Frequently Asked Questions
How can I control how the LRAP Award is divided between my multiple loans?
Supply written “Payment Directions” to your loan servicer. More important detail is on your servicer’s site, see below:
MOHELA: How Payments Are Applied
Edfinancial: How Payments Are Applied
Aidvantage: About Payments
Nelnet: How Are Payments Allocated
What is the impact of the SAVE Plan injuntion and forbearance?
On July 18, 2024, a federal court issued a stay preventing the Department of Education from operating the Saving on a Valuable Education (SAVE) repayment plan. Borrowers enrolled in the SAVE plan are being moved into forbearance.
Unfortunately, the Department of Education is taking the position that time in this forbearance will not count toward Public Service Loan Forgiveness or Income-Driven Repayment (IDR) loan forgiveness. More information from the Department of Education is available here: https://www.ed.gov/save
The court battles continue and there is much uncertainty. The following reliable sources will post updates as they become available: https://www.ed.gov/save and https://studentloanborrowerassistance.org/
Regarding your Loan Repayment Assistance Program benefits, you do not need to take additional action at this time.
Will my LRAP Award cover my current or next Payment Due?
No. LRAP Award is not the same as Payment Due and the semantics are important.
After you are fully enrolled and funding permitting, Fosterus disburses LRAP Awards to loan servicers once per month. Sometimes, the amount of your LRAP Award is established with reference to the amount of the Scheduled Monthly Payment reported by your loan servicer, but monthly LRAP Award disbursements are not intended to cover any particular month’s required Payment Due.
Whether and when an LRAP Award disbursement is attributed to your current Payment Due depends on lots of things: whether an LRAP Award is for an amount less than, greater than, or equal to Payment Due, when/if you paid or didn’t pay amounts on your own, when/how much was due in the past or currently, when/how much, if any, is past due, on which date the LRAP Award is received by the servicer, how long it takes the servicer to process the funds they receive, what day of the month your payment is due, etc.
For all these reasons, the LRAP cannot take responsibility for making your monthly Payment Due or meeting your Due Date. If you care about amounts showing as Past Due by your loan servicing company, you will need to make payments directly and take whatever steps necessary to ensure that the loan servicer credits your accounts in a timely and accurate manner.
Once Fosterus disburses an LRAP Award, the date and amount of the disbursement will be viewable via the Fosterus portal under Statements. If you’ve reviewed your Statement and it’s been more than two weeks since the LRAP Award disbursement but you still don’t see the credit posted by your servicer, it may be that your servicer has transfered your account. In the event of transfer, servicers report payment processing delays of 60-90 days, and Fosterus has seen even longer delays.
Permalink: https://fosterus.org/sp_faq/will-my-lrap-award-cover-my-current-or-next-payment-due/
Should I stop my Auto Pay with my loan servicer?
Please understand that it remains your sole responsibility to manage your student loan accounts, interact with your servicer, and decide how to approach your loan repayment. Auto Pay settings are one of many loan-related things that are not within our control and are not impacted by the LRAP. Only you can choose whether or when to stop Auto Pay.
The LRAP merely sends LRAP Award funds to your servicer; we take no responsibility for your loan management. When the LRAP Award credits are posted by your servicer, you choose whether or not to request any refunds for ‘overpayments’ such as payments you made by Auto Pay; however, the LRAP does not issue ‘reimbursements’ per se.
Permalink: https://fosterus.org/sp_faq/should-i-stop-my-auto-pay-with-my-loan-servicer/
I prefer to receive funds directly–why does the LRAP send LRAP Awards to my loan servicer?
Mainly because when administrative costs are high, funders tend to cut program budgets, specifically participant award amounts. Sending awards directly to participants necessitates more cumbersome accounting and administrative procedures with the attendant high administrative costs. We understand that sending awards to servicers gives program participants less flexibility than if they are paid directly; however, on balance we believe it is the still the best procedure despite its disadvantages. Fosterus wants to preserve LRAPs for the benefit of public servants. We are concerned that funders are reassessing whether it makes sense to fund these programs at all.
How will I know when an LRAP Award is disbursed?
Once Fosterus disburses an LRAP Award, the date and amount of the disbursement will be viewable via the Fosterus portal under Statements. If you’ve reviewed your Statement and it’s been more than two weeks since the LRAP Award disbursement but you still don’t see the credit posted by your servicer, reach out to lrapsupport@fosterus.org so that we can get transaction information for you to provide the servicing company.
