Going to law school is an exciting event but it doesn’t take long for the thrill to wear thin and the reality of the financial expense to set in. Fortunately, those who need law school loans will find there are plenty of options available to choose from. First, students should look at scholarships and grants to see how much they can obtain to help cover the expense. Only look for law school loans after you have exhausted your scholarship, grants and options through personal savings.
There are two types of law school loans to consider. These include Federal loans that are provided through the government and private loans that are provided through banks, lending companies and credit unions. Some of the most popular Federal loans to apply for include the Perkins Graduate Loan and the Stafford Graduate Loan. As most begin with an associate’s degree then obtain a Juris Doctor degree, the process can be quite expensive. Make certain to research all of your options and find the best loan for your needs.
The Perkins Loan has been established for those with low income and in need of financial assistance in pursuing their educational goals and dreams. Those interested in applying for a Perkins loan will need to fill out the FAFSA form. These law school loans are desired by many as they offer very low interest rates, are flexible in the repayment terms and offer a larger amount of funding to borrowers. Those who are eligible for a Perkins Loan will find they need to reapply on a yearly basis.
Undergraduates can secure up to $20,000 in funding from a Perkins Loan while those in undergraduate programs may receive up to $40,000 in funding. The greatest advantage of the Perkins Loan is that those who remain in school for at least half-time study programs will not need to begin paying the loan until the student either graduates or their attendance falls below half time. Borrowers are also given up to 90 days before they need to make payments on the loan. After the 90 day period, payments are due. Many borrowers favor the Perkins Loans as there is often a 10-year-repayment period applied to the loans.
In addition to the Perkins Graduate Loans, the Stafford Graduate Loans are popular choices for those looking for law school loans. When someone first thinks of federal law school loans, the first thing that often comes to mind is the Stafford Loan. Stafford Loans are the most popular government backed loans, making them an attractive offer for many lenders. Those who are eligible for Stafford Loans will find that the terms are better than many other loans.
You can choose between subsidized and unsubsidized Stafford Loans, and the difference is based upon a person’s financial situation. Those with extremely low incomes may qualify for a subsidized Stafford Loan. These loans are interest free, ensuring that the borrower does not need to worry about paying interest rates. Only those with an extremely low income who commits to staying in school for at least half of the time qualify for subsidized Stafford Loans. The majority of students qualify for the unsubsidized Stafford Loans.
Many students in need of law school loans will find that the unsubsidized Stafford Loan is the most appropriate choice. Your first step is to apply for the FAFSA to ensure you qualify for federal funding. An unsubsidized Student Loan will require the borrower to repay an interest rate but often at very affordable terms and lower interest rates than what you’d get with a private lender. Federal law school loans are wide and varied, and Federal loans often hold many advantages when compared to private loans.