Loan Repayment Assistance Programs (LRAPs)

UNC School of Law Loan Repayment Assistance Program

UNC School of Law launched its pilot Loan Repayment Assistance Program in February 2009. The program is designed to help ease the burden of debt for students and alumni pursuing public service careers. The goals of the UNC School of Law's Loan Repayment Assistance Program are: 1) To encourage students to enter permanent public service employment without regard to debt burden; and 2) To assist graduates entering public service with law school loan debt. The program aims to supplement other available sources of loan repayment assistance so as to permit graduates to perform public service in North Carolina, the nation and the world, without being restricted or discouraged by law school debt.

In order to qualify for assistance, alumni must be using their legal skills for at least 20 hours a week in a public service capacity. They also cannot make more than $59,000 a year and must be current on their loans.

Visit for an application and for more information on eligibility and policies. 2009 applications are due on March 2, 2009.

NC LEAF (North Carolina Legal Education Assistance Foundation)

NC LEAF encourages law school graduates to work in the public sector by providing loan deferral for the first three years of public service employment, followed by loan forgiveness for continued public service. To be eligible for consideration for the Program, an Applicant must meet the following requirements:

  1. Graduated within 10 years from an ABA accredited law school
  2. Work full-time in a law-related public service job in North Carolina (judicial clerkships do not count)
  3. Meet the salary requirements: Make no more than $42,000 in adjusted income in first year of practice; $46,000 in second year; $51,000 in third and subsequent years.
  4. Not in default on any loan and current and not in forbearance on all law school educational loans.
  5. Must use all funds provided by NC LEAF towards repayment of eligible educational loans andpay lender(s) the additional amount necessary to make the full loan payment each month.

NC LEAF will provide loan repayment assistance for up to 10 years after graduation or until all eligible loans are paid off, which ever comes first. Participants must pay a portion of their income towards loans, but the amount varies depending on the participants’ eligible income (see chart below). NC LEAF will pay the remaining amount needed to meet eligible debt repayment obligation, up to $9,000 per year.

Eligibility Income / % Required Contribution
Less than $27,500 / 0%
$27,501-$35,000 / 2%
$35,001-$43,000 / 4%
$43,001-$51,000 / 6%
$51,001-$53,000 / 10% (transition)

For years one through three, NC LEAF will lend its contributions at no interest. If the participant remains in eligible employment through end of year three, loans extended up until then will begin to be forgiven. If the participant remains in the program through the end of year five, all loans up until then will be forgiven. If the participant leaves the program before the end of year five, the loans not yet forgiven are repayable over a ten-year period. If the participant leaves the program before the end of year three, repayment of the funds will be required by terms of the Promissory Note.

Loan Deferral / Forgiveness Schedule

Years of Eligible
Employment Completed / NC LEAF
Funds Forgiven
1 / None
2 / None
3 / Year 3
4 / Years 2 and 4
5 / Years 1 and 5
6 / Year 6
7 / Year 7
8 / Year 8
9 / Year 9
10 / Year 10

Other State Loan Repayment Programs
There are twenty three statewide loan repayment assistance programs operating in Arizona, District of Columbia, Florida, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oregon, South Carolina, Texas, Vermont and Washington. These programs range in age, size and scope. Several other states are discussing or developing statewide loan repayment assistance programs, including California, Illinois, Nebraska, Pennsylvania, Tennessee, and Virginia.

For more information, visit

Federal Employer Loan Repayment Programs

As of 2007, 33 federal agencies provided loan repayment assistance. Employees can receive up to $10,000 per year and $60,000 total, and to qualify employees must commit to work for the agency for three years. Although each agency’s loan repayment plan is unique, all are governed by 5 U.S.C. 5379, 5 CFR Part 537, and 5 U.S.C. 2105.

