February 22, 2013 - Oregon State Bar

OREGON STATE BAR
Board of Governors Agenda
Meeting Date: February 21, 2013
Memo Date: January 17, 2013
From:
Loan Repayment Advisory Committee
Re:
Changes to the LRAP Policies and Guidelines
Action Recommended
The Loan Repayment Advisory Committee recommends that the Board of Governors
approve a decrease in the debt requirement from $50,000 to $35,000 for public service lawyers
applying for the Oregon State Bar Loan Repayment Assistance Program and that the LRAP
Policies and Guidelines be changed to reflect that the Advisory Committee will consider
applicants who previously have received a loan from the Program.
Background
The Loan Repayment Assistance Program (LRAP) is now in its seventh year of providing
forgivable loans to lawyers pursuing careers in public service law. Through this program,
lawyers working in public service may receive loans for up to $5,000 per year for three years to
aid them in repaying their educational debt. Each loan is forgiven at the end of the year,
provided that the lawyer remains in public service. The LRAP Advisory Committee seeks to
decrease the current debt minimum of $50,000 to $35,000. When the Program started, the
debt minimum was $30,000. It has been as high as $60,000 and is currently $50,000. The
Advisory Committee believes that $35,000 is the proper debt minimum now. Decreasing the
debt minimum will allow attorneys to apply for the LRAP funds who have served for many
years in public service. Those attorneys are not eligible for new federal loan forgiveness
programs and have disproportionately higher loan payments to make compared with newly
admitted attorneys.
In addition, the Advisory Committee wishes to refine the Policies and Guidelines to
make clear that public service lawyers who previously received a loan though the Program are
allowed to re-apply and be considered for additional loans. Adding language to Section 2
Subsection (A) of the Policies and Guidelines makes this information clear.
Proposed changes to the Policies and Guidelines are attached hereto.
Board of Governors February 10, 2012