PDRAP Goals and Overview

¨      The Post-Graduation Debt Repayment Assistance Program (PDRAP) is the first and only program of its kind in Canada.
It is a low income assistance program for graduates who have lower incomes following graduation. The goal is to ensure that the Faculty of Law's graduates can make career choices based on their interests rather than debt-induced financial pressure.

¨      PDRAP loans assist graduates with the repayment of eligible academic student debt after graduation. The assistance provided to the participant is in the form of loans from the Faculty of Law.
The PDRAP loan covers the annual amount that the participant is required to pay on their law school debt (e.g. the monthly minimum payment for government student loans and Faculty of Law interest-free loans).

¨      A participant can enter, leave, and re-enter the program any time within 10 years of their graduation.  
Graduates may be eligible on the basis of the nature of their employment, health or disability-related issues, staying at home to care for dependents, and/or because they are continuing as full-time students after law school.

¨      At the end of the first year, a certain percentage of the loan is forgiven.
For each subsequent year that the student qualifies, the Faculty of Law will continue to provide a loan and forgive a higher percentage of the cumulative loan. PDRAP’s loan forgiveness schedule is designed to provide the most forgiveness to those participants who remain in lower-paying careers for the longest period of time. If a student stays in the program for 10 years, the loan will be forgiven in its entirety.

¨      The Basic Income Level (BIL) for 2020 has been set at $61,704 per year.
If a participant's income does not exceed the Basic Income Level, the Faculty of Law will loan the participant their entire annual eligible debt repayment obligation.

¨      A participant with a higher income may still qualify for a PDRAP loan.
If the participant's income exceeds the Basic Income Level, the participant will be expected to contribute 30% of the excess income per annum to reduce their loan obligation. If the participant’s expected contribution is higher than their annual debt repayment obligation, the participant will be ineligible for PDRAP assistance.

¨      If the participant is no longer eligible to participate in PDRAP due to an increase in income, they will be required to start paying back the remaining balance of their PDRAP loan (i.e. amount that was not forgiven).
The loan is non-interest bearing and must be paid back by the end of the participant’s 10 year eligibility period.

See the Post-Graduation Debt Repayment Assistance Program Policy 2020 Booklet for detailed calculation of contributions. 

 

 Timeline

The deadline for submitting an application for PDRAP benefits is March 31st of the calendar year for which benefits are requested. PDRAP applications are assessed based on a participant's financial situation for a calendar year. An application must be made each calendar year for which benefits are claimed. Late applications should be accompanied by a letter explaining any extenuating circumstances for the lateness. If the late application is accepted, any PDRAP benefits will be pro-rated based on the lateness of the application. 

Decisions on complete PDRAP applications will be communicated to participants by letter in May of each year.

Date
Event
March 31
Deadline for submitting PDRAP application
May
Decisions on complete PDRAP applications communicated to participants
June
First PDRAP payment sent to participants
October 31
Deadline for submitting updated employment information
November
Second PDRAP payment sent to participants
December
New PDRAP application made available to graduates

 

Policy and Application Process

For more information please refer to the Post-Graduation Debt Repayment Assistance Policy Booklet and Application below: 

2020-2021 Applications

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Message from the Financial Aid Office

We strongly recommend that all students and graduates become familiar with the PDRAP policies as they begin to make decisions regarding their career choices. We are available to counsel students and graduates about the program and other questions regarding debt management.

For any questions regarding the Faculty's Financial Aid Programs or assistance in completing a PDRAP application, please do not hesitate to contact our office by phone at 416-978-3716 or by email at financialaid.law@utoronto.ca


EXAMPLE 1: Income less than the Basic Income Level

  • Gross Income: $55,000
  • Eligible Law school Debt: $25,000
  • Annual Debt Obligation: $7,610

  • Participant's Contribution: ($55,000 - $61,704) x 0.30 = $0.00
  • Faculty's Contributions: ($7,610 - $0.00) = $7,610

The Faculty provides the participant with a loan of $7,610 to cover their 2020 debt repayment obligations.
At the end of 2020, 10% of the loan is forgiven ($761).


EXAMPLE 2: Income greater than Basic Income Level

  • Gross Income: $70,000
  • Eligible Law School Debt: $25,000
  • Annual Law School Debt Obligation: $7,610

  • Participant's Contribution: ($70,000 - $61,704) x 0.30 = $2,489
  • Faculty's Contribution: ($7,610 - $2,489) = $5,121

The Faculty provides the participant with a loan of $5,121 to cover their 2020 debt repayment obligations.
At the end of 2020, 10% of the loan is forgiven ($512).


EXAMPLE 3: Income greater than Basic Income Level with eligible pre-law loan

  • Gross Income: $70,000
  • Eligible Law School Debt: $25,000
  • Annual Law School Debt Obligation: $7,610
  • Eligible Pre-Law School Debt: $20,000
  • Annual Pre-Law School Debt Obligation: $2,569
  • Adjusted Basic Income Level: $64,273 ($61,704 + $2,569)

  • Participant's Contribution: ($70,000 - $64,273) x 0.30 = $1,718
  • Faculty's Contribution: ($7,610 - $1,718) = $5,892

The Faculty provides the participant with a loan of $5,892 to cover their 2020 debt repayment obligations.
At the end of 2020, 10% of the loan is forgiven ($589).


EXAMPLE 4: Income greater than the Basic Income Level in year 4

  • Gross Income: $55,000 for the first 3 years
  • Gross Income: $90,000 in year 4
  • Eligible Law school Debt: $25,000
  • Annual Debt Obligation: $7,610

  • Participant's Contribution in the first 3 years: ($55,000 - $61,704) x 0.30 = $0.00
  • Faculty's Contributions in the first 3 years: ($7,610 - $0.00) = $7,610

  • Participant's Contribution in year 4: ($90,000 - $61,704) x 0.30 = $8,489
  • Faculty's Contribution in year 4: ($7,610 - $8,489) = $0

The Faculty provided the participant with a loan of $22,830 ($7,610 * 3) to cover their first three years debt repayment obligations. 

In the fourth year, the participant’s income is higher than the basic income level and he/she is no longer eligible to participate in the PDRAP program. He/she is now responsible for his/her total loan repayment. 

In the end, 30% of the cumulative loan is forgiven ($9,406) and the participant will be expected to start repaying the remainder of $13,424 ($22,830 - $9,406) PDRAP loan to the Faculty, see Appendix B, Page 20 of the Post Graduation Debt Repayment Assistance Program booklet.

Any law-related government student loan that is paid down using line of credit funds will still be eligible for PDRAP.

*Amounts taken from the Scotiabank or TD lines of credit that are not included as part of the Faculty of Law interest-free loan, Faculty of Law emergency loans, credit card loans and other bank or private loans do not qualify to participate in PDRAP.

**A participant can enter, leave and re-enter the program any time within 10 years of their graduation. An example of a reason why alumni may enter, leave and re-enter the program is to pursue a maternity/paternity leave. 

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