Why the Program Is Structured as a Forgivable Loan
The program is structured as a forgivable loan to align with federal tax provisions that may allow the forgiven amount to be excluded from a participant’s gross income. Under Section 108(f) of the Internal Revenue Code, forgiveness of certain student loans linked to qualifying public-service employment is, in most cases, not subject to federal income tax. Participants employed by, or working under the direction of, a governmental unit or an organization described in Section 501(c)(3) of the Internal Revenue Code generally will not have forgiven amounts added to their income. Participants should review Section 108(f) and consult a tax advisor with any questions.
Program Qualifications
Applicants will be considered if they meet the following requirements:
- Marquette University Law School graduate
- Full-time employment of at least 32 hours per week
- Work that involves the practice of law or substantive law-related responsibilities
- Employment with a public interest or public service employer, including:
- Civil legal aid organizations
- Non-profit organizations qualifying under Section 501(c)(3)
- Prosecutor and public defender offices
- Military judge advocate general positions
- Government offices that directly serve individuals with barriers to accessing justice
- Judicial clerkships do not qualify
- The position must require a JD and bar admission
Award Calculation
Awards are based on adjusted gross income (AGI) and the applicant’s annual qualifying educational loan payments.
| AGI Range | LRAP Covers This % of Your Annual Loan Payments | Maximum Annual Award |
|---|---|---|
| < $60,000 | 100% | $7,000 |
| $60,001 - $65,000 | 75% | $6,000 |
| $65,001 - $75,000 | 50% | $4,000 |
| $75,001 - $85,000 | 25% | $2,000 |
| > $85,000 | 0% | $0 |
Income and Adjustments
Applicants must report all sources of income, including wages, interest, support payments, and any other income. The review committee may deny eligibility if projected income does not reflect financial need. When funding is limited, applicants with the greatest financial need and a demonstrated commitment to public-interest work are prioritized.
Income of Spouse
Married applicants are assessed using either the applicant’s income (if it is higher) or one-half of combined income (if the spouse earns more).
- Example: Applicant earns $60,000 and spouse earns $55,000. Imputed income is $60,000.
- Example: Applicant earns $60,000 and spouse earns $70,000. Imputed income is $65,000.
The committee may waive spousal imputation if funding is sufficient.
Dependent Children
For applicants with dependent children claimed on their tax return, $4,050 is subtracted from gross annual income for the first dependent child and $2,025 for each additional dependent child.
Program Policies
Timing and Duration
Spring applications are due July 15.
Fall applications are due January 15.
Awards are announced in early August and early February, and checks are mailed within 6–8 weeks after the recipient submits a signed promissory note.
Participants may receive benefits for up to ten years of qualifying employment.
Law School Loans
Applicants must provide proof of total law school loan debt and monthly payments. The size of the debt is not determinative. No annual award may exceed the borrower’s income-driven repayment amount for that year.
Benefits
The Internal Revenue Service has indicated that amounts forgiven under law school LRAP programs, including Marquette’s, generally are not treated as taxable income. Section 108(f) of the Internal Revenue Code outlines the requirements for tax-free forgiveness. Participants should seek independent tax advice. Participants must sign a promissory note before receiving funds.
Participation is Semi-Annual
Recipients must reapply every cycle and must submit a Certificate of Compliance at the end of each year of funding, confirming that LRAP funds were used for student-loan payments and that qualifying employment was maintained.
Changes in Financial Condition
Eligibility is based on annual income and loan payments. Any changes must be reported immediately to avoid suspension or loss of eligibility.
Termination
If the review committee determines that LRAP funds were not used for educational loan payments, participation will be terminated and repayment of the loan will be required.
Repayment
Each LRAP disbursement is a loan that is ordinarily forgiven at the end of the eligibility year if qualifying employment continues. If employment or income changes reduce eligibility during the year, the participant must return excess funds. Unreturned overpayments will not be forgiven and must be repaid with interest within six months.