Can I use law school loans to cover living expenses?

Law school [student loans](https://www.moneygeek.com/financial-planning/paying-for-college/student-loans/) typically cover the total cost of attendance, including tuition, books, technology costs, transportation and living expenses. That said, it’s important to check the loan agreement to see if your lender has restrictions on how you can use the funds.

How much do law students need to borrow?

Most private lenders allow borrowers to take out at least $1,000, but the amount law school students need to borrow depends on individual factors, such as the cost of attendance. The average cost of attending law school is $28,480 per year for residents and $40,680 per year for non-residents at public institutions, and $50,770 at private institutions.

What’s the maximum amount I can borrow for law school?

The maximum amount you can borrow for law school depends on your school. Many lenders will allow you to borrow up to 100% of the total cost of attendance minus any financial aid you’re receiving.

Can law school loans be forgiven?

It depends on the lender. The government offers student loan forgiveness for federal student loans to qualified borrowers. Private lenders, on the other hand, typically don’t offer loan forgiveness.

Do I need to get a co-signer for a law school loan?

No, a co-signer isn’t necessary to get a law school loan. You may need one if your credit history doesn’t meet the lender's requirements. In some cases, a co-signer may also help you access lower interest rates.

When does repayment on a law school loan start?

It depends on the lender. Lenders have different repayment plans, including immediate, interest-only, during enrollment or deferment until after graduation.

How much debt do most law students have?

The American Bar Association reports that a law school graduate's average total student loan is $164,742. This includes all balances from undergraduate studies and law school.

How long do lawyers pay off student loans?

The length of repayment of student loans depends on the agreed-upon repayment terms.

Best Student Loans for Law School in April 2023

Law school can be expensive. On average, the cost of attending law school at a public institution is $28,480 per year for state residents and $40,680 per year for non-residents. Meanwhile, those studying in private institutions spend an average of $50,770 per year.

Law school student loans are necessary for many individuals to afford the steep cost of pursuing a legal profession. Generally, federal student loans are the best option as they typically have lower interest rates and flexible repayment terms. Law school students can also turn to private student loans for law school if federal loans don’t cover the costs. Exploring all options based on your eligibility can also help ensure you get the most favorable terms on a student loan.

WHAT WE’RE GEEKING OUT ON:

Sallie Mae Review
College Ave Review
Earnest Review
SoFi Review
Federal Student Loans for Law School
How to Find the Best Law School Loan
Frequently Asked Questions About Law School Loans

Sallie Mae Review

Sallie Mae
Best for law students looking for flexible repayment
- 3.50%–13.83% Fixed APR Range
- 1.37%–11.76%Variable APR Range
- $1,000 minimum, no maximumLoan Amount Range
- Allowed but not requiredCo-signer
Sallie Mae, which began as a federal education loan lender in 1972, offers private student loans to undergraduate, graduate, career training and trade school students. Depending on your needs and circumstances, you can borrow from $1,000 up to 100% of the cost of attendance.
One of the advantages of taking out a Sallie Mae law school loan is the deferment repayment option, allowing the borrower to opt out of making payments while they’re in school. The lender also offers a grace period of nine months after leaving school. Choosing these options may lead to higher costs due to unpaid interest.
Students who want to save money can opt for the fixed repayment option. By paying $25 every month, you can save on the total costs compared to the deferred option.
Despite the positive features of Sallie Mae loans, they may not be for everyone. The lowest interest rates are only available to creditworthy individuals. Depending on your profile and loan terms, you can get interest rates as high as 15.09%. If you need access to funds immediately, you may also want to check other options, as Sallie Mae can take up to 10 days to release funds.
Pros
0% origination fee
Deferment repayment option while in school
May cover up to 100% of the cost of attendance
Allows co-signers
9-month grace period

Cons
APR can be as high as 15.09%
Fund release may take 10 days
The lowest rate is only available to creditworthy borrowers
Fixed APR: 5.25%–14.47%
Variable APR: 5.50%–15.09%
Loan Amount: $1,000 minimum, no maximum
Co-signer: Optional
on Sallie Mae Website

