                                                than 15% of the difference between
                                                   consecutive.
                 provides financial support                                                              your adjusted gross income (AGI)
                 to graduates for education        Since borrowers must make 120 monthly                 and 150% of the poverty guideline
                 loan payments to facilitate       payments on their eligible federal student            amount for your family size and
                 these employment decisions.       loans beginning after October 1, 2007                 state.
                                                   before they qualify for the loan forgiveness,
                 The program is administered                                                             If you are married and file a joint
                                                   the first cancellations of loan balances
                 by the Office of Financial Aid                                                          federal tax return with your spouse,
                                                   will not be granted until October 2017.
                 and funded with Professional                                                            your AGI includes both your income
                 Degree Fee revenue.                                                                     and your spouse’s income.
                                                                                                         IBR became available July 1, 2009.

What qualifies   Full-time law-related             Full time service in an AmeriCorps or                 No employment qualifications.
as eligible      employment with a non-            Peace Corps position. Also, full time
employment?
                 profit organization that is tax   employment in any position with a
                 exempt under IRS sections         public service organization:
                 501( c)(3),(4) or (5) of the      •	   Federal, state, local or Tribal
                 Internal Revenue Code or               government agencies.
                 direct employment with
                 a local, state, or federal        •	   Public Child or Family Service agencies.
                 government agency in the          Private, not-for-profit organizations that provide the following public services:
                 United States.
                                                   •	   Public Interest Law Services      •	   Public Education, Health or Safety
                                                   •	   Emergency Management              •	   Law Enforcement
                                                   •	   Military Service                  •	   Early Childhood Education
                                                   “Full-time,” according to the final regulations issued by the Department of
                                                   Education, means an annual average of 30 hours per week or the standard for
                                                   full-time used by the employer, whichever is greater. For people working part-time
                                                   at two or more qualifying jobs, “full-time” means an annual average of 30 hours
                                                   across all jobs held. In professions such as teaching, annual contracts that include at
                                                   least eight months of full-time work will be treated as the equivalent of a full year’s
                                                   employment. If you meet all the criteria, the earliest your remaining debt could be
                                                   forgiven is October 2017.
                                                   Overseas employment qualifies for PSLF as long as you are working for a U.S. non-
                                                   profit organization or a U.S. government employer. Peace Corps volunteer work is
                                                   explicitly eligible for Public Service Loan Forgiveness, but unpaid volunteering is not.



                  University of California, Davis, School of Law | 400 Mrak Hall Drive | Davis, CA 95616
                                 Phone: 530.752.6573 | email: financialaid@law.ucdavis.edu
                                                                        c o m pa r i s o n o f b e n e f i t s :
                                       k i n g h a l l l o a n r e p ay m e n t a s s i s t a n c e p r o g r a m ,
                                                  Federal public service loan Forgiveness
                                                                    a n d i n c o m e - b a s e d r e pay m e n t


                     Uc Davis Loan repayment            federal public service Loan                   federal income-based
                     assistance program (LRAP)          forgiveness program (PSLF)                    repayment program (IBR)

What loans are       Federal Stafford Subsidized,       Any non-defaulted loan made under the         All Federal Direct Loans and
eligible?            Unsubsidized, Graduate Plus,       William D. Ford Federal Direct Loan           federally guaranteed loans (FFEL)
                     Perkins and Alternative loans.     Program is eligible for forgiveness:          are eligible including:
                     Includes federal loans borrowed    •	   Direct Subsidized loan                   •	   Subsidized Stafford
                     for undergraduate and other
                     graduate-level study. Bar study    •	   Direct Unsubsidized loan                 •	   Unsubsidized Stafford
                     loans are not eligible.            •	   Direct PLUS loan for parents and         •	   Federal PLUS for graduate and
                     Loans in deferment or                   graduate or professional students             professional students (but not
                                                                                                           Parents)
                     forbearance status are not         •	   Direct Consolidation loan
                     eligible for LRAP.                                                               •	   Federal Direct Consolidation
                                                        Loans made under other federal
                                                        student loan programs may qualify for
                                                        forgiveness if they are consolidated into a
                                                        Direct Consolidation Loan.
                                                        The following types of loans may be
                                                        consolidated into the Direct Loan
                                                        Program:
                                                        •	   Federal Family Education Loan (FFEL)
                                                             Program loans which include:
                                                        •	   Subsidized & Unsubsidized Stafford
                                                             Loans
                                                        •	   Federal PLUS Loans for parents and
                                                             graduate or professional students
                                                        •	   Federal Consolidation Loans, excluding
                                                             joint spousal consolidation loans
                                                        •	   Federal Perkins Loans
                                                        •	   Certain Health Professions and Nursing
                                                             Loans
                                                        However, only payments made on the
                                                        Direct Consolidation Loan will count
                                                        toward the required 120 monthly
                                                        payments.

