Loan Repayment Assistance Program

Download the forms in pdf format

THE HOWARD & PHYLLIS EISENBERG FUND

The legacy of the late Dean Howard B. Eisenberg is important to the future of Marquette University Law School. This is true in the general sense that Dean Eisenberg worked tirelessly to inculcate in students a sense of the important public interest that lawyers serve. It is true as well in the more specific sense that the Howard and Phyllis Eisenberg Fund is a way of ensuring that today's students have the means of acting on the ideals of the profession by undertaking public interest work.

The Howard and Phyllis Eisenberg Fund helps to accomplish this by serving as a Loan Repayment Assistance Program. Dean Eisenberg himself established the LRAP in Spring 2001. After his death, the program was renamed to serve as a lasting memorial and was enhanced through memorial contributions and other donations.

THE PROGRAM

Every year, a number of Marquette University Law School graduates dream of a career serving those who receive inadequate or no legal assistance. But these new lawyers face a substantial challenge. It is especially difficult for new law graduates with substantial student loan debt to take lower-paying jobs that would enable them to pursue their dream. The Law School recognizes that the legal community has a responsibility to help provide services to people who cannot afford representation. This program has been adopted in the hope that it may remove an obstacle to graduates interested in choosing a career serving the poor and underserved. According to a 2002 joint report by Equal Justice Works, the National Association for Law Placement and Partnership for Public Service, "survey results suggest that some of the best solutions to the educational debt crisis are loan repayment assistance programs (LRAPs) and other similar programs." Under The Howard and Phyllis Eisenberg Fund: Loan Repayment Assistance Program (LRAP), participating graduates receive an annual grant to pay a percentage of their monthly loan payment.

SUMMARY

What is the Loan Repayment Assistance Program?
The Loan Repayment Assistance Program provides direct financial assistance to qualifying Marquette University Law School graduates who enter public interest careers by contributing up to fifty percent (50%) of their student loan payments. A committee appointed by the Dean administers the program.

What is the Value of LRAP?
The average starting salary for a public interest attorney in Wisconsin is $33,669. The average Marquette University Law School graduate in 2003 had $68,427 in student loan debt resulting in a monthly payment of $850, with forty-five percent (45%) of his/her salary committed to student loans. The LRAP is an important step towards ensuring that the next generation of Marquette lawyers will include graduates able to afford public interest careers.

Who qualifies?
Marquette University Law School graduates of May 2002 or later may qualify if they meet the requirements for "qualifying employment" and "qualifying income."

Qualifying Employment. Marquette University Law School graduates must work full-time for a public interest or public service employer. This includes private and public employers such as legal services entities and public defender or prosecutor offices.

Qualifying income. A graduate may earn no more than $45,000 gross income per year.

How much does LRAP pay? LRAP pays twenty-five to fifty percent (25 - 50%) of a qualified graduate's monthly loan payment (based on a 30-year payment schedule) depending upon the graduate's annual gross income and other financial circumstances. Of course, the amount of funds available for LRAP may not equal the needs of all qualifying applicants, and in all events the Law School has discretion to determine the recipients of funding and the funding levels.

APPLICATION INFORMATION

Program Administration

The Loan Repayment Assistance Program ("LRAP") is administered by the LRAP Oversight Committee (the "Committee"), a committee appointed by the Dean of the Marquette University Law School and consisting of the Dean or his/her delegate, two faculty members, two students, and two alumni (at least one of whom is a public interest lawyer).
The Committee's responsibilities include but are not limited to:

• Interpreting and promulgating LRAP rules and regulations so as to avoid potential program abuses;
• Notifying all LRAP participants of LRAP requirements once the application is complete;
• Reporting annually to the Law School community on the progress of LRAP, on any eligibility changes, and on the financial condition of LRAP;
• Considering positions not listed in the employment eligibility provisions as qualifying for admission to LRAP; and
• Reviewing and adjusting annually the various schedules contained in this document in consideration of prevailing economic conditions.

