What is LRAP?
The Loan Repayment Assistance Program (LRAP) is a program that helps college graduates repay their student loans. LRAP provides a financial safety net that helps students focus on their academics while in school and, if a student's income after graduation is modest, helps graduates repay their loans. Parent PLUS loans are also covered and repayment assistance for those loans would also be based on the graduate’s income.
Who is eligible for LRAP?
Undergraduate students whose family income is at or below $100,000 based on FAFSA information will be offered LRAP as part of their initial financial aid offer. Students may also petition their admissions or financial aid counselor for eligibility, with LRAP being offered based on said counselor(s)' recommendation, or by exception at the counselor(s)' discretion. Please note that LRAP is currently only offered to undergraduate students admitted to SPU; graduate students are not eligible for the program at this time.
How does LRAP work?
Students must attend and graduate from the college or university that awarded LRAP. After graduation, they must work at least ¾ time to receive assistance (i.e. average at least 30 out of 40 hours per week). If a graduate’s income is below the Upper Income Threshold specified in their LRAP Award, the graduate (and their parents) can then receive loan repayment assistance in the form of quarterly reimbursements on their student loan payments. For complete details and eligibility requirements of the program, please refer to your LRAP Award.
As your income increases, assistance is reduced proportionately. For example, if your income falls half-way between the Upper- and Lower-Income Thresholds specified in your LRAP Award, then you can receive 50% reimbursement on your loan payments. Additionally, assistance is proportionately reduced if you work an average of less than full-time (i.e. 40 hours per week).
How does unemployment effect my LRAP program?
You are not eligible for assistance during periods of unemployment. You may be eligible for economic deferment or forbearance of your student loan payments by working with your loan servicer.
When will I receive funds?
In general, assistance requests typically take five business days to process. The sooner you submit all the needed information to process your request, the sooner you can expect to receive your reimbursement.
What kind of debts and/or loans are covered?
LRAP covers all federal, private alternative, and Parent PLUS loans authorized through the financial aid office at your LRAP-awarding college or university.
What are the employment and income requirements?
You must be employed at least ¾ time (averaging 30+ hours per week) at minimum wage for the locale in which you are working.
Does it matter where I live?
You may not live/work overseas and receive repayment assistance. You can be in the program without receiving assistance payments for up to 3 years while living/working overseas. If you return to the U.S. and begin work before the end of that 3-year period, and are making less than the Upper Income Threshold, then you will begin receiving repayment assistance payments.
What is the eligibility period of LRAP?
You have up to 18 months after graduation to establish that you are eligible to receive benefits. To do so you must meet one of the three qualifying criteria: work an average of ¾ time, or attend grad school full-time, or work overseas. It is critical that you communicate one of these three qualifying activities via the LRAP portal
How do I apply?
SPU will determine your eligibility to receive an offer of an LRAP. Those eligible must review and sign the LRAP agreement within the LRAP award portal for SPU which may be found at myLRAP.org/SPU. You will have 45-days from the time the offer of an LRAP is initially made in which to sign the agreement. Signing does not obligate you to attend SPU, but does obligate SPU’s partner organization, Ardeo Education Solutions, to provide you loan repayment assistance should you decide to attend SPU and meet the criteria found within the agreement.
Do I need to reapply each year?
It is not necessary to reapply each year. Once you have signed the agreement you are covered within the criteria of the agreement.
How much will I need to contribute?
There is no cost for you to benefit from the LRAP program or receive assistance after graduation. The award is offered to you by the institution as an investment in your long-term success, both on campus and after graduation.
Does my spouse’s income effect my contribution?
Married LRAP individuals remain eligible for assistance, which will be calculated based on the greater of their individual income or one-half of their total household income (including spouse’s income).
How long can I be enrolled in the school’s LRAP?
Once you have initially qualified for LRAP assistance, you can then continue requesting assistance, until either your income surpasses the Upper Income Threshold, or your loans are paid off entirely.
Am I still covered if I take a leave of absence?
We understand that life happens. If you need to withdraw, you can still re-enroll at SPU and benefit from LRAP (after graduating from the college that awarded you with LRAP). Please keep in mind that LRAP only covers loans borrowed to attend your designated institution for your first six (6) academic years after receiving your LRAP Award.
LRAP only provides assistance on loans borrowed to attend the college that awarded you with LRAP. Additionally, you will need to graduate from the college that awarded you with LRAP to be eligible for assistance.
Am I required to repay LRAP if I leave my LRAP qualifying employment?
There are no instances under which you would ever have to repay LRAP. Your obligation is to repay your loans. Your opportunity with an LRAP is to have assistance in making those loan payments.
Who do I contact for further questions?
http://mylrap.force.com/helpcenter/s/contactsupport. You can also follow-up with your admissions counselor directly.
If you have already been awarded LRAP and enrolled at the institution you received your LRAP Award from, you can view a copy of your LRAP Award and Terms & Conditions by logging in to our myLRAP Service Portal.