Financial Aid Options for Law School


Financial aid Options

Scholarships and Grants

This is a reward that does not have to be repaid. It may be given on the basis of need or merit or both. Most scholarships are granted by individual law schools. Several individual organizations may also have scholarships to propose. Among them are local bar associations; fraternities, sororities, and other social clubs; religious or business organizations; and veterans’ groups. You will have to take the initiative in investigating these probable scholarship resources. Some corporations offer tuition reimbursement benefits to their employees and to their employees’ dependents as well.

Federal Loans

A number of law schools take part in the Federal Family Education Loan Program (FFELP), which includes the Stafford loans. Students borrow Stafford loans through banks or other lenders. Though the Federal Direct Student Loan Program (FDSLP), some schools offer federal loans from de US Treasury, which includes William D. Ford Federal Direct loans. Below this program, you will not be borrowing federal loans through a bank. Your loans will be disbursed directly by the law school financial aid office. The federal programs are focus to regulation changes; you may desire to contact the law school for additional information. The requisites and conditions under the FDSLP and the FFELP may differ (calculations are based on current interest rates, loan conditions, and fees, and are subject to change). Contact your financial aid administrator for the most recent accessible information. There are three types of federal loans available to law students.
  • (Subsidized) Federal Stafford and Ford Loan. The students, who meet the need criteria, be able to obtain a loan for up to $8,500 a year that is available in subsidized Federal Stafford or Ford Loans. Interest is paid by the federal government while you are enrolled in school at least half-time. You must begin reimbursing the loan six months after you graduate, withdraw, or drop below half-time. You can gain an application from any lender that participates in the federal loan program, or from any law school.

  • (Unsubsidized) Federal Stafford and Ford Loan. In mixture with the subsidized loan, a student may borrow up to a shared total of $20,500 in subsidized and unsubsidized loans. The amount the student receives in the subsidized loan is deducted from the $20,500 in order to establish eligibility for the unsubsidized loan (for example, if the student is only qualified for $3,000 in subsidized loans, he or she could obtain $17,500 in unsubsidized loans).

  • Federal Perkins Loan. The maximum annual loan is $6,000. This loan is accessible to students at various schools. Each student's award is resolute by the school based on information gained from the FAFSA.

  • Graduate PLUS Loans for Law Students. Beginning July 1, 2006, the Graduate PLUS loan is a new loan for law students. Graduate students with an absence of bad credit may be qualified to borrow a Graduate PLUS loan. The PLUS is federally guaranteed and the interest rate is subsidized. Interest accumulates while the student is in school, and refund begins immediately. The interest rate is 8.5 percent fixed for the life of the loan. Tolerance is offered while the student is in school. Many students who have good credit are selection Graduate PLUS instead of private loans.

Private Loans

Lenders will analyze your credit information (basis of your credit) before approving a private loan. Most offer prequalification services on the Internet or by phone. If you have a poor credit record, you may be refused a loan. If there is a mistake on your credit report—and there are often mistakes—you will want sufficient time to correct the error. It would be prudent to clear up errors or other differences before you apply for a private loan.

You can track and clear up any inconvenience. You can order a duplicate by calling 1.877.322.8228 or go to www.annualcreditreport.com. You may also mail a request to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

There are some private loan programs offered to credit-worthy borrowers. Many of these programs permit you to borrow federal as well as private loans, which may help you keep track of your loan portfolio. Some also present phone-in or online application for their private and federal loans. Some lenders make accessible postgraduate loans for bar-review study. These bar examination loans are accessible to most students who have good credit.

The requisites and conditions of these programs vary significantly.

Federal Work-Study

This is a program that proportions funding for students to work part time through the school year and full time during the summer months. Students occasionally work on campus in a diversity of settings or in off-campus nonprofits agencies. Extra information is accessible from any law school financial aid office. Not all schools contribute in the federal work-study program.

Determining Eligibility

The law schools financial aid office will examination your request and calculates your eligibility for the diverse forms of financial aid from all sources. It is important to re-examine carefully your package and to understand the requisites and conditions of all aid offered to you.

Your financial require is the variation between your resources and the total cost of assistance. Your inappropriate financial need is established by subtracting the amount you are able to contribute toward your legal education, as well as any scholarships you accept, from the total cost of assistance. The budget used for determining need includes tuition, books and supplies, as well as living expenses, transportation, and personal expenses. The Student Expense Budget is set by the law school and will differ by school. Consumer debt is not incorporated in your Student Expense Budget and should be paid before you attend law school.

If your conditions vary after you complete and file your financial aid forms, report the financial aid office so that your need examination may be revised.