College Ave Review

College Ave
Best for law students looking for flexible repayment
- 3.49%–12.99%Fixed APR Range
- 1.19%–11.98%Variable APR Range
- $1,000 minimum, no maximumLoan Amount Range
- Not requiredCo-signer
College Ave, an online lender founded in 2014, offers various student, parent and refinancing loan products. Law students can take out as little as $1,000 or as much as the total cost of education. You can choose from four repayment options: full principal and interest, interest-only, flat or deferred payments. For law school loans, you can also choose from five repayment terms. To help you decide, the lender offers an online calculator.
It's important to note that College Ave may take 10 business days to release the loan funds. Interest rates can be as high as 12.98%. If you make late payments, the lender will charge late fees. Additionally, you need to meet the SAP requirement to qualify for a loan.
Pros
Automatic payment discount
Flexible repayment terms
No origination fees
No prepayment penalties
Has an online loan calculator

Cons
Funding may take 10 business days
Has late payment fees
Requires satisfactory academic process (SAP)
Fixed APR: 4.24%–12.98%
Variable APR: 3.99%–12.98%
Loan Amount: $1,000 minimum, no maximum
Co-signer: Optional
on College Ave Website

Earnest Review

Earnest
Best for students looking for competitive rates.
- 2.44%–7.99%Fixed APR Range
- 1.74%–7.99%Variable APR Range
- $1,000 upLoan Amount Range
- Allowed Co-signer
If you’re looking for the most competitive rates available, you may want to consider Earnest. One of the unique features the lender offers is the Rate Match Guarantee: it promises to match a competitor’s rate. However, the rates can’t be lower than 3.99% (variable) or 4.19% (fixed).
Earnest law school borrowers may skip one payment each year. You can also get a 9-month grace period after graduation before starting your loan repayment.
Earnest student loans aren’t available in all states. Before applying for an Earnest student loan, check if the lender services your area
Pros
No origination, late or disbursement fees
Rate Match Guarantee
Allows borrowers to skip one payment per year
Flexible repayment terms
9-month grace period

Cons
Not available in all states
For full-time students only
Borrowers must meet the state’s age-of-majority
Fixed APR: Starts at 4.19% (with 0.25% Auto Pay discount)
Variable APR: Starts at 3.99% (with 0.25% Auto Pay discount)
Loan Amount: $1,000 minimum, no maximum
Co-signer: Optional
on Earnest Website

SoFi Review

SoFi
Best for borrowers who want to earn and redeem points
- 3.22%–11.16%Fixed APR Range
- 1.10%–11.68%Variable APR Range
- $5,000 minimum, no maximumLoan Amount Range
- OptionalCo-signer
SoFi is a great option for law school students looking for a loan that allows them to enjoy some perks. The lender has a fast online application process you can complete in minutes. You can borrow up to the total cost of your education without worrying about origination, late, insufficient fund or prepayment fees.
SoFi borrowers can also accumulate cash or redeem rewards by enrolling in the SoFi app. By using the app, you can earn points that you can turn into cash, add to loan payments or convert into fractional shares of stock, crypto or credit.
However, SoFi isn’t suitable for small loans as the minimum loan amount is $5,000. Depending on the repayment term and loan agreement, you may also get interest rates as high as 14.1% (fixed) or 13.53% (variable). The lender may take four to six weeks to release the funds.
Pros
No origination, late payment or insufficient fund fees
No prepayment penalties
Borrow up to 100% of the cost of education
Earn and redeem points
Fast online application

Cons
$5,000 minimum loan amount
Funding may take four to six weeks
Possible high interest rate of up to 14.1%
Fixed APR: 5.25%–14.1% (with autopay)
Variable APR: 5.12%–13.53% (with autopay)
Loan Amount: $5,000 minimum, no maximum
Co-signer: Optional
on SoFi Website

Federal Student Loans for Law School

Before getting private student loans for law school, it’s best to maximize federal student loans first since they typically come with lower interest rates. You can apply by completing the online Free Application for Federal Student Aid (FAFSA) form. Successful applicants will have to submit a FAFSA form every year.

