LRAP at Columbia and NYU Forum

[NY88]

What is the most amount of loans one can get under LRAP? Is it the complete cost of 3 years of law school? Or are there caps?
According to what I am reading it looks like all is forgiven at Columbia after you work 5 years at PI..is this correct or am I missing something?

[frankjones]

Wondering the same thing...

[badfish]

Preface : This is a very basic overview of the NYU LRAP system as I understand it. Although I am an NYU public interest student it is possible that this isn't all 100% accurate, but I am confident that for the most part this is how the system works.

For NYU at least there is a cap on how much you can make in a given year and still be eligible for the LRAP however the cap is more than manageable if you make under the cap for 10 years while working in a p.i. position they will cover your cost of attendance (meaning loans, rent, food ... everything).

NYU's LRAP basically works like a 10 year repayment plan. For each year you work in a P.I. position NYU pays down your debt.

Year 1
Year 2
Year 3
-----
Year 4
-----
Year 5
-----
Year 6
-----
Year 7
-----
Year 8
-----
Year 9
-----
Year 10
-----


** After year 3 all of the loans paid by NYU before year 3 are forgiven and if you want you can move onto a different position without being penalized. If you move onto a for profit position or a position where you make more money than the cap allows before year 3 you have to pay back all of your loans.

**Finally, after the 3 year mark with each consecutive year the loans paid in the year before are forgiven. For example after year 4 you could move onto a different position and not have to worry about paying NYU back for the 4 years of the LRAP you took part in, the same goes for 5, 6, 7, 8, 9 etc...

[yeff]

Wondering the same thing...

Good thread.

Anyone from CLS?

[TheWire]

Helpful thread: http://www.top-law-schools.com/forums/v ... 15&t=62094

[lawyering]

I'm not at all clear on why everyone says NYU's LRAP is so good, when it appears they have a cap of $77,600, above which they don't pay a cent of your loans. I suppose if you make under that, it's comparable to other T10 programs, but above that, every other school wins. And I could easily see someone making over $77k in PI 5 years post grad.

[kumba84]

According to what I am reading it looks like all is forgiven at Columbia after you work 5 years at PI..is this correct or am I missing something?

This is incorrect. After 5 years in Columbia's LRAP, you are no longer obligated to repay any of the LRAP funds that were given to you during those five years. Your remaining debt load is not wiped away.

[lawyering]

According to what I am reading it looks like all is forgiven at Columbia after you work 5 years at PI..is this correct or am I missing something?

This is incorrect. After 5 years in Columbia's LRAP, you are no longer obligated to repay any of the LRAP funds that were given to you during those five years. Your remaining debt load is not wiped away.

Right, and it's 3 years for NYU. Same deal.

[WrappedUpInBooks]

I'm not at all clear on why everyone says NYU's LRAP is so good, when it appears they have a cap of $77,600, above which they don't pay a cent of your loans. I suppose if you make under that, it's comparable to other T10 programs, but above that, every other school wins. And I could easily see someone making over $77k in PI 5 years post grad.

The cap is no longer $77,600, it's over $80,000. It's reevaluated every year, so it will be more than that by the time you or I graduate law school. It is also bumped up at I believe 4 and 7 years out, to account for career progression.

The other thing is, the base is currenly over $50,000, and like the cap, adjusts every year (cap is always base+30). If you make under the base, you pay NOTHING on your law school loans. This is what makes NYU's LRAP so great. (You pay 40% of your income over the base towards loans).

Most PI jobs are going to pay closer to $50,000 (if even that much) than $80,000, making this program great.

Also, once you're over the cap for LRAP, you still qualify for IBR - and I'm pretty sure that all payments you (or NYU) made under LRAP count towards the 10 years of payments required for PI IBR forgiveness. IBR isn't nearly as helpful as LRAP when you're making a small amount, but continues to be useful even when you're makign over $100,000.

Source: attended NYU's presentation on LRAP at their ASW.

[lawyering]

Hmm. NYU should update their website.

[badfish]

I'm not at all clear on why everyone says NYU's LRAP is so good, when it appears they have a cap of $77,600, above which they don't pay a cent of your loans. I suppose if you make under that, it's comparable to other T10 programs, but above that, every other school wins. And I could easily see someone making over $77k in PI 5 years post grad.

Yea I think you have a fundamental misunderstanding of the 1) pay scale of most public interest jobs and 2) NYU's rising cap rate (you get bumps for salary increases as well as bumps to deal with the rate of inflation etc).

It really is a great program.

[NY88]

Thanks for the help, but no one has answered what is the most amount that you can borrow? Is there a cap on the LOAN amount?

[BaiAilian2013]

Another thing to consider, at least with NYU's LRAP: they factor your spouse's income in. If your spouse makes less than you, the pay scale is based on your income, but if your spouse makes more than you, the scale is based on the average of your two incomes. So well-paid spouse = no LRAP for you!

I'm not saying this is a bad way of doing this - quite the reverse - but it is something to be aware of.

[WrappedUpInBooks]

Thanks for the help, but no one has answered what is the most amount that you can borrow? Is there a cap on the LOAN amount?

At least at NYU, the maximum amount of loans LRAP cover is the cost of attendance minus any scholarships and the student contribution.

Cost of attendance is the cost of tuition, all fees, estimated living expenses, etc. At NYU it's around 70,000.

Student contribution is based on your assets, NOT your present income (they know that income will go away when you start law school!). However, there is a minimum student contribution of I believe 1700/year. People were freaking out about how they would contribute that amount, but the simple answer is - just take 1700 less out in loans, and live on 1700 less over the course of the year. Not that hard.