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A LIPP participant can exit LIPP at any time, for any reason. Typically, a participant will exit LIPP because they have become ineligible due to a change in employment, income, marital status, assets or required loan payments. Depending on the timing and nature of the change, there may be a re-calculation of eligibility to determine if a balance is owed back.

In order to determine if there is a payment due the participant is required to fill out an exit application through the SFS Self-Service Portal (similar to applying for LIPP) and will need to submit a loan payment history for the most recent award period in which they received LIPP. If the participant is exiting immediately following a clerkship they will also need to submit the post-clerkship employer certification form, and a post-clerkship spouse income form (if married).

Below is a basic example of an exit calculation for someone who became ineligible for LIPP due to a salary increase.


Participant was awarded for the July – December award period based on the following information:

  • Yearly gross salary: $80,000
    • Equal to $233.33/month participant contribution
  • Required loan payments: $2,500/month
  • LIPP Award: $13,600
    • (Monthly loan payment x 6 months) – (Participant contribution x 6 months)

Participant changes jobs on September 15th and their new salary is $150,000 which makes them ineligible for LIPP because the participant contribution at that salary level ($3,133.33) exceeds their monthly loan payment of $2,500. They will be required to submit an exit application and the following adjustment will be made:

  • They are eligible for LIPP for 2.5 months (7/1-9/15)
    • Total participant contribution =  $583.33 ($233.33 x 2.5)
  • New LIPP eligibility for the period is $5,666.67
    • (Monthly loan payment x 2.5 months) – (participant contribution x 2.5 months)
  • Balance owed = $7,933.33
    • (Initial award – new eligibility)