Best law school loans for 2024

Given the high costs of law school, the majority of Juris Doctor (J.D.) students take out student loans as they work toward their degrees. According to a survey by the American Bar Association (ABA), about 90% of law school students take out loans to finance their legal or undergraduate education, and borrowers graduate with an average law school debt of $108,000.

As a law school student, you have several options for law school loans, including federal loans from the Department of Education and private loans from a bank or other lender. Understanding how law school loans work can help you make the best financing decision for your education.

Current private student loan rates

Best law school loans

College Ave: Best for extended grace periods

Custom Choice: Best for discounts and rewards

Sallie Mae: Best for specialized loans

Methodology

We evaluated these student loan lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted, and more. Our team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. Each data point was verified to make sure it was accurate and up to date.

What are law school loans?

Law school loans are any type of student loan that can finance a law school education. You can find student loans designed specifically for law school, as well as general graduate school loans that you can use to pay for law school.

Many students take out law school loans to cover tuition, fees, and living expenses. According to LawHub's analysis of ABA data, the average annual cost of tuition is $30,554 to $43,590 at public schools, and $55,963 at private law schools.

When you take out a law school loan, your lender will send the funds directly to your school. The financial aid office will apply the loan to tuition and fees before sending any remaining amount to you.

Many student loans don't require in-school repayment; you can usually postpone payments while you're studying and for six to nine months after you graduate. After your grace period ends, you'll start paying back the amount you borrowed, along with interest charges and any fees. However, you could choose to start making interest-only payments before you graduate to cut down on interest charges.

Types of law school loans

As a law school student, you can choose between two types of federal student loans, as well as private student loans:

• Federal Direct Unsubsidized Loans: These are generally your best option for law school loans, since they don't require a credit check and come with competitive fixed interest rates. Plus, these loans are eligible for various income-driven repayment plans and loan forgiveness programs. However, you can only borrow up to $20,500 per year.
• Federal graduate PLUS loans: Grad PLUS loans can cover your school's full cost of attendance, minus any other financial aid you've received. They're also eligible for federal repayment plans and forgiveness programs. On the downside, they have the highest interest rate and loan fee of any type of federal loan. If you have adverse credit, you may need to apply with an endorser or document extenuating circumstances to take out a grad PLUS loan.
• Private law school loans: You can also borrow graduate or law school loans from a private lender, such as a bank, credit union, or online lender. Rates and terms will vary, and you may get to choose between a fixed and variable interest rate. You'll typically need to fulfill a lender's requirements for credit and income to get approved, or apply with a cosigner who has strong credit. Borrowers with the best credit tend to get the lowest rates.

Federal loans offer a greater array of borrower protections and perks than private student loans, including income-driven repayment plans, generous deferment and forbearance options, and loan forgiveness eligibility. However, Direct Unsubsidized Loans come with borrowing limits, and you may need additional funding for school.

In this case, it's worth comparing grad PLUS loans with private loans to see which would give you a better deal. Grad PLUS loans come with federal benefits, but you may be able to get a lower rate on private loans if you have excellent credit.

Eligibility criteria for law school loans

The eligibility criteria for law school loans vary by loan type. Here are the borrowing requirements for each type:

• Federal Direct Unsubsidized Loans: These loans are available to any student who qualifies for federal financial aid and is attending an eligible program. To access these loans, you must submit the Free Application for Federal Student Aid (FAFSA). You'll also need to meet the general eligibility requirements for federal student loans, including being a U.S. citizen or eligible noncitizen, having a valid Social Security number, and maintaining satisfactory academic progress in school.
• Federal grad PLUS loans: You'll need to submit the FAFSA to get a grad PLUS loan, as well as a separate PLUS loan application. Along with meeting general eligibility requirements for financial aid, you can't have adverse credit, such as a bankruptcy in the past 5 years. If you have adverse credit, you can still qualify if you apply with an endorser or document extenuating circumstances for adverse credit and undergo credit counseling.
• Private law school loans: Private loan requirements vary by lender, but most look for decent credit, a stable income, and an acceptable debt-to-income ratio (how much of your gross income you use for debt payments each month). If you can't meet these financial requirements on your own, you may still get approved by applying with a cosigner who has good credit.

Interest rates and fees

The interest rates and fees on federal student loans are set by Congress each year, so the rate you get depends on when you borrow. The rates for private loans, on the other hand, vary by lender and are largely based on your credit and financial profile.

Here's what you can expect with the various types of law school loans. The federal student loan rates are for the 2024-25 academic year.

