Below are some of the common questions and answers asked by members regarding the LRAP program. Please contact us if you do not find an answer to your question here.
Please note: Most of these answers will refer to the LRAP Policies and Guidelines for more complete answers. It is suggested that you download a copy and print it off for ease in reference.
1. How much educational debt do I need to have to qualify?
Applicants must have at least $60,000 of eligible debt to qualify. See LRAP
Policies and Guidelines Section 2(E).
2. Are college loans considered as part of my educational debt? Loans from parents, other relatives, or friends? How about credit card loans?
All graduate and undergraduate educational debt in the applicant’s name
is eligible. See LRAP Policies and Guidelines Section 2(E). Family and personal
loans may be considered if for an educational purpose and supported by documentation.
Credit card loans are not eligible.
3. I paid off my student loan with a home equity loan. Does this debt qualify for the LRAP?
No. The LRAP Advisory Committee may reconsider this issue in the future.
4. My student debt is over $60,000, but my
annual amount due is $3,000, less than the $5,000 annual assistance provided
by the LRAP. Am I eligible?
LRAP loans will be forgiven on an annual basis if the Participant has been
in qualifying employment the prior year and has paid at least the amount of
LRAP loans received ($5,000) on student loans. See LRAP Policies and Guidelines
Section 3(B). As long as your lender does not restrict annual payments above
$3,000, then you would be eligible to participate in the LRAP.
5. What’s the salary limit?
Your salary must be $45,000 or less at the time of initial application. See LRAP Policies and Guidelines Section 2(D).
6. Do you consider household income, including spouse or domestic partners?
In determining eligibility, only the applicant’s income will be considered. However, the Advisory Committee may consider an applicant’s extraordinary household expenses. See LRAP Policies and Guidelines Section 4(B).
7. What qualifies as public interest employment?
Qualifying employment includes employment as a practicing attorney with civil
legal aid organizations, other private non-profit organizations providing direct
legal representation of low-income individuals, as public defenders or as deputy
district attorneys. See LRAP Policies and Guidelines Section 2(B).
8. I am a solo practitioner, but most of my
work is public defense. Am I eligible for the LRAP?
No, attorneys appointed on a case-by-case basis are not eligible. See LRAP
Policies and Guidelines Section 2(B).
9. Do I need to be in a qualified position at the time of application?
Yes, applicants must be already engaged in qualifying employment by the time of the application deadline. See LRAP Policies and Guidelines Section 4(A).
10. How many years after graduating from
law school am I eligible as long I meet program qualifications?
There is no limit to the years beyond law school graduation for purposes
of eligibility so long as applicant meets program qualifications. The OSB
LRAP does not limit applicants to recent law school graduates or recent bar
admittees. See LRAP Policies and Guidelines Section 2 (C).
11. Do I need to be a member of the Oregon
State Bar to apply? To participate?
Yes, program applicants must be licensed to practice in Oregon. Employment
must be within the State of Oregon. See LRAP Policies and Guidelines Section
2(B) and (C).
12. I work for a private firm that has a contract with Oregon Public Defense Services Commission. Most of my caseload consists of these cases. Does this employment qualify for the LRAP?
Yes, if 95% or more of your caseload is public defense work, your employment qualifies for the LRAP.
13. Do you look at salary only or other income, too?
If the Advisory Committees needs to select among applicants meeting the salary,
debt and employment eligibility criteria, it may take into account earnings
and other income as shown on applicant’s most recent tax return and income-producing
assets. See LRAP Policies and Guidelines Section 4(B)(ii).
14. Other than income, what criteria will the selection committee consider?
If the Advisory Committee needs to select among applicants meeting the salary,
debt and employment eligibility criteria, it may take into account several
factors, including financial need, educational debt to income ratio, extraordinary
personal expenses (e.g., medical, child care, and child support expenses),
type and location of work, demonstrated commitment to public service, and assistance
from other loan repayment assistance programs. See LRAP Policies and Guidelines
Section 4(B)(i) and (ii).
15. How many applicants will be selected for assistance?
The number of applicants who will be selected to participate in the LRAP depends
on available program funding. In 2008, six applicants will be selected.
