Judge John W. Oliver public service program
Purpose
The purpose of the Judge John W. Oliver Public Service Scholar Program is to encourage highly qualified graduates to enter public service employment despite the dual disincentives of low salaries and high student debt.
Program details
The Judge John W. Oliver Public
Service Scholar Program
will extend a loan of funds to assist with student
loan repayment to a graduating student engaging in qualified public service
employment each year for the three years following graduation and forgive that
loan as long as the graduate remains in qualifying employment. Although
the amount of the award may vary due to fluctuations in the endowment's value, it is anticipated
the award will
be $5,000 over the course of three years, with a loan of $2,000 in the
first year and $1,500 in the two succeeding years.
The award year will typically
begin on October 1 and end on September 30. The award year
may be adjusted for students whose public service employment begins later than
October 1. The program will treat each year independently and forgive the
entire loan, each year, upon satisfactory completion of that loan period. To
receive the full amount of the loan forgiveness available, the participant must
be in good standing for the complete year with regard to all LRAP eligibility
requirements. If the participant changes employment during the three year
period, payment will continue as long as the new position qualifies for coverage.
If the participant leaves
qualifying employment, or for any other reason becomes ineligible, before the
end of a loan period, the
program
will forgive the portion of the indebtedness
(total loan amount plus interest accrued to date) based on the percentage of the
year satisfactorily completed.
Any remaining amount not forgiven must be
repaid.
Eligibility
The applicant selected to receive
the award must demonstrate need by showing a high level of law school debt
compared to anticipated earnings. In demonstrating the amount of debt,
only educational loans are considered. These include subsidized and unsubsidized
Federal Stafford Loans, Federal Perkins Loans, McCreight loans and supplemental
loans from recognized lenders such as Access Group. Loans from family and
other private sources are not eligible.
While there is no set income maximum, consideration will be given to amount of loan indebtedness, salary of the applicant as well as family income and other required expenditures.
Qualifying employment
Qualifying employment includes Legal Services (including Legal Aid, Public Defender and similar entities representing indigent or low income individuals), government entities (including prosecuting attorneys) and non-profit organizations.
Tax consequences
We believe the Program is
structured to provide maximum tax benefits to participants while satisfying the
requirements of the relevant federal tax law. The law defines as non-taxable the
forgiveness of a loan that refinances pre-existing educational loan debt of
recipients who perform public service work. Section 108 (f) of the Internal
Revenue Code details the requirements for tax-free forgiveness. Participants are
reminded that they are responsible for any information reported on their own
federal income tax returns and are encouraged to consult a tax advisor regarding
the taxability of the forgiveness of these loans in their particular situation.
Repayment process
If a participant leaves
qualifying employment or no longer is eligible to receive the loan, it is that
participant’s responsibility to notify Career Services
immediately. Once it is determined that the participant is no longer eligible
for the loan, a statement indicating the amount due for repayment as well as
repayment instructions and a repayment schedule will be sent to the participant.
The maximum repayment term is five years with an interest rate not to exceed the
federal student loan rate at the time qualifying employment ends.
Application process
Applications are due no
later than May 31 and should be submitted to the
Director of Career Services. Applications will be reviewed by a selection committee and the awarded will be
notified once a selection is made. Payments will be made to recipients on
a yearly or twice yearly basis.
Graduates continuing their
participation in the program must submit an employment verification form
annually. All continuing participants must sign a new loan agreement and
promissory note each year before new benefits can be disbursed.
