LIPP Eligible Borrowing
Eligible borrowing includes annual law school education loans certified by HLS Student Financial Services, up to the approved student financial aid budget minus the calculated LIPP Student Contribution and any HLS Grant assistance. Borrowing done to replace assessed parent resources is eligible for LIPP assistance. In addition, up to $2,000 in borrowing for purchasing a computer (when done through the computer loan request process) and up to $10,000 in borrowing for bar-related expenses are LIPP eligible. Up to $30,000 of combined undergraduate debt and debt incurred while pursuing an eligible joint degree with another Harvard graduate school is also eligible for LIPP coverage.
Student Financial Services calculates a student contribution based on income and assets each year that you are a student to determine eligibility for need-based HLS Grant aid, and a separate LIPP Student contribution to determine the eligibility of loans for LIPP coverage. For students who worked a full year or more after completing an undergraduate degree and prior to entering HLS, we protect (exclude) $10,000 of assets for each full year (consecutive 12 months) worked full-time when calculating the LIPP Student Contribution. Borrowing done to replace non-protected assets and any student contribution from income continues to be ineligible for LIPP assistance. While enrolled at HLS the loans are in a status of “in-school deferment” and any interest which accumulates on eligible loans during that time will be considered to be part of the eligible borrowing. LIPP coverage is not available for loan repayment terms shorter than 10 years or 120 payments total.
Current students interested in their LIPP eligible borrowing amount for the current academic year should log into MyHLS Financial Aid; maximum LIPP Eligible borrowing information may be found on the “Messages” tab. Alumni will not have access to this site and will need to contact the LIPP Staff for information regarding their eligible borrowing.
LIPP Ineligible Borrowing
LIPP assistance is not available for loans from family and friends, for personal loans from banks or other sources, or for other graduate school debt except as specified above. Undergraduate and joint-Harvard-degree borrowing in excess of $30,000 is not eligible for LIPP coverage. Loans taken out to replace one’s own unprotected assets or imputed summer savings (based on documented summer earnings), or for living expenses above the standard financial aid budget, are also not eligible for LIPP. For married students, the spouse’s contribution is considered part of the student contribution and borrowing to replace this amount is not eligible for LIPP.
There is no retroactive LIPP assistance and no LIPP assistance available for periods of loan forbearance, deferment or during grace periods. Interest accrued due to forbearance, deferment (except while enrolled at HLS), significantly extended repayment terms (i.e. interest only plans), or other periods of non-payment, and penalties for late payment or default on education loans are not eligible for LIPP coverage. In order to remain eligible for LIPP, graduates must provide proof of good standing from the servicers of all applicable loans, including undergraduate/joint degree loans, and may not have an outstanding term bill balance with Harvard University. LIPP assistance is solely and specifically intended to be used to repay eligible education loans.