FAQ's about the Virginia Loan Forgiveness Program

These FAQ's provide a brief overview of the loan repayment assistance program at the University of Virginia School of Law. For answers to your specific questions and more detailed guidance for your individual circumstances, please contact Financial Aid at (434) 924-7805.

What is UVA Law's Virginia Forgiveness Program ("VLFP")?

UVA Law administers a loan repayment assistance program for its graduates. The program provides benefits on an annual basis to participants in order to help them pay off their federal loans for law school, as explained below:

  • Virginia Loan Forgiveness Program III (“VLFP III”) updated in 2023, covers graduates who work in qualifying legal employment in the public or private sector whose income falls within the program limits.

Is UVA Law’s VLFP the same as the federal government’s Public Service Loan Forgiveness program?

No, UVA Law’s loan repayment assistance program is independent from the federal government’s Public Service Loan Forgiveness (PSLF) Program. Our program helps alumni by providing them with funds to assist in making their own federal loan payments. VLFP doesn't actually “forgive” federal loans, although we provide benefits in the form of forgivable loans.

Conversely, the federal PSLF does not provide funds to participants. PSLF does, however, forgive federal loan balances of eligible participants once they have successfully met all the requirements of the program, such as working for a total of 120 months (over 10 years or longer) in public service employment. For more information about the federal PSLF, including its definitions of qualifying employment, please review the PSLF website.

Many UVA Law graduates working in public service positions enroll in both UVA Law’s VLFP and the federal PSLF program. We encourage you to review both programs and to ask Financial Aid if you need help understanding how they might apply to you.

Who is eligible for VLFP benefits?

J.D. graduates of the University of Virginia School of Law are eligible for VLFP III benefits if they meet the following requirements:

  • Enter qualifying public service employment (see FAQ below for additional information) within two years of graduation or within two years of completing a judicial clerkship which is taken immediately after graduation and is itself no longer than two years in duration;
  • Apply for VLFP III benefits within the first enrollment period following the start of qualifying employment;
  • Earn $100,000 or less in annual income; and
  • Have placed their law school loans in a federal Income-Driven repayment plan; and
  • Have kept their law school loans in good standing.

Additionally, J.D. graduates of the University of Virginia School of Law are eligible for VLFP III benefits if they work in positions that are paid and necessitate the use of legal skills, except for graduates in one- or two-year judicial clerkships, who are not eligible for VLFP III benefits during their clerkships.  VLFP III includes positions in the private sector that fall within the program income limits.

What kind of public service employment qualifies for VLFP benefits?

We define “public service employment” broadly under VLFP III to cover both full- and part-time positions with:

  • federal, state, local, tribal, and foreign governments;
  • Judge Advocate General (JAG) positions;
  • public interest organizations, such as legal aid offices and nonprofits;
  • prosecutor and public defender offices; and
  • legal reform groups that qualify as nonprofit organizations under the criteria used by the Internal Revenue Code.

In addition, qualifying positions must be paid and necessitate the use of legal skills. The work may be performed anywhere in the world. It may be full-time or part-time, although part-time employment will result in a prorated benefit.

Finally, public service employment does not include traditional one- or two-year judicial clerkships. However, if you start a judicial clerkship immediately after graduation, you’ll still have two full years following the clerkship to enter qualifying public service employment. In addition, public service employment does include court staff attorney positions and career judicial clerkships that last more than two years.

What are the benefits under VLFP?

VLFP participants receive an annual benefit at the start of the calendar year in the form of a forgivable loan. If, by the end of the calendar year, they’ve remained eligible for their VLFP benefit, that loan will be forgiven and be considered tax-free income.

The amount of your benefit will depend on your Program Adjusted Income (PAI).

Here’s an example that illustrates how much funding is offered to applicants:

Projected Income

VLFP lIl Benefit Amount Percentage

Amount Applicant Pays Towards UVA Loan Payments 

Up to $80,000

100%

0%

$85,000

75%

25%

$90,000

50%

50%

$95,000

25%

75%

$100,000 and over

0%

100%

How long do VLFP benefits last?

Participants receive up to ten years of VFLP benefits if they continue to stay eligible for benefits under program requirements. For instance, if your annual income exceeds the current maximum amount, you will no longer qualify for VLFP coverage.

Does spousal income count for VLFP eligibility or affect the amount of one’s VLFP benefit?

VLFP covers both married and single J.D. graduates. Many VLFP recipients are married. Whether your spouse’s income will count toward determining your eligibility and benefit amount under VLFP depends on both your own Program Adjusted Income (“PAI”) and the PAI of your spouse.

Your spouse’s PAI will be determined in the same way that your own PAI is determined—a combination of salary and other income, minus any graduate loan debt.

Here are two scenarios to illustrate how spousal income might be calculated:

#1: Your spouse’s PAI is the same or lower than yours.

In this scenario, we would not count your spouse’s PAI at all.

#2: Your spouse’s PAI is higher than yours.

In this scenario, we’ll add your PAI and your spouse’s PAI together and divide by two to get an average. We’ll then determine which number is higher: the average or your individual PAI. The higher number will be used to determine your overall PAI.

Example:

You earn $54,000/year as a public defender, receive no other forms of outside income, and have $180,000 in federal law school loans. Your spouse earns a $75,000 salary, receives $6,000/year in investment earnings, and makes a monthly payment of $1,000 ($12,000/year) on their graduate school loans.

Your PAI is $54,000.

Your spouse’s PAI is $69,000.  ($75,000 income + $6,000 investment earnings - $12,000 grad school loan payments)

Because your spouse’s PAI is higher than yours, we will add your PAI to your spouse’s and divide by two, reaching $61,500. This number is higher than your individual PAI, so we would use $61,500 as your PAI for purposes of VLFP. (Note that this PAI still takes into consideration the amount of law school/graduate loans.)

Can I temporarily exit VLFP and come back in order to pursue a judicial clerkship or attend to personal emergencies?

Yes, we regularly allow VLFP participants to take a temporary leave from the VLFP program in order to attend to extenuating circumstances such as childbirth, disability, medical and family emergencies, losing a job, moving to another state or country, or exiting public service employment for one or two years in order to pursue a judicial clerkship. Temporary exits from the program are called a “deferral” or “leave of absence” from the program.

We approve deferrals if your reasons for taking a deferral are due to extenuating circumstances and you do not take non-qualifying employment in the interim. Once your deferral has ended, you may re-enter VLFP if you are in qualifying employment and remain otherwise eligible for benefits.

What do I need to do to receive VLFP benefits?

The VLFP III program description summarizes all the major requirements regarding VFLP participation. But here are a few of the most important steps to keep in mind:

  • Start your qualifying employment within 2 years of graduation or 2 years of finishing a 1-2 year judicial clerkship immediately after law school;
  • Enroll in VLFP in the first cycle after you’ve started qualifying employment;
  • Place your law school loans in one of the federal government’s income-driven repayment plans;
  • Pay your loans on time to stay in good standing; and
  • Submit documents each year, using our online VLFP portal, about your job and finances so that your eligibility and benefit amounts can be determined.

How can I get answers to other questions about VLFP?

We’re very happy to talk with you about any questions you have about VLFP or how you can create a financial plan for working in public service! The best way to reach out is to call (434) 924-7805 or via email at @email.