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.
What are the eligibility requirements 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.
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?
An applicant should submit a request for assistance to the Business Administrator of the CNH District. The most current loan statement, showing the outstanding loan amounts, loan account number, the applicant's Social Security number, and the name & address of the lending institution, must be attached with the applicant request. Request with the loan document 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 in each year. The second distribution will take place, if there are more funds available, at year's end.
When is the deadline for submitting a request?
There is no official deadline for submitting a request; although, it is advisable to submit your grant request prior to October 1 (before the first distribution).
What are the grant recipient's responsibilities?
Grant recipient should check with their lending institution for a change in their loan balance and monthly payment. Grant is other income & should be reported as other income in your tax return. The CNH District will only issue a 1099 if the grant amount is $600 or more.
