LRAP Program Description
Beginning in 2006, the Legal Services Corporation (LSC) has made forgivable loans to attorneys employed by LSC-funded legal services programs (LSC grantees) to help them repay their law school debt.
Since 2006, the Legal Services Corporation (LSC) has made forgivable loans to attorneys employed full-time by LSC-funded
legal services programs (LSC grantees) to help them repay their law school debt. The Herbert S. Garten Loan Repayment Assistance Program1
(LRAP) helps LSC grantees recruit and retain qualified attorney staff. Attorneys selected for the program may receive forgivable loans for up
to three (3) years depending on eligibility and available funding. For each annual term, the loan payment may be forgiven if the attorney remains eligible and employed during the entire annual cycle at the employing LSC grantee. This Program Description applies to all applications
submitted for the annual cycle that commences October 1, 2023.
Depending on available funding, LSC may need to use a lottery system to select eligible attorneys (the actual number of loans made each year
depends on available funding) to participate. Application submissions from eligible attorneys may outweigh the loans to be provided. Selected
attorneys will receive an LRAP loan, which must be used to pay qualifying law school loans and accrued interest. If the selected attorney stays
employed in good standing with a LSC grantee through the required twelve months from October 1, 2023 to September 30, 2024, as certified
by the Executive Director of the LSC grantee, then LSC will forgive the loan (presuming the participating attorney meets all other terms and
conditions of the loan agreement). If the attorney stops working at that LSC grantee during the required 12 months, then the entire loan must
be paid back to LSC, unless LSC determines the participating attorney had good cause as described below (See Section II. F Loan Default).
An attorney’s participation in the first year of the LRAP is based on eligibility demonstrated in the initial application and selection. To participate
for a second and third year, the attorney must submit information demonstrating continued employment with the same LSC grantee and other
eligibility requirements. If eligible, an attorney may participate in the second and third year even if the attorney’s net worth now exceeds the
LRAP’s eligibility requirements. All loans are contingent upon available funds. There is no guarantee that an eligible attorney will receive funds
for a second and third year. Attorneys are encouraged to apply in consecutive years. All selected attorneys must agree to participate in any
evaluation of the LRAP. Evaluation activities may include the completion of surveys and participation in interviews
1. Each applicant must submit a completed LRAP Application Form, and all required supporting documents and certifications by the appointed deadlines.
At the time of application, the applicant must be employed full-time or have a job offer from an LSC grantee organization with a start date of October 1, 2023, or earlier as a licensed attorney at an LSC grantee.
To receive loan forgiveness, the participating attorney must remain in full-time employment with the employing LSC grantee for the entirety of the LRAP loan term for which they are applying (for the current cycle that would be October 1, 2023 through September 30, 2024). If the participating attorney does not remain employed full-time with the LSC grantee listed on the Promissory Note during the required 12 months, the participating attorney must repay all loan disbursements to LSC.
2. At the time of the participating attorney’s initial application, the applicant must have a reasonable expectation of employment at the grantee for three years beginning with October 1, 2023. For example, a June 2023 applicant interested in the 2024 award must have a reasonable expectation of employment at their current grantee from October 1, 2023 through September 30, 2026. Fellowship recipients or special-grant funded attorneys may apply for LRAP assistance provided they have a reasonable expectation of continued employment for the full three-year period, even if the fellowship or special-grant term lasts less than three years.
3. At the time of initial application, the applicant cannot have been employed as an attorney by a LSC grantee for more than
five years (60 months cumulative).
4. At the time of initial application, the applicant must have a total outstanding debt of at least $75,000 in eligible law school
loans (see Section II.B.1 Eligible Uses below).
5. At the time of initial application, the applicant may not have:
- previously received LRAP loans covering 36 months or more (cumulatively); or
- defaulted on a previous LRAP loan; or
- included a previously-received LRAP loan in any bankruptcy filing as a dischargeable debt.
6. An applicant is not required to first apply to, and maximize participation in, any other loan repayment assistance program
for which the applicant is eligible. The receipt of other loan repayment assistance will not decrease the amount of the LRAP.
