NYU LRAP vs. Others Forum

[buffalo_]

I know there have been posts on this in the past, but I have a specific question regarding NYU's LRAP that I cannot seem to find the answer to.

In the past few years, NYU restructured LRAP to integrate it with PSLF/IBR/PAYE. The result is actually a really fantastic program. For those not familiar, basically NYU covers all of your loan payments when income is below $80K and you are responsible to pay 40% of every dollar over $80k. After 10 years you are debt free. The big problem with the program is the PSLF/IBR/PAYE portion. If they go away, then the LRAP program will undoubtedly change.

I know Columbia has a hybrid program too, but they also offer a less generous LRAP that does not rely on government programs.

Does anyone know if NYU has a second version LRAP that does not combine it with PSLF/IBR/PAYE?

I am also interested in which schools offer an LRAP that is not tied to government policy, or has a version that is independent of it. I know HYS, Columbia, and Cornell all seem to have half decent ones. Any others?

[whippersnappery]

I know there have been posts on this in the past, but I have a specific question regarding NYU's LRAP that I cannot seem to find the answer to.

In the past few years, NYU restructured LRAP to integrate it with PSLF/IBR/PAYE. The result is actually a really fantastic program. For those not familiar, basically NYU covers all of your loan payments when income is below $80K and you are responsible to pay 40% of every dollar over $80k. After 10 years you are debt free. The big problem with the program is the PSLF/IBR/PAYE portion. If they go away, then the LRAP program will undoubtedly change.

I know Columbia has a hybrid program too, but they also offer a less generous LRAP that does not rely on government programs.

Does anyone know if NYU has a second version LRAP that does not combine it with PSLF/IBR/PAYE?

I am also interested in which schools offer an LRAP that is not tied to government policy, or has a version that is independent of it. I know HYS, Columbia, and Cornell all seem to have half decent ones. Any others?

Another note about NYU's LRAP is that because it's linked to the government programs, you have to be in it for all ten years for it to forgive your debt. Otherwise, you're just pushing it back. It's also limited to a certain sphere of types of work (as far as I know, the only ones which aren't are HYS).

Buffalo, do you know if the 40% after 80k is 40% of your earnings, or 40% of your debt payment?

[twenty]

40% of your debt payment?

This.

[buffalo_]

40% of your debt payment?

This.

Based on their presentation I was under the impression that 40% of INCOME above $80k is to be paid toward debt. So if you make $80,001/yr you pay $0.40 or 40% of the $1.00 over $80,000.

Maybe I am wrong about this?

It's also limited to a certain sphere of types of work (as far as I know, the only ones which aren't are HYS).

What does you mean by "spheres?" I thought it was any public service job involving law (so any government position that requires a JD) or any 501(c) or Non-Profit job that required a JD?

[whippersnappery]

It's also limited to a certain sphere of types of work (as far as I know, the only ones which aren't are HYS).

What does you mean by "spheres?" I thought it was any public service job involving law (so any government position that requires a JD) or any 501(c) or Non-Profit job that required a JD?

Yeah, it's limited to gov't and nonprofit work. I think you can apply for it if you're do firm work that's substantially in the public interest. The other limitation is it has to be legal work, you can't do public interest non-legal work and qualify (at least that's my understanding). Probably not a big deal for most people, since people going to law school want to do legal work, but worth noting.

[twenty]

40% of your debt payment?

This.

Based on their presentation I was under the impression that 40% of INCOME above $80k is to be paid toward debt. So if you make $80,001/yr you pay $0.40 or 40% of the $1.00 over $80,000.

Maybe I am wrong about this?

You're right (double checked). Which is stupid. That still makes being on NYU's LRAP worth it up to 105k-110k salary a year, whereas at that point you'd just do straight PAYE. But in reality, it should always be more beneficial to be on an LRAP than off an LRAP -- oh well.

[phillywc]

Someone asked about this at ASW. NYU fin aid did not have an answer for what would happen if the PLSF changed. The dean of fin aid said that he didn't think the law would pass in its current forum (probably true) and that NYU would keep supporting PI.

I know that probably doesn't help but there is the party line.

[Synch]

Someone asked about this at ASW. NYU fin aid did not have an answer for what would happen if the PLSF changed. The dean of fin aid said that he didn't think the law would pass in its current forum (probably true) and that NYU would keep supporting PI.

I know that probably doesn't help but there is the party line.

Yeah I was there for that question...in fairness, it was impossible to answer. I really can't see a school like NYU, with its strong reputation for PI, screwing over its students by changing their LRAP program if/when the gov't makes changes to PSLF. *fingers crossed*