LRAP FAQ for Classes of 2011 and Beyond


General

How does LRAP work? What can I expect after I submit my application?

Your LRAP application will be reviewed on a first-come, first-served basis. The review should not exceed 30 days from the time you submit the application.

After your application has been reviewed, the Law School Financial Aid Office will electronically notify you of your LRAP eligibility. We will use the email provided on the application to communicate this information to you.

If you are eligible for LRAP benefits, we will send you a Master Promissory Note and Statement of Rights and Responsibilities that need to be filled out, signed and mailed to the Law School Financial Aid Office. Your original signature on these documents is required.

Upon the receipt of the above-mentioned documents, the Law School Financial Aid Office will enter the LRAP payment information in the system, after which your LRAP will be ready to disburse to BruinBill.

Once LRAP payment is credited to your BruinBill account, it will be released to you based on your method of disbursement currently reflected on MyUCLA (formerly URSA). If you have not elected Bruin Direct (electronic fund transfer to your checking/savings account), your funds will arrive via paper check sent to your mailing address showing on MyUCLA (formerly URSA).

At the end of the calendar year (usually in the following January), you are required to show the Law School Financial Aid Office proof that the LRAP loan was used in its entirety to pay off outstanding loan debt. Your loan payments to lender(s) for the period of eligibility covered by LRAP must at least equal the amount of LRAP received from UCLA Law, otherwise you will owe repayment on your LRAP loan and will not be eligible for future LRAP participation until you repay the outstanding balance. 

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Will LRAP pay my student loans directly?

No, after we receive your signed Promissory Note we will process a payment request and provide you with the funding of a LRAP loan for the repayment of your student loans for a 12-month period. You will receive the money either through the Bruin Direct or as a paper check. Paper checks are sent to the mailing address on file at http://my.ucla.edu/.

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What loans are eligible to be considered for LRAP?

Any federal student loan debt (Perkins, Subsidized/Unsubsidized, Graduate PLUS and Consolidation loan), either from Undergraduate institution or UCLA Law School will be taken into consideration when determining LRAP benefits.

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I was a joint degree student while pursuing my law degree. Do all of my loans throughout the four years qualify for LRAP?

Yes, LRAP will cover all federal student loan debt during the pursuit of the Undergraduate, Masters and Law School Degrees.

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How does LRAP determine my annualized income?

The applicant's annualized income is determined as an annual salary verified by the employer plus any additional income specified by the applicant on the "Financial Statement and Personal Information" section of the LRAP application.

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If my employment started on May 1 and I submitted my LRAP application within 30 days of obtaining the employment, how will my annualized income and LRAP benefits be calculated?

The applicant's annualized income will be determined as an annual salary verified by the employer plus any additional income the applicant will receive during the same period of LRAP eligibility specified by the applicant on the "Financial Statement and Personal Information" section of the LRAP application. The LRAP eligibility will be pro-rated and assistance provided for eight months of eligibility (May - December).

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I will be graduating in May. What is the earliest I can apply for LRAP assuming I will have eligible employment?

Because most educational loans offer a six-month grace period following graduation, graduates going directly into qualifying employment will usually receive their first LRAP loan approximately six months after graduation. Graduates with qualifying employment and for whom their grace period ends prior to the calendar year of their graduation may receive LRAP support for that short period as part of their following year LRAP support (e.g. a 2013 graduate whose grace period ends in October 2013 may receive support for November and December 2013 and for calendar year 2014 through their 2014 LRAP application. In order for the applicant to receive retroactive LRAP support for November and December, they must show proof of payments made to the lender(s)).

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Can I voluntarily waive the grace periods for my loans and begin my loan payments and LRAP participation?

No, LRAP coverage begins at the end of your grace period for federal loans, which is generally in November or December.

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Should I report gross or net income on my application?

Please provide us with your gross income.

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I received a pay raise after I submitted my LRAP application and my new salary will push me over the contribution point (or further over the contribution point). When and how much do I need to pay back?

