As we approach the final weeks of 2015, we wanted to notify you of some important dates.
- LRAP payments initiated before December 10th will most likely be paid before the end of the year. Payments initiated after this date will most likely be paid in 2016.
- Applications submitted on or after December 18th will be reviewed beginning January 4th.
- The Financial Aid Office will be closed Thursday, December 24th through January 1, 2016 for curtailment. Please note that we will be unavailable by phone or email during this time.
Applications are processed in the order they are received. As of today, we have processed all complete applications through #2309.
Please let us know if you have an urgent situation that requires our attention or if receiving your LRAP check in 2016 will cause financial hardship. We will try to accommodate your request, but cannot guarantee you’ll receive funding before the end of the year.
The LRAP Team wishes you Happy Holidays and a delightful 2016!
The processing of federal student loans is contracted out to one of several loan “servicers.” You can find the name and contact information for the servicer of your loans on the National Student Loan Data System (NSLDS) website.
After logging in, click on the individual loan number to access detailed information such as the “scheduled start of repayment” date and the servicer / lender contact information. The most common lenders for Boalt students are Direct Loan Servicing (ACS) and Department of Education (Pheaa). Regularly updated contact information for each servicer can be found on the Department of Education’s studentaid.ed.gov.
Some Boalt graduates reported that their federal student loans were transferred from Direct Loan Servicing (ACS) to another servicing provider without any notice or access information. The NSLDS website is the best place to find the new servicer’s information.
On March 18, 2012 the IRS released the Publication 970, Tax Benefits for Education for 2011 returns. Unlike in previous editions, the “Law school LRAP” is no longer listed as being tax free. According to the revised p970 edition for the tax year 2011 LRAP funds are taxable income unless for services in the health care profession as defined by the IRS p970 pages 36 and 37.
If you do report the LRAP forgivable loan as income you should be able to deduct the amount of the benefit used to pay interest under § 221 though the deduction is subject to a cap.
Since there is discussion within the law school community based on IRC § 108(f)(2) that the LRAP forgivable loan should not be taxable, we recommend that you consult with a tax accountant for further advice.
Please see excerpt of the 2011 Tax Benefits for Education p970.
Thank you for your patience. Thus far we processed all applications up to ID no. 788.
Thank you for your patience. Thus far we processed all applications up to ID no. 712.
Thank you for your patience. Thus far we processed all applications up to ID no. 589.
The “Spending Plan” workshop is postponed, and will now take place on Wednesday, October 26, at 1 PM in Boalt 170.
Later this week we will provide more details.
Please note that due to heavy traffic www.myedaccount.com is still very slow.
The new web site currently does not provide a payment history. Since Direct Loan Serving is still finalizing the transition, we anticipate that this feature will soon be fully implemented.
Direct Loan Serving update!
Borrowers who scheduled Web payments via the previous borrower website for debit after September 30, 2011 were notified that their previously scheduled Web payments were cancelled due to the transition. Borrowers are responsible for making these payments and have the option to mail their payments to the address below or reschedule the payments via the new borrower website.
Borrowers who choose to mail their payments may do so using the following address:
United States Department of Education
PO Box 530260
Atlanta, GA 30353-0260
Borrowers enrolled in Electronic Debit Account (EDA) have transitioned automatically to Kwikpay. “Kwikpay” is a new term that replaces “EDA.” These borrowers need to take no action. However, Kwikpay borrowers with an October 7, 2011 debit date will notice a slight delay in the drafting of the payment from their bank accounts. We anticipate that these drafts will occur later this week. Despite the drafting delay, the effective date of each borrower’s payment will be October 7, 2011.