LRAP/IBR/PSLF. How does it work? Let's find out!

User avatar
twenty
Posts: 19
Joined: Thu Jan 25, 2018 3:20 pm

LRAP/IBR/PSLF. How does it work? Let's find out!

Post by twenty » Sat Jan 27, 2018 12:14 am

Hello LSL friends,

This is a longish post about LRAP/IBR/PSLF. I will expand on the post as people have questions and comments, but the baseline is a simple explanation of these programs, what these acronyms mean, and why you should pay attention to them.

Basics of Income Driven Repayment

Law school is expensive - like, unreasonably so. Georgetown Law's tuition costs alone are now just under $60,000/year at sticker price. With an additional $20,000/year in housing costs, law textbook costs, commuter costs, interest on loans during school, etc., it is entirely possible for a law grad to have accumulated $250k in student loans by the time they graduate. On a ten-year standard repayment plan, this comes out to about $2900/month just in student loan payments.

Federal direct loans (common loans for law school education funding) offer a unique benefit over private educational loans; and that is access to "Income Driven Repayment Programs" (IDR). In an income driven repayment program, you do not make payments based on your loan amount, you make payments based on your income. Therefore, someone that earns $40,000/year will pay significantly less than someone who earns $190,000/year.

This presents a problem, however - it is possible/very likely that someone paying a loan based on their income will not pay off the entirety of the loan in ten years. In fact, the borrower may not even be able to make payments covering the interest on their loan, leading to negative amortization. That's a scary thought; you make regular payments on your loan only to see the balance increasing every month!

Fortunately, there is an exit: Depending on the program, if a borrower on an IDR continuously makes payments for 20 years, the borrower's remaining balance will be "forgiven."

Let's take a hypothetical borrower who makes 50,000/year after graduating law school (looks like he didn't get biglaw!). He took out $250,000 in loans that average at 7%/year. Let's also assume he receives a 5% raise every year for the next 20 years.
  • His initial monthly payment will be either $2,903/mo on a standard repayment plan, or $266/month based on REPAYE, an IDR plan.
  • His last payment (after 10 years) will be $2,903/mo, or (after 20 years on REPAYE) $1,078/mo
  • If he opts on standard, he will pay a total of $348,325 over ten years. If he opts into REPAYE, he will pay $177,748 over 20 years, with $358,729 forgiven.
Sounds great, right? There's a catch:

The downside of IDRs

The biggest noticeable downsides of IDR is that, at year 20, the IRS will consider you to have "earned" the forgiven balance, which means you are taxed in a single year as if you had made $358,729 (plus your actual income!) in our hypothetical above. This problem is called the "tax bomb." So while you might not owe a lot of money to the Department of Education, you will owe a lot of money (albeit less) to the IRS. The bad news is, there's no way around this problem right now. Most people save for "tax bomb day" for the 20 years they are in the IDR program.

In some situations, the borrower has no choice but to enroll in an IDR. If your choices are between defaulting on your student loan because you can't make payments of $2,900/mo and enrolling in an IDR, well, that's not really much of a choice.

IDRs will generally kick in at 10% (or 15%/20% on some programs) of your income exceeding the HHS poverty threshold. In our hypothetical above, someone making $50k/year would pay about $266/mo. Someone making $90k/year would pay about $600/mo. Someone making $16k/year would pay $0/mo, because they would not be above the federal poverty threshold. You get the idea.


PSLF to the rescue!

PSLF, or "Public Service Loan Forgiveness" is the trusty sidekick to IDR that changes the program from a decent safety net to a clear path to repayment. PSLF became available in 2007 as a way for "public servants" to qualify for early loan forgiveness. How? Let's take our hypothetical above.
  • Our borrower makes 50k/year, but he makes 50k/year at a 1) federal/state/military employer, 2) 501(c)(3) employer, or 3) qualified organization falling under a special exception (i.e., Americorps).
  • Although our borrower would have to make payments of $266/mo which would increase with his raises, he only has to do so for 10 years, rather than 20.
  • Furthermore, when his loans are forgiven in year 10, he will not have to pay the "tax bomb" associated with a sudden loan forgiveness.
  • In this hypothetical, our borrower would only pay $42,746 on the entirety of his $250k/loan.
Therefore, if you make regular payments under an IDR while employed by a qualifying organization you could drastically reduce your overall payment and suffer no tax repercussions.

