Federal Stafford Loans
Federal Stafford Loans are available to eligible students that have completed the FAFSA.
The Federal Stafford Loan is divided into two parts:
Subsidized - The federal government pays the interest on the loan while the student is in school, enrolled at least half time and times of deferment.
Unsubsidized - The interest begins to accrue at the time of disbursement, you can choose to pay the interest on the unsubsidized loan as it accrues or allow it to capitalize.
Qualifying students can receive up to $8500 in subsidized and $12,000 in unsubsidized loans, for a total of $20,500 every two semesters, i.e. fall/spring, spring/summer, or summer/fall.
The interest rate for loans after July 1, 2007 is fixed at 6.8%.
Borrowers receive a six month grace period after graduating, withdrawing from school, or if their enrollment drops below half time status.
A Total debt maximum for all Federal Stafford Loans, including undergraduate loans is $138,500.
Please visit our lender page to learn more about the lenders or to apply.
Federal GradPLUS Loans
The Higher Education Reconciliation Act (HERA) of 2005 has modified the PLUS program (formerly known as the Parent Loan for Undergraduate Students) to allow graduate and professional students to borrow under this federal loan program. You would apply for this program in place of a private alternative loan. You can NOT process a Grad PLUS and a private alternative loan.
The legislation mandates a 3% origination fee and a 1% default fee. Our preferred lenders have agreed to pay the default fee for you, but by law are not allowed to pay the origination fee. Please visit our lender page to learn more about the lenders.
Parameters of the Grad PLUS Loan are:
- The interest rate will be fixed at 8.5%
- You must file a FASFA and be awarded the Federal Stafford Loan before you may borrow under the Grad PLUS loan program
- A credit check is required to determine that 'the applicant does not have adverse credit history', if credit history is 'adverse' you can apply with a co-signer that does not have 'adverse' credit history.
- The repayment period begins on the date of disbursement and the 1st payment is due 60 days after the disbursement however you may receive a deferment while you are enrolled at least half time
- Once you graduate, withdrawal or drop below half time enrollment, there is no grace period and payments will become due.
- The Grad Plus loan will be certified for the same two semesters and be disbursed on the same days as your Federal Stafford Loan
- The Grad PLUS loan is subject to a return of funds calculation if you withdraw during the semester
- The Grad PLUS can be included in consolidation after you graduate (unlike private loans)
Private Alternative Loans
Private Alternative Loans are available for students that require funding beyond the Stafford loan. Eligibility for these types of loans is based on credit, citizenship status, and other factors as determined by the lending institution. We offer two private loans; for more information on each loan, please visit their websites, www.salliemae.com and www.nelnet.com.
These loans are based on credit, as well as many other criteria, therefore, it is important to maintain a good credit rating prior to and during your attendance at law school. It is recommend that before applying for a Private Alternative loan you contact one of the following national credit agencies to receive a copy of your credit report to verify it is accurate.
With the Grad PLUS and Private Alternative loan you can borrow up to the Cost of Attendance less any financial aid, including scholarships and Stafford loans.
Example:
Estimated cost of attendance (which includes tuition, room and board, transportation, etc)
| Full time student FA07 & SP08 |
|
$48,982 |
| Deduct Federal Stafford Loan: |
- |
$20,500 |
| Deduct Scholarship: |
- |
$6,000 |
| GradPLUS/Private Loan Maximum: |
|
$22,482 |
