NONPROFIT/PUBLIC SERVICE LOAN ASSISTANCE PROGRAM

Introduction
In accord with the School's mission: "educating leaders for business and society," the Yale School of Management supports a Loan Assistance Program for SOM graduates working in the nonprofit or public sectors. The Loan Assistance Program reflects the School's fundamental conception of management as a public service profession and provides concrete support for the broad range of students attracted to the Yale MBA.

The Program is overseen by a Loan Assistance Program Committee composed of two currently enrolled students from each class and members of the School administration, chaired by the Dean of Student Affairs. The Committee meets at least semi-annually to review the Program.

Eligibility
Graduates of the MPPM/MBA Class of 1987 and all succeeding classes may apply to the Loan Assistance Program at any time within ten years of graduation. International citizens who have borrowed through U.S loan programs, as approved by the SOM Financial Aid Office, may participate in the Loan Assistance Program.

The Loan Assistance Program Committee determines eligibility for participation according to the following criteria: type of employment, educational indebtedness, salary and other income.

Type of Employment
The graduate must be employed by a government organization or a nonprofit 501(c)(3) tax-exempt organization in the United States or abroad.

Educational Indebtedness
Annual loan repayment obligations will be calculated assuming a standard ten-year repayment schedule.

Undergraduate educational loans and educational loans taken while enrolled in a joint degree program with SOM are included in calculating annual repayment obligations, as are the participant's spouse's undergraduate educational loans. Loans taken while enrolled in another graduate program before or after SOM, loans taken while at SOM to replace the student's expected contribution, and loans from family or friends will not be included.

The participant will be responsible for making all loan payments and complying with all processing requirements imposed by lenders and collection entities. Graduates who are delinquent with loan repayment at the time of their initial application to the program will not be considered. Failure to remain in good standing in meeting repayment obligations will result in termination of eligibility for the Loan Assistance Program.

Salary and Other Income
The following is considered as income: the salary of the participant or half the combined salary of the participant and his/her spouse (if the spouse's salary is greater than the participant's), plus interest and/or dividend income. Income is modified by deducting annual payments on undergraduate loans by the participant and his/her spouse, and a standard annual deduction of $5,000 for each dependent claimed on the participant's federal income tax return. A participant's contribution is based on the following:

The Committee will review this expected contribution level annually and make adjustments based on the rate of inflation.

Application Process and Documentation
Applications are available from the SOM Financial Aid Office. In conjunction with the application, graduates must provide: verification of employment, copies of their most recent federal income tax return, and documentation regarding repayment of their educational loans. If married but filing separately, the spouse's tax return must also be submitted. Participants are required to submit annual renewal applications, and to inform the SOM Financial Aid Office immediately about any change in eligibility status.

Disbursement of Loan Assistance Program Funds
Payments equivalent to the difference between the actual loan repayment amount and the expected annual contribution are disbursed directly to participants on a semi-annual basis. The participant is responsible for making appropriate payments in full to the banks or other lending agencies from which his/her educational loans were obtained.

Tax Implications
Loan Assistance Program payments are non-taxable. The funds are disbursed to participants in the form of a one-year no-interest loan. Provided that the participant remains eligible, this loan is forgiven at the end of each year.

Special Needs and Program Development
As in all of the School's financial aid policies, individual factors and special needs will be considered in administering the Loan Assistance Program. Special situations will be dealt with on a case-by-case basis.