It may be that your servicer has transfered your account. In the event of transfer, servicers report payment processing delays of 60-90 days, and Fosterus has seen even longer delays.
Permalink: https://fosterus.org/sp_faq/how-will-i-know-when-an-lrap-award-is-disbursed/
What if my loans are transferred to a new servicer?
If you receive an email or a letter from your assigned servicer about a loan transfer, you may see delayed posting of the LRAP Award credits.
According to the Department of Education, your previous loan servicer and new loan servicer will work together to make sure that all payments made during the transfer process are credited to your loan account with the new servicer; however, delays in crediting are typical and can be 60-90 days.
As soon as you know your new servicer, please reach out to lrapsupport@fosterus.org so that we can begin sending the LRAP Award to the new servicer.
Info from Dept of ED: https://studentaid.gov/manage-loans/repayment/servicers#transfer
Permalink: https://fosterus.org/sp_faq/what-if-my-loans-are-transferred-to-a-new-servicer/
I verified my email address but I can’t find my generated password.
Your first step should be to check your spam folder for the email containing your password.
If you cannot find the email, input your email address in the “login” field and use the “Forgot login/secret” button to send you an email to reset your password.
Permalink: https://fosterus.org/sp_faq/i-verified-my-email-address-but-i-cant-find-my-generated-password/
When will my LRAP Award post to my loan servicer’s account?
Fosterus disburses LRAP awards directly to the student loan servicers (on or near the 20th of each month) and in most cases, LRAP payments are received by the servicers between the 1st and 7th of the next month.
Right now, federal loan servicers are transitioning platforms and transferring loans and have announced payment posting delays of up to 60-90 days. When payments are credited, the servicers will post the payments to loans(s) with the effective date that the payment was made. That means that you may not see the LRAP credits right away, but once you do see them on your accounts, the credits should be backdated, typically around the 7th of the month following disbursement.
More information regarding payment processing can be found on the servicer’s sites, for example:
Understanding Loan Transfers (Department of Education)
Permalink: https://fosterus.org/sp_faq/when-will-my-payment-post-to-my-account/
How do I change my due date with my loan servicing company?
Typically your due date can be changed by contacting your servicer. Keep in mind that different servicers may have different requirements regarding your due date. MOHELA’s policy, for example:
You can choose a more convenient due date if your account is current. If your account is past due, please contact us to review options to bring your account current. Your due date may not fall on the 29th, 30th, or 31st day of the month. A due date change generally takes 1 to 2 billing cycles to take effect.
Please contact us by sending a secure message or by phone with your preferred due date. Changes typically take 2 to 3 business days to process. Once complete, we will send a notification regarding your due date change and when it will take effect.
Permalink: https://fosterus.org/sp_faq/how-do-i-change-my-due-date/
How does the LRAP send my LRAP Award to my loan servicer(s)?
Fosterus determines an LRAP Award amount based on each program’s requirements. We work with a third-party payment processing service to transfer funds to the loan servicing companies along with electronic instructions called Roster Files (which are essentially the Amounts, Names, and Account Numbers). Some servicers accept ACH transactions from our payment processor, others require paper checks sent by mail.
Permalink: https://fosterus.org/sp_faq/how-does-the-lrap-process-payments-to-my-loan-servicers/
How can my organization prepare to receive LRAP enrollment emails?
Please ask your IT manager to add the IP addresses and domains listed below to your Safe Senders and Allow Lists.
Please Note: If your mail server software has rules around inbound volume, identical emails perceived as Spam, or rules around particular words such as “debt”, “loan”, “student loan”, etc., please ensure that the system is prepared to accept email invitations from Fosterus. If these rules aren’t accounted for it can result in non-delivery of emails from Fosterus.
Email Server IP Addresses to Add to Allow List:
149.72.34.11540.107.223.105
Domains and Web Applications to Add to Allow List:
| Fosterus.org |
| https://fosterus.docsign.click/ |
| em4658.fosterus.docsign.click |
Email Addresses to Add to Allow List:
Permalink: https://fosterus.org/sp_faq/how-can-my-organization-prepare-to-receive-lrap-enrollment-emails/
Will my LRAP payments count towards federal Public Service Loan Forgiveness?
That depends. Public Service Loan Forgiveness (PSLF) has specific payment and employment requirements. LRAP Awards may serve as partial or full “qualifying” payments towards PSLF, but only if you are simultaneously meeting all of the many PSLF requirements such as loan type, loan status, loan payment, and employment requirements.
Visit https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service for more PSLF information.
What if I forgot my login information for the LRAP portal?
