Skip to Main Content
To maximize LIPP award eligibility we recommend all LIPP participants place their loans on a ten year repayment plan while they are receiving assistance. It is the responsibility of each participant to verify the repayment terms of their loans and make their required payments on a monthly basis. If participants find their loans are being repaid over a period of time greater than ten years we will cover expedited payments, so long as the expedited plan is not shorter than five years, does not end less than ten years from HLS graduation, and results in a total of 120 payments by the participant.
Additionally, LIPP assistance is solely and specifically intended to be used to repay eligible education loans. When applying or reapplying for LIPP, participants must document that their loans are in good standing which means the loan is in a current status with no past-due payments. LIPP assistance will not be offered for past-due loans or loans without a payment due such as loans that are in their grace period, forbearance or deferment; graduates will not receive assistance on a loan for which they have waived the grace period.
LIPP assistance is provided twice annually, with each award cycle covering participants expected eligibility for the upcoming six months. Participants must report changes in income, job, or other financial circumstances to the LIPP staff promptly; LIPP awards will be adjusted accordingly.
LIPP six-month awards are calculated on a monthly basis to most accurately reflect any anticipated changes in income, monthly loan payment amounts, employment status and family size reported on the application for each award cycle. The expectation is all participants will repay their loans on-time and on a monthly basis. Failure to do so may result in a reduction of the LIPP benefit or ineligibility for future assistance. There is no LIPP coverage for periods of unemployment.
LIPP funds are disbursed directly to participants who must then manage their monthly loan payments. The type of award and the taxability of the award is dependent on the type of employment held by the participant. Please note, LIPP awards are based on need and do not require a commitment on the part of the participant to remain eligible for a certain amount of time, except in regard to clerkships.
LIPP One Year Loans and LIPP Clerkship Loans are distributed to participants as loans for tax purposes. For details please refer to the Taxability of LIPP section.
Back to Top