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No. LRAP coverage begins in January. Therefore, any payments that are due prior to January will not be covered by your LRAP award.
No. If applicants are approved for LRAP, they will receive a check in late December or early January that represents LRAP coverage from January through June. It is the responsibility of the applicant to make payment directly to his or her lender. International applicants should be especially aware of this since they will need to ensure that they have the access to a bank account which will accept US denominated deposits and from which they can make payments to their lender. International applicants experiencing difficulty should contact their lenders to determine what options exist.
No. LRAP exists to support HKS graduates employed on a full-time basis in the public and non-profit sectors. Individuals who are not employed are encouraged to contact their lenders to inquire about the possibility of deferments, forbearance, or other similar accommodations to their individual circumstances.
To be considered to be employed for LRAP purposes, an applicant must be receiving compensation which, at a minimum, is sufficient to meet the full amount of their living expenses. For example, an applicant who has started a non-profit must be drawing a sufficient salary from that non-profit to meet his or her living expenses in order to meet the LRAP employment criteria.
No. Individuals who are employed by for-profit employers- regardless of the nature of the work in which the employee is engaged - are not eligible.
If the consolidation process is not yet complete, please report your loans individually. Additionally, attach a cover letter that explains that consolidation is under way. If your application is approved, you will be sent a conditional approval letter with actual payment being delayed until your consolidation process is complete.
Yes. So long as all information is present, you can submit a print out from an online source.
No. If you do not meet the eligibility guidelines as of the deadline, your next opportunity to apply will be in June for the second six months of the calendar year.
Yes. The fax number is (617) 496-1165.
Since the LRAP Committee must convene shortly after the deadline, it is important that all materials be submitted in sufficient time for applicants to be provided to all Committee members at least two weeks prior to the meeting. Therefore, it is extremely important that all applicants be received by November 15th. Regretfully, it may not be possible to consider late applications.
No. Beginning with the January to June 2008 payments, LRAP awards will be given as loans (you will receive a promissory note to complete). These loans will then be forgiven at the end of the fiscal year, allowing the payments to be tax free (see IRC 108(f)). For payments made prior to January to June 2008, LRAP payments are considered taxable income. Harvard will send you a 1099 reflecting the payment. If your payment is processed prior to January 1st, the 1099 will be for the prior tax year. If payment is issued after January 1st, the 1099 will be issued for the current year. In order to ensure that you 1099 is received, please make sure you update your contact information if it changes.
In some cases, the LRAP program will wire funds to participants living outside North America. There are very strict criteria for wiring payments, and you will be contacted if your payment is eligible for wiring. If you are not contacted, your payment cannot be wired to you.
The LRAP program uses your required monthly payment on the loans you borrowed to attend HKS as the basis of its coverage. Choosing to pay more than the required monthly payment will not increase your LRAP coverage. You may choose to repay your student loan under any of the repayment plans offered to you by your lender and LRAP coverage will be based upon the amount that you are required to pay—and do pay—by this plan. However, please be aware that even if your lender offers a repayment plan with a repayment period of less than 10 years, the LRAP program will not cover monthly payment amounts that are based on repayment periods of less than 10 years. In other words, LRAP coverage is based on the amount you are actually required to repay on the repayment plan you choose unless you choose a repayment plan with a repayment period of less than 10 years; in which case, your repayment amount would be determined based on the amount you would have been required to pay on a 10 year repayment plan. In all cases where your repayment plan is 10 years or longer, your LRAP coverage will be based on the amount your required monthly payment amount on the plan you have chosen or the amount you actual pay whichever is lower.
Student borrows $50,000 and chooses a 20 year repayment plan with a required monthly payment of $387/month. When applying for LRAP, the monthly payment used for LRAP eligibility would be $387/month.
Student borrows $50,000, chooses a 20 year repayment plan with a required monthly payment of $387/month but chooses to pay $500/month. LRAP coverage would be based on $387/month.
Student borrows $50,000 and rather than choosing a standard repayment plan, asks the lender to establish a repayment plan of 5 years in length resulting in a required monthly payment of $990/month. Because this repayment period is less than the 10 year minimum, LRAP coverage would be based on the amount that would have been required if the borrower had chosen a 10 year plan: $580/month. If the borrower elected a longer repayment plan—such as the 20 year plan above—the basis for coverage would be the monthly payment required on the longer plan: $387/month.
Student owes a total of $50,000 but only $30,000 of this amount was borrowed at HKS with the remainder having been borrowed either as an undergraduate or at another graduate school. The borrower chooses a 10 year repayment plan that results in a required monthly payment of $580/month. For LRAP purposes, however, the amount of LRAP coverage is pro-rated to reflect the amount of the monthly payment associated with the HKS borrowing only: $30,000/$50,000 = 60% x $580/month = $348/month.
If a borrower begins repayment on a longer repayment term and then subsequently shortens the payment period, the maximum monthly payment eligible for LRAP coverage is the amount that the borrower would have paid had he or she begun repaying his or her loan on the new loan term at the beginning of repayment.
Student originally borrows $50,000 with a 7% interest rate and selects a 15 year repayment plan. This results in a required monthly payment of $450/month.
At the end of five years of repayment, the borrower now owes $38,482 and decides to change their repayment plan to a 10 year term. The lender determines that based on the 5 years remaining in the 10 year repayment period, the new required monthly payment will now be $761.
However, while the lender may choose to recalculate the monthly payment so that the total balances is repaid in 5 more years (five more years beyond the 5 years already past), for LRAP purposes, the monthly payment eligible for LRAP coverage is determined by calculating the required monthly payment on the original principal amount borrowed over 10 years. In this example, that payment would be $580/month. Therefore, even though the new required monthly payment by the lender is now $761/month, the amount eligible for LRAP is limited to $540/month.
Again: Even if the required monthly payment of the lender is higher, LRAP coverage will not exceed the amount that would have been required had the borrower initially elected the shorter repayment plan (minimum of 10 years).