Financial Aid For Law School Case Study
FINANCIAL AID
FOR LAW SCHOOL:
A PRELIMINARY GUIDE
LSAC.org
INTRODUCTION
Legal education is an investment in your future and is a serious financial investment as well. As with any investment, it is important to consider the pros and cons of entering into such a large expenditure of effort, time, and money. Particularly in uncertain financial times, a realistic assessment of why you are seeking a legal education and how you will pay for it is critical.
The single best source of information about financing a legal education is the financial aid office (or the website) of any LSAC-member law school. LSAC.org provides links to many law schools as well as several good sources of financial aid information.
The cost of a law …show more content…
These loans may be eligible for inclusion under the federal
Public Service Loan Forgiveness (PSLF) program.
• 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
4 • LSAC
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 (PSLF) program.
• 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 (PSLF) program.
PRIVATE LOANS
There are a number of private loan programs available …show more content…
8 • LSAC
WHILE IN LAW SCHOOL: LIVING ON A BUDGET
While loans may be available to students with good credit histories, the question of how much to borrow is often asked. The maxim “Live like a student now or you will live like a student later” is a good one to remember.
Consult an individual school’s Student Expense Budget for estimates of living expenses, and budget accordingly.
Track your current spending habits and compare them to the budget at schools of your choice. Share housing; learn to cook. Food expenses are often budget busters.
Bring a lunch rather than buying one. While law school may be an excellent long-term investment, paying loans in the short term can be a real burden. Remember, not all lawyers will earn the highest salaries.
Most federal loans allow you to defer payment while you attend law school at least half time. Interest on federal unsubsidized, GradPLUS, and private loans accrues from the date they are disbursed. Be aware that the Student
Expense Budget does not allow the use of federal education loan funds to pay for prior consumer debt.
LSAC •
FOR LAW SCHOOL:
A PRELIMINARY GUIDE
LSAC.org
INTRODUCTION
Legal education is an investment in your future and is a serious financial investment as well. As with any investment, it is important to consider the pros and cons of entering into such a large expenditure of effort, time, and money. Particularly in uncertain financial times, a realistic assessment of why you are seeking a legal education and how you will pay for it is critical.
The single best source of information about financing a legal education is the financial aid office (or the website) of any LSAC-member law school. LSAC.org provides links to many law schools as well as several good sources of financial aid information.
The cost of a law …show more content…
These loans may be eligible for inclusion under the federal
Public Service Loan Forgiveness (PSLF) program.
• 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
4 • LSAC
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 (PSLF) program.
• 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 (PSLF) program.
PRIVATE LOANS
There are a number of private loan programs available …show more content…
8 • LSAC
WHILE IN LAW SCHOOL: LIVING ON A BUDGET
While loans may be available to students with good credit histories, the question of how much to borrow is often asked. The maxim “Live like a student now or you will live like a student later” is a good one to remember.
Consult an individual school’s Student Expense Budget for estimates of living expenses, and budget accordingly.
Track your current spending habits and compare them to the budget at schools of your choice. Share housing; learn to cook. Food expenses are often budget busters.
Bring a lunch rather than buying one. While law school may be an excellent long-term investment, paying loans in the short term can be a real burden. Remember, not all lawyers will earn the highest salaries.
Most federal loans allow you to defer payment while you attend law school at least half time. Interest on federal unsubsidized, GradPLUS, and private loans accrues from the date they are disbursed. Be aware that the Student
Expense Budget does not allow the use of federal education loan funds to pay for prior consumer debt.
LSAC •