Delayed Starts and Firm Sponsored Fellowships

Due to the current economic situation, many graduates face the possibility of delayed start dates and offers of reduced salaries to pursue public interest legal employment. The terms under which LIPP assistance will be offered to Class of 2010 graduates with delayed start dates have not yet been set. Students with questions or concerns about this aspect of LIPP policy should contact Ken Lafler, Director of Student Financial Services.

Graduates from the Class of 2009 or earlier who will be compensated by their firms to pursue public interest legal positions may be eligible for LIPP assistance based on their type of employment, eligible borrowing and income.

Eligible Employment

The employment must meet the standard eligibility requirements of LIPP. Essentially, the position must be with an eligible employer, it must be full-time, and it must be compensated. Volunteer positions are not eligible for LIPP assistance.

Determination of Income

Compensation provided by law firms in exchange for legal public interest work will be treated in much the same way as a fellowship. Additionally, any compensation provided by the firm in the period of time between graduation and returning to the firm will be considered when calculating LIPP eligibility. LIPP is indifferent to the manner in which the compensation is disbursed (lump sum, regular paychecks, or quarterly) and will apply the total amount of the compensation to any eligible employment during the time period it is intended to cover. For example, if a graduate is compensated $60,000 for legal public interest employment between January 2010 and December 2010, but begins working in December 2009 and ends in November 2010 they will be ineligible for LIPP assistance in both December 2009 as well as December 2010. This is because eligibility is contingent on being employed in a full-time compensated position and compensation for their employment will not begin until January 2010. Furthermore, the $60,000 will be considered compensation for 11 months of employment (January – November 2010) which actually equates to an annual income of $65,455.

If a graduate receives compensation from their firm for August through December 2009 as well as January through December 2010, the amount of that compensation will be prorated over the total number of months the graduate works. For example, a graduate receives $15,000 for August through December 2009 and $60,000 for January through December 2010. If they work October 2009 through December 2010 the $75,000 will be divided over a fifteen month period of time, and then annualized. Therefore, for LIPP purposes the graduate received $5,000 a month, which equates to an annual income of $60,000. If a graduate receiving the same $75,000 works January through December 2010 the entire $75,000 will be divided over the twelve month period in which they work. Therefore, their LIPP eligibility will be based on an annual income of $75,000.

Please note: Harvard Law School reserves the right to change the terms of LIPP participation at any time in order to make the best use of funds available.