LRAP Plus Policies

Participant Contribution

Under certain financial circumstances, LRAP participants are expected to make a contribution toward the repayment of their qualifying debt service. This is referred to as the Participant Contribution.

The two repayment plans available under LRAP Plus each require a Participant Contribution (the portion of qualifying income participant pays towards eligible law school loans before LRAP assistance begins) based on qualifying income.  Under each plan, a percentage of a participant’s income may be required to be paid toward the participant’s eligible debt service. The Participant Contribution must be applied first toward law school debt.  LRAP then covers any difference between the participant’s eligible debt payments and their expected contribution.

To help applicants choose between LRAP Plus’s traditional and income driven plans, we have outlined below the Participant Contribution calculation for each plan.

Income-Driven Plan Participant Contribution Calculation

Participants opting into the LRAP Plus Income-Driven Repayment (IDR) plan and who have a qualifying income of $100,000 or less will have a zero Participant Contribution. Participants with earnings greater than $100,000 will have a Participant Contribution equal to 40% of the amount by which the participant’s qualifying income exceeds $100,000.

Qualifying Income

$100,000 or less

$100,001 or greater

Participant Contribution

Zero 

40% of the amount over $100,000

For example, if a participant in the Income-Driven Plan has a qualifying income of $75,000, the annual Participant Contribution will be equal to zero.

On the other hand, if a participant’s qualifying income in the Income-Driven Plan is equal to $106,000, the participant’s LRAP benefits will be reduced by $200 each month ($106,000 - $100,000 = $6,000; $6,000 x 40% = $2,400; $2,400/12 months = $200 per month participant contribution).

Traditional Plan Participant Contribution Calculation

Participants opting into the LRAP Plus Traditional plan and who have a qualifying income of $55,000 or less will have a zero Participant Contribution. Participants with earnings between $55,000 and $126,000 will have an annual Participant Contribution equal to $1,200 plus 40% of the amount by which the participant’s qualifying income exceeds $55,000 up to $126,000. Participants in the Traditional plan with qualifying income exceeding $126,000 will have an annual Participant Contribution of $30,000 plus 80% of the amount by which the participant’s qualifying income exceeds $126,000.

Qualifying Income

$55,000 or less

$55,001 up to $126,000

$126,001 or more

Participant Contribution

Zero 

$1,200 plus 40% of the amount between $55,000-$126,000

$30,000 plus 80% of the amount above $126,000

For example, if a participant in the Traditional Plan has a qualifying income of $75,000, the annual Participant Contribution will be equal to $1,200 plus $8,000 ($75,000 - $55,000 = $20,000; $20,000 x 40% = $8,000) for a total annual Participant Contribution of $9,200 or a monthly Participant Contribution equal to $766.67 ($9,200/12 months = $766.67 per month Participant Contribution).

On the other hand, if a participant in the Traditional Plan has a qualifying income of $106,000, the Participant Contribution will be equal to $21,600 ($106,000 - $55,000 = $51,000; $51,000 x 40% = $20,400; plus a base Participant contribution of $1,200) equals a total annual Participant Contribution of $21,600 or a monthly Particpant Contribution of $1,800 ($21,600/12 months = $1,800 per month Participant Contribution).