However, LSC requests information on the applicant’s participation in other loan repayment assistance programs for research
purposes aimed at further improving LSC’s LRAP.
7. If selected, the applicant must execute an LRAP Promissory Note and timely submit the Executive Director Certification
Form, as instructed through GrantEase, to receive a loan (see Section II.B.1 Eligible Uses below). A participating attorney will have
to execute a new LRAP Promissory Note for each eligible year, up to three years.
8. Prior to receiving each loan payment, a participating attorney must provide LSC with a Certification of Employment and
Good Standing executed by the Executive Director of the LSC grantee where the participating attorney is employed full-time.
9. Upon completing the eligibility term, the participating attorney must certify that LRAP funds were used to pay law school
loan debt. LSC will then forgive the loan and provide a Satisfaction and Release Letter.
10. LSC uses direct deposit to make individual loan payments. If you have any concerns about the use of direct deposit, please
reach out to LRAP@lsc.gov.
LRAP loans may be used for payment of the following educational loans incurred for law school expenses (“eligible law
school loan(s)”), on the condition that they can be verified through a lending institution:
- Federal Stafford Loans (Subsidized/Unsubsidized)
- Supplemental Loans for Students (SLS)
- Federal Perkins Loans
- Law Access Loans (LAL)
- Law Student Loans (LSL)
- Law-school based loans
- Other educational loans used to pay for law school (e.g., Nellie Mae, Sallie Mae, TERI)
- Loans related to preparing for or taking bar exam(s)
LRAP loans may not be used for payment of the following loans:
- Undergraduate or other non-law school related educational loans
- Non-educational loans
- Educational or non-educational loans from family members
- Educational or non-educational commingled loans with spouses or partners or parents
- Credit-card debt loans
Use of LRAP loans for payment of ineligible loans, or any other purpose contrary to the terms of the LRAP Promissory Note, will automatically place the LRAP loan into default and the participating attorney will be required to repay the principal and interest to LSC pursuant to the terms of the Promissory Note.
At the time of the initial application, a participating attorney must have eligible law school loans with a total outstanding debt on
them of at least $75,000 and must meet the other eligibility requirements of the LRAP (see Section I.A. Requirements above). All
participating attorneys will be required to provide lender documentation on each loan being submitted with the initial application.
If law school debt has been consolidated with undergraduate and/or graduate school debt, the participating attorney will be asked
to calculate the law school debt. The Application Form and Instructions describe these requirements in detail. A participating
attorney must also certify compliance with the income and asset eligibility criteria.
A participating attorney must notify LSC at LRAP@lsc.gov in writing of any errors, omissions and/or significant changes in the
application information and/or other information provided to LSC within 30 days of learning of such errors, omissions, and/or
changes to address and contact information, including termination of employment for any reason from the LSC-funded legal
services program that employed the participating attorney at the time of application. Failure to provide this information may
affect the participating attorney’s eligibility for the program and their Promissory Note repayment obligations for early departure
from the LSC grantee.
Once a participating attorney is determined to be financially eligible for the program, any change in the participating attorney’s
income or assets will not affect their eligibility for up to three years
The amount of the LRAP loan will be up to $10,000 annually, based on the total number of applications received and the total
amount of funding available for all participating attorneys selected to participate in LSC’s LRAP, starting with new and returning
applicants for the 2024 award cycle. For the 2024 award year, the LRAP loan principal will be distributed in one payment. LRAP
loan principal distributions will be disbursed through direct deposit (unless otherwise agreed upon) to the participating attorney
in one disbursement covering the grant period of October 1, 2023 to September 30, 2024.
The 2024 LRAP loan payment, which will occur on or around October 1, 2023, will be disbursed after LSC receives an executed
Promissory Note and an executed Executive Director Certification of Employment and Good Standing form. The executed
Certification of Employment and Good Standing form indicates that the participating attorney is employed full-time and is in good
standing (or has an offer to be employed full-time by October 1, 2023). The LSC grantee that employs the participating attorney is
not involved in the LRAP loan relationship other than to verify the participating attorney’s status on the Certification of
Employment and Good Standing forms completed at the beginning and end of the Employment Period (October 1, 2023 to
September 30, 2024).
