University of Chicago Hormel Public Interest Program Loan Forgiveness Program

Work in the public interest is a valuable and fulfilling career option, and the University of Chicago Law School is committed to making such options available for its graduates. One obstacle is the large educational debt many undertake to pay for their undergraduate and graduate education.

In response, the Law School created a unique and generous program to assist its graduates who pursue careers in the public interest. The Hormel Public Interest Program, or "HPIP," is not a traditional loan repayment assistance program.

There is not a lengthy time requirement to receive benefits, and benefits are provided regardless of spousal income or potential family contributions. We like to think that the HPIP approach is the best way to support and encourage our graduates.

Brief Summary: HPIP replaces the previous University of Chicago Loan Repayment Assistance Program, and is available beginning with the Class of 2007. University of Chicago Law School graduates who work full-time in a qualifying job with a salary of less than $50,000 will receive an interest-free loan of $5,000 a year from the Law School, with each loan forgiven in full before the end of each year.

Benefits under HPIP are available for the five years following graduation, for a potential total of $25,000. The benefit is available regardless of parental, spousal, or other income Requirements and Restrictions Full Time: The position must be full-time (40 hours per week maintained for at least nine months of the calendar year, and in a year that is within five years of graduation Salary Requirements: Full qualification requires a salary of less than $50,000 annually.

Graduates earning between $50,000 and $60,00 annually will be eligible for an award that decreases proportionally as income rises. Qualified Public Interest Position: The graduate must be: (a) engaged in the full-time practice of law, or in positions normally requiring a law degree; (b) working for the public interest, broadly defined; and (c) working for a non-profit organization or government office other than in a judicial clerkship (see below for treatment of judicial clerkships).


Final determinations of eligibility will be made by the Financial Aid Committee of the University of Chicago Law School. Judicial Clerkship Exception: For graduates who work at a qualifying job in the year following a judicial clerkshi

p, the graduate will receive an additional year of eligibility for HPIP benefits. Clerks can receive up to five years of benefits within the six-year period immediately following graduation. Parental Leave Extension: Graduates who leave HPIP for parental leave will be given an additional year of eligibility. They can receive up to five years of benefits within the six-year period following graduation. Distribution of Funds: Participants will apply by September 1 for the year. Loans will be made in October and then forgiven the next July, subject to the Program's requirements.

Graduates who continue in the Program confirm their continuing HPIP status by September for the next year. Award Amounts and Restrictions: The base award of $5,000 per year is available to all graduates who begin law study at the University of Chicago Law School in the Class of 2007. the Program does not cover LLM graduates.

Transfer students who join the Class of 2007 are eligible on a proportional basis, so that a transfer student who graduated after spending two years at the Law School would be eligible to r

eceive up to two-thirds of $5,000 ($3,333) in each of the five years of eligibility. Loan Repayment Requirement: To qualify, a graduate must agree that the entire amount received from HPIP will repay outstanding educational debt. A graduate who otherwise qualifies but whose outstanding debt is less than the amount to be awarded will receive a benefit equal to the amount of their outstanding debt.

This requirement conforms to current Internal Revenue Service Rules. Tax Considerations: The program participant must determine whether payments under the plan should be included in ordinary income or exempted pursuant to Section 108(e) of the Federal Tax Code (26 U.S.C. � 108(e)). Our goal has been to design a program with tax-exempt benefits. Financial Aid Committee: All HPIP benefits must be approved by the Financial Aid Committee of the University of Chicago Law School. All decisions by the Committee are final.[source]