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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 next application cycle begins on September 4, 2012.
The LRAP application and accompanying attorney and employer certifications will be due no later than
October 15, 2012.
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 this time, the applicant’s total gross salary may not exceed $64,000, and 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.
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, the number of qualifying attorney applicants and the length of time a loan recipient remains in the program.
First year program participants are eligible for a maximum loan of $3,500 if their annual net student loan debt service is greater than or equal to $3,500. Those first year participants with annual net student loan debt less than $3,500 will receive loans in the amount of their actual annual net debt service.
Second year program participants (i.e., those first year LRAP loan recipients who continue in eligible employment for a second year) are eligible for a maximum loan of $4,500 if their annual net student loan debt is greater than or equal to $4,500. Those second year participants with annual net debt service less than $4,500 will receive loans in the amount of their actual annual net debt service.
Third year program participants (i.e., those second year LRAP loan recipients who continue in eligible employment for a third year) are eligible for a maximum loan of $6,000 if their annual net student loan debt is greater than or equal to $6,000. Those third year participants with annual net student debt less than $6,000 will receive loans in the amount of their actual annual net debt service.
The Foundation will review all applications and send loan commitment letters, loan agreements and truth-in-lending statements to those selected to participate in the program by
November 30, 2012. Participating attorneys will have until
December 14, 2012 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, 2013. The Foundation will make the remaining quarterly disbursements based on receipt of the quarterly certifications of eligibility on the following scheduled:
Quarterly Certification Due
Loan Advance Disbursed
April 15, 2013
July 16, 2013
September 30, 2013
October 15, 2013
December 31, 2013
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, 2014.
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
LRAP Links of Interest
Pennsylvania Bar Foundation - PA IOLTA LRAP - Online Application
Tutorial, Tips and Hints
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LRAP Press Releases
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