Important Financial Aid information for Public Service Graduates pertaining to LRAP, PSLF, Perkins loan cancellation benefits and Grad PLUS “additional six-month” non-payment period
Grad PLUS “additional six-month” non-payment period
We just received an update from Direct Loan Servicing (DL) pertaining to your second and third year Grad PLUS loans. All Boalt graduates automatically receive an “additional six-month” non-payment period for Grad PLUS loans disbursed after July 2008. This “additional six-month” non-payment period is the equivalent of a grace period. However, your first year Grad PLUS loan doesn’t have such an option. You will receive a payment notice within 60 days after graduation if you don’t request forbearance or apply for deferment. Please contact Direct Loan Servicing Center at 1-800-848-0979 for assistance.
LRAP
- Please check the LRAP guidelines for information on extended coverage for “Low Bono”/Union LRAP coverage at our website. This pilot program will be limited to 7 slots for the class of 2010.
- Volunteer work in form of fellowships or uncompensated training programs does not constitute employment and therefore does not satisfy the LRAP or Public Service Loan Forgiveness requirements. You must be employed or have a contract upon which you receive compensation for your service.
- Graduates seeking to participate in LRAP must begin participating in the program within three years after the end of their loan grace period, which normally is six months after graduation. Students who will be graduating this May have the option to enter the LRAP as first-time participants until December 2013 if all eligibility requirements are met.
- Because most educational loans offer a six-month grace period following graduation, May 2010 graduates going directly into qualifying employment will not receive their first LRAP loan until January 2011. The application forms for Spring 2011 will be available on our website by early October and the deadline is November 1.
- Before applying to LRAP please review the application process and our check list of required documents for first-time applicants.
Public Service Loan Forgiveness (PSLF)
Many of you are planning a long-term career in public service and may utilize the Public Service Loan Forgiveness (PSLF), a 10-year program. Only Federal Direct loans qualify for PSLF. You must consolidate or reconsolidate your pre-Boalt FFEL loans into Federal Direct if you want those loans to be eligible for forgiveness: http://loanconsolidation.ed.gov. Please check if your pre-Boalt loans carry a grace period before initiating a consolidation. Consolidations will cancel a grace period and immediately enter repayment.
Please note that under the 10-year PSLF program a consolidation is considered a new loan and therefore the 10-year clock will re-start on the consolidation. For more details about IBR and PSLF please check the LRAP section and external links of our website, www.IBRinfo.org and Equal Justice Works.
Perkins Loan Benefits for Public Defenders
Recently the Department of Education published new regulations for the expanded Perkins loan cancellation benefits for full-time attorneys employed in Federal or Community Defender Organizations. Eligible service performed on or after August 14, 2008 will qualify a borrower for cancellation, regardless of whether information on the expansion of the cancellation category appears on the borrower’s promissory note. Since Public Defender employment also qualifies for Public Service Loan Forgiveness (PSLF), please note that borrowers may not be able to use the same service years for both loan cancellation programs. For more information on Perkins loan cancellation benefits please check your servicing agency’s website. UC Berkeley Perkins loans are serviced by ACS.
Please explore the LRAP section of our website for more information. If you plan a career in public service and have questions about LRAP and the Public Service Loan Forgiveness, please schedule an appointment for an individual assessment of your student loan portfolio and repayment options before you leave Berkeley.
Congratulations and Best Wishes!