Losing your job and LRAP

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seagan823
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Joined: Tue Apr 26, 2011 10:18 am

Losing your job and LRAP

Postby seagan823 » Tue May 14, 2013 9:44 am

Hi All,

0L currently studying for the LSAT with a strong desire to work as a public defender or legal services lawyer after law school. While my goal is to score high enough on the LSAT to get decent scholarships, I imagine I am not getting a full ride at any T-14 and will need to take advantage of LRAP coming out of school. Obviously this assumes I can find a job, which I know is not a sure thing. For the sake of this question, let's say I end up with a PD job out of school.


My question is what happens if I get laid off a couple years in? PDs are getting cut all over the country. Do you have to start paying loans at the same time you lost your job because you are no longer working in public interest? If you end up long term unemployed, what do you do?

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ManOfTheMinute
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Joined: Tue Apr 10, 2012 12:54 am

Re: Losing your job and LRAP

Postby ManOfTheMinute » Tue May 14, 2013 9:46 am

seagan823 wrote:Hi All,

0L currently studying for the LSAT with a strong desire to work as a public defender or legal services lawyer after law school. While my goal is to score high enough on the LSAT to get decent scholarships, I imagine I am not getting a full ride at any T-14 and will need to take advantage of LRAP coming out of school. Obviously this assumes I can find a job, which I know is not a sure thing. For the sake of this question, let's say I end up with a PD job out of school.


My question is what happens if I get laid off a couple years in? PDs are getting cut all over the country. Do you have to start paying loans at the same time you lost your job because you are no longer working in public interest? If you end up long term unemployed, what do you do?


Depends on the school you go to, but you likely still have to pay... so don't get laid off

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Nelson
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Re: Losing your job and LRAP

Postby Nelson » Tue May 14, 2013 10:16 am

seagan823 wrote:Hi All,

0L currently studying for the LSAT with a strong desire to work as a public defender or legal services lawyer after law school. While my goal is to score high enough on the LSAT to get decent scholarships, I imagine I am not getting a full ride at any T-14 and will need to take advantage of LRAP coming out of school. Obviously this assumes I can find a job, which I know is not a sure thing. For the sake of this question, let's say I end up with a PD job out of school.


My question is what happens if I get laid off a couple years in? PDs are getting cut all over the country. Do you have to start paying loans at the same time you lost your job because you are no longer working in public interest? If you end up long term unemployed, what do you do?

There is a grace period built into the IBR program where you would have six months to get back in qualified employment of you are laid off. The time unemployed obviously wouldn't count towards the ten years of payment for your public service forgiveness.

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twenty
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Re: Losing your job and LRAP

Postby twenty » Tue May 14, 2013 12:23 pm

Nelson wrote:There is a grace period built into the IBR program where you would have six months to get back in qualified employment of you are laid off. The time unemployed obviously wouldn't count towards the ten years of payment for your public service forgiveness.


I'm confused -- wouldn't you just be making the IBR payment (i.e, ten percent of zero) while you were unemployed, and your months counting towards 120 public service months for PSLF eligibility just go on hold?

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Elston Gunn
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Joined: Mon Jul 18, 2011 4:09 pm

Re: Losing your job and LRAP

Postby Elston Gunn » Tue May 14, 2013 12:26 pm

twentypercentmore wrote:
Nelson wrote:There is a grace period built into the IBR program where you would have six months to get back in qualified employment of you are laid off. The time unemployed obviously wouldn't count towards the ten years of payment for your public service forgiveness.


I'm confused -- wouldn't you just be making the IBR payment (i.e, ten percent of zero) while you were unemployed, and your months counting towards 120 public service months for PSLF eligibility just go on hold?

I think this is right. I thought you just needed 120 PSLF payments, not 120 consecutive PSLF payments.

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Nelson
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Joined: Thu Feb 03, 2011 12:43 am

Re: Losing your job and LRAP

Postby Nelson » Tue May 14, 2013 2:56 pm

twentypercentmore wrote:
Nelson wrote:There is a grace period built into the IBR program where you would have six months to get back in qualified employment of you are laid off. The time unemployed obviously wouldn't count towards the ten years of payment for your public service forgiveness.


I'm confused -- wouldn't you just be making the IBR payment (i.e, ten percent of zero) while you were unemployed, and your months counting towards 120 public service months for PSLF eligibility just go on hold?

That's what I said.

dixiecupdrinking
Posts: 3139
Joined: Sun Oct 26, 2008 2:39 pm

Re: Losing your job and LRAP

Postby dixiecupdrinking » Tue May 14, 2013 7:30 pm

Elston Gunn wrote:
twentypercentmore wrote:
Nelson wrote:There is a grace period built into the IBR program where you would have six months to get back in qualified employment of you are laid off. The time unemployed obviously wouldn't count towards the ten years of payment for your public service forgiveness.


I'm confused -- wouldn't you just be making the IBR payment (i.e, ten percent of zero) while you were unemployed, and your months counting towards 120 public service months for PSLF eligibility just go on hold?

I think this is right. I thought you just needed 120 PSLF payments, not 120 consecutive PSLF payments.

This should be right. IIRC, you can even work a non-qualifying job for a period and then return to public interest work and pick up where you left off on PSLF.

School-specific LRAPs may differ, though, even the ones that are designed to dovetail with PSLF.

BigZuck
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Re: Losing your job and LRAP

Postby BigZuck » Tue May 14, 2013 9:14 pm

dixiecupdrinking wrote:
Elston Gunn wrote:
twentypercentmore wrote:
Nelson wrote:There is a grace period built into the IBR program where you would have six months to get back in qualified employment of you are laid off. The time unemployed obviously wouldn't count towards the ten years of payment for your public service forgiveness.


I'm confused -- wouldn't you just be making the IBR payment (i.e, ten percent of zero) while you were unemployed, and your months counting towards 120 public service months for PSLF eligibility just go on hold?

I think this is right. I thought you just needed 120 PSLF payments, not 120 consecutive PSLF payments.

This should be right. IIRC, you can even work a non-qualifying job for a period and then return to public interest work and pick up where you left off on PSLF.

School-specific LRAPs may differ, though, even the ones that are designed to dovetail with PSLF.


There are definitely schools (Texas comes to mind, maybe they are the only one?) where if you got fired, quit, whatever you would no longer qualify for their LRAP (at least that's how I interpreted what they said on their website). I would check with each school for clarity there.

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Elston Gunn
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Re: Losing your job and LRAP

Postby Elston Gunn » Tue May 14, 2013 10:15 pm

BigZuck wrote:This should be right. IIRC, you can even work a non-qualifying job for a period and then return to public interest work and pick up where you left off on PSLF.

School-specific LRAPs may differ, though, even the ones that are designed to dovetail with PSLF.


There are definitely schools (Texas comes to mind, maybe they are the only one?) where if you got fired, quit, whatever you would no longer qualify for their LRAP (at least that's how I interpreted what they said on their website). I would check with each school for clarity there.[/quote]
In the post-IBR world, I honestly think LRAPs are not that important. They're a nice bonus, but shouldn't influence a decision much in most situations.




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