The statewide Loan Repayment Assistance Program ("LRAP") begins its fifth year of helping attorneys employed in IOLTA-funded civil legal services organizations better manage their undergraduate and law school debt on September 2, 2014, albeit with significant changes in the program.

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 Pennsylvnia Bar Foundation administers 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.

This year's 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.

As a result of reduced funding for the program from declining pro hac vice fees and increased participation in the program by eligible attorneys, it was necessary to make certain changes in the program begining in this year's loan cycle. Those changes are:

• There will be a single level of loan repayment assistance. The amount of loan repayment assistance will be determined by the number of eligible applicants and the amount of funding available. We anticipate that loan assistance awards will not exceed $3,500, assuming your annual net debt service is greater than or equal to $3,500. Those with annual net debt service less than $3,500 will receive the actual amount of the debt service.
   
• The annual gross salary cap will remain at $66,000. Those with annual net debt service greater than or equal to 10% or more of their annual gross salary will still be eligible to apply for assistance.
   
• Application to other LRAPs is still expected and more important than ever given the reduction of loan repayment assistance available through the Pennsylvania Bar Foundation – PA IOLTA LRAP.
  
  Applicants are expected to make appropriate application to all other loan repayment programs for which they might be eligible including those offered through the Federal government, their law schools, employers, local bar associations and others. The Foundation maintains discretion to adjust any assistance paid based on an applicant’s apparent eligibility for another loan repayment program.

More information on the program and the changes that being implemented is available at these links:

• Pennsylvania Bar Foundation-PA IOLTA Board Loan Repayment Assistance Program
• Changes Coming to the PA Bar Foundation – PA IOLTA Loan Repayment Assistance Program