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Code of the District of Columbia

§ 4–1704.01. LRAP.

(a) The District of Columbia Poverty Lawyer Loan Repayment Assistance Program shall provide loan repayment assistance to lawyers working in eligible employment. The LRAP shall be part of and be funded through the Initiative, established pursuant to § 4-1702.01.

(b)(1) Funding for the LRAP shall be allocated to the Office of Victim Services and Justice Grants.

(2) The amount of funding for the LRAP for each fiscal year shall be specified by an act of the Council and shall not be modified except by a subsequent act of the Council.

(3) Any training or evaluation deemed necessary by the Bar Foundation for purposes of the Initiative shall be permitted as a non-administrative expense, with reasonable expenses for these purposes not restricted to the percentage set aside for administrative expenses under subsection (c) of this section.

(c)(1) The Office of Victim Services and Justice Grants may serve as Administrator or may designate a nonprofit entity to serve as the Administrator. If the Office of Victim Services and Justice Grants designates a nonprofit entity as the Administrator, the Office of Victim Services and Justice Grants shall provide funding for the LRAP by awarding a grant to the nonprofit entity. The grant shall be nonlapsing and interest earned by the nonprofit on grant funds shall remain available for use by the Administrator for the purposes of the LRAP, without fiscal year limitation, subject to authorization in an approved budget and financial plan.

(2) For Fiscal Year 2018, the Office of Victim Services and Justice Grants shall designate the Bar Foundation as the Administrator.

(3) Except as provided in paragraphs (3) and (4) of this subsection, the Administrator may use up to 15% of the grant funding for reasonable administrative expenses associated with administering the LRAP.

(4) If the Office of Victim Services and Justice Grants has designated the Bar Foundation as Administrator, the Bar Foundation may, in lieu of using a percentage of LRAP grant funding under paragraph (3) of this subsection, use a portion of funds authorized under § 4-1703.01(b) for reasonable administrative expenses associated with administering the LRAP.

§ 4–1704.02. LRAP; administration.

(a) The Administrator shall:

(1) Establish an application and eligibility review process for the LRAP;

(2) Conduct a semiannual review of the continued eligibility of participants;

(3) Certify a list of eligible employment; and

(4) Determine the levels of participant contribution.

(b) The Administrator shall provide loans to participants who maintain eligible employment to repay eligible debt for reasonable education expenses . The Administrator shall forgive these loans upon a participant’s completion of the required service obligation.

§ 4–1704.03. LRAP; participation eligibility.

(a) To be eligible to participate in the LRAP, an applicant shall, at the time of application and throughout participation in the LRAP:

(1) Hold, or actively plan to secure, eligible employment; provided, that a participant shall hold eligible employment before any payments may be disbursed;

(2) Be a resident of the District of Columbia;

(3) Be a lawyer;

(4) Have a current salary (including bonuses and other wages) of less than $100,000;

(5) Exhaust all other available avenues for loan repayment assistance, including through participation in any available undergraduate or law school debt-forgiveness programs;

(6) Have no current service obligation from scholarships;

(7) Submit a timely and completed application;

(8) Be in satisfactory repayment status on all eligible debt; and

(9) Execute a release to allow the Administrator access to records, credit information, and information from lenders necessary to verify eligibility of debt and to determine loan repayments.

(b) A law student attending the David A. Clarke School of Law at the University of the District of Columbia who is in the law student's final year of school may apply and be approved for loan repayment assistance if the applicant demonstrates that the applicant will meet all eligibility requirements by the time of the first award disbursement.

§ 4–1704.04. LRAP; award of loans.

(a) The Administrator shall award loans to participants during the period of service obligation in accordance with § 4-1704.06. Subject to the availability of funds and within the limits established by subsection (c) of this section, participants shall be granted loans sufficient to repay all eligible debt.

(b) If the needs of all participants exceed the financing available in any fiscal year, preference shall be given to participants who:

(1) Are graduates of accredited public schools of law in the District of Columbia;

(2) Have completed no less than 2 prior service obligations in the LRAP;

(3) Have graduated from an accredited school of law within the last 3 years; or

(4) Have a high debt to income ratio as compared to other participants.

(c) Participants in the LRAP shall not receive loan repayment assistance under the LRAP in excess of $1,000 for a single month; except, that:

(1) The Office of Victim Services and Justice Grants may by rulemaking increase the award limit established in this subsection to reflect changes in reasonable education expenses; and

(2) The Bar Foundation may use the funds to repay any or all of the loan principal or interest of those applicants whose loans would not otherwise be eligible for Public Service Loan Forgiveness.

§ 4–1704.05. LRAP; participant obligations.

(a) A participant shall:

(1) Maintain full-time employment and eligible employment for each year of the service obligation;

(2) Sign a promissory note setting forth his or her obligation to the LRAP to repay any assistance loans that are not subsequently forgiven pursuant to § 4-1704.02(b) because of a failure to sustain eligible employment or other noncompliance with the eligibility requirements set forth in § 4-1704.03.

(3) Authorize the Administrator to verify his or her eligible employment, current salary (including bonuses and other wages), and other sources of income, at least semiannually during participation in the LRAP;

(4) Timely notify the Administrator of any change in status that would make the participant ineligible for an award; and

(5) Be responsible for:

(A) Negotiating with each lending institution the terms and conditions of eligible debt repayments; and

(B) Any penalties associated with early repayment.

(b) Except as provided in subsections (c) and (d) of this section, participants who fail to fulfill the required service obligation shall repay any loan disbursed, in accordance with the terms of the promissory note required by subsection (a)(2) of this section and regulations promulgated pursuant to § 4-1704.07.

(c) For the purposes of this chapter, a participant who provides adequate notice to the Administrator of involuntary termination from eligible employment shall be forgiven for the loan through the date of the involuntary termination from eligible employment. The participant shall be required to repay the loan from the date of involuntary termination from eligible employment through the end of the calendar year.

(d) For the purposes of this chapter, a participant who becomes ineligible to participate in the LRAP shall be forgiven for the loan through the date of the ineligibility if the participant has satisfied the obligations under § 4-1704.03 and this section for 3 or more years. The participant shall be required to repay the loan from the date of voluntary withdrawal from eligible employment through the end of the calendar year.

§ 4–1704.06. LRAP; disbursement of loans.

(a) The Administrator shall begin to disburse loan repayment assistance within 90 days of the Administrator’s receipt of adequate funds.

(b) Subject to the availability of appropriations, loan repayment-assistance payments shall be made not less than semiannually to the participant until the repayment of the eligible debt is complete or the participant no longer meets the eligibility requirements set forth in § 4-1704.03.

§ 4–1704.07. LRAP; rulemaking.

The Mayor, pursuant to subchapter I of Chapter 5 of Title 2 [§ 2-501 et seq.], shall issue rules to implement the provisions of this chapter.