Law School Loans: Find Your Best Option

Becoming a lawyer can lead to a long and lucrative career, but you’ll need to explore all of your student aid options so you can make your education as affordable as possible.

This guide will help you learn all about law school loans, a specific type of graduate student loans, including which lenders we rated the best.

In this guide:

• Compare Law School Loans
• Use All the Federal Aid Available to You
• LendEDU’s Best Law School Loans
• Alternatives to Law School Loans
• What if I’m Studying for the Bar Exam?

Compare Law School Loans

Loan/Company	APR	Loan Amount
Grad PLUS Loan*	7.08%	Varies
College Ave	5.21% – 9.75%	$1,000 – 100%
Sallie Mae	4.50% – 9.99%	$1,000 – 100%
Citizens Bank	3.17% – 10.59%	$1,000 – $225,000
Discover	3.74% – 10.59%	$1,000 – 100%
ELFI	3.95%	$10,000 – 100%

*This is a federal student loan.

Use All Federal Aid Available to You

If you’re wondering how to pay for law school, you should look into scholarships and grants first.

After maxing out interest-free financial aid, the next step is to get as much money from federal student loans as possible. You should max out your federal student aid before getting any other kinds of loans because federal loans tend to have lower interest rates, better loan repayment plans, and more options for borrower protection.

To qualify, you’ll have to complete the Free Application for Federal Student Aid (FAFSA). You should fill out the FAFSA even if you don’t think you’ll qualify for much aid as not all loans are need-based.  

There are maximum limits to what you can borrow, and graduate students are usually limited to getting only certain federal loans such as Graduate PLUS Loans and Unsubsidized Direct Loans. Still, with these loans, you can choose from a number of repayment plans. Also, if you work in the public sector and you choose the income-based repayment plan, you could potentially qualify for Public Service Loan Forgiveness.

Look Into Private Law School Loans

Due to the limits set on federal aid, many students will need to turn to private loans to cover the remaining law school expenses.

Private student loans usually charge higher rates than federal loans, and you have less flexibility in your repayment options. However, these loans can offer the extra money you need to finish your degree, and some will even provide the funding necessary to cover course fees and the cost of living while you study for the Bar Exam.

You should compare law school loans from several different lenders when seeking private student loans. You may see a lot of variation in interest rates and terms you’re offered, and you want to find the best student loan rates.

Taking out a loan is always difficult to do, and it is also difficult to analyze future value for something that you may need a loan for. Regarding law school, I think it is a good idea if you are absolutely certain that you want to practice law, and you do not just want to go to law school because you hear a JD looks good on a resume.

Rocco Turzi, personal injury lawyer in Northern Virginia with law school loans

LendEDU’s 5 Best Law School Loans

Here are our picks for the best law school loans. Click a lender to jump down to its review:

1. College Ave
2. Sallie Mae
3. Citizens Bank
4. Discover Student Loans
5. ELFI

1) College Ave

College Ave exists specifically to offer an easier way for students to borrow money. It offers both private student loans and student loan refinancing, including loans for those attending law school.

Here are the key things you need to know about law school loans from College Ave:

• Editorial Rating: 5/5
• Loan amounts: Borrow up to the school-certified cost of attendance
• Loan terms: 5 years, 8 years, 10 years, 15 years or 20 years
• APRs: 5.21% to 8.99% variable APR or 5.97% to 9.75% fixed rate APR

Pros

• There are four payment plan options to choose from while in school, including the option to defer payments.
• Apply quickly, within just three minutes.
• A nine-month grace period is available after you leave school, so you don’t have to repay your loans right away.

Cons

• You have to make 24 consecutive, on-time payments as a primary borrower before cosigner release becomes available.
• If you face financial struggles, forbearance is granted on a case-by-case basis, there’s no guaranteed forbearance available.

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2) Sallie Mae

Sallie Mae has been a major student loan lender since 1973. Although Sallie Mae originally serviced federal student loans, it has since been privatized and now primarily provides private loans to students—including law students looking for educational financing.

