Mid-year, the program will require the participants to recertify employment and loan information to determine participants’ continued eligibility on an annual basis. A participant must comply with the requirements as articulated in the program’s guidelines and award letter. Failure to do so is grounds for discontinuation of participation in the program.

The participant must keep all loans current by paying the required amounts in full in order to continue participating in the program.

Should a participant experience exceptional circumstances that prevent him/her from making his/her loan payments on time and in full, the participant must immediately notify the program. The matter will be referred to the committee.

The participant is required to notify the committee of any relevant changes in financial, employment and/or loan or debt repayment information for the participant, which occur during the program year.

Available Leaves: A participant on unpaid leave is considered a full-time employee up to a maximum period of six months. The program will continue to make payments to participant if participant continues to make payments to lender(s).

Participants must use all funds provided by the program toward repayment of eligible educational loans, which include all federal, institutional and private loans for law school education, excluding bar exam loans, and pay to his/her lender(s) the additional amount necessary to make the full loan payment each month.

Loan Forgiveness

Loans awarded under this program will be forgiven one year from the date of issuance, provided the participant has remained eligible for LRAP during that entire year. If the participant has not remained eligible for LRAP for the full year, the portion to which the participant is not entitled will be repayable to the law school.

Coordination with Other Loan Repayment Programs

The program expects each applicant/participant to pursue and exhaust all other sources of loan repayment assistance, forgiveness and cancellation that are available to that applicant/participant. Applicants/participants must inquire of his/her employer about loan repayment assistance available through the employer and should apply to such programs.

The fact that other assistance is available does not, however, disqualify an applicant/participant for the program’s assistance. The level of assistance applicants are receiving from other loan repayment assistance programs will be factored in to the calculation of how much is awarded to each applicant through the UNC program.


Section 108(f) of the Internal Revenue Code details the requirements for tax-free forgiveness. The program aims to provide tax-exempt benefits. However, UNC is required to treat the forgiveness of loans for participants employed by the following employers as taxable: (i) UNC – Chapel Hill, (ii) nonprofit organizations that are not described in section 501(c)(3) of the Internal Revenue Code (e.g. section 501(c)(4) organizations), and (iii) non-governmental organizations that are located outside of the United States (unless they have been recognized by the IRS as described in section 501(c)(3)). Participants are encouraged to seek legal advice for any questions about their particular tax situation.


Final discretion in decisions regarding eligibility, funding, committee makeup and disbursements is left to the dean of the UNC School of Law. Neither the law school, nor the dean, nor the committee consider race, color, national origin, religion, sex, age, disability, or sexual orientation in selecting participants in the loan repayment assistance program.

The dean and the law school reserve the right to modify the terms of the loan repayment assistance program. Applicants must understand that the loan repayment assistance program’s existence depends on continued funding. Consideration by the committee does not guarantee that any assistance will be received. No entitlement to present or future funds is established. The committee will oversee the operation of the program. The dean of the UNC School of Law retains complete discretion in selecting participants.