Law School: Loans and Resources
College graduates headed to law school have an array of school loan options to help pay for tuition and other associated fees. A common law school loan offered by the United States Department of Education (DOE) is the Federal Stafford Loan. The Stafford Loan process is identical to every other grant and loan program. To apply, the student must fill out a Free Application for Federal Student Aid (FAFSA). Based on the information provided on the FAFSA, the DOE will determine if the student qualifies for a law school loan and how much that loan will be. An award notice is then mailed to the student via the law school selected on the FAFSA.
Because law school can be an expensive venture, many students cannot pay tuition and living expenses based on the Stafford Loan alone. Several private bank lenders offer law school loans and law bar exam loans for this very reason. When a student applies for a law school loan through a private lender, the funding is granted based on his or her credit score and history. This is different from the DOE loan process that takes economic need into consideration in lieu of credit worthiness.
Interest rates, deferment and forbearance options, and repayment plans all vary dependent upon the loan program. DOE law school loans feature below prime interest rates because the federal government backs them. The government also guarantees several repayment plans that are flexible in nature to help meet all borrowers’ needs. In addition, federal law school loans come with a pre-determined grace period and in-school deferment period. Private law school loans, on the other hand, are a little different. The interest rate of a private loan will depend a lot on the borrower’s credit score. Borrowers with excellent credit run the best chance of receiving a low rate. Lastly, the deferment and grace periods and repayment options vary by student loan lender.