Okay, then what's LRAP?

Before PSLF, top law schools operated a "Loan Repayment Assistance Program" in which they would provide monetary assistance to borrowers who opted into public sector work. However, after PSLF, this school-provided safety net proved to be redundant, because the federal safety net in place was so much better. In taking advantage of the federal programs, law schools began making their reformed LRAP programs contingent on participation on IDR/PSLF. How?

Let's take Georgetown law for instance. Normally, a graduate that makes 75k/year would be required to pay $474/mo on an IDR program. However, if you make 75k/year or less and graduated from GULC, GULC will pick up those monthly payments, leaving the borrower paying nothing out of pocket.

Some schools are more generous with this cap, some (most) schools are less. Columbia Law, for instance, has a cap of $100k/year. If you make less than that, you owe nothing out of pocket to the Department of Education. It is entirely possible for a lawyer working in the public sector to never make more than this amount for the first ten years of their career, which means you could technically go to law school at sticker price, take out 250k in loans, and pay absolutely nothing on them.

Wow this seems too good to be true?!

Yeah, so, that's the problem. PSLF is becoming less and less popular as Congress/the non-law population footing the bill begins to understand this issue. As more people qualify for PSLF, the more of a burden it will become. It is almost certain, politically, that PSLF will eventually be terminated. What will happen to the folks currently making payments under an IDR schedule with the expectation of PSLF forgiveness is unclear. Most interpretations (read: speculations) of current events lead the hivemind to believe Congress will continue allowing current borrowers access to PSLF, but not future borrowers.

Aside from the political uncertainty, what's the catch?

First, you have to basically commit to making 120 payments (don't have to be consecutive) under an IDR program while employed by a public service organization. If your plan is to be a federal employee lifer, this is probably a good plan. If you get fired on month 119 from your non-profit and you can't find another non-profit job? Tough to be you. There's no partial forgiveness - either you go find another public service job, or you have another 11 years to go on the regular IDR track.


-----

Some resources!

https://studentloans.gov/myDirectLoan/m ... tor.action <- Federal student loan repayment calculator. Mess around with some numbers, figure out what makes the most sense for you.

https://www.law.georgetown.edu/admissio ... AP-III.cfm <- Georgetown's LRAP is very similar to other top schools' LRAP programs. The amount will likely vary, but the explanation of how it works is pretty ubiquitous. Check each individual school for details.

https://studentaid.ed.gov/sa/repay-loan ... ic-service <- Read this thoroughly! This is a PSLF FAQ section on the DoEd's website.

User avatar
Nebby
Posts: 6567
Joined: Thu Jan 25, 2018 3:24 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Nebby » Sat Jan 27, 2018 1:20 am

Awesome post!!!

User avatar
Borhas
Posts: 923
Joined: Thu Jan 25, 2018 5:46 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Borhas » Sat Jan 27, 2018 2:58 am

my law school has an lrap even for people in ibr making pslf qualifying payments, they end up paying for most of my monthly IBR payment

User avatar
Nony
Posts: 4741
Joined: Thu Jan 25, 2018 2:34 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Nony » Sat Jan 27, 2018 8:32 am

This is an excellent post, and thank you for making it.

I am going to be nitpicky about one point:
twenty wrote:
Sat Jan 27, 2018 12:14 am
It is almost certain, politically, that PSLF will eventually be terminated.
I think that it is more likely to get capped (admittedly at an amount that will probably not help law students much) than eliminated entirely.

User avatar
Echos Myron
Posts: 657
Joined: Fri Jan 26, 2018 2:53 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Echos Myron » Sat Jan 27, 2018 11:01 am

Do you think T14 schools (read: schools with substantial endowments) will go back to straight am LRAPs should PSLF end? HYS + Columbia (optinal) already have these programs, and NYU allows those who are in non-PSLF PI jobs to use a straight am plan too. Should this be something that 0Ls should factor into their choice of school, if they are looking at taking on moderate/significant debt for PI at a HYSCCN-type school?

