Graduates who are in legally recognized marriages will be evaluated on the basis of either (1) their own income (if their spouse makes less than they do), or (2) half of their joint income (if their spouse makes more than they do). Prior to determining the joint income any annual educational loan payments that the spouse is required to make will be deducted from the spouse’s salary. The assets of both the graduate and their spouse are considered when calculating eligibility, however, the protected asset amount is doubled to account for the possibility of additional assets from a spouse.
A Dependent Care Allowance, consisting of $6,000 for the first dependent, $3,600 for each additional dependent, and reasonable expenses incurred for child care, will be subtracted from the income to determine the adjusted income for a participant; this allowance does not extend to private school tuition for school-aged children and is currently capped at 10% of the household income per child. The LIPP adjusted income is used to determine the participant contribution amount. The allowance is applied proportionately to each income when both parents are working. If the non-LIPP parent is at home caring for the child(ren), the allowances are applied in full to the one income. While being a stay-at-home parent is not a LIPP eligible position, there is a policy that addresses parental leave and part-time employment.
If HLS graduates are married to each other and would qualify for LIPP based on their individual incomes, then both can participate independently in the program. Total joint assets will be divided equally between the two participants when calculating LIPP eligibility. Additionally, the dependent care allowances will be applied proportionally between the two participants based on their incomes.