frequently asked questions
Question: What does LRAP mean?
LRAP stands for Loan Repayment Assistance Program. Generally, we call it the "Loan Repayment Program."
Question: Is the LRAP Foundation a part of Huntington University?
No. The University and the Foundation are two separate institutions. The program is an Agreement between the LRAP Foundation and the HU student.
Question: What is the benefit of an LRAP Award?
In general, it is a financial safety net for HU graduates. If a graduate’s annual salary is below $20,000, the LRAP Foundation will reimburse the graduate for the entire amount of their loan payments. As the graduate’s income grows to $36,000 the benefit is reduced proportionally.
Question: How much of my HU loans will the LRAP reimburse?
The LRAP Foundation benefit will be yours until your loans are paid or your income increases above $36,000.
Question: Does the LRAP pay my loans off for me?
No. It is a “reimbursement” award, meaning that after you make quarterly payments on your loans, it will reimburse you within the guidelines of the Agreement.
Question: Is the Agreement available for students who take a semester off from HU?
Freshmen and sophomores students, or juniors and seniors with at least four semesters of full-time studies at HU, may be considered as a candidate for an Loan Repayment Program agreement.
Question: Where does the money come from to pay the student’s enrollment in the Loan Repayment Program?
HU pays the enrollment fees for each student enrolled in the program as a part of our continued commitment to help our students graduate.
Question: What do I have to do to keep the award while I am enrolled at HU?
Simply stay in “good standing” and graduate from HU with a BA or BS degree within six years of receiving the award. Once you have received the initial agreement, you do not need to do anything further (except graduate) until you begin to request reimbursements while paying off your college loan after graduating.
Question: Does the BSN and BSW qualify as the “BS” in the “Terms & Conditions?”
Question: Can I influence the length of government loan or is that fixed?
You may consolidate your loans if you wish. Your educational loans must be on a minimum 10 year repayment schedule.
Question: Is there a penalty for early pay-off?
The Loan Repayment Program will cover only the amount for the quarterly payment for the length of the loan. Any payment above and beyond the quarterly amount will not be covered. While the LRAP Foundation does not cover extra payments or early pay off of the loan, we would highly recommend intentional financial planning.
Question: What if a student doesn’t borrow loans during one or more semesters at HU? Is the LRAP Agreement still in place?
Yes. We encourage financial planning and the fewer the loans you take, the better for all.
Question: What if I default on my loan?
The cost of late fees or penalties are not included in the reimbursement.
Question: What if we have an additional LRAP program for the same loans?
Your Loan Repayment Program Benefit Payment will be reduced by any loan repayment assistance for which you qualify under any federal, state or other program.
Question: Does the agreement cover funds borrowed against a mortgage or a personal loan?
No. Only Federal student loans, private alternative student loans and Plus loans for parents are covered.
Question: If I select to be married and therein double my annual income, do I lose my benefit?
Not necessarily. However, upon being married, the LRAP Benefit will consider the larger of the graduate's income or half the household income; whichever is greater.
Question: If I select to be a stay-at-home parent and therein lose my annual income, do I lose my benefit?
Not necessarily. If you are unemployed, but your spouse is employed and a college graduate (B.A. or B.S.), you are at home raising children, and neither of you are enrolled as a graduate student, then you qualify for assistance based on your total household income.
Question: Does the ‘spouse must graduate from college’ in the Terms & Conditions mean any specific degree?
Yes. The spouse must have completed a BA or BS degree at an accredited College or University.
Question: Can I be self-employed after graduation and still receive the reimbursement?
No. You will not be eligible to receive Benefit Payments if you are self-employed or if you are employed by your family. Please reference the Terms & Conditions for further detail. There is an exception for those majors where a self-employment is a natural progression in the career field.
Question: If I pursue graduate or post-graduate studies, can my LRAP be deferred along with my college loans?
Question: Is the reimbursement based upon the student’s income or the parent’s?
The benefit is based upon the graduate’s annual salary. Keep in mind, the graduate must be working for the benefit to be available.
Question: How often and what do I need to file for a reimbursement as a Parent’s Plus Loan or a Co-signer?
Benefit Payments are made quarterly. The graduate must submit a brief income and loan payment verification form after the end of any calendar quarter. The LRAP Foundation will mail a check within thirty days.
Question: What process and information will the parents need to submit for reimbursement of a Plus loan?
The LRAP Foundation will calculate your graduate’s Benefit Payment, based upon the graduate’s total income, as defined for federal tax purposes, plus amounts in Box 13A of your W-2 (e.g., 401(k) contributions), plus any other substantial non-taxed income (e.g., housing allowance).
Question: Can I just have the payments go to a “third party?”
No. All payments must go to the individuals whose names the loans are made out to, or the co-signer.
Question: Is the reimbursed loan payment considered income for tax purposes?
Question: Does the reimbursement amount need to be reported as income for tax purposes?
Question: Will the parent’s or co-signers have to report the reimbursement as income for federal taxes?
Congress has made changes to LRAP taxability from time to time, so the tax laws may change between now and when the student graduates. The LRAP Foundation and Huntington University cannot provide precise tax information. Our best answer to tax questions is for you to speak with your lawyer or tax accountant.
Question: After graduation, what is my next step?
You may e-mail the LRAP Foundation at Benefits@LRAPassociation.org or call 877-577-5727 for more detailed information and for appropriate forms.
Question: What do I have to send to get a reimbursement?
LRAP participating graduates must complete a brief form and send it to the LRAP Foundation with a W-2 for proof of employment and a proof of payment for each loan on a quarterly basis in order to receive the reimbursement check.
Question: How often do I need to complete this form?
You will need to submit documentation of full-time employment and proof of payment each quarter with your request for reimbursement.