A. Eligible Graduates. Any J.D. graduate of Notre Dame Law School who is working in or has accepted a position in “qualifying employment,” expects to have an “annual income” below $54,000 (based on full-time work), and owes principal on “eligible loans” may apply for loan repayment assistance. A graduate who has not yet received an offer of qualifying employment before the November 1st application deadline but who has applied for such employment and expects to receive an offer by December 31st of that same year may apply for loan repayment assistance contingent upon receiving and accepting such an offer.

B. Qualifying Employment. An eligible graduate must hold or have accepted employment that directly uses the skills and knowledge gained from the graduate’s legal education to perform public interest, public service or other similar employment. Public interest includes work for not-for-profit organizations that provide legal services to a low-income population or that serve the public good. Public service means work for a governmental body, including public defender and prosecutor positions and military employment. Public service does not include judicial clerkships (although a maximum of 2 years of a judicial clerkship(s) will be included for purposes of calculating the length of time spent in qualifying employment under the loan forgiveness schedule in Part III). “Judicial clerkships” here means so-called “elbow clerk” positions working for a single judge as distinguished from staff attorney positions at the service of an entire court. The Law School has discretion to determine whether a position is considered qualifying employment, including the discretion to disqualify employment that contradicts the teachings of the Catholic Church.

C. Eligible Loans. To qualify for loan repayment assistance, an eligible graduate must have personally incurred, while enrolled in the J.D. program at Notre Dame Law School, need-based loans totaling $10,000 or more to finance the cost of the graduate’s legal education. Loans incurred in connection with an L.L.M. or J.S.D. degree are not eligible for loan repayment assistance.

D. Annual Income. “Annual income” means gross income with the following modifications:

1. For unmarried graduates, subtract (a) non-law school educational loan payments, (b) an amount equal to the federal personal exemption for each child under the age of 19 claimed as a dependent on the graduate’s federal tax return, (c) contributions to retirement plans in the form of payroll deductions or exclusions up to a maximum of ten percent of the graduate’s gross income; and (d) contributions to health care and dental plans. For graduates in military service, gross income includes base pay and any additional special pays and allowances, including but not limited to the Basic Allowance for Housing and the Basic Allowance for Subsistence.
   
   
2. For married graduates, compute each person’s annual income under paragraph 1 above. Adjust the spouse’s annual income by subtracting any of the spouse’s law school educational loan payments and adding any loan repayment assistance the spouse will receive. If the graduate’s annual income is higher than the spouse’s annual income, use the graduate’s annual income for purposes of computing the amount of loan repayment assistance under this program. If the spouse’s annual income is higher than the graduate’s annual income, compute the average of the resulting annual incomes and use that average in computing the amount of loan repayment assistance.
   
   
3. Two graduates who are married to one another, who are both in qualifying employment, and who are both applying for loan repayment assistance should compute their annual incomes under paragraph 1 as if they were unmarried graduates.

E. Assets. Assets include cash, balances in bank accounts and the fair market value of investments, including trusts and any other property owned by the graduate and his or her spouse (if any), less any amounts owed on the property (unless the property is specifically excluded by this Program). Assets do not include automobiles, household goods, retirement accounts, or the first $50,000 in equity in a graduate’s primary residence.

F. Maximum Loan Repayment Assistance Period. Eligible graduates may receive loan repayment assistance for a maximum of five consecutive calendar years starting with the January immediately following their graduation from the Law School.

G. Leaves of Absence. Leaves of absence from qualifying employment of 6 or fewer months taken by graduates during participation in the Program will not result in interruption of loan repayment assistance from the Law School. In addition, leaves of 6 or fewer months will be included for purposes of calculating the length of time spent in qualifying employment under the loan forgiveness schedule. Leaves of absence from qualifying employment greater than 6 months will end any loan repayment assistance from the Law School for the year in which the 6th month of leave occurs. Likewise, leaves greater than 6 months will not be included for purposes of calculating the length of qualifying employment under the loan forgiveness schedule. The Law School will not extend the maximum loan repayment assistance period of 5 years for graduates based on any leave of absence from qualifying employment.

II. LOAN REPAYMENT ASSISTANCE

A. Program Loans. For each year that a graduate is selected to participate in the Program, the Law School will loan 100% of the graduate’s actual payments on eligible loans during the year the repayment assistance is provided (calculated using a repayment period of at least 10 years on eligible loans) if the graduate’s annual income is $34,000 or less. If the graduate’s annual income exceeds $34,000, the percentage of the graduate’s actual payments eligible for repayment assistance will be reduced by .005% for each dollar by which the graduate’s annual income exceeds $34,000 as illustrated by the following table:

The maximum loan repayment assistance percentages for graduates who hold part-time qualifying employment will be reduced based on the percentage of hours actually worked compared to a baseline of 2,000 hours per year.

C. Reduction When Assets Exceed Zero. If a graduate’s assets exceed zero after subtracting an amount equal to $5,000 times the number of years since graduation (“adjusted assets”), the Law School will reduce the maximum amount that it would otherwise loan a graduate under this Program. The reduction will equal the percentage determined by dividing the graduate’s adjusted assets by the unpaid balance of the eligible loans. Graduates are not eligible for loan repayment assistance when their adjusted assets exceed the unpaid balance of the eligible loans.

