Financial Aid For Law School
Types of Aid | FAFSA Form |
Student Loan Programs | Grants
& Scholarships | Additional Sources
Law school is a
considerable financial commitment. Typically, law students finance their
own education easily enough through a variety of scholarships, grants, and
loans (both federal and private), as well as in some cases financial aid and
work-study jobs. For full-time students, this money goes not only to
tuition, but also to books and materials, housing, transportation, food and
entertainment, and job seeking costs. Law school financial aid offices can
assist students in identifying funding methods appropriate to their
particular circumstances, and in most cases, it is not very difficult to
arrange the combination of funding sources, most of which likely will be
loans.
The reality of
actually paying for law school is often one which goes rather unnoticed
until graduation. At that point, it is not at all uncommon for a typical
student to leave a top private law school with over $100,000 in loan
debt, which goes into repayment after a (very) short grace period following
graduation.
The resulting
financial burden incurred by most students after three years of law school
often necessitates taking an initial job in private practice, meaning in
general large (100+ attorneys) or mid-sized (50+ attorneys) law firms which
service a variety of paying clients, a great many of which are corporations
or other large institutions. Such firms are generally structured in a
pyramid format, having far more junior attorneys (typically called
"associates") than senior attorneys (typically called "partners"). The
partners are equity holders in the firm, responsible for bringing in clients
and generating work. The associates are the worker bees of the firm, who
assist on a variety of matters for the firm's clients, as their experience
and aptitude show they are able. The upside to such a practice setting
includes a high level of pay, a considerable amount of prestige, and
oftentimes excellent training. The downside, and for some it is
significant, includes long hours, mixed feelings of job satisfaction, and a
high level of turnover (whether planned or unplanned) among the junior
ranks. For most attorneys, their big firm job is a stepping stone to
something else, though what lies next varies tremendously from person to
person.
This combined reality of heavy law school debt and the resultant likelihood
of having to take a first job in private practice is something that really
should be considered by prospective law school students in assessing whether
law school is an appropriate personal career step. That means that your
examination of practice settings should include, at a minimum, some
understanding of private practice and some exposure to law firms. In
addition, you should develop some knowledge of the alternatives to private
practice, to which attorneys frequently turn after several years in a law
firm, and how firm jobs are a help or a hindrance to getting that second (or
third) job. Finally, if private practice is something which truly does not
appeal to you, you should devote time to understanding what alternatives
exist for young attorneys – for example, loan forgiveness programs for
public service work – as well as their high competition level and relatively
low likelihood of access.
Types of Aid
Law school
tuition is costly, yet some financial aid is available, in addition to the availability of student loans. The key is to apply
for aid early and to keep records of every form and letter you send out
regarding financial assistance. The information provided below is from the
publication titled
Financial Aid For Law School: A Preliminary Guide, published by
the Law School Admission Council.
There are three kinds of aid:
-
Grants and Scholarships
given by the law school. These "gifts" are awarded based on merit and financial
need and there is no expectation of repayment. You must apply directly to
each school to be considered for independent awards.
-
Need-based loans
distributed primarily through federally funded grant programs. These are
referred to as Title IV programs and include grants, loans and work-study programs.
-
Fellowship awards given
in exchange for some type of work program.
The law schools
themselves provide over $100 million of their own funds to enable students
to attend. Institutions receive this money from several sources, including
tuition, fees, government grants and alumni donations. Outside agencies,
clubs and fraternal organizations also offer financial support to law
students. Many award scholarships and grants, some need-based, some
merit-based and some a combination of the two.
In addition, private
lenders have become essential partners in helping to finance law school; if
you need help in identifying private lenders, call individual law schools
and ask for recommendations of lenders with whom they have positive
relationships.
FAFSA Form
Although many schools have their own financial aid forms, for the most part,
students may apply for need-based financial aid using just one need-analysis
form, plus a separate application for loan programs. This is true regardless
of how many law schools are being considered, since several schools can be
designated on the need-analysis form. The Free Application for Federal
Students Aid (FAFSA) is the required form developed by the U.S. Department
of Education and can be obtained at
www.fafsa.ed.gov, from the
Wesleyan Financial Aid office, or from any law school at which you are
applying for admission.
Student Loan Programs
In addition to
financial aid programs and forms, most law students apply for, and receive
student loans as a primary means of funding their legal education. The
following are the most commonly used loan programs:
- Stafford Loan: Loans
made by an outside lender that are insured by a guaranty agency and
reinsured by the federal government. There are both Subsidized and
Unsubsidized Stafford loans. Neither form of Stafford
loan requires interest payments during school, and Subsidized Stafford loans
do not accrue interest during the law school years.
- Perkins Loan:
A
federally-funded and need-based low interest loan awarded by the law school.
- Supplemental Loans for Students (SLS):
Additional loans not based on need, but, like Stafford Loans,
guaranteed by the federal government. To apply, you must complete a
federally-approved need-analysis form, as well as a SLS application. The
government requires SLS borrowers to apply for a Stafford Loan before
applying for a SLS.
- PLUS Loan: Non-need based
loans for parents of dependent students. These are guaranteed by the
federal government and are available from banks, savings and loans, and
credit unions.
- Law Access Loan (LAL):
Non-need based
loan available from Law Services and sponsored by the Law School Admission
Council. Law students who are considered credit-ready, that is, have never
defaulted on a loan, declared bankruptcy or are already debt over-burdened,
and have a satisfactory credit history may borrow through this loan. LAL may
be used to offset the family contribution, and students are expected to
apply first for an SLS and a Stafford Loan.
When applying for federal grants, you
may apply as an independent candidate. For money awarded by law schools,
they may ask for your parents’ tax return information and base your award on
this information.
Grants and Scholarships (awards you do
not have to repay)
- CLEO (Council on Legal Education Opportunity):
Approximately
250 fellowships (grants) per year are awarded to promising law students from
disadvantaged backgrounds. Awards are based on need, although other factors
such as academic promise and parents' level of education are considered.
Before starting law school, CLEO "fellows" attend a six-week summer
institute held at one of seven law schools around the country. For further
information, visit their Web site at
www.cleoscholars.com.
- Patricia Roberts Harris Fellowship Program:
A grant program
designed to increase the professional opportunities for those
underrepresented in certain fields, including law, and also for students
choosing to enter public service. The Harris Fellowship is allocated to
individual law schools, which then have the responsibility for awarding the
grants to students. For further information, contact the law school
financial aid office or:
US Department
of Education
Incentive
Programs
Patricia
Roberts Harris Fellowship
400 Maryland Avenue
Washington,
DC 20202
- State Grants: Many states
have their own scholarship programs. Contact individual state education
departments.
Additional Sources of Aid
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