User avatar
Gray
Moderator
Posts: 844
Joined: Fri Jan 26, 2018 2:27 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Gray » Sat Jan 27, 2018 11:31 am

Tag

very much relying on the Public Servant Liberation Fund

User avatar
sorence
Posts: 29
Joined: Fri Jan 26, 2018 10:02 am

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by sorence » Sat Jan 27, 2018 5:42 pm

Thank you so much for posting this! Its one of the clearest breakdowns I've come across.

User avatar
twenty
Posts: 19
Joined: Thu Jan 25, 2018 3:20 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by twenty » Sun Jan 28, 2018 4:18 am

Echos Myron wrote: Do you think T14 schools (read: schools with substantial endowments) will go back to straight am LRAPs should PSLF end? HYS + Columbia (optinal) already have these programs, and NYU allows those who are in non-PSLF PI jobs to use a straight am plan too. Should this be something that 0Ls should factor into their choice of school, if they are looking at taking on moderate/significant debt for PI at a HYSCCN-type school?
Cornell has a similar non-PSLF option as well; truthfully, I'm not especially worried about it for a couple reasons. When discussions of ending/capping PSLF first started in 2014, it was unclear whether current borrowers would be "grandfathered in" (side note: Learn about the origin of the phrase and tell your friends! :| ) but most recent political discussions on PSLF have included some means to keep current borrowers protected under the old (current) system.

I tend to get a lot of criticism about this hot take, but I believe HYSC + Cornell's non-PSLF contingent programs are not as good as the lower-tier PSLF contingent programs. Take Columbia's for instance. On their non-PSLF contingent program, your contribution is 34.5% of your income exceeding 50k/year. Well, three years into a federal honors program, you'll be making 100k/year easily as a GS-14; that means your monthly payment will be $1437/mo. Not as bad as standard repayment at sticker price, granted, but it's still a lot of money. By the way, Columbia's IDR program covers salaries up to 100k/year, so in the alternative IDR-based program, your payment would be $0/mo.

I think the value in these programs come from if you're pretty certain you won't spend more than a couple years in public service, and therefore want the school to knock down your overall balance rather than make small payments on a PSLF schedule. I don't know. Personally, I love public service in (almost) all its forms and I can't imagine not doing public service work, even without loans.
I think that it is more likely to get capped (admittedly at an amount that will probably not help law students much) than eliminated entirely.
I'm not sure anymore. At one point, there was a discussion about capping the amount to something ridiculously low - like 57k or something. In recent times, I've seen more calls and proposals for ending it completely. Either way, I suspect the outcome, whether a drastic reduction or a total elimination, will take away the viability of the program as used in its present form.

User avatar
Tsuga
Posts: 737
Joined: Fri Jan 26, 2018 1:35 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Tsuga » Sun Jan 28, 2018 12:14 pm

What are the best options for union-side labor law or employee-side employment law, excluding government work? Labor organizations are 501(c)5s and union/employee-side L&E law firms are for-profit, so I don’t think either is covered by PLSF, but neither seem to pay much relative to the debt one may take on for law school.

Here are the options I see:

LRAPs that cover 501(c)5 or for-profit work: I can’t realistically get into YS so I haven’t looked at theirs, but Harvard has LIPP covering or partially covering all lawyers up to a certain income, from what I understand. Are there other T14 schools that do this, or else have a broader definition of public service when considering LRAP eligibility?

IBR: Make monthly payments for 20 years and have enough savings to handle a tax bomb at the end. This one seems really stressful—is there a chance IBR is ended, or are there ways to get disqualified from IBR?

Scholarships: I think I could get decent money from some T10-20 schools. This seems like a safer bet for my debt but a less safe bet for my legal employment.

Edit: I see Cornell’s LRAP (PILIPP 2) covers unions, which is dope.

Edit 2: NYU's LRAP info on their website is frustratingly poorly organized, and I can't find a full explanation of their standard, non-integrated LRAP. However, a doc from NYU's Law Students for Economic Justice, last updated 11/28/16, indicates labor unions are covered by it.
Last edited by Tsuga on Sun Jan 28, 2018 2:17 pm, edited 1 time in total.