What is the          In January 2010, the maximum       No income qualifications.                     Anyone with eligible loans can
maximum income       annual income was increased                                                      apply to see if his or her payments
to qualify for the
                     from $53,000 to $60,000.                                                         will be more affordable under
program?
                     Applicants must report income                                                    IBR as compared to the monthly
                     from all sources.                                                                payment required under the
                                                                                                      Standard, Extended, Graduated
                     In order to enter the program                                                    or Income Contingent repayment
                     at 75% time or more, when                                                        plans.
                     calculated at 100% time, the
                     annual income from eligible
                     employment cannot exceed the
                     $60,000 ceiling, and the total
                     income from all sources cannot
                     exceed $60,000 annually.




                      University of California, Davis, School of Law | 400 Mrak Hall Drive | Davis, CA 95616
                                     Phone: 530.752.6573 | email: financialaid@law.ucdavis.edu
                                                                        c o m pa r i s o n o f b e n e f i t s :
                                       k i n g h a l l l o a n r e p ay m e n t a s s i s t a n c e p r o g r a m ,
                                                  Federal public service loan Forgiveness
                                                                    a n d i n c o m e - b a s e d r e pay m e n t


                     Uc Davis Loan repayment             federal public service Loan                   federal income-based
                     assistance program (LRAP)           forgiveness program (PSLF)                    repayment program (IBR)

How is my spouse     Married graduates will be treated   Joint Direct Consolidation Borrowers are      Both your spouse’s income and
or partner’s         as having the higher of (a)         eligible to apply for Public Service Loan     your own income are considered
income counted?
                     their respective incomes or (b)     Forgiveness if they meet all the other        to determine the resources you
                     one-half of their joint income,     eligibility criteria. If only one borrower    have available to make payments
                     whichever is greater.                                   ,
                                                         qualifies for PSLF only a prorated            on your federal student loans).
                                                         portion of the remaining balance of the       This is true whether or not your
                     In the event that both partners
                                                         debt (based on the same proportion            spouse is also making student loan
                     are eligible for LRAP, their
                                                         of that borrower’s debts to the original      payments.
                     income and debt will be treated
                                                         consolidation loan) would be forgiven.
                     separately or as one-half of the                                                  Beginning July 2010, for married
                     total income and debt for each.     If both borrowers meet the requirements       borrowers who file their taxes
                                                                  ,
                                                         for PSLF the entire balance would be          jointly, lenders will factor in the
                                                         forgiven.                                     couple’s total federal student loan
                                                                                                       debt, as well as their total income,
                                                         Unfortunately, FFEL joint consolidation
                                                                                                       to calculate payments. Originally,
                                                         borrowers are currently unable to
                                                                                                       IBR did not recognize that joint
                                                         “reconstitute” the joint loan in the Direct
                                                                                                       income has to cover both spouses’
                                                         Loan program to take advantage of PSLF    .
                                                                                                       federal loan payments, resulting in
                                                                                                       payment requirements up to twice
                                                                                                       what two equivalent single people
                                                                                                       would have to pay.
                                                                                                       Baseline Debt: IBR eligibility will
                                                                                                       be based either on the balance
                                                                                                       when the loan first entered
                                                                                                       repayment or on the current loan
                                                                                                       amount, whichever is greater.
                                                                                                       This will allow borrowers whose
                                                                                                       loan balances have increased
                                                                                                       (often due to accrued interest
                                                                                                       during periods of deferment or
                                                                                                       forbearance) to qualify based on
                                                                                                       what they actually owe.

i have children.     For purposes of entrance into       No effect on PSLF benefit.                    The borrower’s family size is one
How will this        and participation in the LRAP,                                                    of the criteria used in the IBR
affect my benefit?
                     persons with dependents,                                                          calculation to determine your
                     as determined under federal                                                       monthly student loan payment.
                     income tax guidelines, will have
                     their income adjusted downward
                     by $5,000 for each dependent.




