NYU's New LRAP - deal breaker? Forum

[thunderflesh]

EDIT -

I was confused. NYU, like many other schools (including CLS), simply has a program where you can combine its LRAP with the federal IBR program. That's all it is referring to.

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I didn't see a topic devoted to this, but I think it deserves one. The specifics haven't been released yet as far as I can tell, but from the NYU Law website (emphasis added):

In continuance of its mission to support and encourage service in the public interest, the Law School is pleased to announce that a new LRAP that will allow graduates working in public interest jobs for 10 years – and earning up to $75,000 a year in qualifying employment – to have all of their federal law school loans forgiven. This new program integrates with the federal government’s Public Service Loan Forgiveness Program and the income-based repayment option available to graduates with federal Direct Loans.

This new program is available to members of the class of 2009 and beyond.

I'm deciding between CLS and NYU. I like CLS better, and heard anecdotally that it places better for govt. jobs (I want to work for the DoJ), but I'm not sure I can turn this new LRAP down, given that it would mean 10-20% greater take-home income for the entire first part of my career...

Thoughts? (on both the new LRAP and my own personal situation)

[thunderflesh]

Also, grammar fail in the announcement (bolded = shouldn't be there):

...the Law School is pleased to announce that a new LRAP that will allow graduates working in public interest jobs for 10 years to have all of their federal law school loans forgiven.

[esch8]

it sounds like it's just the new federal program that is available everywhere, right?

[El_Gallo]

Wasn't the cap at $80,000 before?

[birdlaw117]

I don't think the LRAPs at the two schools are significantly different, though I haven't read through them thoroughly to be sure. If you like Columbia more than NYU, go with Columbia. I love NYU and will probably be there in the fall, but the two schools are so similar on most levels that I think the best way to decide is based on how much you like the school, not some arbitrary estimate of how much money it will save you. There are plenty of other things that could affect this that are just too difficult to predict. First off, you could change your mind and go Big Law. Also, living near Columbia will probably be a little cheaper for you. Also, PI jobs vary in salary more than Big Law jobs. Also, it seems that most of these schools have been changing/tweaking their LRAPs pretty much every year, so who knows what Columbia's (or NYU's) will be like when you graduate.

Basically, I just don't think this is a big enough reason to be a "deal breaker." I suppose that's just my $.02 though.

[thunderflesh]

it sounds like it's just the new federal program that is available everywhere, right?

It is definitely making use of that. I'm still trying to make heads or tails of everything hah; when CLS combines the federal program with its LRAP, then I think it uses an upper limit of $71,000. But NYU still hasn't released all the details, so perhaps it is too early to say...

[trudat15]

it sounds like it's just the new federal program that is available everywhere, right?

It sounds like the 10 year PI ibr federal program, which every school has. You work for 10 years in PI and all is forgiven.
A good LRAP would be the actual amounts that they'll help you repay during those ten years.

[thunderflesh]

it sounds like it's just the new federal program that is available everywhere, right?

It sounds like the 10 year PI ibr federal program, which every school has. You work for 10 years in PI and all is forgiven.
A good LRAP would be the actual amounts that they'll help you repay during those ten years.

You're right. I feel like a bit of a dummy haha. I just heard someone saying that "NYU's LRAP will pay all your loan payments if you make under $75,000" and kind of ran with it.

Will edit OP.

[TheTopBloke]

To frame this golden opportunity with perspective, your marriage won't even last ten years.

[dixiecupdrinking]

While details are still sketchy, I think you had it right the first time, OP – if you make less than $75,000, you pay nothing on your debts. The LRAP accomplishes this by working in tandem with IBR. Basically, the government dictates what your monthly payments would be based on your income, and then NYU pays that for you. This lets NYU save a ton of money relative to how they used to do it, which involved issuing you a forgivable loan in the amount of your actual debt payments. If you make $75,000 a year, your monthly payments under IBR would be something like $800 a month (which NYU's new LRAP covers for you); if your debt is around $200,000, your monthly payments, sans IBR, would be probably twice that or more (which NYU's old LRAP covered for you). This, I think, is how they can now afford to raise the income cap so much. Many schools have adopted similar hybrid programs, though it seems like NYU's will be one of the more generous, at least in terms of that $75k cap.

[trudat15]

While details are still sketchy, I think you had it right the first time, OP – if you make less than $75,000, you pay nothing on your debts. The LRAP accomplishes this by working in tandem with IBR. Basically, the government dictates what your monthly payments would be based on your income, and then NYU pays that for you. This lets NYU save a ton of money relative to how they used to do it, which involved issuing you a forgivable loan in the amount of your actual debt payments. If you make $75,000 a year, your monthly payments under IBR would be something like $800 a month (which NYU's new LRAP covers for you); if your debt is around $200,000, your monthly payments, sans IBR, would be probably twice that or more (which NYU's old LRAP covered for you). This, I think, is how they can now afford to raise the income cap so much. Many schools have adopted similar hybrid programs, though it seems like NYU's will be one of the more generous, at least in terms of that $75k cap.

Does their LRAP take into account spousal income?
Sounds like a pretty sweet LRAP if you dont pay anything at all. Some other schools give you a forgivable loan that still requires you to pay some out of pocket.

[dixiecupdrinking]

Does their LRAP take into account spousal income?
Sounds like a pretty sweet LRAP if you dont pay anything at all. Some other schools give you a forgivable loan that still requires you to pay some out of pocket.

The old one did. My understanding of IBR is that you can file your taxes separately and have your repayments calculated based solely on your own income, or file jointly and have to pay a percentage of your joint income towards your loans. It seems like this ought to apply to the NYU program as well, since they're just paying your IBR payments for you. But I don't think they've figured out those details, or announced them yet, at any rate.