User avatar
Echos Myron
Posts: 657
Joined: Fri Jan 26, 2018 2:53 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Echos Myron » Sun Jan 28, 2018 1:38 pm

twenty wrote:
Sun Jan 28, 2018 4:18 am
Echos Myron wrote: Do you think T14 schools (read: schools with substantial endowments) will go back to straight am LRAPs should PSLF end? HYS + Columbia (optinal) already have these programs, and NYU allows those who are in non-PSLF PI jobs to use a straight am plan too. Should this be something that 0Ls should factor into their choice of school, if they are looking at taking on moderate/significant debt for PI at a HYSCCN-type school?
Cornell has a similar non-PSLF option as well; truthfully, I'm not especially worried about it for a couple reasons. When discussions of ending/capping PSLF first started in 2014, it was unclear whether current borrowers would be "grandfathered in" (side note: Learn about the origin of the phrase and tell your friends! :| ) but most recent political discussions on PSLF have included some means to keep current borrowers protected under the old (current) system.

I tend to get a lot of criticism about this hot take, but I believe HYSC + Cornell's non-PSLF contingent programs are not as good as the lower-tier PSLF contingent programs. Take Columbia's for instance. On their non-PSLF contingent program, your contribution is 34.5% of your income exceeding 50k/year. Well, three years into a federal honors program, you'll be making 100k/year easily as a GS-14; that means your monthly payment will be $1437/mo. Not as bad as standard repayment at sticker price, granted, but it's still a lot of money. By the way, Columbia's IDR program covers salaries up to 100k/year, so in the alternative IDR-based program, your payment would be $0/mo.

I think the value in these programs come from if you're pretty certain you won't spend more than a couple years in public service, and therefore want the school to knock down your overall balance rather than make small payments on a PSLF schedule. I don't know. Personally, I love public service in (almost) all its forms and I can't imagine not doing public service work, even without loans.
I think that it is more likely to get capped (admittedly at an amount that will probably not help law students much) than eliminated entirely.
I'm not sure anymore. At one point, there was a discussion about capping the amount to something ridiculously low - like 57k or something. In recent times, I've seen more calls and proposals for ending it completely. Either way, I suspect the outcome, whether a drastic reduction or a total elimination, will take away the viability of the program as used in its present form.
Wouldn't NYU then, which has an 80k no-contribution cap and a protection for negative am through the one-time payout if you leave the program, be the best LRAP then? (at least given your weariness of the high costs of the HYS and optional Columbia LRAPs? I would say Columbia's is best, but I don't think it offers that negative am protection that NYU does.

User avatar
twenty
Posts: 19
Joined: Thu Jan 25, 2018 3:20 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by twenty » Sun Jan 28, 2018 5:03 pm

Echos Myron wrote:Wouldn't NYU then, which has an 80k no-contribution cap and a protection for negative am through the one-time payout if you leave the program, be the best LRAP then? (at least given your weariness of the high costs of the HYS and optional Columbia LRAPs? I would say Columbia's is best, but I don't think it offers that negative am protection that NYU does.
NYU's one-time payout is a nice benefit, but unfortunately won't apply in most situations - and you have to be enrolled in the program for three years to take advantage of it. Keep in mind the neg-am protection only (fully) kicks in if you're under the pre-IDR LRAP cap of $47,000/year. Hypothetically, if you made <$77,001 in any of the three years, you would have been excluded from pre-IDR LRAP at that point, and therefore not eligible for the neg-am payout.

Unfortunately, that means participants in the $47000-$77000 range who are on track to make <$77,001 before year three would be better off going on an IDR program, enrolling in NYU's pre-IDR LRAP, lying to NYU and telling them you're on a standard repayment plan, and then just turning over the excess LRAP payments to the servicer. NYU requires proof of actual balance paid, though, and your IDR program will pop up on the statement even if you're making excess payments - so don't do this. Also, fraud is bad.

On the other hand, Columbia's actually lets you do exactly that:
Columbia LRAP terms wrote:In the second option, the LRAP benefits will be calculated using the traditional $50,000 income threshold (see “Calculating Annual Awards”). LRAP benefits are not capped at the amount of IBR provided the participant makes additional loan payments according to the traditional LRAP schedule. Making payments in excess of IBR reduces the principal amount of the federal loans. At any time, the participant may choose not to make additional payments according to the traditional LRAP schedule; in that case, LRAP benefits will be capped at IBR. The LRAP benefits will continue to be calculated using the traditional LRAP formula (see “Calculating Annual Awards”), but do not exceed IBR (the amount the participant actually must pay).
So, like, this would be the best system for everyone to adopt; risk averse folks could initially make (larger) payments based on the old-LRAP and still have the school contribute based on the old repayment schedule, but then around year 5-6 when the borrower is earning a lot more money, they can have their prior payments counted towards PSLF, or they could go find a private sector job and not worry about the neg-am. Last I checked, Columbia is the only school that officially allows students to do this. With other schools, you'd have to tell them you're on a standard repayment plan, and then secretly be on IDR. Again, I don't recommend lying to an institution that's giving you money.

