Questions and Answers
What is CNH Loan Forgiveness Program (LFP)? The CNH Loan Forgiveness Program helps newly graduated LCMS Seminary or Concordia University students, who are placed in the CNH District for their first call, to pay down their student loans.
How is the program funded? The funds come from the interest earned from the Loan Forgiveness Endowment Fund and the CNH Board designated program investment fund.
Who is eligible for the CNH Loan Forgiveness Program? The applicant must be:
a) New graduate of an LCMS Seminary or Concordia University;
b) Called to a congregation within the CNH District; and
c) Submit an application to the CNH District office within the first five years of continuous service in the CNH District.
The fund does not apply to vicars nor does it apply to those whose first call was in another District.
What loan qualifies for LFP? The loans were incurred for student cost as a student at an LCMS Seminary or Concordia University. The loan must be with a bona fide lending institution and the applicant is continuously submitting their monthly repayment.
How do I apply for the CNH Loan Forgiveness Program? The application for LFP is available on www.cnh-lcms.org. Fill out the application form and attach the most current loan statements from all the lenders which are listed on the application. These statements should show the name of the borrower, the outstanding loan amounts, loan account numbers or the applicant's Social Security number, and the name & address of each lending institution. Mail (do not fax) these documents to the Business Office of the CNH District. Applications along with the loan documents must be submitted to the CNH District Office annually.
What is the limitation for receiving a grant? Each qualified applicant will receive one grant per year for a maximum of three years within the first five years of continuous service within the CNH District. However, there is no repayment to the lending institution without a request!
How much does the LFP contribute to my loan balance? It depends upon the collections from the interest earned from the LFP investments and the number of qualified applicants. All qualified applicants will receive an equal percentage of the LFP monies in any one year, but no more than 20% of the their outstanding loan balance.
When will the LFP assistance be released? Grants are distributed about twice a year to give us enough time to receive all the applications and calculate the amount of available funds. The first distribution is between October and November and the second distribution will take place between March and April in each year
When do I submit a request? For the Fall: September 1 - October 15; for Spring: February 1 - March 15. Please do not submit your application at any time other than during these time periods.
What are the grant recipient's responsibilities? When the grant balance is $600 or more, the applicant will receive a Form W-9 which must be completed and returned to the District office before the grant payment will be made. A Form W-9 is required for each grant payment which exceeds the $600 minimum.
Recipients will be notified after the grant payment is made. Grant recipients are responsible for verifying that the grant amount is credited properly to their lending institution.