                      University of California, Davis, School of Law | 400 Mrak Hall Drive | Davis, CA 95616
                                     Phone: 530.752.6573 | email: financialaid@law.ucdavis.edu
                                                                          c o m pa r i s o n o f b e n e f i t s :
                                         k i n g h a l l l o a n r e p ay m e n t a s s i s t a n c e p r o g r a m ,
                                                    Federal public service loan Forgiveness
                                                                      a n d i n c o m e - b a s e d r e pay m e n t


                      Uc Davis Loan repayment             federal public service Loan                federal income-based
                      assistance program (LRAP)           forgiveness program (PSLF)                 repayment program (IBR)

What is the           The maximum length of LRAP          No limit for participation in PSLF.        No limit for participation
maximum number        participation is ten years.                                                    in IBR.
of years i can
                      Participants will have to repay
participate in this
program?              on their own any student loan
                      debt still outstanding after the
                      eligibility period has expired.

am i eligible to      Judicial clerkships are             Certain judicial clerkships may be         Yes.
participate if i am   not considered qualifying           considered qualifying employment.
currently holding a
                      employment for LRAP.                Visit www.equaljusticeworks.org for
judicial clerkship?
                                                          more information.

How frequent          LRAP payments are issued twice      The Public Service Loan Forgiveness        The Income-Based Repayment
are benefit           during the calendar year in         Program does not issue benefit             program does not issue benefit
payments issued
                      January and July.                   payments.                                  payments.
to participants?
                                                          The program benefit is the forgiveness     The program benefit is the
                                                          of the student loan balance that remains   reduction of annual educational
                                                          after the borrower makes 120 payments      debt payments capped at 15%
                                                          on eligible federal student loans under    of the borrower’s discretionary
                                                          certain payment plans while employed       income along with forgiveness of
                                                          full-time by certain public service        the remaining loan balance after
                                                          employers for ten years.                   25 years.

How much benefit      For program participants with       The Public Service Loan Forgiveness        The Income-Based Repayment
will i receive for    an annual income of $40,000         Program does not issue benefit             program does not issue benefit
each payment
                      or less, the LRAP loan will equal   payments.                                  payments.
period?
                      the amount necessary to cover
                      the monthly scheduled payments
                      for eligible law school loans.
                      For participants with an
                      annual income greater than
                      $40,000, the amount of Program
                      assistance will be prorated, with
                      participants expected to make an
                      imputed contribution equal to
                      35% of income above $40,000.

How long must         Beginning January 2010 your         Loan forgiveness occurs after the          25 years.
i remain in the       LRAP benefit is 100% forgiven       borrower makes 120 payments on
program before
                      after one full year of eligible     eligible federal student loans under
the benefits i
receive are           employment.                         certain payment plans while employed
eligible for                                              full-time by certain public service
forgiveness?                                              employers for ten years.




                       University of California, Davis, School of Law | 400 Mrak Hall Drive | Davis, CA 95616
                                      Phone: 530.752.6573 | email: financialaid@law.ucdavis.edu
                                                                            c o m pa r i s o n o f b e n e f i t s :
                                           k i n g h a l l l o a n r e p ay m e n t a s s i s t a n c e p r o g r a m ,
                                                      Federal public service loan Forgiveness
                                                                        a n d i n c o m e - b a s e d r e pay m e n t


                     Uc Davis Loan repayment                            federal public service Loan             federal income-based
                     assistance program (LRAP)                          forgiveness program (PSLF)              repayment program
                                                                                                                (IBR)