Your username, or login, is your work email address. Passwords are autogenerated and can only be changed by clicking the small green “Forgot login/secret?” on fosterus.docsign.click. That triggers the system to generate a new password and send it to your work email address. Check spam if you don’t see it.
Permalink: https://fosterus.org/sp_faq/what-if-i-forgot-my-login-information-for-the-lrap-portal/
How do I reset my password on the LRAP portal?
Navigate to fosterus.docsign.click. Enter your username in the field labeled LOGIN (hint: your username is your work email address). Click the small green print below “Forgot login/secret?” The system will generate a new password and send it to your work email address. Check spam if you don’t see it.
Permalink: https://fosterus.org/sp_faq/how-do-i-reset-my-password-on-the-lrap-portal/
How do I enroll in LRAP?
Will I have to pay tax on my LRAP award?
We are not rendering, or purporting to render, legal, accounting, or tax guidance. This material is for informational purposes only. Consult with your own legal, accounting, and tax advisors regarding the taxability of the forgiveness of LRAP loans.
LRAPs are designed to discharge student loan debt so that the programs can provide benefits that, in most cases, are not subject to federal income tax pursuant to Section 108(f) of the Internal Revenue Code. LRAP participants who complete the service requirement generally will not have this forgiveness added to their gross income. Section 108(f) of the Internal Revenue Code (IRC) details the requirements for tax-free forgiveness. IRS Publication 970 provides an overview of the treatment of LRAP loan forgiveness.
Permalink: https://fosterus.org/sp_faq/will-i-have-to-pay-tax-on-my-lrap-award/
What if my LRAP award doesn’t cover my entire payment due?
The LRAP Award is not meant to cover any particular required Payment Due. LRAP participants sometimes need to make their own payments, certainly if the LRAP award amount does not cover everything that is due, and also if it is important to you to meet the due date without exception. You can typically make payments directly from your loan servicer’s web portal.
Permalink: https://fosterus.org/sp_faq/what-if-my-lrap-award-doesnt-cover-my-entire-payment-due/
Is the LRAP responsible for making on-time payments on my student loans?
Nope. Not at all. Due dates can fall on any day of the month. We don’t even know when your payments are due.
We cannot promise that LRAP Awards will be posted by any particular date. LRAP participants remain responsible for every aspect of their accounts.
LRAPs typically push money to loan servicing companies on or around the 20th of each month. LRAP Awards usually post by the end of the first week of the following month, but not always.
Sometimes servicers backdate payments to the day they were received.
Permalink: https://fosterus.org/sp_faq/is-the-lrap-responsible-for-making-on-time-payments-on-my-student-loans/
What’s with the LRAP Promissory Note?
First of all, nobody here is providing tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
LRAP Promissory Notes are legal agreements that refinance existing student loan debt in exchange for a service commitment. The LRAP refinances existing student loan debt so that it can later discharge the refinanced student loan debt.
LRAPs are designed to discharge student loan debt so that the programs can provide benefits that, in most cases, are not subject to federal income tax pursuant to Section 108(f) of the Internal Revenue Code. LRAP participants who complete the service requirement generally will not have this forgiveness added to their gross income. Section 108(f) of the Internal Revenue Code (IRC) details the requirements for tax-free forgiveness. IRS Publication 970 provides an overview of the treatment of LRAP loan forgiveness. Remember that we are not rendering, or purporting to render, legal, accounting, or tax guidance. Consult with your own legal, accounting, and tax advisors regarding the taxability of the forgiveness of LRAP loans.
Permalink: https://fosterus.org/sp_faq/whats-with-the-lrap-promissory-note/
How will my LRAP Award be applied across my student loans?
It’s complicated. Moreover, it is not within our control.
When we transmit LRAP awards to loan servicers, we include any instructions that LRAP participants have saved as “allocations” (in our portal under Loans and Awards), but these instructions are not always applied, especially if the instructions do not match the servicers’ rules and policies.
More information about how specific servicers apply payments is below:
https://www.mohela.com/DL/resourceCenter/HowPaymentsAreApplied.aspx
https://nelnet.studentaid.gov/content/howpaymentsareallocated
https://aidvantage.studentaid.gov/in-repayment/about-payments
https://edfinancial.studentaid.gov/help-center/how-payments-are-applied
To ensure that your servicer applies awards as you desire, it is recommended that you submit written standing instructions directly to your servicer and follow up with them as necessary.
Permalink: https://fosterus.org/sp_faq/how-are-lrap-payments-applied-across-my-student-loans/