The Oregon State Bar is pleased to announce its new Loan Repayment Assistance Program (LRAP). The Oregon State Bar recognizes that substantial educational debt can create a financial barrier which prevents lawyers from pursuing or continuing careers in public service law. The mission of the OSB LRAP is to attract and retain public service lawyers by helping them pay their educational debt.

College Cost Reduction and Access Act

Lawyers interested in this program may also be interested in reading about the federal College Cost Reduction and Access Act, signed into law in October, 2007. Public interest lawyers with qualified debt may be able to reduce substantially their monthly debt obligation, as well as seek loan forgiveness.

Detailed information from Equal Justice Works is available here

A summary of the OSB LRAP Policies and Guidelines follows:

Qualifying Employment: Qualifying employment includes employment as a practicing attorney within the State of Oregon with civil legal aid organizations, other private non-profit organizations providing direct legal representation of low-income individuals, as public defenders or as deputy district attorneys. Judicial clerks and attorneys appointed on a case-by-case basis are not eligible.

License/Residency/Graduation Requirements: Program applicants must be licensed to practice in Oregon. Program participation is not limited to graduates of Oregon law schools or to Oregon residents, provided the applicant works in Oregon.

Salary Cap: Applicants with salaries at the time of initial application greater than $50,000 will be ineligible for Program participation.

Eligible/Minimum Debt: All graduate and undergraduate educational debt in the applicants name will be eligible for repayment assistance. Applicants with eligible debt at the time of initial application less than $60,000 will be ineligible for Program participation.

The Program will make a forgivable loan (LRAP loan) of $5,000 per year per Program participant for a maximum of three consecutive years. The Advisory Committee reserves discretion to adjust the amount of the LRAP loan and/or length of participation based on changes in the availability of program funding. The Program annually will forgive one year of loans if the Participant has been in qualifying employment the prior year and has paid at least the amount of his/her LRAP loan on his/her student loans. Only a complete year (12 months from, April 15, the due date of application) of qualifying employment counts toward LRAP loan forgiveness.

Applications: Applicants must be members of the OSB already engaged in qualifying employment by the application deadline. Applicants may not commence the application process prior to receiving bar exam results.

Selection Criteria: Meeting the salary, debt and employment eligibility for the Program does not automatically entitle an applicant to receive a LRAP loan. If the Advisory Committee needs to select among applicants meeting the salary, debt and employment eligibility criteria, it may take into account the following factors:

• Demonstrated commitment to public service;
• Financial need
• Educational debt to income ratio;
• Extraordinary personal expenses;
• Type and location of work;
• Assistance from other loan repayment assistance programs; and

The Advisory Committee reserves the right to accord each factor a different weight, and to make a selection among otherwise equally qualified applicants.

The following factors, in addition to the applicants salary from qualifying employment, may be considered in determining applicants income:

• Earnings and other income as shown on applicants most recent tax return
• Income–producing assets;
• Medical expenses;
• Child care expenses;
• Child support; and
• Other appropriate financial information.

If there are more eligible applicants than potential Program participants for a given year, the Advisory Committee will keep the materials submitted by other applicants for a period of six months in the event a selected individual does not participate in the Program.

Loan Repayment: Program participants who become ineligible for Program participation because they leave qualifying employment must repay LRAP loans, including interest, for any amounts not previously forgiven.

April 15:
Applications must be postmarked or
delivered to the Oregon State Bar office

June 1:
Applicants notified whether they have
been selected for Program participation

June 15:
Signed promissory notes due for all participants

July 1:
Initial LRAP loan disbursed

The next application deadline is April 15, 2009.

Send completed applications to: OSB Loan Repayment Assistance Program, 16037 SW Upper Boones Ferry Road, Tigard, Oregon 97281.

To be considered, applications must include all of the following documents:

LRAP Application Form
Employment Verification Form
Lender Verification Form
Personal Statement: Attach a statement (no more than 2 pages) that describes your previous activities in the public interest field and your career plans for the next five years.

The LRAP Advisory Committee selected seven applicants to participate in the first year of the program and six applicants in the second year. These lawyers practice in locations across the state and include public defenders, an assistant district attorney, and lawyers at various legal nonprofits that provide direct representation of low-income individuals.

For more information, contact
Catherine Petrecca, cpetrecca@osbar.org, (503) 431-6355.