Your Ultimate Guide to Law School Loans


Going to law school is a cherished aspiration for many people, but it’s important to acknowledge the significant financial strain it can impose. The tuition, books, and daily expenses can accumulate rapidly, leaving you overwhelmed with bills and unsure how to stay afloat. That’s why gaining a thorough understanding of law school loans is essential. When considering law school student loans, it’s crucial to remember that it’s not solely about acquiring financial assistance. Instead, it requires making well-informed choices to establish the foundation for future achievements.

Different types of loans are available, each presenting its benefits and drawbacks. Knowing your options can differentiate between manageable debt and a financial nightmare. A little knowledge goes a long way, whether it’s Federal loans, private loans, or scholarship opportunities. Read on to get a handle on making the best decisions for your legal education and wallet.

Calculator and notepad placed on USA dollars stack- Law School Loans

Financial Aid Options for Law School

Law school is a significant commitment that begins even before you set foot in a classroom. From LSAT costs to tuition fees, the financial journey can seem overwhelming. But don’t worry, you still have plenty of options for financing your legal education. Let’s take a brief glimpse at your main choices.

Scholarships and Grants

Scholarships and grants allow for the acquisition of funds that do not have to be repaid. They can be awarded based on financial need, academic achievement, or both. They mainly come from law schools, local bar associations, social clubs, and companies offering tuition benefits. Availability is limited, so research and apply early. Remember that you need to maintain a certain grade point average to keep these awards.

Federal Loans

For student loans for law school, start with Federal law school loans:

  • Federal Direct Unsubsidized Loan: You can borrow up to $20,500 annually. Interest is simple and starts once the loan is out. You get a six-month break after graduation before repayments start. Flexible payback options are available. You might even get the loan forgiven if you work in public service.
  • Grad PLUS Loan: This one’s for students with good credit and covers your full school costs minus other financial aid. Bad credit? You can still apply with a co-signer. Interest is also simple; you don’t have to start paying back until six months after leaving school. Flexible repayment and potential public service loan forgiveness also apply here. Federal loans should be your first pick, and only borrow what you need.

Private Loans

If Federal loans don’t cut it, consider private law school loans. These are credit-based, and terms can vary widely. Some lenders even offer loans for bar exam prep. But be cautious, always read the fine print, and consider this option as a last resort.

Federal Work-Study Program

This program allows full-time students to work part-time during the school year. Jobs could be on or off-campus. However, not all law schools offer this, and working no more than 20 hours a week is recommended.

Veterans Educational Assistance

If you’re a veteran, specific programs like the Montgomery GI Bill and the Post-9/11 GI Bill offer various benefits, from tuition and fees to housing allowances. There’s also the Yellow Ribbon Program to cover additional costs.

When choosing a law school, it’s crucial to consider the law school rankings and the expenses involved. The cost can greatly affect your financial stability and future career choices, so it’s essential to investigate financial aid options for better financial management thoroughly.

Types of Law School Loans

Multiple loan options are available for funding your law school education. Understanding the details of each option can help you make an informed decision, whether you’re attending a traditional campus or opting for law school online.

  • Direct PLUS Loans:

These Federal student loans for law school cover your entire school cost after other aid. They offer perks like loan forgiveness and income-driven plans. But beware, they come with the highest interest rates among Federal loans and include an upfront fee. A credit check is mandatory but won’t affect your interest rate.

  • Direct Unsubsidized Loans

These loans have yearly and total borrowing caps. They also offer Federal benefits like loan forgiveness. The good news is that they have lower interest rates and fees than Direct PLUS loans.

  • Private Law School Loans

Private loans are tailor-made for law students or come as generic grad school loans. They might not have upfront fees but require a credit check. The interest rate you get could be lower if you have good credit. However, they lack Federal benefits like loan forgiveness.

It is recommended to first opt for Federal law school loans. Going with law school Federal loans is a safer option if you’re unsure about your financial future. So, whether you go for Federal or private loans, understanding the features and benefits of each can make a big difference in how you manage your law school finances.

Best Law School Loans of September 2023

Here’s a list of trustworthy and affordable options you should consider:

Lender Variable Annual Percentage Rates Fixed Annual Percentage Rates
Earnest 5.66% – 13.52% 4.42% – 12.62%
College Ave 5.49% – 16.99% 4.59% – 16.99%
Sallie Mae 6.87% – 16.46% 4.99% – 14.47%
Discover 6.37% – 16.37% 5.24% – 14.59%
Rhode Island Student Loan Authority N/A 4.45% – 8.99%
Custom Choice 5.36% – 15.17% 4.43% – 14.65%
SoFi 6.87% – 16.47% 4.99% – 14.48%
Federal Graduate PLUS Loan N/A 8.05%
Federal Direct Unsubsidized Loan N/A 7.05%
Ascent 7.05% – 15.94% 5.48% – 15.66%
Citizens Bank 5.80% – 13.95% 4.43% – 12.57%

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Step-By-Step Guide to Law School Loans

Understanding the steps involved in securing a student loan for law school can make the process manageable and help you make an informed decision.

