The King Hall Loan Repayment Assistance Program (LRAP) was established in 1990 to assist recent graduates entering public interest/public benefit legal employment with educational loan repayment. The intent of LRAP is to help graduates overcome the potential financial barrier that loan repayment may cause recognizing the disparity in salary between corporate employment and public interest.
The UC Davis School of Law LRAP program is provided in the form of a forgivable loan. Twice during the calendar year LRAP recipients apply for a forgivable loan that covers a six month loan period--January through June and July through December. Recipients use the LRAP proceeds to make regularly scheduled student loan payments to the holders of their education loans. At the end of the six month loan period recipients submit documentation which confirms loan payments were made on time and in the amounts previously agreed upon.
After six full months of eligible employment, the previous LRAP loan is forgiven and a new six month LRAP loan is issued. This cycle repeats every six months as long as the recipient remains eligible for LRAP.
LRAP recipients are required to re-establish eligibility every six months by submitting an LRAP Application. Once continued eligibility is established and the prior loan is forgiven a new promissory note will be issued for the next loan disbursement.
To participate in the program for the January-June eligibility period, graduates should submit their application by November 15. To participate in the program for the July-December eligibility period, graduates should submit their application by June 15.
King Hall graduates from the class of 1990 and beyond are eligible to receive benefits if they borrowed federal and private educational loans for the J.D. Program. In addition, federal and alternative loans received for undergraduate and other graduate-level study are considered part of the total debt eligible for repayment assistance. Regents or private Bar loans are not eligible for repayment assistance. Loans must be in repayment status to qualify for LRAP funding. Loans in forbearance or deferment are not eligible for LRAP assistance.
Assistance is provided to King Hall graduates who perform law-related work for nonprofit organizations qualifying for tax exemption under IRS Code Sections 501(c)(3), (4), or (5) or who are employed directly by a local, state, or federal government agency. Employment must be no less than 50% time (20 hours per week).
The maximum annual income is $80,000. Applicants must report income from all sources.
King Hall graduates must apply for the Program within the first three and one-half years following graduation.
Program participants will be issued two checks per year; January and July (assuming continued eligibility and participation). LRAP funds are to be used for loan payments only. Participants who choose to make a single lump sum payment to their loan servicer upon receiving LRAP funds will be responsible for proceeding monthly payments during the benefit period.
- Although participants are not required to be on an Income-Driven Repayment (IDR) plan, benefits will be calculated based on King Hall's IDR formula. See LRAP By-Laws for more information.
Participants who leave the Program or qualifying employment before the end of the 6-month benefit period will be required to repay the unforgiven portion of the loan.
Interest of 8 percent per year will begin to accrue as soon as the participant leaves qualifying employment.
The receipt of a loan under this Program may create taxable income in the year of receipt or in the year any loan amount is forgiven or is terminated by the Program. For more information, refer to IRS Publication 970, Tax Benefits for Education. UC Davis will not issue an IRS 1099-C to reflect LRAP forgiveness.
A full copy of the LRAP By-Laws is available here .
Policy of Non-discrimination
In evaluating applicants for LRAP, the School of Law shall not discriminate on the basis of the applicant's race, color, national origin, religion, sex, sexual orientation, handicap, or age, or on the basis of an otherwise eligible employer's social, political, or ideological orientation.
By implementing this Program, the UC Davis School of Law makes no guarantees as to the future funding or permanent existence of this Program. The Law School reserves the right to terminate or modify the Program or any of its provisions at any time. Benefits will be paid only to the extent that funds are available and the Program continues to exist.
In the event of insufficient funding, applicants with greatest need and lowest income will be funded first.