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Wisconsin Department of Children and Families Wisconsin Works (W-2) Manual |
17.5.5.1 Renegotiating JAL Repayment
During the application process, the loan recipient and the FEP will develop a repayment agreement together.
JAL recipients may choose to repay some of their loan through in-kind community service.
A minimum of 25% of the loan must be repaid in cash, and
Up to 75% of the loan can be repaid through in-kind community service. (See 17.5.3)
The initial repayment period can be up to 12 months and can be extended after initial JAL establishment for an additional 12 months. The maximum repayment timeframe is 24 months.
A JAL recipient must make monthly payments in line with the terms of their current repayment agreement.
FEPs must remind JAL recipients that missing three payments, or not making full payments without renegotiating repayment terms, including both in-kind community service and cash repayment, will result in loan default and collections.. (See 17.5.5)
BRITS Process:
Regardless of when the loan is approved, the first payment is due on the 25th of the month after the check pick-up date.
Each month, BRITS will issue a statement summarizing payments made to the account and the balance due.
BRITS will issue a past due notice each month a payment has not been received or does not meet the expected repayment agreement. (See 17.5.5)
17.5.1.1 Renegotiating JAL Repayment
The W-2 agency’s JAL approver can renegotiate the repayment agreement in BRITS based on discussions with the JAL recipient. The JAL approver must enter renegotiated JAL terms and upload the signed Renegotiated Repayment Agreement in BRITS on the same day.
The JAL recipient can renegotiate: |
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Repayment period: |
The repayment period can be extended up to 24 months from time of initial JAL establishment. |
In-kind community service: |
The JAL recipient can repay up to 75% of the loan through in-kind community service. If the original repayment agreement does not include in-kind community service, the JAL recipient can add or remove it. See 17.5.3 for more information on In-Kind Community Service Repayment. |
JAL recipients can renegotiate repayment terms at any point if their JAL is not delinquent. A JAL is considered delinquent when three dunning notices are issued.
If a JAL recipient renegotiates prior to the 16th of the month, their payment under the new terms is due the 25th of the same month.
If a JAL recipient renegotiates after the 16th of the month, their payment under the new terms is due the 25th of the following month.
The W-2 agency is responsible for renegotiation. If a JAL recipient contacts PACS to renegotiate JAL terms, PACS will refer them to their assigned W-2 agency.
History:Release 24-13; Release 24-10.