How do i apply for   Graduates should submit the following              Unfortunately, the Department of        For borrowers with Direct
the program?         documents to the UC Davis Law Financial            Education does not currently have       Loans, your lender is the U.S.
                     Aid Office:                                        a formal process for “registering”      Department of Education.
                          LRAP Application                              for public service loan forgiveness,
                     •	                                                                                         The Direct Loan program
                                                                        or for confirming eligible
                     •	   LRAP Employment Certification, including                                              now has an IBR check box
                                                                        employment.
                          job description, proof of employer 501                                                on the “Repayment Plan
                          (c) tax exempt status or verification         Collect the following                   Selection Form”.
                          that employer is local, state or federal      information for each of your            To obtain this form visit:
                          government agency.                            public service positions:               https://www.dl.ed.
                     •	   LRAP Agreement and Certification              •	   Employer’s name/address/           gov/borrower/
                                                                             telephone number                   BorrowerWelcomePage.jsp
                     •	   A list of educational debts, including the
                          name of each servicer; the month and year     •	   Your position/title                Click on the “FORMS” link.
                          each loan went into repayment; the total      •	   Your supervisor’s name/telephone
                          amount borrowed from each loan program;            number
                          and the dollar amount of the monthly
                          repayment obligation.                         •	   Dates of employment (start and
                                                                             end)
                     •	   Documentation from the servicer of each
                          educational debt listed for the applicant     •	   Verification that you were
                          and/or spouse. This may be a copy of the           employed full time.
                          repayment agreement, copy of a billing
                          statement or a letter from the servicer.
                     •	   Your most recent signed Federal Tax Return
                          including W-2 and schedules.
                     For more information visit:
                     http://www.law.ucdavis.edu/current/
                     financial-aid/loan-repayment-assistance.html

Do i need to re-     Yes, current LRAP participants will need to        No.                                     If you select IBR, you will be
apply every year?    establish continuing eligibility by submitting                                             required to complete a form
                     to the Law Financial Aid Office no later                                                   that authorizes the Internal
                     than May 31 of each year the following:                                                    Revenue Service (IRS) to
                     •	   LRAP Update Form                                                                      provide income information
                                                                                                                (yours and your spouse’s
                     •	   LRAP Employment Certification                                                         if you are married and file
                     •	   Your most recent signed Federal Tax Return                                            taxes jointly) to the U.S.
                          including W-2 and schedules                                                           Department of Education. In
                     •	   Proof of student loan payments. A loan                                                addition, you must notify the
                          payment history can be downloaded from most                                           Department of your family
                          lender websites.                                                                      size each year.


What is the          King Hall graduates can apply for up to            No application deadline.                No application deadline.
deadline to apply?   three years after graduation.
                     The deadline to receive applications for the
                     January payment period is November 15.
                     The deadline to receive applications for
                     the July payment period is May 15.




                      University of California, Davis, School of Law | 400 Mrak Hall Drive | Davis, CA 95616
                                     Phone: 530.752.6573 | email: financialaid@law.ucdavis.edu
                                                                                c o m pa r i s o n o f b e n e f i t s :
                                               k i n g h a l l l o a n r e p ay m e n t a s s i s t a n c e p r o g r a m ,
                                                          Federal public service loan Forgiveness
                                                                            a n d i n c o m e - b a s e d r e pay m e n t



o n L i n e r e s o U r c e s f o r a D D i t i o n a L i n f o r m at i o n a n D a s s i s ta n c e



             Uc Davis Loan repayment                  http://www.law.ucdavis.edu/current/financial-aid/loan-repayment-assistance.html
                  assistance program



         federal student Loan History                 http://www.nslds.ed.gov/nslds_SA/


              Direct Loan consolidation               http://www.loanconsolidation.ed.gov/


              income-based repayment                  http://www.equaljusticeworks.org/
                 and public service Loan
                forgiveness information               http://www.ibrinfo.org/index.php

                                                      http://www.studentloanborrowerassistance.org/

                                                      http://www.finaid.org/




                            University of California, Davis, School of Law | 400 Mrak Hall Drive | Davis, CA 95616
                                           Phone: 530.752.6573 | email: financialaid@law.ucdavis.edu

								
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