Jeff wrote:What are the best options for union-side labor law or employee-side employment law, excluding government work? Labor organizations are 501(c)5s and union/employee-side L&E law firms are for-profit, so I don’t think either is covered by PLSF, but neither seem to pay much relative to the debt one may take on for law school.

Here are the options I see:

LRAPs that cover 501(c)5 or for-profit work: I can’t realistically get into YS so I haven’t looked at theirs, but Harvard has LIPP covering or partially covering all lawyers up to a certain income, from what I understand. Are there other T14 schools that do this, or else have a broader definition of public service when considering LRAP eligibility?

IBR: Make monthly payments for 20 years and have enough savings to handle a tax bomb at the end. This one seems really stressful—is there a chance IBR is ended, or are there ways to get disqualified from IBR?

Scholarships: I think I could get decent money from some T10-20 schools. This seems like a safer bet for my debt but a less safe bet for my legal employment.
You are correct in that neither a 501(c)(5) labor org, nor a for-profit law firm that does employee/union-side labor practices would qualify for PSLF. I believe most T14 schools have (admittedly, low income cap) pre-IDR LRAP programs that cover 501(c)(5)s.

There's an outside chance that IBR/other IDR programs get killed off, but it is very, very unlikely that this termination would apply to current/past borrowers. First, your Master Promissory Note straight up tells you that you'll have the option to pay off your loans based on IDR. Second, IDR is a safety net from default; people with 300k+ in loans are just straight up not going to be able to make monthly payments, short of robbing banks or selling cocaine. If the government actually does cut IDR, there will be a lot of defaulting students in the same boat.

However- and I'm going to apologize for not saying this earlier in this thread: the best loan repayment program is the one where you don't have any loans to begin with because you got scholarship money. If you have a full-scholarship offer at a decent school, I would absolutely take that option. Yeah, you might have worse job opportunities (mostly reduced opportunities at biglaw, tbh), but you will have significantly more career freedom to work for a private-sector/non-qualifying employer.

Full disclosure: I found myself in this exact situation four years ago when I was choosing between a full ride at a T1 and sticker at HYSCCN. I picked the T1, and I'm really glad I did, because I ended up getting the exact job I was gunning for. Will the lack of more impressive academic credentials impact me in the future? Possibly, yeah. Will the lack of debt impact my exit options when I'm ready to move on? Almost certainly.

User avatar
northwood
Posts: 169
Joined: Fri Jan 26, 2018 10:52 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by northwood » Sun Jan 28, 2018 5:17 pm

Thank you for this.

User avatar
ChutzpahSaxa15
Posts: 136
Joined: Sun Jan 28, 2018 12:44 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by ChutzpahSaxa15 » Mon Jan 29, 2018 1:42 pm

Do clerkships qualify for PSLF?

User avatar
twenty
Posts: 19
Joined: Thu Jan 25, 2018 3:20 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by twenty » Mon Jan 29, 2018 4:20 pm

ChutzpahSaxa15 wrote:
Mon Jan 29, 2018 1:42 pm
Do clerkships qualify for PSLF?
Yes, as long as the clerkship is federal, state, local, or tribal. International clerkships (Hague, ICC, ICJ, etc.) or foreign governments (Israel, South Africa, etc.) would not qualify for PSLF. This is true even if the international organization you are working for is located/headquartered in the US (the UN office in New York City, for instance).

Another tricky part is that some law schools do not consider clerkships as eligible for LRAP, even if they are eligible for PSLF (see: UC Davis).

