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Public Interest Loan Repayment Assistance Program (PILRAP)

Our Mission

Central to the educational mission of the American University Washington College of Law (WCL) is the belief that law is based on the inherent dignity of all individuals. WCL graduates have a proud history of building upon that core belief. Many of WCL's alumni enter into careers for the public interest, carrying forward the institution's long-standing commitment to use the law as a tool for positive change in our society. Unfortunately, given the extraordinary rise in the cost of higher education and the resulting debt burden with which students graduate, a career in public interest is not economically viable without outside assistance. As a demonstration of its ongoing commitment to see its graduates apply the law to the greater good, WCL implemented the Public Interest Loan Repayment Assistance Program (PILRAP).

PILRAP helps relieve economic burden imposed by educational debt by providing loan repayment assistance for JD graduates who work in full-time non-profit, or government in which the graduate is engaged in serving under-represented or traditionally marginalized populations.

New Legislation Affecting Loan Repayment For Public Service Employees

In 2007, the Income-Based Repayment (IBR) federal student loan repayment option was created under the College Cost Reduction and Access Act.  IBR assists borrowers to keep federal loan payments (Stafford and Grad PLUS loans) affordable with payment caps based on income and family size. For most eligible borrowers, IBR loan payments will be less than 10 percent of their income. IBR will forgive remaining debt, if any, after 25 years of qualifying payments.  IBR is not applicable to private loan debt.

WCL graduates are strongly encouraged to learn more about IBR.  In the future as IBR becomes a preferred loan repayment option, WCL may use IBR calculations to determine PILRAP awards.  The potential result is a lower monthly loan payment and PILRAP assistance to cover a majority of each monthly payment for that calendar year.

To learn more about IBR, visit http://www.wcl.american.edu/finaid/ccraa.cfm or contact Public Interest Coordinator, Jarrod Shirk, at jshirk@wcl.american.edu or 202-274-4099.

 

Eligibility for PILRAP

To be eligible* to participate in the program, graduates must:

  1. Apply within the eligible time frame;
  2. Work in qualifying employment; and
  3. Satisfy income requirements.

    1. Eligible Time Frame. Graduates are eligible for the program at any time within three years after the January following their graduation. Judicial clerkships are not qualifying employment for the purposes of PILRAP; however, the three year restriction on eligibility after graduation will be tolled for purposes of pursing clerkships. Once a graduate has entered the program, he or she must continue to reapply each year to receive benefits. Graduates who have applied for the program within 3 years of matriculation can then continue to apply for annual funding until they no longer require loan repayment assistance.

    2. Qualifying Employment. The graduate's work must meet all of the following requirements to qualify for PILRAP:

      1. Full-time.

      2. Law-related. This requirement encompasses a wide variety of legal work and is not limited to the practice of law in its strictest sense. Nevertheless, the employment should substantially use the legal training and skills of the graduate.

      3. Public Interest. The work must satisfy one of the following criteria to be considered "public interest employment":

        1. Non-profit - work for an organization qualifying for tax exemption under IRS Code Sections 501(c)(3), 501(c)(4) or 501(c)(5); or

        2. Government - work for a local, state or federal government agency or office (excluding judicial clerkships).

      4. Non Discrimination Policy. Employer must comply with WCL's non discrimination policy.

    3. Income Eligibility. The maximum annual salary allowable to enter the program is $50,000. For married applicants the applicant's annual salary will be considered to be the greater of: the applicant's salary, or half of the total family salary.

    *Eligibility does not guarantee program participation

Qualifying Loans


Loan Disbursement Formula

In calculating the loan amount under this program, the committee will assume that all student loans have been consolidated and are repaid at a 5% interest rate over 20 years. Graduates are not required to consolidate their loans, but this is the formula the committee will use in calculating its disbursements.

A. Factors In Calculating Disbursements.

  1. Participants will be expected to contribute a portion of their adjusted gross income to their annual educational loan repayment obligations in accordance with the chart below.

    1. Annual Income     Portion of Income Participants Must Contribute
      $31,000 or less 0%
      $31,001 - $37,000 30% of amount over $31,000
      $37,001 - $50,000 $1800 + 60% of the amount over $37,000


      For example, at a salary of $31,000 the participant has no required contribution toward his/her annual loan repayment; at a salary of $32,000 the participant's expected contribution is $1200; at a salary of $40,000 the participant's expected contribution is $3,600.

      The amount of the LRAP loan made to the participants will be the difference between the eligible debt repayment obligation and the expected contribution. For example, if the participant earns $40,000 and has $12,000 in annual educational loan debt, he or she will receive a PILRAP loan in the amount of $8,400 ($12,000 - $3,600 = $8,400).

  2. Deductions. For applicants with dependent children, $5,000 per child will be subtracted from AGI. Single parents will receive an additional $5,000 deduction.

  3. Assets. A portion of the graduate's assets (in general, 10% of the participant's equity in assets over $5,000 not including the graduate's home and retirement) will be added to income.

  4. Qualifying Loans. Qualifying loans are limited to law school loans when determining the graduate's educational loan repayment obligation.* Educational loans will include institutionally approved and certified loans such as Federal (FFELP/Direct) Stafford, subsidized and unsubsidized; GradPlus loans, Supplemental Loans for Students (SLS), National Direct Student Loans or Perkins, as well as Private loans such as, LawLoans, Law Access, school loans, and other long-term law school loans. Family or personal loans, Bar loans, WCL emergency loans, or loans for other than educational purposes will not be included in determining the graduate's annual loan burden. All qualifying loans must be in satisfactory repayment status. Graduates with delinquent loans may not apply for PILRAP.

  5. *Undergraduate loans will be included for applicants who entered law school prior to 2006.

NOTE: PILRAP loans are dependent on the availability of funds. There is no guarantee that participants will receive, in whole or part, their eligible amount of funds.

Loan Forgiveness & Loan Repayment to WCL


Loan Forgiveness

Graduates accepted by the program must work in qualifying employment for the calendar year covered by the PILRAP Award to obtain forgiveness for the award.

Loan Repayment

If the recipient works for less than one year in qualifying employment, then he or she must repay their entire PILRAP award within that same year. Please note: If the recipient becomes unemployed during the calendar year covered by the PILRAP award, WCL will consider the recipient's unique circumstances when determining the amount that must be repaid. The recipient must contact the Office of Financial Aid immediately to receive such consideration.

PILRAP Award Disbursement

PILRAP funds will be disbursed in January and June each year. The first half of the PILRAP loan will be disbursed upon the graduate's acceptance into the Program. To receive the second half of the annual disbursement, participants must file a mid-year employment verification form completed by their employer. The verification form is due by May 15th.

Participation in Other LRAP Programs

Applicants are encouraged to take advantage of any other LRAP programs (such as state, federal, or employer LRAPs). Application and receipt of other LRAP awards must be disclosed on the PILRAP application and may be considered by the selection committee. However, other LRAP awards will not necessarily disqualify an applicant.

Application

Graduates must apply each year for funds for the following year. The application will be available October 1, 2009 - October 31, 2009. Award decisions will be mailed in early December and the first disbursement will be in early January 2010.

Contact Information

For more information about the Program, please contact:

Jarrod L. Shirk, Esq.
Public Interest Coordinator, Office of Public Interest
jshirk@wcl.american.edu

 
Washington College of Law  -  4801 Massachusetts Avenue, NW  -  Washington, DC 20016  -  202-274-4000