Collins Family Loan Assistance Program Financial Aid Office Guidelines
The provisions of the program are as follows:
A. Eligible Graduates
- The LAP is open to Kellogg graduates who demonstrate financial need and who have borrowed U.S. recognized need-based financial aid loans (Stafford, Perkins, Grad PLUS, N.U. Loans, etc.).
- Kellogg alumni may participate in the program up to ten years after graduation before their loan repayment schedules expire, provided they meet the income and employment requirements.
- Applicants must be current on loan repayments at the time of application and must be on the maximum length loan repayment schedule.
- Graduates who are eligible for and have received loan deferments or forbearance will not simultaneously be eligible for the LAP.
- Loan assistance will be terminated when individuals no longer meet the eligibility requirements listed below.
B. Eligible Employment
- Graduates employed by nonprofit organizations in the United States that are tax-exempt under sections 501 (c)(3), (4) or (6) of the Internal Revenue Code are eligible for the program.
- Employees of local, state or federal governments also are eligible.
- Recipients of the Kellogg Social Entrepreneurship Fellow Award are also eligible.
- To assist in the determination of eligibility, graduates working outside the U.S. for public or nonprofit organizations are required to demonstrate the legitimacy of their organization, either by producing certification from the organization’s host country or by demonstrating accreditation by an international organization.
- An applicant working abroad also must demonstrate how any cost of living allowances or stipends impact his or her ability to repay educational loans.
C. Eligible Assets
- A reasonable amount of assets will not disqualify an applicant for the LAP.
- A substantial amount of physical and financial assets (real estate excluded), however, may lead to a reevaluation of the candidate’s financial condition.
D. Eligible Income
- Qualifying graduates with adjusted annual incomes of $85,000 or less are eligible for aid.
Adjusted income =
(+) Annual salary of Kellogg alum and spouse (if applicable)
(+) Combined stipends
(-) Kellogg alum’s non-Kellogg education loan payments
(-) Spouse’s education loan payments
(-) $11,600 spousal exemption (if married)
(-) $5,800 exemption per dependent child
- In order to ensure that all qualified applicants do receive some support from the LAP, the LAP is available for only the first $120,000 of each candidate’s Kellogg debt or, in other words, $12,000 of annual loan payments.
II. APPLICATION PROCEDURES
Prospective applicants should complete the LAP application and mail to the attention of Loan Assistance in the Kellogg School Office of Financial Aid . It is available here (PDF 223 KB; 5 pages) or from the Kellogg School Office of Financial Aid. Please note that the employer verification must come directly from the employer.
Each applicant should also submit the following items:
1. One to two page essay describing his/her background, involvement in the public/nonprofit/ngo sector as well as career focus.
2. Personal income and asset statement.
3. Summary of Kellogg educational debt.
4. Federal income tax return.
5. Verification of employment and salary level for the applicant sent by the employer directly to the Kellogg School Office of Financial Aid.
6. Verification of employment and salary level for the applicant’s spouse (if applicable) sent by the employer directly to the Kellogg School Office of Financial Aid.
7. Proof of employer’s nonprofit status or comparable documentation for nongovernmental organizations.
8. Documentation (payment schedules) of need-based loans for both Kellogg School and non-Kellogg related loan obligations.
Applications and supporting documentation are due in the Kellogg School Office of Financial Aid by January 15th for assistance for the calendar year.
- Upon determination of eligibility, available funds will be distributed among eligible applicants. Due to the limited size of the LAP endowment, and depending upon the number of eligible applicants and available funds, applicants may receive less that the maximum amount possible under the program.
- Funds will be disbursed on a semi-annual schedule.
1. The first payment will be released between February 15 and March 1, contingent upon proof of employment and salary level.
2. The second payment will be distributed on or about July 1 after the Kellogg Financial Aid office receives a complete tax return and May pay stub showing year-to-date income and current salary from the applicant.
- If the award recipient becomes ineligible during a year for which the LAP funds already have been disbursed, the recipient must repay the portion for which he or she has become ineligible. Therefore, award recipients are required to sign a promissory note for each disbursement, as if signing for an interest-free loan. The note will be canceled if the recipient remains eligible throughout the calendar year. If an applicant becomes ineligible once funds have been disbursed for the year, he or she must repay that year’s disbursement along with the balance of the educational debt. An applicant will become ineligible, and thus be required to repay his or her loan, under the following conditions:
1. The applicant completes repayment of the original educational debt.
2. The applicant leaves the qualifying employment
3. The applicant otherwise fails to comply with program requirements, including administrative procedures.
- When a graduate no longer qualifies for the LAP and has not repaid his or her entire educational debt, they will begin to repay the balance of the loan in the following calendar year. The details will be handled individually with the program administrator. The specific terms of repayment will be based on the applicant’s salary upon leaving qualifying employment, generally according to the following repayment schedule:
Amount Subject to Repayment
$1 to $5,000
Up to three years
$5,001 to $10,000
Up to six years
$10,001 and above
Up to ten years
B. Loan Consolidation / Acceleration
- If the applicant has chosen to consolidate his or her student loans, the LAP payments will be based only upon the Kellogg-related portion of the consolidated payment schedule.
- LAP payments are based on the standard 10-year repayment option. If the applicant chooses to accelerate his or her payment, the LAP payments will remain at the 10-year repayment rate.
Kellogg’s Financial Aid Office will administer the program with input from an Advisory and Selection Committee. The Committee will review and evaluate application in terms of the applicant’s income and debt levels with respect to the LAP’s objectives and available resources.