Your Responsibilities

• Extending Participation
• Termination
• Recipient Forms
• Frequently Asked Questions

Regular Loan Payments
Participants are responsible for making any required loan payments prior to receiving the LRP award.

Taxes
LRP payments are taxable income. Participants are responsible for paying the balance of their federal tax liability (the LRP pays 20 percent), as well as any applicable state and local taxes. Your FICA tax responsibility is withheld from your LRP payments by IHS, as required by law.

Delinquent Federal Debt
Applicants delinquent on federal debt must prove, using lender documentation, that they have either negotiated a repayment schedule, or that the debt is paid in full. Federal debt includes federal income taxes, audit allowances, federally guaranteed or federal direct loans, and other miscellaneous federal administrative debts.