General Information on Employer-Based LRAPs

Recognizing that high student debt burdens make it impossible for talented lawyers, especially those who come from less privileged backgrounds, to accept or remain in legal services staff positions, various legal services employers across the nation have created their own loan repayment assistance programs for their legal staff. Eligibility requirements, probationary periods, program guidelines, payment amounts, payment installments and forfeiture rules vary widely depending upon the legal services agency and program. But all agencies with employer-based loan assistance programs argue that offering this type of assistance helps them attract top candidates to their legal staff and retain their current attorneys.

Of the legal aid employers that offer loan repayment assistance, many provide assistance directly to their employees in the form of reimbursements. This assistance is considered income to the employee for tax purposes. Other employers have developed programs that tax advisors believe will allow employee-recipients to exclude the assistance from their income taxes.

The Legal Services Corporation (LSC) maintains a list of employer-based LRAPs that operate at some of the LSC-grantee agencies across the nation. See http://www.lri.lsc.gov/sitepages/management/management_lrap.htm for more information on these employer-based LRAPs.

There are other employer sponsored LRAPs offered by employers that do not receive LSC funding; we do not have a comprehensive list of these additional LRAPs.