  • Start Early

Gather information on financial aid procedures and deadlines for the law schools you’re interested in as early as possible. Early planning allows you to weigh your options for both law school Federal loans and law school private loans.

  • File Taxes

Complete your Federal income tax returns early if required, as schools may request a copy. This ensures you are prepared and won’t face delays in the loan process.

  • Complete FAFSA

Fill out the FAFSA at to secure Federal loans for law school.

  • Review Aid Package

After completing your FAFSA, the financial aid office will assess your eligibility for several financial aid options, including Federal and private student loans for law school. They will send you a financial aid package that you should carefully review.

  • Accepting Loans

Follow the law school’s application instructions to apply for the student loan that suits you best. You can choose between Federal loans with loan forgiveness benefits or private loans with lower interest rates but stricter eligibility requirements.

  • Federal vs. Private Loans

Regarding loans, Federal loans for law school are generally the safer bet, especially if you’re interested in programs like loan forgiveness. Private student loans for law school may require higher credit scores and a reliable income history. You can add a co-signer to meet the criteria, but it comes with risks.

To help you with the admission process, consider hiring a Law School Admission Consulting service. These experts can offer invaluable insights into crafting a compelling application, choosing the right schools for you, and helping boost your chances of getting into your dream law school.

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Start Your Legal Education With LSAT Preparation

A high LSAT score significantly increases your chances of getting into your dream law school and opens the door to merit-based scholarships. In a competitive field like law, a stellar LSAT score sets you apart and can be the key to securing financial aid and reducing your reliance on loans. The secret? It’s all in the preparation. Figuring out how long to study for the LSAT is a key factor that can significantly influence your test scores and future success. Here are some specialized LSAT services you might want to consider:

LSAT Prep Course

An LSAT Prep Course provides a structured study plan, practice tests, and learning materials to help you master each exam section. Additionally, these courses often include timed simulations of the actual test, equipping you with the skills needed to manage your time effectively on test day.

LSAT Tutoring

For personalized guidance tailored to your unique needs, consider LSAT Tutoring. A dedicated LSAT tutor can work closely with you, targeting your weak areas and providing customized strategies to improve your score. Start your Legal Career with us!

Law School Admission Consulting

To navigate the complex admission process more smoothly, look into Law School Admission Consulting. Expert consultants can help you refine your application, improve your personal statement, and offer strategies for impressing admission committees. Get Expert Guidance with Odyssey Test Prep!

FAQs: Law School Student Loans

1. What loans are best for law school?

Federal loans are generally the better option for financing your law school education. While private loans can offer lower interest rates for those with excellent credit, Federal loans come with benefits like income-driven repayment plans and options for public sector work.

2. Is it hard to get loans for law school?

Obtaining private loans for law school depends on your credit score and is facilitated through banks or credit unions. A strong credit score increases your odds of loan approval and can get you a loan with either fixed or variable interest rates.

3. What is the maximum Federal loan for law school?

You can borrow a maximum of $20,500 per year from the Federal Direct Unsubsidized Loan program, and while you are enrolled in school, interest accumulates but does not compound, meaning it will not increase exponentially.

4. How to finance law school if Federal loans aren’t enough?

If you’re spending more than the Federal loan covers and your credit is solid, you might want to consider going for private student loans. But remember, even though they may offer lower interest rates, Federal repayment plans and Public Service Loan Forgiveness don’t apply to private loans.

5. Will FAFSA pay for law school?

Filling out the FAFSA opens doors for Federal funding options for your law school journey. It’s the mandatory step for securing Federal loans and other types of Federal financial aid. Without a completed FAFSA, you’ll need to rely on private loans or scholarships.


Before committing to loans, it’s crucial to explore all available options for financing law school. Scholarships, grants, and work-study programs should be your first port of call, as these don’t require repayment. If you’ve exhausted these avenues, then turning to law school loans becomes a viable option. 

It’s crucial to approach borrowing money with caution and a thorough understanding of the terms and conditions. Most students should opt for Federal loans because they offer flexible repayment and forgiveness, while Private loans come with higher interest rates and strict credit requirements to cover additional costs.

Take advantage of our Free LSAT Consultation for valuable insights at the start of your legal education journey. Our support can help you achieve a high LSAT score, increasing your chances of being admitted to your dream law school and earning scholarships.

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