Public Interest Loan Repayment Assistance Program II (PILRAP-II) - For Graduates of the Class of 2008 and After
Eligibility for PILRAP-II
To be eligible* to participate in PILRAP-II, graduates must:
- Apply within the eligible time frame;
- Work in qualifying employment; and
- Satisfy income requirements.
- 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-II; 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 graduation may continue applying annually for PILRAP-II loan repayment assistance for up to ten years. Participants must be enrolled in the program, on a leave of absence, or in inactive status every year or they will exit the program and not be permitted to re-enter unless an exception is granted by the program administrator. Please read the Frequently Asked Questions to learn more about a leave of absence or inactive status.
- Qualifying Employment. The graduate's work must meet all of the following requirements to qualify for PILRAP-II loan repayment assistance:
- Full-time. In general, this means that the gradaute must work an annual average of at least 30 hours per week. See the Frequently Asked Questions to learn more.
- 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.
- Public Interest. The work must satisfy one of the following criteria to be considered "public interest employment":
- 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
- Government - work for a local, state or federal government agency or office.
- Judicial - Court staff attorney positions and career law clerk positions qualify. Graduates in one- or two-year judicial clerkships are not eligible for funding during the clerkship.
- Non Discrimination Policy. Employer must comply with WCL's non discrimination policy.
- Income Eligibility. The maximum annual salary allowable to enter PILRAP-II is $75,000. For married applicants, the applicant's annual salary will be considered to be the greater of the following two values: the applicant's salary, or half of the total family salary. If a gradaute's salary is greater than $75,000, the gradaute may want to consider entering the PILRAP program on inactive status. Please refer to the Frequently Asked Questions to learn more.
*Eligibility does not guarantee program participation
- Federal Direct Stafford Loans (subsidized & unsubsidized)
- Federal FELP Program Stafford Loans (subsidized and unsubsidized)
- Federal Grad PLUS Loans
- Federal Perkins Loans
- Other graduate or undergraduate Federal Direct Stafford Loans, Federal FELP Program Stafford Loans, Federal Grad PLUS Loans, and Federal Perkins Loans
- All eligible loans must be in satisfactory repayment status (delinquent loans are not eligible for PILRAP-II)
Loan Disbursement Formula
The calculation of the PILRAP-II forgivable loan amount is based on the participant's actual or estimated federal student loan payments under Pay As You Earn (PAYE) [or under Income-Based Repayment (IBR), if the graduate is ineligible for PAYE] and the participant's adjusted income, which is determined from the total income reported on the application. Adjusted income factors include the participant's salary, spousal income (if applicable), untaxed income and benefits, assets, other LRAP awards, and dependents. There is no requirement that PILRAP participants enroll in any particular repayment plan with their lenders, but IBR and PAYE obligations (either actual or estimated) will be used to calculate awards regardless.
A. Factors In Calculating Disbursements.
- Participants earning below $50,000 are eligible for loan repayment assistance up to 100 percent of their annual PAYE loan payment (or of their annual IBR loan payment, if they are ineligible for PAYE). Participants earning between $50,000 and $75,000 are eligible for loan repayment assistance on a prorated basis in accordance with the chart below.
Annual IncomePercentage of Available Assistance$50,000 or less100% of annual IBR payment$50,001 - $57,50075% of annual IBR payment$57,501 - $65,00050% of annual IBR payment$65,001 - $75,00025% of annual IBR payment
Dependents. A $5,000 deduction will be granted for applicants with one or more dependent children.
Married Participants. For married applicants, the applicant's annual salary will be considered to be the greater of the following two values: the applicant's salary, or half of the total family salary.
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.
Qualifying Loans. Qualifying loans are limited to federal education loans when determining the graduate's annual PAYE or IBR loan payment. Educational loans will include institutionally approved and certified loans such as Federal (FFELP/Direct) Stafford, subsidized and unsubsidized; GradPlus loans, Perkins loans, Federal Direct Consolidation Loans, as well as federal loans from any graduate or undergraduate degree. All qualifying loans must be in satisfactory repayment status. Graduates with delinquent loans may not apply for PILRAP-II.
NOTE: PILRAP-II 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
The awards given by the PILRAP program are forgiveable loans. A PILRAP participant receives a loan from WCL which is forgiven at the end of the year, so long as the participant has maintained qualifying employment and has used the award to make loan payments.
If the recipient works for less than one year in qualifying employment, then he or she must inform the Financial Aid Office within thirty (30) days of the change in employment. The recipient must then repay the portion of the award that corresponds to any period of time during the year in which the recipient did not maintain qualifying employment. The repayment must be made within that same year.
PILRAP-II 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 as well as proof of having made loan re-payments during the first half of the year. 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-II application and may be considered by the Financial Aid Office. See the Frequently Asked Questions to learn more.
Participants must apply each year for funds for the following year. Applications for the 2014 calendar year are now available and are due on October 1, 2013. Award decisions for 2014 will be mailed in December, 2013, and the first disbursement will be in early 2014.
For more information about PILRAP-II, please contact:
David Steib, Esq.
Assistant Director, Office of Public Interest