The participating attorneys must apply the LSC LRAP loan to eligible outstanding law school loans, either through monthly
payments or as a lump sum. Under no circumstances can participating attorneys use LSC LRAP loan funds for any other purpose,
such as living expenses or any debt other than eligible law school loans (see Section II.B.1 Eligible Uses above).
Interest on the LRAP loan will accrue at the rate of six percent per annum commencing with the execution of each LRAP loan. The LRAP loan principal distribution, plus interest, will be forgiven if the participating attorney remains in good standing with the eligible LSC grantee throughout the LRAP loan term (the current cycle is October 1, 2023 through September 30, 2024), which must be certified by the Executive Director of the eligible LSC grantee. As discussed below, if the participating attorney does not remain employed full-time and in good standing for the entire loan term, the participating attorney will be in default of the loan and must return the entire loan amount for the grant cycle, unless LSC grants written default forgiveness.
A default occurs when a participating attorney ends employment at the eligible LSC grantee during the grant cycle term (the
current cycle is October 1, 2023 through September 30, 2024). A participating attorney’s loan will be in default on the entire
amount of the annual loan (including any accrued interest) if the participating attorney’s employment with the eligible LSC grantee
terminates between October 1, 2023 and September 30, 2024 for any of the following reasons:
• voluntarily resignation.
• voluntarily experiences a change in employment status (e.g., asks for and is granted a reduction from full- to part-time).
• is terminated from employment by the LSC grantee that employed the participating attorney.
• reaches the end date of the fellowship program or special grant funded employment and does not continue
employment with the LSC grantee that employed the participating attorney.
• uses or permits the use of any of the LSC LRAP funds to pay for any unapproved expenses (see Section II.B.2 Ineligible
A default may occur at any time after the participating attorney is selected to participate in the LRAP.
Notice of Default: The participating attorney is responsible for informing LSC at LRAP@lsc.gov of any actual or anticipated default.
Upon receiving notice from the employing LSC grantee or the participating attorney that a default has occurred or will be occurring,
LSC will investigate and obtain additional information about the circumstances surrounding the default. LSC will take action to
collect on the loan under the terms of the Promissory Note if the participating attorney does not repay the entire loan, including
all accrued interest, except for any amounts forgiven by LSC in writing as described below.
1. Petition for Forgiveness of a Loan:
Process for Requesting Forgiveness of Loan Amount in the event of a Default:
- a. Authority to forgive the loan amount in event of default: When a participating attorney is in default on a LRAP loan, LSC may, in its sole discretion, forgive the participating attorney’s outstanding loan balance by prorating the amount of the LRAP loan distribution due to the participating attorney if good cause for the default is established as described in Section F.1.b Petition for Forgiveness below.
- b. Petition for Forgiveness: Within 30 days of a default (as measured from the actual date of the default), a participating attorney who wishes to seek forgiveness of the distribution must submit a written Petition for Forgiveness (Petition) to LSC at LRAP@lsc.gov, explaining why good cause exists for the default. The Petition for Forgiveness must be in PDF format, attached to the email, and include the following:
- i. The participating attorney’s contact information;
- ii. The date of default and type of default (e.g., date of departure from LSC grantee, change in employment status at LSC grantee, etc.);
- iii. A description of the circumstances that caused or contributed to the participating attorney’s default; and
- iv. Which of the Good Cause for Purposes of Forgiveness listed in Section F.2. Good Cause for Purposes of Forgiveness below.
- c. LSC Review of the Petition: LSC staff will review the participating attorney’s Petition for Forgiveness and make a recommendation to the Director of the Office of Program Performance. The Director of the Office of Program Performance will determine whether good cause exists and whether, or to what extent, to forgive the loan.
- d. Notification of Determination: LSC will make a final decision on the participating attorney’s Petition for Forgiveness within 30 business days of receipt. LSC will issue a Notice of Determination on the Petition for Forgiveness, either approving or denying the petition, via email. LSC’s decision is final and not appealable.
