LRAP II - Our Former Program
LRAP II was closed to new applicants as of January 2010.
Georgetown Law’s previous LRAP II Program assisted certain JD graduates who were employed by a public interest organization or the government with the repayment of their student loans.
Funding for all LRAP II participants is 100 percent of need, as determined by the LRAP II Program, and covers federal loans (Subsidized and Unsubsidized Stafford, Grad PLUS, SLS and Perkins Loans), Law Center Loans and commercial student loans such as Law Access, T.H.E., LawLoans, Citiassist, Excel as well as Bar Exam loans, as long as they were certified by the Georgetown Law Office of Financial Aid.
Standard Maintenance Allowance
In recognition that income must first go toward basic living expenses, LRAP II protects a portion of each participant’s income, known as a “Standard Maintenance Allowance” (SMA). The SMA is the “salary base” used in calculating LRAP awards and is adjusted regularly for inflation. To reflect current cost of living conditions nationwide, a three-tier SMA structure was created using the federal government locality pay tables. SMAs are currently as follows:
Tier 1 – $56,100
- Los Angeles / Riverside
- New York City (5 boroughs)
- San Francisco / Oakland / San Jose
Tier 2 – $51,600
- Anchorage, AK
- Denver / Boulder
- Minneapolis/St. Paul
- Northern New Jersey / Long Island / Westchester
- Portland, OR
- Sacramento, CA
- San Diego
- Washington, DC
Tier 3 – $47,800
- All other US cities
- All foreign locations (unless otherwise determined by LRAP)
The SMA is subtracted along with any other qualified deductions (see Factors that Adjust Income) from the graduate’s gross annualized salary. If the adjusted salary exceeds the SMA, then the participant is expected to contribute at least 50 percent of the difference towards his/her annual student loan payments. For example, if a graduate earns $51,800 in a Tier II location, the participant would have an expected contribution toward the next 12 months of loan payments of $100 ($51,800 – $51,600 SMA = $200 x 50% = $100 contribution). The participant’s calculated contribution is subtracted from his/her calculated annual student loan payments to determine the LRAP maximum award coverage.
Most participants become ineligible for a monetary award from LRAP II when their yearly income is equal to two times their yearly loan payments plus the SMA for the area in which they live. For example, if a graduate pays $8,000 annually for law school loans and lives in the Washington D.C. area, the applicant would be ineligible for LRAP benefits if his/her salary, less qualified deductions, exceeds $67,600 ($8,000 x 2 = $16,000; $16,000 + $51,600 = $67,600).
Factors that Adjust Income
Salary Increases and “Other” Income
Salary increases as well as income earned from supplemental employment, produced from investments, interest from checking or savings accounts, generated from business ventures, and any bonuses or untaxed benefits (not retirement plans) provided by an employer will be added to the total household income.
Prior Educational Debt
Prior educational debt will be recognized in calculating LRAP eligibility. An applicant’s non-Georgetown Law annual student loan debt payments, capped at $4,000, will be deducted from the gross salary when determining LRAP benefits. For example, if a graduate owes $6,000 in non-Georgetown Law loan payments per year and earns $40,000, the salary used to determine LRAP eligibility will be $36,000 (maximum deduction of $4,000; $40,000 – $4,000 = $36,000). If applicable, applicants’ spouses’ loan debt payments, capped at $4,000, will be deducted from his or her gross salary as well.
Married Graduates (new applicants and current participants who become married as of May 2007 only)
Graduates who are married will be evaluated on the basis of either (1) their own income* (if the spouse is not working or earns below the dependent care allowance) or (2) an average of the joint incomes (if the participant has a working spouse in the household). Any annual education loan payments for the working spouse will be subtracted from the spouse’s income before the joint income is averaged.
*If the spouse is not working then the participant will receive a dependent care allowance for the non-working spouse.
Dependent Care Allowance
Participants with children are allowed a deduction for each child (or the amount of child support paid) from the household income. This allowance is reviewed regularly for cost of living increases and inflation. The child care deduction for 2021 is $9,125.
If a bonus is received before December 1, a recalculation of the July through December term will be done. If a bonus is received on or after December 1, this amount will be added to the subsequent January through June term.
Any benefits received from an employer in addition to annual salary are included in a participant’s income during the LRAP calculation. If an employer cannot provide a monetary amount for a benefit such as housing or a food allowance, then an amount will be determined by the LRAP staff, who will consider the cost of living for the area where the participant resides to determine an appropriate amount.