16. How much assistance is provided?
LRAP loans will be $5,000 per year per Program participant for a maximum
of three consecutive years. All Program participants will receive the same LRAP
loan regardless of income or amount of debt. The Advisory Committee reserves
discretion to adjust the amount of the LRAP loan and/or length of participation
based on changes in the availability of program funding. See LRAP Policies and
Guidelines Section 3(A)(i).
17. Are LRAP loans a taxable benefit?
Each Program participant is responsible for any tax liability the Program
participant may incur, and neither the Advisory Committee nor the OSB can give
any Program participant legal advice as to whether a forgiven LRAP loan must
be treated as taxable income. Program participants are advised to consult a tax
advisor about the potential income tax implications of LRAP loans. However, the
intent of the Program is for LRAP loans which are forgiven to be exempt from
income tax liability. See LRAP Policies and Guidelines Section 3(A)(iii).
18. What happens if I default on my student loan while an LRAP recipient?
Program participants who are in default on their student loans become ineligible
to receive further LRAP loans but may seek to have LRAP loans forgiven in accordance
with the loan forgiveness schedule if they remain in qualifying employment and
submit an employer verification form pursuant to LRAP Policies and Guidelines
Section 4(C)(iii). See LRAP Policies and Guidelines Section 3(B)(ii) and Section
4(C)(v).
19. What happens if I leave qualifying employment or otherwise no longer meet the program qualifications?
Program participants who become ineligible for Program participation because
they leave qualifying employment must repay LRAP loans, including interest,
for any amounts not previously forgiven. The Program forgives one year of
loans annually if the Participant has been in qualifying employment the prior
year and has paid at least the amount of his/her LRAP loan on student loans.
Participants must notify the Program within 30 days of leaving qualifying
employment. Exceptions to the repayment requirement are available for Program
participants who have accepted public interest employment in another state,
are on periods of leave approved by their qualified employers, and for other
exceptional circumstances.
Program participants who become ineligible for continued Program participation due to an increase in income from other than qualifying employment or because their student loans are in default will not receive additional LRAP loans but will remain eligible to receive forgiveness of LRAP loans already disbursed so long as the Program participant remains in qualifying employment and submits an employer verification form.
See LRAP Policies and Guidelines Section 3(B) and (C).
20. What if my salary was under $45,000 at the time of application but goes above that within the three-year period?
Program participants whose salary exceeds $45,000 after the initial application
due to annual salary raises will remain eligible for Program participation.
21. How were the LRAP Policies and Guidelines developed?
In 2005, the Oregon State Bar Board of Governors (BOG), through its Access
to Justice Committee (Committee), assessed the impact of educational debt
on the ability of law graduates to enter and remain in public service jobs.
As a result of this assessment, the BOG approved the development of the Oregon
State Bar Loan Repayment Assistance Program (LRAP) to assist Oregon lawyers
in paying their educational debt while working in public interest jobs in
Oregon. The BOG also approved partial funding for the LRAP by dedicating
$5 of each member’s dues starting in 2006 to the program.
In 2006, the Committee developed a program structure for the LRAP including program oversight, administration and selection criteria. Along the way, the Committee received input from other states which have LRAP programs, law schools in Oregon, the American Bar Association, public defenders, prosecutors, civil legal aid organizations, and other Oregon stakeholders. The BOG approved the LRAP Policies and Guidelines in November of 2006. Application forms were developed in early 2007 following a review of forms used in other states and consultation with the American Bar Association.
22. Prosecutors generally have higher salaries than legal aid lawyers and public defenders. Why were prosecutors included in qualified employment?
The Board of Governor’s Access to Justice Committee concluded that
prosecutors meet the criteria of the LRAP mission to attract and retain public
service lawyers by helping them pay their educational debt. Only prosecutors
who meet the $45,000 salary cap are eligible for Program participation.
23. Will there be any amendments to
the LRAP Policies and Guidelines? If so, when and by what process will amendments be adopted?
The LRAP Advisory Committee has authority to amend and set policy guidelines
as needed for the Program. The Advisory Committee will consider changes to the
LRAP Policies and Guidelines at the end of each calendar year. If you would like
to recommend changes to the LRAP Policies and Guidelines, contact the LRAP Administrator at cpetrecca@osbar.org or
(503) 431-6355.