There are two types of federal student loans for law school — Direct Unsubsidized and Grad PLUS.

Direct Unsubsidized Loans: Undergraduate and graduate students can apply for a Direct Unsubsidized Loan. The loan amount will be based on the cost of attendance and other financial aid the borrower receives. The current rate for graduate students is 6.54%. Should you get a Direct Unsubsidized Loan, you’ll be responsible for paying all accrued interest.
Grad PLUS Loans: Also known as Direct PLUS Loans, the Grad PLUS Loan is available to graduate and professional students enrolled at least half-time. Borrowers must meet certain eligibility requirements to get a loan. The current interest rate for this type of loan is 7.54%, with the maximum loan amount being the cost of attendance based on the school minus other financial aid you’re receiving.

Depending on the borrower’s circumstances, federal student loans may be forgiven. It’s best to stay updated about the government's student loan forgiveness requirements and rules.

How to Find the Best Law School Loan

Choosing the best law school student loan can be challenging. Knowing how to apply for student loans can help you find a good lender and choose the best options for your needs.

Complete the FAFSA

You first need to see if you’re qualified for a federal student loan. You can start the application process by filling out the FAFSA form. Don’t forget to check the deadlines.

The FAFSA is necessary to receive any type of federal loan or financial aid. Some private scholarship programs may also require the FAFSA. Make sure you indicate in the form that you’re a graduate student to access higher borrowing limits.

Submit requirements

Aside from the FAFSA, you’ll need to submit a Master Promissory Note. This is an agreement to repay the loan amount plus all accrued interest. There may be additional requirements, depending on the school.

Look for private lenders (if necessary)

If you have already maximized federal student loans but haven’t met the costs of law school, you may consider private student loans to cover the remaining expenses. Narrow down your options by checking eligibility requirements.

Get pre-qualified

Some private lenders may offer pre-qualification. This will give you an idea of what loan limit, interest rates and terms you may be eligible to get without the lender conducting a hard credit inquiry.

Compare student loan offers

Once you get pre-qualification, compare loan offers, interest rates, repayment terms and other features to find the best loan for your needs. Check if your school has a list of preferred student loan providers.

Apply and complete the application

Determine which lender offers the best loan. Make sure you read the fine print. If you’re 100% sure about the loan, proceed with the application. Depending on the lender, you may apply in person, online or over the phone.

Lenders typically disburse the loan amount directly to the school. You may receive money if there’s a balance after paying off all law school expenses. You can either use this to cover other education expenses or return it to the lender.

HOW WE REVIEWED STUDENT LOAN LENDERS

We reviewed more than 30 private student loan lenders using 35+ individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

Within each ranking criteria category, we considered several individual data points that carry the most weight when choosing a private student loan lender. These factors include APR ranges, available loan amount, minimum credit score, minimum income amount, application fees and disbursement time.

With the consumer in mind, we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible — like pre-qualification, payment options and mobile apps.

Frequently Asked Questions About Law School Loans

MoneyGeek answered some questions that potential borrowers frequently ask to help you better understand how student loans for law school work.

sources

AccessLex Institute. "Legal Education Data Deck." Accessed December 7, 2022.
American Bar Association. "2020 Law School Student Loan Debt Survey Report." Accessed December 7, 2022.
College Ave. "Law School Loans." Accessed December 7, 2022.
Earnest. "Law School Loans." Accessed December 7, 2022.
Sallie Mae. "Sallie Mae Law School Loan." Accessed December 7, 2022.
SoFi. "Law School Student Loans." Accessed December 7, 2022.
U.S. Department of Education. "FAFSA Application." Accessed February 9, 2023.

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