So you’ve decided that you are good at arguing, you know how to get your point across and most importantly, you are always right. You are the perfect candidate for law school, but you are not exactly sure how you are going to pay for it. You have a multitude of law school student loan options to get you from point A in your law school classroom to point B in your first courtroom appearance. If you have already applied for special law school grants and scholarships then you need to apply for a law school loan.

What is a Law School Loan?

A law school loan is a loan offered to students enrolled in a law school program to help them pay for tuition. There are two types of law school loans you can get: federal or private law school loans. The interest rates, benefits and repayment options are different for both types, so I am here to help you decide which one is the best for you.

Private Law School Loans

Private law school loans are excellent sources to help you pay for law school. Either these loans can cover the remaining cost that federal loans may not cover, or they can cover the full cost of your college attendance. Many private law school loan lenders offer an easy application process, flexible interest rates and a variety of repayment plans. To discover the features of a private student loan you can look up on the internet private/alternative student loans.

Federal Loans for Law School Students

The federal government offers law school students four different ways to pay for law school. To view the types of federal loans available to law students you can look at the Subsidized and Unsubsidized Stafford Loans, Federal Perkins Loan and Graduate PLUS Loan sections on the internet. As with any type of federal student loan, you must complete the FAFSA in order to be eligible for federal law school loan aid.

Being accepted into law school is one obstacle you have to overcome, and paying for it is another. However, to help make it easier on your budget you can always choose what type of law school student loan will best fit your financial situation.

Federal PLUS Loans or Parent Loans for Undergraduate Students are federal loans that are made to parents to help finance a child’s education. Financial need is not required to be eligible for a college PLUS Loan, but good credit is. And although it’s not required when applying for a PLUS Loan, students are encouraged to submit a FAFSA (Free Application for Federal Student Aid) to maximize the other aid your family is offered.

Federal PLUS Loans are available to parents of undergraduate students who are enrolled in an undergraduate degree school at least half time. There are two types of PLUS Loans, Direct and FFEL (Federal Family Education Loan). For Direct PLUS Loans the U.S. Department of Education is the lender. FFEL PLUS Loans are available through a private lender such as a bank. In order to apply for either, your parents must submit one of two different loan applications. If your school participates in the Direct PLUS Loan program, a Direct PLUS Loan application and promissory note must be completed and signed. If your school participates in the FFEL PLUS Loan program a FFEL PLUS Loan application will be required.

With the exception of interest rates, both the Direct and FFEL PLUS Loans have the same limitations and requirements:

• Parents can borrow only the amount necessary to fund education costs. The formula the government uses is the student’s Cost of Attendance (an estimate of how much one year at the school will cost including tuition, room and board, living expenses, books and supplies, and transportation) MINUS other aid received (grants, scholarships, etc.). So if your cost of attendance is $30,000 and your other financial aid totals $18,000 your parents can take a PLUS Loan out for $12,000
• Fees of up to 4% of the loan apply
• Repayment starts within 60 days of loan disbursement
• Federal interest subsidies are not available for any PLUS Loans
• Interest rates change annually. For the 2007-2008 school year FFEL PLUS interest rate is 8.5% and the Direct PLUS rate is 7.9%

Federal PLUS Loan monies are sent directly to your school, although the school may require your parents to endorse the check. At that time the loan will be disbursed and applied to your tuition and other direct school costs. If after paying these costs additional loan funds remain, your school may cut a check to your parents for the remainder. If your parents authorize the school to do so, they can also release the funds directly to you or credit your school account.

In many cases parents seek out federal PLUS Loans to make up the gap between what their student received directly in aid and what they can afford to pay. If a college PLUS Loan is not an option or if a family still needs additional funding, parents and students can obtain financial assistance through a private or alternative loan program.