17.5.3  Repayment Through In-Kind Community Service

Although JAL applicants must be financially able to repay the full loan in cash, JAL recipients may choose to repay up to 75% of the loan through in-kind community service. The FEP must remind recipients choosing to repay part of their loan with in-kind community service, that individuals who miss three payments (either cash or in-kind, or both) will go into loan default. Loans in default are paid through tax intercept. At that point, there is no way to repay any portion of the loan through in-kind community service.

In-kind community service is valued at the higher of federal or state minimum wage. JAL recipients must provide suitable verification of the in-kind hours worked as required by the FEP. JAL recipients that choose to repay a portion of the loan through in-kind must arrange their own child care and W-2 agencies may not reimburse for any supportive expenses incurred for in-kind work, including transportation and child care.  

Loan recipients repaying a portion of the loan through in-kind must begin the work as soon as possible. In-kind work hours must be scheduled around any paid work and must be completed and reported in regular monthly increments.

Loan recipients are responsible for finding the in-kind service opportunity. The W-2 agency may approve the in-kind work proposal or require changes to the proposal as a condition for loan approval. The in-kind work must be an organized and supervised activity that benefits the community.

Examples of in-kind repayment opportunities include assisting with child care at the Job Center, helping at a food pantry, helping at a senior meal site, helping to build a home through Habitat for Humanity, volunteering with religious or non-profit organization, or assisting with the supervision of organized youth activities.  

Documentation of in-kind work received by a local agency must be entered into CARES within 5 days of receipt.  

 

 

History: There are no previous versions of this policy.