WEDNESDAY, NOVEMBER 1, 2006

IBF offers loan assistance to
civil legal aid attorneys
By Rebecca Berfanger
rberfanger@ibj.com

In an effort to counteract high student-loan payments for lawyers who choose to serve low-income clients with civil legal needs by working for non-profit organizations, the Indiana Bar Foundation has recently introduced a Loan Repayment Assistance Program, or LRAP-IN. The deadline for applications for 2006 is Nov. 17.

LRAP-IN "stemmed from the Supreme Court's legal education conclave three or so years ago," said IBF Executive Director Chuck Dunlap. "We've been working on it ever since. We finally have the revenue and funds to start the program."  Dunlap added, "The goal is to offset massive student debt and increase retention."

After the application deadline, applicants will be considered through the end of November. Applicants will be notified by mail of the results of their application. Dunlap said the IBF plans to start distributing checks in January.

The Indiana Bar Foundation has allocated $30,000 to be distributed, Dunlap said. Each applicant may receive up to $5,000 per year, and the goal is to assist "upwards of 10 applicants."  "We're hoping the amount will go up, but it depends on our ability to fund it," he said.

The requirements for the LRAP-IN include a license to practice in Indiana (this requirement may be waived up to 12 months); a salary that does not exceed $50,000; employment by a qualified civil legal aid employer (part-time or full-time – part-time recipients will have their loans pro-rated); and an active membership with the Indiana State Bar Association once the attorney becomes licensed to practice law.

While the loans cover only civil legal aid for this first round of awards, Dunlap said they might expand to criminal legal aid in the future.  The checks will be mailed on a quarterly basis, and each quarterly loan will be forgiven for every three months the lawyer works for the qualified civil legal aid employer.

If a qualified LRAP-IN participant has a salary increase to more than $50,000 or terminates qualified employment, he or she will need to repay any loan assistance that isn't forgiven.

Part of the reason the IBF is implementing the program is "it's tax advantageous for the winner," Dunlap said. "If an attorney gets funding from an employer, it is taxed as income," but because it's given as a forgivable loan, it isn't considered as income that can be taxed. However, a description of the program said it is still ultimately the responsibility of the loan recipient to report the loan for tax purposes.

To help spread the word to qualified attorneys, the IBF has mailed applications to various legal aid providers. A list of qualifying employers as provided by the IBF includes:

• Community Organizations Legal Assistance Project
• Elkhart Legal Aid Services
• Indianapolis Legal Aid Society
• Indiana Legal Services
• Law School Legal Services (Indianapolis)
• Law School Legal Services f/k/a Bartholomew Area Legal Aid (Columbus)
• Legal Aid Corporation of Tippecanoe County
• Legal Aid Society of Evansville
• Legal Services of Maumee Valley
• Neighborhood Christian Legal Clinic
• Protective Order Pro Bono Project of Greater Indianapolis
• Volunteer Lawyer Program of Northeast Indiana
• Indiana Pro Bono Commission Districts 1-14.
• Other organizations may apply for approval to the IBF Board of Directors

Attorneys may also contact the IBF to receive an application or for more information by calling (317) 269-2415 or (800) 279-8772.

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