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Pennsylvania Bar Foundation-PA IOLTA Board Loan Repayment Assistance Program

The goal of the Pennsylvania Bar Foundation – PA IOLTA Loan Repayment Assistance Program (“LRAP”) is two-fold:

1) Help attorneys employed at IOLTA-funded legal services organizations across the state better manage their undergraduate and law school student loan debt so they can afford to remain in public service; and

2) Help IOLTA-funded legal aid organizations recruit and retain the best and the brightest attorneys for service in the public good.

The LRAP is a direct result of the 2006 Report and Recommendation of the PBA Task Force on Student Loan Forgiveness and Repayment Assistance and the leadership of Chief Justice Ronald Castille and the Supreme Court of Pennsylvania who dedicated the revenue generated by pro hac vice fees (the admission fee charged to out-of-state attorneys seeking to enter an appearance in a Pennsylvania case) to support of the program.

The Bar Foundation will administer one loan assistance cycle each year beginning in September. The amount of loan assistance provided to each applicant will depend on the available funding and the number of qualifying attorney applicants.

The next application cycle begins on September 2, 2014. The online LRAP application and accompanying attorney and employer certifications will be due no later than October 15, 2014. The Foundation will review all application and send loan commitment letters, loan agreements and truth-in-lending statements to those selected to participate in the program by December 1, 2014. Participating attorneys will have until December 15, 2014, to return the signed loan agreement to the Foundation. The fully executed loan agreement and the first quarter loan disbursement will follow by January 2, 2015. The Foundation will make the remaining quarterly disbursements based on receipt of the quarterly certifications of eligibility.

Loan applicants must be licensed to practice law in Pennsylvania or be permitted to practice law under Bar Admission Rule 311, have a valid Pennsylvania Supreme Court-identification number, be in good standing and practice law as an employee of an IOLTA-funded organization. At the next application cycle, the applicant’s total gross salary may not exceed $66,000; however if the attorney’s annual net debt service is greater than or equal to 10% of the attorney’s current annual gross salary he/she may apply regardless of the annual gross salary cap. At the time of application, the amount of educational debt based on loans from commercial and government lending institutions, as well as university or other private institutional loans associated with law school and undergraduate educational debts must be greater than or equal to the amount of the LRAP grant. The attorney’s qualifying educational debt must be in satisfactory repayment.

The program provides one-year loans, payable to qualified attorneys quarterly, with a 12-month employment requirement at qualifying organizations. Providing a participating attorney continues to meet the eligibility requirements, the attorney can apply for and receive up to ten, one-year loans over his/her tenure in qualified employment. The loans must be used to repay loans incurred for undergraduate and law school education costs and bar exam study and will be forgiven at the end of each year if eligibility requirements have been met.

2013 – 2014 LRAP Reporting and Disbursement Schedule
Quarterly Certification Due Loan Advance Disbursed
March 31, 2014 April 15, 2014
June 30, 2014 July 15, 2014
September 30, 2014 October 15, 2014
December 31, 2014  

Provided the participating attorney retains eligibility for the entire 12-month period and fully complies with all of the requirements set forth in the loan agreement, the full amount of the loan together with all interest that has accrued on the loan shall be forgiven and cancelled on January 31, 2015.

Please consult the Program Policies and the Frequently Asked Questions - FAQs for additional details. Please consult the Pennsylvania Bar Foundation - PA IOLTA LRAP - Online Application Tutorial, Tips and Hints below for help completing the online loan application.

If you have any questions, please do not hesitate to contact Pennsylvania Bar Foundation Executive Director E. Marie Queen at 888-238-3036 or info@pabarfoundation.org.

LRAP Links of Interest

LRAP Forms

Pennsylvania Bar Foundation - PA IOLTA LRAP - Online Application Tutorial, Tips and Hints

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