Please send your updated salary information to finaid@law.ucla.edu. The LRAP Coordinator will re-calculate your eligibility and notify you of the LRAP loan to be repaid. UCLA Student Accounts will initiate the repayment process and the outstanding balance will be posted to your BruinBill account.

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I secured employment with a private law firm and was offered a 1-year public interest deferred fellowship with a $50,000 stipend prior to the beginning of my employment. If my placement is considered LRAP qualifying employment, will I qualify for LRAP?

LRAP is designed to solely provide assistance to graduates who are pursuing public interest work or government employment as a career. Graduates receiving such deferred fellowships do not meet the LRAP qualifying employment requirement because they have not relinquished their employment with the firm that is providing the fellowship. The employment has been deferred, but not terminated.

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My loans are currently in deferment/forbearance until I receive my LRAP loan, what repayment plan documentation do you need?

If your loans are in deferment or forbearance, you must provide us with documentation of your intended repayment plan. Once you start repayment, you must submit a loan term statement showing that your loans are in repayment and the repayment schedule.

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When can I expect my LRAP payment?

LRAP applications are processed in the order received. For those applications received on the deadline date, we will make every effort to provide you with your Promissory Note within 30 days.

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Does it matter when during the 12-month period I use the LRAP funds?

Yes, it does matter. In order to receive LRAP funds you must be enrolled in a repayment plan and make the regularly scheduled payments within that payment period.

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When and how do I report income, repayment and address changes?

Please notify us of your income and repayment changes immediately by submitting a new Employer Verification Form or supporting documents from the servicer indicating new repayment terms. Be sure to update your personal contact information at http://my.ucla.edu/.

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Is there any way to ensure that my LRAP payment is processed via Bruin Direct?

Bruin Direct online enrollment is available via your BruinBill account. Please contact the UCLA Main Cashier's Office to check your status or for any questions.

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How will the reduced funding due to California's budget crisis affect LRAP?

Our LRAP is funded primarily by the Professional Degree Fee and is not dependent on state funding.

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Income Based Repayment Plans

Where can I find more information about PAYE and IBR?

Pay As You Earn is an enhanced alternative to IBR for certain borrowers. Under PAYE, the amount of discretionary income used to determine whether a borrow has a partial financial hardship and, if so, the monthly required payment obligation decreases from 15% under the IBR plan to 10%. In addition, the maximum length of time a borrower is required to make monthly payments decreases from 25 years under IBR to 20 years under PAYE. Otherwise, the two repayment plans function similarly.

A borrower is eligible for PAYE if, in addition to meeting all of the requirements for IBR, the borrower 1) did not borrow any federal student loans prior to October 1 2007 and 2) had at least one Federal Direct or Stafford loan disburse on or after October 1, 2011 or applied for and completed a Federal Direct Consolidation loan on or after such date.

Please refer to the following links to learn more:

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Why will only the IBR or PAYE options be offered to Classes of 2011 and beyond?

The IBR/PAYE options will provide for the most effective use of LRAP resources and allow eligible participants to avail themselves of the opportunity for lower monthly debt payments through Federal government support.

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My loans are currently not consolidated and not in IBR or PAYE. How will the LRAP support be calculated?

You will submit two versions of the Loan Indebtedness Information Worksheet (LIIW):

(1) reflecting your current scheduled monthly loan repayment and
(2) your estimated IBR/PAYE repayment

You will submit the second LIIW based on the Department of Education’s online calculator provided to you in the instructions section of the application process. The LRAP support will be calculated on the lesser of these two repayments.

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How would I determine the loan interest rate when estimating IBR or PAYE?

You will use 7.75% interest rate when determining the IBR/PAYE calculation per LRAP’s instructions.​

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How is my PAYE/IBR payment calculated if I file jointly?

Married applicants, who file their federal tax returns jointly, will experience higher PAYE or IBR payment, unless the spouse is not working and only the applicant’s income is taken into consideration when determining the monthly loan payment. If you decide to file your federal taxes jointly and your spouse has an income, we will use the applicant’s income only and the household size to calculate PAYE or IBR payment.

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