In addition, the Committee meets separately without its two student members for the purpose of recommending to the Dean the student(s) who will receive funds through LRAP. The student members do not participate in either the deliberation or determination of those who are recommended as recipients of LRAP funds. After reviewing the committee's recommendation, the Dean shall make the final decision.

Eligibility
Graduates must meet each of the following criterion:

• May 2002 or later graduate of Marquette University Law School;
• Employed full-time with a qualifying employer (see below);
• Gross annual income of $45,000 or less including income from salary, interest, child support, alimony or spousal/domestic partner support, or any other source;
• Must not be delinquent or in default on educational loans; and
• Judicial clerks are not considered during year(s) of clerkship.

Application Deadlines
Graduates must apply for loan repayment assistance within five (5) years following graduation. Time served in judicial clerkships tolls the running of this time period, but in no event may graduates apply for loan repayment assistance later than ten (10) years following graduation.

Awards are made twice each year, in May and November. To begin receiving payments in May, applications must be received no later than April 15. To begin receiving payments in November, applications must be received no later than October 15. Applications received after these dates will be delayed until the next payment cycle.

Duration of Eligibility
Participants receive benefits for no more than ten (10) years of qualifying employment. Participants are responsible for repaying any student loan debt still outstanding after their eligibility period has expired.

What is Qualifying Employment?
Qualifying employment includes work for Legal Services, non-profit organizations that qualify for tax exemption under IRS Code Sections 501(c)(3), (4), or (5), public defender offices, prosecutor offices (i.e., district attorneys, state attorneys general, U.S. Department of Justice, U.S. Attorneys) and other governmental offices. The position must be one that requires a Juris Doctorate degree and admission to the bar. The Committee may establish future guidelines to expand the program into categories of employment that satisfy the purposes of the LRAP but are not nonprofit organizations. At that time, employers who have as their primary goal service to the traditionally underserved, who can demonstrate that their practice primarily serves the poor and near poor, and who qualify under section 108(f) of the Internal Revenue Code may apply to the program to have their practice deemed "qualifying employment."

Income Requirements
No one having over $45,000 of annual gross income is eligible to enter LRAP. Applicants must report income from all sources including salary, interest, alimony, child support, spousal/domestic partner support, or any other source. The Committee reserves the right to deny eligibility in any individual case if projected income does not appear to reflect an applicant's true financial need. In the event of insufficient funding, applicants with the greatest need, lowest income, and a demonstrated commitment to public interest work will be funded first. The size of the overall debt is not dispositive, however, and the Committee will consider whether the debt accumulated during law school was reasonable under the circumstances.

Eligible Loans
Short-term emergency loans awarded by the Marquette University Law School while enrolled at the school are specifically excluded from the LRAP program. Any other outstanding need-based institutional loan incurred while enrolled at Marquette University Law School is considered:

• Stafford subsidized and unsubsidized loans borrowed to attend Marquette University Law School are included.
• Loans from the Law School or from an external lender are included.
• Bar-related loans are included.
• Loans to attend an institution other than Marquette University Law School are not included, except for the cooperative program with The University of Queensland T.C. Beirne School of Law, which is included.

Leaves of Absence
A participant in the LRAP is allowed to take a leave of absence from the program for up to one year for such purposes as pregnancy, family leave, care of small children, illness, disability, relocation, and other appropriate reasons as approved by the LRAP Oversight Committee. During this period the graduate is not eligible for new LRAP assistance or forgiveness of any previous loans, but repayment of LRAP loans is not necessary. If the participant does not return to the program within one year, LRAP loans become payable to the extent not forgiven.

Benefits
Participants receive assistance in the form of a loan that is forgiven at the end of the year in which the loan is made as long as the participant remains in qualifying employment. Section 108(f) of the Internal Revenue Code details the requirements for tax-free forgiveness. It is possible that LRAP participants will not have have the forgiven amount constitute part of taxable income. However, participants are urged to consult a tax advisor about their awarded amount.