Here are the key things you need to know about loans from Sallie Mae:

• Editorial Rating: 4.85/5
• Loan amounts: Borrow up to 100% of school-certified expenses
• Loan terms: Up to 15 years
• APRs: 4.50% to 9.86% variable APR; 5.50% to 9.99% fixed rate APR

Pros

• There are no prepayment penalties, application fees, or origination fees.
• There’s a fast cosigner release after just 12 consecutive on-time monthly payments from the primary borrower.
• You’re eligible for up to 48 months of deferment during your clerkship or fellowship.

Cons

• You can’t apply without a hard credit history check.
• Sallie Mae has been the subject of many customer complaints, given its size and role as one of the leading student loan lenders.

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3) Citizens Bank

Citizens Bank is available to borrowers in 11 states. It has more than 1,200 branches and it provides many financial products, including loans for law students.

Here are the key things you need to know about loans from Citizens Bank:

• Editorial Rating: 4.70/5
• Loan amounts: $225,000 maximum for law degrees
• Loan terms: 5, 10, or 15 years
• APRs: 4.95% to 10.59% fixed APR or 3.89% to 10.16% variable rate APR

Pros

• You have the option to defer payments while in school and for as long as six months post-graduation.
• The entire application process can be done online in just 15 minutes at most.
• They offer multi-year approval provides an easier funding for additional years in school without a hard credit pull.

Cons

• The maximum APR is above what some other competitors charge.
• You can’t get cosigner release until after making 36 consecutive on-time payments.

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4) Discover

Discover is one of the biggest private student loan lenders in the nation. The company offers a variety of loan types including law school loans.

Here are the key things you need to know about law school loans from Discover:

• Editorial Rating: 4.52/5
• Loan amounts: Up to 100 percent of school-certified costs
• Loan terms: 20 years
• APRs: 3.74% to 9.37% variable APR; 4.99% to 10.49% fixed rate APR

Pros

• One-time cash reward when you get at least a 3.0 GPA.
• Ability to borrow up to 100% of your school-certified cost of attendance.
• Long repayment period of up to 20 years once the deferment period ends.

Cons

• No cosigner release, meaning the cosigner will be responsible until the end of the repayment period.
• Discover at times may have a higher maximum fixed rate than some other lenders.

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5) ELFI

ELFI started off only offering student loan refinancing, but now also offers private student loans, including law school loans.

Here are the key things you need to know about law school loans from ELFI:

• Editorial Rating: 4.15/5
• Loan amounts: Up to 100% of school-certified cost of attendance
• Loan terms: 5 – 15 years
• APRs: As low as 2.80% variable APR; As low as 3.29% fixed rate APR

Pros

• You do not need to be a full-time student to be eligible.
• No application fees, origination fees, or prepayment penalties.
• The application only takes a few minutes to complete and will not affect your credit score.

Cons

• No discounts available to the borrower.
• The minimum borrowing amount of $10,000 is higher than some of the other lenders.

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Alternatives to Law School Loans

There are numerous law school scholarships and grants available to students. You should contact your school’s financial aid office to ask if the school or your state offers any funding for law school students.

What if I’m Studying for the Bar Exam?

Law school loans are intended to help you pay for tuition and expenses while you earn your degree. If you have finished school and you need additional funding to cover your living expenses or exam-related fees while studying for the bar exam, you should check out our guide to bar study loans.

Bottom Line: Find the Best Law School Loan for You

As you explore ways to pay for law school, remember you always want to borrow as little as possible and keep borrowing costs as low as possible. Start applying for scholarships early, submit your FAFSA right away, max out federal loans, and shop carefully for private lenders so you don’t take on any more debt than you need to.

>> Read more: Refinancing Law School Loans: Top Lenders & Tactics to Consider

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Discover Student Loan Disclosures

3. Lowest rates include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable Margin percentage. The margin is based on your credit evaluation at the time of application and does not change. For variable interest rate loans, the 3-Month LIBOR is 2.00% as of January 1, 2020. Discover Student Loans will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Please click here for more information about interest rates.
See Discover Student Loan Disclosures.