Repayment options for law school loans

Federal law school loans are eligible for a variety of repayment plans, including:

• Standard Repayment Plan: With this plan, you make fixed monthly payments over a span of 10 years.
• Income-driven repayment (IDR) plans: These plans adjust your monthly payments to a percentage of your discretionary income, and can lead to loan forgiveness after 20 or 25 years (depending on the plan). Your options typically include Pay As You Earn (PAYE), Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Saving on a Valuable Education (SAVE). However, the SAVE Plan is on a temporary stay due to legal challenges, and PAYE is not currently accepting new enrollments.
• Graduated Repayment Plan: This 10-year plan has you make smaller payments at first that gradually increase over time.
• Extended Repayment Plan: With this plan, your payments may be fixed or graduated over a 25-year term.

Private student loans don't have as many options, but you typically get to choose a repayment term between five and 15 or 20 years, depending on the lender. You can usually defer payments while you're in school and for six to nine months after you graduate, or make full or interest-only payments.

Whether you borrow federal or private student loans, it's worth considering making in-school payments, even though you don't have to yet. By starting repayment early, you can cut down on interest charges and reduce the amount you owe after graduation.

You might also explore refinancing your student loans for better rates. There's no cost to refinance student loans, and you might get a better rate, lower monthly payment, and new repayment terms that better fit your budget.

However, refinancing federal student loans turns them private, meaning you lose eligibility for federal repayment plans, forgiveness programs, and other protections. It's generally not a good idea to refinance federal student loans unless you're confident you don't need any of these benefits now or in the future.

Loan forgiveness programs for law school loans

As a law school graduate, you have options for student loan forgiveness if you have federal student loans. If you have private loans, you may be able to take advantage of repayment assistance. Some options include:

• Public Service Loan Forgiveness (PSLF): This program will forgive your remaining federal student loan balance after making 120 student loan payments on an income-driven repayment plan while working full-time at a qualifying not-for-profit or government organization.
• Income-driven repayment forgiveness: You can have your remaining federal student loan balance forgiven after making payments on an income-driven repayment plan for the set repayment term (20 or 25 years, depending on the plan).
• John R. Justice (JRJ) Grant Program: This program offers student loan repayment assistance to those who work as local or state prosecutors or public defenders. Funding changes on an annual basis.
• Department of Justice Attorney Student Loan Repayment Program: Attorneys who work for the Department of Justice can apply for this program, which offers up to $6,000 per year, with a maximum of $60,000 in student loan assistance. This program requires at least a 3-year service commitment.

Many states also offer loan repayment assistance programs (LRAPs), which may provide assistance toward both federal and private student loans. Plus, some law schools have LRAPs for alumni who go on to work in public service.

Pros and cons of law school loans

Law school loans can be a useful financing tool and enable you to attend a program that you otherwise couldn't afford out of pocket. However, there are both benefits and downsides to taking out student loans for law school.

Many loans don't require immediate repayment, so you don't have to worry about paying back your debt until after you graduate and get a job. As you make on-time payments on your loans, you should also see your credit score improve.

On the downside, law school debt can be a drain on your finances. You may already owe money from your undergraduate education and could face high payments after you graduate with your degree. You'll have less disposable income after you graduate and may have to delay certain milestones, such as buying a home. Falling behind on student loan payments can also damage your credit and eventually lead to default.

Before borrowing student loans, make sure you understand what your future payment obligations will be. Creating and following a budget while in school and beyond can help you manage your money wisely.

Law school loans FAQ

What types of loans are available for law school?

Both federal and private student loans are available for law school. Your options include Direct Unsubsidized Loans, grad PLUS loans, and private student loans.

Can law school loans be forgiven?

Federal law school loans are eligible for forgiveness through the Public Service Loan Forgiveness program or an income-driven repayment plan. You might also qualify for a student loan repayment assistance program, which may help pay off both federal and private law school loans.

How do I apply for law school loans?

To apply for Direct Unsubsidized Loans for law school, you must submit the FAFSA. If you want to apply for a grad PLUS loan, you must submit the FAFSA and a PLUS loan application on the Federal Student Aid website. For private law school loans, you can apply directly with a lender online. You'll fill out an application form and provide documentation, such as your tax returns.

What are the interest rates for law school loans?

The interest rates for law school loans vary, depending on the type of loan. Direct Unsubsidized Loans have an interest rate of 8.08% for the 2024-25 academic year, and grad PLUS loans have a rate of 9.08%. Private student loan rates vary, but may start around 4.00% and go up to 18.00%.