LRAP participants are issued two (2) checks per year, one in May and one in November, each for one-half of the award amount. LRAP pays twenty-five to fifty percent (25-50%) of a graduate's actual total loan payments (based on a 30-year payment schedule) for six (6) months, with the exact percentage dependent upon the graduate's annual income and other financial circumstances. Participants are required to execute a promissory note.

Participation in LRAP is on a year-to-year basis only. Once a graduate is admitted to the program, it is his/her responsibility to reapply each year for continued assistance and to certify at the end of every year that he/she has applied the LRAP loan to educational loan payments and has served the entire year in qualifying employment.

Changes in Graduate's Financial Condition
The amounts for which participants are eligible are based upon participant annual gross income and monthly loan payments on covered loans. If either of these figures changes, LRAP eligibility can be affected. Any changes in income or loan payments must be communicated to the Committee immediately or risk suspension from LRAP.

Termination of Participants for Cause
If upon verification the Committee determines that a participant has not used the LRAP proceeds for payment of educational loans, the Committee will terminate the recipient's participation in LRAP and will seek payment of the loan already made.

Repayment of LRAP Loans
Each year of participation in LRAP, the participant will receive a loan for the amount for which s/he is eligible under LRAP regulations. Ordinarily, this loan is forgiven at the end of the eligibility year as long as the participant remains in qualifying employment. However, eligibility can be reduced at any time due to financial or employment changes. In such cases, if the participant does not refund excess money received, the amount of the over award will not be forgiven at the end of the year, and the participant will be obligated to repay that LRAP loan amount with interest within six (6) months thereafter. At the end of each year for which a loan is granted, the participant is required to complete and submit to the Law School a Certificate of Compliance, certifying that the loan amount has been applied to student loan payments and that they have continued during that year in qualifying employment.

Application Procedure
Applications should be submitted as soon as an applicant become eligible. The application must be supported by each of the following:

• federal tax return of applicant and spouse or domestic partner for the prior year, including W-2 statements;
• statement describing any facts that would cause the applicant and/or spouse's or domestic partner's adjusted gross income to differ by more than ten percent (10%) from the figure shown on the most recent tax return;
• employment certification form from the applicant's employer (see attached);
• lender certification form (see attached) for each of the applicant's covered loans; and
• list of assets.

If the applicant did not and was not required to file a tax return for the prior year, s/he must attach a separate sheet with the following statement: "I hereby declare that by federal law I am not required to file, and did not file, a federal income tax return for the 20__ tax year and therefore cannot supply a copy to the Law School LRAP Oversight Committee as required." The statement must be signed and dated.

Note: Lenders often take a long time to complete and mail the lender certification form, so applicants should mail the form to their lender as soon as possible.

Subsequent Application Procedure
Participation in LRAP will be on a year-to-year basis only. Once a graduate is admitted to the program, it is his/her responsibility to reapply each year for continued assistance. Each year, at least one month prior to the end of the award year, the participant must submit the following information:

• Federal tax return of participant and spouse or domestic partner for the prior year, including W-2 statements;
• Statement describing any facts that would cause the participant and/or spouse's or domestic partner's adjusted gross income to differ by more than ten percent (10%) from the figure shown on the most recent tax return;
• Employment certification form (see attached);
• List of assets.
• Certification of Compliance (see attached)

This information will be used to verify income projections reported for participation the previous year. Appropriate adjustments will be made if the information provided differs substantially from initial projections.

If a graduate's income rises to more than $45,000 of annual gross income after the first year of participation, the amount of benefit under the program will be reduced as follows:

Income up to $45,000	25-50% of monthly loan repayment amount
$45,001 - $46,500	Reduce award by 5%
$46,501 - $48,000	Reduce award by 10%
$48,001 - $50,000	Reduce award by 15%
Income above $50,000	0

Disclaimer
By implementing this program, Marquette University Law School makes no guarantees as to the future funding or permanent existence of this program. The Law School reserves the right to terminate or modify the program or any of its provisions at any time. Benefits will be paid only to the extent that funds are available and the program continues to exist.

Download the forms in pdf format