Contact the LRAP Team

Email
lrap@calatj.org

Phone
(510) 255-0577

The Need

California's legal aid organizations depend on dedicated attorneys and staff to serve low-income and vulnerable Californians. Student loan debt remains one of the most significant financial barriers to building and sustaining a career in legal aid.

More than 75% of legal aid attorneys have educational debt, with median balances ranging from $125,000 to $149,000. For many, monthly student loan payments create financial pressure that can make it difficult to remain in public interest law. LRAP helps participating organizations provide meaningful student loan repayment assistance to support and retain their workforce.

A Tax-Advantaged Solution

LRAP provides participating legal aid organizations with an efficient way to help employees repay their student loans.

CalATJ administers LRAP in a manner designed to comply with Section 108(f) of the Internal Revenue Code. When program requirements are met, qualifying loan assistance may be excluded from participants' taxable income.

How the Program Works

Participating legal services organizations contribute funding to CalATJ to support their LRAP participants.

CalATJ administers the program by:

• Reviewing participant eligibility

• Processing student loan reimbursements

• Maintaining required program documentation

• Administering annual loan discharge requirements

Participants provide documentation of their student loan payments and receive reimbursements in accordance with their organization's funding guidelines.

Funding LRAP

Participating organizations may fund LRAP using the funding source that best aligns with their needs and available resources.

IOLTA & Equal Access Fund (EAF)

The California Legislature has authorized California legal services organizations to use IOLTA and Equal Access Fund (EAF) resources to support LRAP for eligible attorneys, subject to applicable guidelines. Because many legal aid organizations already receive IOLTA/EAF funding, they may be able to use those existing resources to provide student loan repayment assistance through LRAP.

Other Funding Sources

Organizations may also use other organizational funds to support LRAP. These funding sources may be used to provide assistance to eligible non-attorney staff, support attorneys when IOLTA/EAF funding is unavailable or insufficient, or expand the program based on an organization's priorities and budget.

Program Flexibility

Each participating organization determines how its LRAP funds are used. Organizations may choose to:

• Define which employees are eligible

• Cover federal loans, law school loans, or other eligible loan types

• Establish a monthly or annual reimbursement cap

• Set additional funding limitations based on available resources

This flexibility allows each organization to design an LRAP that best meets its needs while benefiting from centralized administration by CalATJ.

Public Service Loan Forgiveness (PSLF)

Eligible participants with federal student loans may also pursue Public Service Loan Forgiveness (PSLF).

Attorneys who make 120 qualifying monthly payments, including payments reimbursed through LRAP, may qualify for federal loan forgiveness if they meet all PSLF requirements. As a result, participating organizations can offer attorneys and other legal aid staff meaningful assistance with monthly loan payments while they work toward long-term loan forgiveness.

Administration

CalATJ administers LRAP on behalf of participating organizations by reviewing participant eligibility, processing reimbursements, maintaining required program documentation, and administering annual loan discharge requirements. There is no administrative fee to participate, and all funds contributed for participant reimbursements are distributed directly to participants.