Financing Law School

Scholarships and Grants

A scholarship or grant is an award that does not have to be repaid. It may be given on the basis of need, or merit, or both. Most scholarships are conferred by individual law schools. Some organizations may also have scholarships to offer. Among them are local bar associations; fraternities, sororities, and other social clubs; religious or business organizations; and the US Department of Veterans Affairs. The availability of scholarships and grants is limited, but worth researching. Law school admission and financial aid offices can provide information about the resources available. Be aware that many scholarships and grants are merit-based and may require a certain level of academic performance for continuation. Some schools award merit money shortly after admission, while others require separate forms. Some schools award need-based institutional aid. Confirm with each school what their individual school requirements are. Apply early for all institutional aid from law schools. A number of companies offer tuition reimbursement benefits to their employees and to their employees' dependents as well.

Federal Loans

• (Unsubsidized) Federal Direct Stafford Loan: A student may borrow a total of $20,500 in Federal Stafford Loans. The interest rate for these loans is 6.8 percent annually and a 1 percent loan fee is deducted at disbursement. Interest starts accruing as soon as the loan is disbursed. These loans have a six-month grace period before repayment begins; they have federal forebearance and deferment options, may be consolidated, and may be repaid under Income-Based Repayment (IBR). These loans may be eligible for inclusion under the federal Public Service Loan Forgiveness Program (PSLF).
• Graduate PLUS Loans for Law Students: Students with an absence of bad credit may be eligible to secure a Graduate PLUS loan. The Graduate PLUS is federally guaranteed. Interest accrues while the student is in school, and repayment begins following disbursement. The interest rate is 7.9 percent, and a 4 percent loan fee is deducted from the disbursement. The interest rate is fixed for the life of the loan. These loans have federal forebearance and deferment options, may be consolidated, and may be repaid under IBR. These loans may be eligible for inclusion under the federal Public Service Loan Forgiveness Program (PSLF).
• Federal Perkins Loan: This loan may be available to students at some schools. Each student's award is determined by the school based on information obtained from the FAFSA. The maximum annual loan is $8,000. These loans may be eligible for inclusion under the federal Public Service Loan Forgiveness Program (PSLF).

Private Loans

There are a number of private loan programs available to credit-worthy borrowers. Additionally, some lenders make available postgraduate loans for bar-review study. Eligibility for these bar loans is based on the borrower's credit history and the lending institution's willingness to lend.

The terms and conditions of these programs vary greatly. Pay careful attention to the explanations found in loan application brochures and consumer information. You can also contact the individual programs or visit their websites for further details.

Federal Work-Study

Federal work-study is a program that provides funding for full-time students to work part time during the school year and full time during the summer months. Students sometimes work on campus in a variety of settings or in off-campus nonprofit agencies. ABA standards limit a law student's paid employment to no more than 20 hours per week. Additional information is available from participating law school financial aid offices. Not all schools participate in the federal work-study program.

Veterans Educational Assistance

The US Department of Veterans Affairs administers a number of educational benefit programs for veterans. These include, but are not limited to, the Montgomery GI Bill and the Post-9/11 GI Bill (9/11 GI Bill). The 9/11 GI Bill assists eligible individuals with tuition and fees, a monthly housing allowance, annual books and supplies stipend, and a one-time rural benefit payment for eligible individuals. In addition to the 9/11 GI Bill providing an education benefit for eligible veterans, the education benefit may also be transferred to dependents under certain conditions.

The 9/11 GI Bill also has a provision that established the Yellow Ribbon Program. This program assists with funding tuition and fee expenses not covered by the 9/11 GI Bill. The benefits of this particular program are exclusively for eligible veterans; the Yellow Ribbon benefits cannot be transferred to dependents. For more information on veterans educational assistance check with the US Department of Veterans Affairs and the Offices of Veterans Affairs on the campuses of the law schools to which you are applying.

NOTE: All figures and calculations are based on current interest rates, loan terms, and fees, and are subject to change.