New York University School of Law announced major improvements to its loan repayment assistance program (LRAP), which helps graduates who choose public interest careers. NYU has one of the largest loan repayment assistance programs in the country - last year the school spent more than $4.3 million on LRAP for nearly 500 graduates - and between 10 to 15 percent of each graduating class enters public service.
The following changes are effective for graduates from the Class of 2005 and beyond:
- Reduction in the period of program participation required for LRAP loan forgiveness from 5 years to 3 years;
- Allowance for bar study loan of up to $10,000 to be included in eligible debt for students with demonstrated need;
- Protection for qualified retirement assets (e.g., 403(b), 401(k), IRAs) in net worth calculation;
- Increase in amount of eligible debt service for participants with significant undergraduate and/or other graduate/professional school debt;
- Increase in protection allowance for summer earnings (per summer) from $12,000 to $15,000 when calculating student contribution;
- Allowance for spousal educational debt service to reduce spousal income before determining participant qualifying income;
- Addition to qualifying employment definition to include eligibility for those on employer-approved parental leave and for those primary caregivers of a child under age 6 working at least half-time in eligible employment.
“These new enhancements continue NYU’s long tradition of being the leading school in training public service lawyers,” said Dean Richard Revesz. “We believe that these changes will provide a broad group of participants with more career flexibility. Additionally, it will lessen the pressure on students and graduates to choose between saving for retirement and paying for law school with available assets and for those who are pursuing public service careers while raising children.”
For more detailed information, please contact Kendra Simes, assistant dean for student financial services, at 212.998.6053 or firstname.lastname@example.org.