D. Allocation of Limited Resources. This Program is operating on limited funding. The total amount available for loan repayment assistance will be determined annually by the Dean. The Law School has discretion to select the eligible graduates each year to receive loan repayment assistance. The Law School need not award the entire amount available in any given year. There is no guarantee that graduates selected one year will be selected in future years.

III. LOAN FORGIVENESS AND REPAYMENT

A. Loan Forgiveness Schedule. If a graduate serves in qualifying employment for at least one full year but less than three years, the Law School will partially forgive any loans made to the graduate as loan repayment assistance (“LRAP loans”). If a graduate remains in qualifying employment for three or more full years, the Law School will forgive in full any of the graduate’s outstanding LRAP loans at the end of each of the third, fourth, and fifth calendar years, provided the graduate remains in qualifying employment for the entire calendar year. The following table sets forth the loan forgiveness schedule:

To qualify for loan forgiveness, graduates must submit verification that they worked in qualifying employment during the prior year by January 31st of each year (even if they are no longer receiving loan repayment assistance under the Program). Judicial clerkships will be included in calculating the length of time spent in qualifying employment for purposes of loan forgiveness under this provision up to a maximum of 2 years.

B. Taxation. Section 108(f) of the Internal Revenue Code of 1986, as amended, specifies the circumstances in which graduates can exclude any loan amounts forgiven by the Law School from gross income. Graduates should consult a tax advisor regarding the tax consequences of any loans forgiven under this Program.

C. Repayment of Program Loans. Graduates must repay any Program loans that are not forgiven, plus interest, in monthly installments over a period not to exceed 5 years. Repayment will begin no sooner than 30 days after the event that triggers repayment (e.g., leaving qualifying employment, failing to provide verification of information). Interest on Program loans shall accrue at an annual rate equal to the prime rate on the date of the event that triggers repayment, as quoted in the Wall Street Journal on that date. Graduates may prepay Program loans with no penalty.

IV. PROCEDURES AND ADMINISTRATION

A. Dates. The Program operates on a calendar year. The distribution of funding under the Program is determined separately each year; there is no preference for graduates who have received loan repayment assistance from the Law School in the past. Eligible graduates must apply each year by November 1st to be considered for loan repayment assistance in the following calendar year. The Law School will attempt to announce funding decisions under the Program by December 1st. If a graduate selected for loan repayment assistance has started qualifying employment and debt repayment on or before January 1st, the Law School will make a disbursement for the first 6 months of the year during January and for the second 6 months during July. If a graduate selected for loan repayment assistance has not started qualifying employment or debt repayment on January 1st, the first disbursement will occur once the graduate starts employment and debt repayment and the second disbursement will occur during July.

B. Application Materials. Graduates can obtain an application from the Career Services Office, the Program Administrator or the Law School’s website. The application materials require:

1. Proof of employment or acceptance of an offer of employment in qualifying employment, a description of the job, the address of the employer, salary (verified by the employer), and the name of a contact person at the employer.
2. A resume including dates of any relevant employment.
3. Information regarding sources of estimated income other than the graduate’s salary, including the salary of any spouse and loan repayment assistance from other programs received by the graduate and his or her spouse (if any), for the calendar year in which the graduate seeks assistance.
4. Certification that the graduate and his or her spouse (if any) have used good faith efforts to obtain other loan repayment assistance, such as state or employer programs.
5. A list of assets.
6. A list of educational loans taken by both the graduate and his or her spouse (if any) and information regarding these loans, including documentation of the amount of the outstanding debt, monthly payments due, the amortization period, and the date on which payments began or will begin.
7. Any additional or clarifying information or documents as requested by the Law School, including the names and birthdates of any dependent children.

C. Promissory Note. The Law School will require all graduates selected to receive loan repayment assistance to sign a promissory note before the Law School will disburse any loans.

D. Notification of Changes in Graduate Information. Graduates who are selected to receive loan repayment assistance are expected to provide notice to the Law School of any changes in their personal circumstances within thirty days of the change. These changes include but are not limited to: (1) leaves of absence from qualifying employment for greater than 6 months; (2) receipt of loan repayment assistance for law school loans from another program; (3) voluntary or involuntary termination from the qualifying employment described in the application; (4) changes in annual income; and (5) changes of residential address. Depending on the nature of the change, it may trigger loan repayment by the graduate as described in this policy or cancellation of a disbursement during the year the graduate was selected for loan repayment assistance. A graduate who fails to inform the Law School within thirty days of any of the above-listed changes in circumstances will be subject to immediate repayment of any amounts that the Law School loaned to the graduate during that year.

E. Program Administration. The Dean will appoint a Loan Repayment Assistance Committee (the “Committee”) and a Program Administrator (the “Administrator”) to review and oversee the Program. The Committee and the Administrator will periodically review and evaluate the Program and will recommend any changes to the Dean. The Administrator receives applications for participation in the Program and reviews them for completion. The Administrator also administers loan payment and repayment and other procedural aspects of the Program. The Committee will make decisions regarding eligibility and will select those graduates who will receive loan repayment assistance each year. The Dean will determine the amount of funding available for the Program each year.