1. Civil Legal Assistance Attorney Student Loan Repayment Program (CLAAP) Heather Jarvis, Presenter

2. Today’s Agenda CLAAP Overview Eligible Attorneys Eligible Loans Ineligibility for Double Benefits Provision Example of Effect on Recent Graduate How to Apply Tax issues Q & A

3. What you can expect to take away An understanding of the basic requirements of the program Whether your job makes you eligible to apply for assistance Tools to figure out which of your loans are eligible Tools to figure out whether (or not) you want to apply Logistical information on how to apply

4. CLAAP Program Overview Reimburses civil legal assistance attorneys a portion of eligible federal student loan debt Three-year service agreement Up to $6,000 per eligible attorney per year Lifetime maximum of $40,000 per attorney Subject to availability of funds

5. Eligible Attorneys Civil Legal Assistance Attorneys

6. At the time of application, attorneys must be licensed to practice law, and a full-time employee of either a –nonprofit organization that provides legal assistance with respect to civil matters to low-income individuals without a fee, or

7. Civil Legal Assistance Attorneys a protection and advocacy system or client assistance program that provides legal assistance to clients with respect to civil matters and receives funding under –the Developmental Disabilities Assistance and Bill of Rights Act, the Rehabilitation Act, the Protection and Advocacy for Individuals with Mental Illness Act, the Assistive Technology Act, the Social Security Act, the Public Health Service Act, or the Help America Vote Act

8. Post Questions for Heather Eligible Employment Questions

9. Eligible Loans Know Your Loans

10. Federal Loans Grad PLUS Unsubsidized Stafford Federal Consolidation Subsidized Stafford

11. Commercial and Alternative Student Loans Are Never Eligible

12. Find Out What Kind of Student Loans You Have National Student Loan Data System: http://www.nslds.ed.gov/ http://www.nslds.ed.gov/

13. www.nslds.ed.gov

14. Which loans are not eligible? Loans that are currently in default Parent PLUS Loans Consolidation loans that repaid a parent PLUS Loan Alternative or commercial student loans

15. Poll Have you figured out how much Public Service Loan Forgiveness you expect to earn?

16. Ineligibility for “Double-Benefits” Provision Understand this – it’s key to deciding whether (or not!) to apply

17. Post Questions for Heather Eligible Loans

18. Law School LRAPs State-Based LRAPs Employer LRAPs CCRAA: Public Service Loan Forgiveness

19. Caution: Ineligibility for Double-Benefits Section 431(g), titled Ineligibility for Double Benefits, states: No borrower may, for the same service, receive a reduction of loan obligations under both this section and [Loan Forgiveness for Service in Areas of National Need] or [Public Service Loan Forgiveness under the CCRAA].

20. Caution: Ineligibility for Double-Benefits No one knows for sure how this will be interpreted. Attorneys who receive assistance under CLAAP likely cannot count the payments they make during the years they receive a CLAAP award toward the 120 payments required to earn Public Service Loan Forgiveness benefits under the College Cost Reduction and Access Act (PSLF). This can be very expensive for some people.

21. Caution: Ineligibility for Double-Benefits The Ineligibility for Double-Benefits clause cannot harm PSLF benefits for those who do not stand to benefit from PSLF. Experienced attorneys tend to benefit less from PSLF. Recent grads tend to benefit the most from PSLF. Don’t just guess how much you might benefit from PSLF.

22. Caution: Ineligibility for Double-Benefits Attorneys planning careers as civil legal assistance attorneys and expecting substantial PSLF benefits ought to carefully consider the effect of CLAAP’s Ineligibility for Double Benefits clause on the timing and amount of PSLF.

23. Why is Ineligibility for Double-Benefits So Problematic for Some? CLAAP benefits are attributed first to accrued interest as required, then to principal, resulting in a modest reduction of principal balance “Ineligibility for Double Benefits” delays qualification for Public Service Loan Forgiveness (PSLF) under the CCRAA CLAAP recipients can’t earn PSLF after year 10, but must make payments for an additional 3 years, in years 11 through 13 of repayment

24. Example of Effect on Recent Graduate If she accepts three years of up-front assistance from CLAAP, the typical recent graduate career legal services attorney pays $18,000 more out of pocket than she would have otherwise. Attorneys with high debt to income ratios, including typical recent graduates, should take care in analyzing their options.

25. You Must Figure Out What’s Best for YOU Guessing could cost you big money. Mark Kantrowitz of finaid.org has posted a calculator for assessing the impact of the Ineligibility for Double Benefits provision here: www.finaid.org/calculators/ibr_policy.phtml www.finaid.org/calculators/ibr_policy.phtml

26. How do I apply for the CLAPP program? The Department of Education will commit the available funds on a first-come, first-served basis. APPLY NOW: http://studentaid.ed.govhttp://studentaid.ed.gov Fax: 1-315-738-6674 Complete and signed applications will be date and time stamped and processed in the order they are received. Do not submit an incomplete or unsigned application

27. Equal Justice Works CLAAP Information Page

28. Are CLAAP benefits taxable? That depends on who you ask.

29. Post Questions for Heather

30. Ask Questions of the Department of Education 1-877-699-1834

31. Recorded Webinars, Podcasts & Checklists Online www.equaljusticeworks.org

32. Get More Answers on the Student Debt Relief Forum