For the 2007 report, including agencies who participated visit

Federal Loan Forgiveness

-THE FEDERAL STUDENT LOAN FORGIVENESS LAW: THE COLLEGE COST REDUCTION AND ACCESS ACT OF 2007

The College Cost Reduction and Access Act of 2007 helps public service lawyers in two main ways:

1. Lowers monthly student loan payments on federally guaranteed student loans (Income Based Repayment or IBR)

2. Cancels remaining debt for public servants after 10 years of public service employment (Loan Forgiveness for Public Service)

The following are resources that provide more information on the law:

-Equal Justice Works – provides a wide variety of resources.

-IBRINFO.org – Users can register to get email updates.

-FinAid.com – Provides several calculators, including an IBR Calculator as well as information on Loan Forgiveness.

THE HIGHER EDUCATION REAUTHORIZATION AND COLLEGE OPPORTUNITY ACT OF 2008(summary from Equal Justice Works)

On August 14, 2008, President Bush signed H.R. 4137, now P.L. 110-315 – The Higher Education Reauthorization and College Opportunity Act of 2008. Although funds are authorized for each program, Congress will now have to make appropriations to fund these programs.

The Higher Education Reauthorization and College Opportunity Act of 2008 establishes four new loan forgiveness and repayment programs that benefit public interest lawyers. They are:

The John R. Justice Prosecutors and Defenders Incentive Act
Providing $10,000 per year in exchange for a one time renewable three-year commitment for state and local prosecutors and public defenders.

The Legal Assistance Loan Repayment Program
Providing $6,000 per year in renewable three year commitments to a maximum of $40,000 for civil legal assistance lawyers.

Loan Forgiveness for Service in Areas of National Need

Providing no more than $2,000 per year for five years for Public Sector Employees, including public interest legal services (prosecution, public defense, or legal advocacy in low-income communities at a nonprofit organization).

Perkins Loan Cancellation for Public Service

Providing partial loan cancellation for persons in specified public service jobs including federal public defenders.

Rules will be established by the federal agencies responsible for administering these programs and Equal Justice Works will post updates as this process moves forward.

To access H.R. 4137, visit Equal Justice Works will post more information as it becomes available. Click here for the Congressional Budget Office Cost Estimate for HR 4137. Please direct any questions to .

Legal Services Corporation Loan Repayment Assistance Programs

Certain nonprofit employers offer LRAPs of varying amounts. A list of employers offering assistance is below. Please note – this list is not comprehensive. Be sure to ask each employer if they offer an LRAP. For more information, visit

Updated 2/5/09

  • Allegheny County Bar Association
  • Appalachian Research and
    Defense Fund of KY
  • Atlanta Legal Aid Society
  • Center for Arkansas Legal Services
  • Bay Area Legal Aid
  • California Rural Legal Assistance
  • Central Florida Legal Services
  • Columbia Legal Services (WA)
  • Community Legal Aid Services (OH)
  • Community Legal Services (AZ)
  • DNA-Peoples Legal Services (AZ)
  • Florida Rural Legal Services
  • Inland Counties Legal Services (CA)
  • LaneCounty Legal Aid Services (OR)
  • Legal Aid of NC
  • Legal Aid of Western Missouri
  • Legal Aid Services of Oregon
  • Legal Aid Society (KY)
  • Legal Aid Society of San Diego
  • Legal Services for Cape Cod & Islands (MA)
  • Legal Services for Eastern Michigan
  • Legal Services of North Florida
  • Legal Services of Northern California
  • MerrimackValley Legal Services (MA)
  • Montana Justice Foundation
  • Neighborhood Legal Services of
    Los Angeles
  • Northwest Justice Project (WA)
  • OhioState Legal Services Association
  • Southwest Virginia Legal Aid Society
  • Texas Rural Legal Aid
  • Virginia Legal Aid Society
  • Volunteer Lawyers Project of the Boston Bar Association

Updated 2/5/09

Post Graduate Fellowships Offering Loan Repayment Assistance

Several post-graduate fellowships offer loan repayment assistance.

  • Equal Justice Works Fellowship (
  • Equal Justice Works Pro Bono Legal Corps (
  • New Voices National Fellowship (
  • Skadden Foundation Fellowship (
  • Soros Justice Fellowship (

Updated 2/5/09