2. Good Cause for Purposes of Forgiveness
LSC, in its sole discretion, will determine whether “good cause” has been established, but will use the following guidelines when determining whether good cause exists:
a. The following circumstances, if supported by the appropriate documentation, constitute good cause:
i. Death of the participating attorney (for which any reasonable notice from the participating attorney’s employer or others is provided);
ii. Short- or long-term disability, or serious illness/injury of the participating attorney that results in voluntary resignation from, or change in employment status with, the LSC grantee that employs the participating attorney;
iii. Short- or long-term disability or serious illness/injury of a member of the participating attorney’s immediate family (i.e., spouse, domestic/civil partner, child, sibling, or parent; including both half-relations and step-relations) that results in voluntary resignation from employment or a reduction in employment status (e.g., from full-time to part-time) in order for the participating attorney to act as a caregiver for the family member with the disability, illness, or injury;
iv. Voluntary resignation from employment because a spouse or domestic/civil partner is involuntarily transferred out-of-state or the area (e.g., military transfer, plant relocation, etc.); or
v. Voluntary resignation or involuntary layoff from employment because the participating attorney has received notice
from the employing LSC grantee that, due to a loss of funding or other factor necessitating a reduction in staffing, there
is an impending reduction-in-force, layoff, prolonged furlough, or material reduction in hours, pay, benefits, or
b. The following circumstances will NOT constitute good cause:
i. Termination for cause, as determined solely by the LSC grantee that employed the participating attorney;
ii. Voluntary resignation from employment in order to take another position (e.g., a private sector position, a Public
Defender or District Attorney position, or any other public interest-sector position, including a position at another LSC
iii. Voluntary resignation from employment to voluntarily relocate to be closer to family, a spouse’s job, or otherwise;
iv. Voluntary resignation from employment to care for an infant or child;
v. Voluntary reduction in hours for any purpose other than those indicated in the preceding subsection.
As it is difficult to anticipate or enumerate every circumstance that would constitute “good cause,” other compelling circumstances
that may arise will be reviewed on a case-by-case basis to determine whether good cause exists.
The LRAP application process is a fully electronic process. Please visit LRAP’s How to Apply page for instructions before completing
A completed application includes:
• The electronic submittal of the Application form with all appropriate boxes checked (failure to check all appropriate boxes will
result in ineligibility); and
• Loan documentation (documentation for each loan, plus any necessary explanatory material, combined into one PDF file and
attached to the Application).
Participating attorneys must update their individual GrantEase grantee profile whenever there is a change to personal information, including name, address, phone number and email address, and the participating attorney must notify LRAP@lsc.gov within five (5) business days of making any changes.
Participating attorneys must email LRAP@lsc.gov as soon as there is a change to banking information. Do not provide any banking information in the email. LSC will respond to the notice of change to banking information with instructions on how to properly and securely provide LSC with new banking information. LSC uses direct deposit to make LRAP loan payments. Failure to inform LSC of these changes will result in delayed payments.
Tax Consequences of Receiving LRAP Assistance
Participating attorneys are entirely responsible for any taxes or tax consequences of an LRAP loan, LRAP forgiveness, or an LRAP default. The LRAP is designed to take advantage of the provisions of 26 U.S.C. §108 Income from the discharge of indebtedness of the Internal Revenue Code, particularly section (f) Student Loans. In consultation with legal counsel, LSC believes it has structured the LRAP so that the loan amounts forgiven by LSC when a participating attorney completes each LRAP loan term are not considered taxable income to the participating attorney, and thus do not have to be reported as such. However, LSC does not give tax advice. Each participating attorney remains responsible for federal and state income tax consequences on individual returns.
Participating attorneys have the option to treat the forgiveness of their LRAP as taxable income and are encouraged to seek independent legal
or tax advice for any questions about their situations.
Should you have any questions or need assistance, please contact LSC at LRAP@lsc.gov.
For Further Reading
If you are employed by a U.S. federal, state, local, or tribal government or not-for-profit organization, you might be eligible for the Public Service Loan Forgiveness Program.