User avatar
ChutzpahSaxa15
Posts: 136
Joined: Sun Jan 28, 2018 12:44 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by ChutzpahSaxa15 » Mon Jan 29, 2018 4:49 pm

Yeah I had known that about LRAP, but I at least figured if I did a clerkship for a year and made a year's worth of income-based payments, that'd be a year under my belt for the PSLF 10.

User avatar
Nebby
Posts: 6567
Joined: Thu Jan 25, 2018 3:24 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Nebby » Mon Jan 29, 2018 6:43 pm

ChutzpahSaxa15 wrote:
Mon Jan 29, 2018 4:49 pm
Yeah I had known that about LRAP, but I at least figured if I did a clerkship for a year and made a year's worth of income-based payments, that'd be a year under my belt for the PSLF 10.
Since repayment doesn't start until Dec., and your clerkship ends in the following September, then it'll only be 10 months.

lmb38
Posts: 65
Joined: Fri Feb 09, 2018 4:02 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by lmb38 » Fri Feb 09, 2018 5:18 pm

Oh my god, this is the clearest, most helpful post on LRAPs I've ever seen. Thank you thank you!! I've been badly needing someone to break down how it all works for me. Thank youuuuu.

Guest

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Guest » Mon Feb 12, 2018 6:40 pm

“Trump's budget would end student loan forgiveness program”

https://www.cnbc.com/2018/02/12/trumps- ... ogram.html

User avatar
not very fatduck
Posts: 421
Joined: Fri Feb 02, 2018 3:09 am

:[]

Post by not very fatduck » Mon Feb 12, 2018 6:47 pm

:[]

User avatar
rachelac
Posts: 210
Joined: Fri Jan 26, 2018 10:35 am

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by rachelac » Wed Feb 21, 2018 5:29 pm

If you work in biglaw for a few years and then move to PI, are you eligible for LRAP to help pay off any remaining loans?

User avatar
Pringles
Posts: 57
Joined: Fri Jan 26, 2018 8:35 am

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Pringles » Wed Feb 21, 2018 6:09 pm

rachelac wrote:
Wed Feb 21, 2018 5:29 pm
If you work in biglaw for a few years and then move to PI, are you eligible for LRAP to help pay off any remaining loans?
Depends on the school I think.

User avatar
rachelac
Posts: 210
Joined: Fri Jan 26, 2018 10:35 am

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by rachelac » Wed Feb 21, 2018 6:10 pm

Pringles wrote:
Wed Feb 21, 2018 6:09 pm
rachelac wrote:
Wed Feb 21, 2018 5:29 pm
If you work in biglaw for a few years and then move to PI, are you eligible for LRAP to help pay off any remaining loans?
Depends on the school I think.
Thank you!

White Dwarf
Posts: 28
Joined: Mon Feb 05, 2018 2:57 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by White Dwarf » Wed Feb 21, 2018 9:13 pm

Pringles wrote:
Wed Feb 21, 2018 6:09 pm
rachelac wrote:
Wed Feb 21, 2018 5:29 pm
If you work in biglaw for a few years and then move to PI, are you eligible for LRAP to help pay off any remaining loans?
Depends on the school I think.
Yeah, at Columbia you are eligible, but I think the additional income (34% of income you made over the $50K threshold for the school's non-PSLF program) you made beforehand is deducted from what they will forgive. So if you spend enough time at a firm, there's not going to be all that much benefit left over (as it should be, IMO).

I probably have it wrong in some respects, but that's the basic idea if you go private sector first, then go into LRAP-eligible employment. The extra income will count against you in some way.

User avatar
Nebby
Posts: 6567
Joined: Thu Jan 25, 2018 3:24 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by Nebby » Fri Feb 23, 2018 10:01 am

The only schools it is feasible to do are HLS and YLS. Possibly SLS

User avatar
jess
Posts: 4204
Joined: Thu Jan 25, 2018 6:56 pm

Re: LRAP/IBR/PSLF. How does it work? Let's find out!

Post by jess » Tue Feb 27, 2018 1:18 am

i think i posted this on top loom spools once, but does anyone know of a site/publication that defines “qualifying payment” for purposes of pslf?

specifically, if my payment is due on the 30th of the month and i am starting a new job, would i need to be employed from the 1st to the 30th of that month for it to qualify or just on the 30th or ????

Post Reply

Who is online

Users browsing this forum: No registered users and 2 guests