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LRAP, loan repayment, and PSLF

November 18, 2025

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Repayment strategies

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Common repayment strategies

Pay a little → 10-year PSLF

  • Monthly payments depend on income and are usually lower.
  • No need to pay back the full amount borrowed → tax-free forgiveness
  • Good option for those with low incomes, high loan debt, and those working in public service.

Pay aggressively → repayment

  • Monthly payments depend on loan debt and length of repayment, but are usually high.
  • Pay back the entire amount of the loan plus accrued interest.
  • More manageable for those with high incomes or low loan debt.

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Other repayment strategies

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25-30 year IDR forgiveness

  • Low monthly payments based on income.
  • Don't pay back everything, but forgiveness is taxable.
  • Potential option for borrowers with low incomes but who aren't in PSLF-qualifying employment.

Refinance

  • Loans transferred to private lender.
  • Good for high income and aggressive repayment.
  • No longer eligible for IDR, PSLF, LRAP, forbearance, or loan forgiveness.

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Plaintiff side, union, international

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Repayment

  • Low loan debt or high salary? Repay loans (10 years, or more, or less).

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Use LRAP

  • If eligible for LRAP, use to reduce your expenses.
  • If repaying your loans, you can use LRAP as a starting point and pay more than what's due.

Eventual forgiveness

  • Spend time in this non-PSLF-qualifying work, knowing you'll move into qualifying employment eventually (takes longer than 10 years to get forgiveness)
  • Or, 25-30 year IDR forgiveness from the start.

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Most common strategy for Berkeley Law PIPS grads →

Income-Driven Repayment

Berkeley Law's LRAP

Public Service Loan Forgiveness

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Income-Driven Repayment

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IDR basics

  • Payments based on income, not loan debt.
  • Reduces your monthly payment by up to $1,000s / month.
  • Allows you to pay as low as $0 / month and still qualify for PSLF.
  • Apply after you graduate and renew each year.

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IDR v. Standard 10-year plan

Assumptions: $200,000 borrowed; $1,000 in interest accrues monthly; $70k income.

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Plan

IDR

Standard 10-year

Monthly payment

$400

$2,200

Amount paid to principal

$0

$1,200

Amount paid to interest

$400

$1,000

Unpaid interest accrual

$600 (IBR)

$0 (RAP)

$0

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Over 10 years...

Plan

IDR

Standard 10-year

Total amount paid

But consider LRAP!

$60,000

$280,000

Remaining loan balance

$200,000-$260,000

$0

Debt forgiven

$200,000-$260,000

$0

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Loan Repayment Assistance Program

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LRAP basics

  • Berkeley Law gives you funding to help make your IDR payments

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  • Must be in law-related, public interest employment
    • Nonprofit, govt, clerkships (except 1 yr → big law), academic, policy, plaintiff side, and more

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  • Earning up to $120,000
    • $80k or less → full coverage
    • >$80k - $120k → partial coverage

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LRAP details

  • All federal loans qualify

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  • Marriage
    • Average incomes if spouse earns more

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  • Dependents
    • Deduct from your income → more LRAP support

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  • Leave
    • Medical, family, parental leave qualifies

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LRAP formula

  • LRAP support =
    • Your IDR payment minus your out-of-pocket contribution
  • Your out of pocket contribution =
    • 25% of your income over $80k

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Public Service Loan Forgiveness

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Public Service Loan Forgiveness basics

  • Forgives remaining student loan balance, tax-free, after 10 years of qualifying payments and employment

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  • PSLF-qualifying employment
    • Any 501(c)(3) nonprofit job
    • Any government job
    • 30+ hours a week
    • No income cap
    • Leave (parental, medical, vacation) qualifies
    • Cumulative, not consecutive

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Running the numbers

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PSLF

PSLF forgives your remaining loan balance after 10 years

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IDR

If IDR reduces your monthly payment...

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LRAP

LRAP helps you pay your IDR payments, for up to 10 years, and

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In practice

Assumptions: $200,000 borrowed; $1,000 in interest accrues monthly; $70k / $90k starting incomes

Salary

$70,000

$90,000

Monthly payment

$400

$560

LRAP out-of-pocket contribution

$0

$210

LRAP support

$400

$350

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Over a year

Salary

$70,000

$90,000

Total payments

$4,700

$6,700

Total out-of-pocket costs

$0

$2,500

Total LRAP award

$4,700

$4,200

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Over 10 years

Salary

$70,000

$90,000

Total payment

$60,000

$80,000

Total out-of-pocket contribution

$10,000

$60,000

Total LRAP support

$50,000

$20,000

Remaining loan balance forgiven by PSLF

$200,000 - $260,000

$200,000 - $240,000

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Real Bay Area salaries

Type

Salary

Take home pay

IDR payment

LRAP support

Left over after loan payment

Nonprofit

$85,000

$5,000

$500

$400

$4,900

Federal govt

$85,000

$5,000

$500

$400

$4,900

Clerkship

$90,000

$5,500

$550

$350

$5,300

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State govt

$90,000

$5,500

$550

$350

$5,300

Public defender

$120,000

$7,000

$800

$0

$6,200

Plaintiff-side

$120,000

$7,000

$800

$0

$6,200

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The big picture

  • IDR can dramatically reduce your monthly payments
  • You don't need to repay everything you've borrowed using IDR, LRAP, and PSLF
  • No matter how much debt you have, payments can be low and affordable

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PSLF news

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Potential PSLF changes

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August 17, 2025

Notice of Proposed Rulemaking

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The Department of Education released a draft of its rule and invited public comment.

April - July 2025

Negotiated Rulemaking

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Department of Education initiated its rulemaking procedure, holding public hearings and establishing a committee of stakeholders to vote on proposed language.

July 1, 2026

Rule implementation...?

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November 3, 2025

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Litigation begins

March 2025

Executive Order

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Intended to disqualify organizations engaged in "illegal activities" from qualifying for PSLF.

October 31, 2025

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Final rule

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The Department released its final rule and responded to comments.

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Language

  • Substantial illegal purpose =
    • "Aiding or abetting violations of... Federal immigration laws"
    • "Supporting terrorism"
    • "Engaging in the chemical and surgical castration or mutilation of children"
    • "Engaging in the trafficking of children to states for the purposes of emancipation from their lawful parents"
    • "Aiding and abetting illegal discrimination"
    • "Engaging in a pattern of violating State laws"
      • "Trespassing; disorderly conduct; public nuisance; vandalism; or obstruction of highways"

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What's next

  • What parts, if any, of the rule survive depends on the outcome of litigation (3 pending cases already)
  • If implemented:
    • Should only affect months July 2026 or after (no retroactive clawback)
    • Looks to be a determination made organization by organization
      • 10 orgs per year?
    • There's the option for an organization to respond
    • There's the option for an organization to be rehabilitated
    • Future administrations can overturn & make retroactive determinations

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What should you do?

  • Factors at play:
    • Risk aversion, faith in the process, tolerance of admin changes
    • Debt tolerance
    • Financial goals and obligations
    • Income
    • Family
    • Career plans
  • There's time! And, you can change your mind.

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Email: lrap@law.berkeley.edu

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Call: (510) 642-1563

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Appointments: berkeleylawfinaid.as.me

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Visit: 226 Law Building, across from the Reading Room

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Website: www.law.berkeley.edu/admissions/financial- aid/jd-financial-aid/loan-repayment-assistance-program/