Loan Programs
- School of Law Tuition Credit Loan
- Federal Carl Perkins Loan Program
- Federal Direct Loans
- Federal Direct Graduate PLUS Loan
- Private Loan Programs
- Private Bar Study Loans
- Deferments
- Loan Information Chart
- Loan Debt Management
School of Law Tuition Credit Loan
This is a university loan made directly to students who demonstrate exceptional financial need. A typical TCL award for the 2011-2012 academic year is $5,000. Repayment begins one year after the student graduates or leaves school. Interest accrues at the rate of five percent of the unpaid balance during repayment. This loan may require creditworthiness.
Federal Carl Perkins Loan Program
This is a federal and university loan made directly to students who demonstrate exceptional financial need. A typical award for the 2011-2012 academic year is $5,000. Repayment for first-time borrowers begins nine months after the student graduates or leaves school. Interest accrues at the rate of five percent of the unpaid balance during repayment.
Federal Direct Loans
Subsidized
The federal government covers the interest on a subsidized loan while students are in school at least half-time, during six month grace periods and during other authorized periods of deferment. Interest will begin to accrue when students enter the repayment period.Unsubsidized
Interest on an Unsubsidized Direct Loan begins immediately after the loan is disbursed. Students can choose to pay the interest monthly or have it capitalized to the principal at repayment. Graduate law students can borrow up to $20,500 from the Direct Loan Program each academic year. (At least $12,000 of this amount must be in Direct Unsubsidized loans.) The aggregate maximum students may borrow from this program is $138,500. (No more than $65,500 of this amount may be in subsidized loans.) Beginning July 1, 2006, interest rates on Direct Loans has been fixed at 6.8%. A loan fee of one percent will be charged and deducted from each loan disbursement.Federal Direct Graduate PLUS Loan
This is a federally-guaranteed student loan to help meet the costs that exceed direct subsidized and unsubsidized loan limits. This loan carries a 4% loan fee. The interest on the Direct Graduate PLUS Loan is fixed at 7.9%. Eligibility is contingent on creditworthiness.
Private Loan Programs
There are a number of private loan plans tailored to help meet the cost of a graduate education. These private loans provide a source of credit for both full- and half-time graduate students whose educational funding needs exceed personal resources and assistance available through traditional programs. A sample interest rate is: Libor plus 2.45 percent. Students may borrow up to their unmet cost of attendance budget each academic year. Repayment of the principal and interest of the loan begins six to nine months after the student ceases to be enrolled at least half-time. These loans require creditworthiness.
Private Bar Study Loans
There are also Bar Study Loans available from various private lenders. Eligible borrowers can request up to $15,000 with approval subject to satisfactory credit history. Students can only borrow from one private agency for a Bar Study Loan. Most bar loans have variable interest rates, currently ranging from 5 to16%. Please visit the lender's website for information regarding guarantee fees, origination fees and repayment options. Note that you are eligible to apply for bar loans 6 months prior to graduation and 6 months after graduation.
Deferments
Students with prior outstanding student loans may qualify for deferment and/or forbearance provisions when these students are enrolled at least half-time in law school. Students must formally request a deferment or forbearance through the procedures established by the holder of the loan, and must continue making payments until notified that the deferment has been granted.
Loan Information Chart
| Loan Type | Eligibility/Loan Limit | Interest Rate/Fee | Repayment / Deferment |
|---|---|---|---|
Federal Carl Perkins Loan Program (Formerly NDSL) |
U.S. Citizen or eligible resident. Awarded by USD Financial Aid Office. Must demonstrate exceptional financial need. Annual limit $5,000. Cumulative Perkins/NDSL borrowing limit of $30,000 including undergraduate loans. |
5% fixed interest rate federally subsidized. No loan fees. |
10 year repayment period. Deferment provisions similar to those of Federal Direct Loan outlined below. Repayment begins nine months after the student is no longer enrolled at least half-time. The federal government pays the interest while the student is in school at least half-time and during the nine month grace period. |
Federal Direct Loan |
Currently enrolled in school at least half-time. U.S. Citizen or eligible resident. For subsidized loan, must demonstrate need as determined from the FAFSA. School certifies eligibility. Annual Maximum: Aggregate Maximum: |
Interest rate is fixed at 6.8%. For the school year 2011-12, a loan fee of 1%. A portion of the total fees will be deducted from each loan disbursement. |
Repayment begins six months after student is no longer enrolled at least half-time. 10-30 year repayment period depending on indebtedness and repayment option. Direct Subsidized Loan: Direct Unsubsidized Loan: |
USD Tuition Credit Loan |
U.S. Citizen or eligible resident. Awarded by USD Financial Aid Office. Generally must demonstrate financial need. |
5% fixed interest rate. No loan fees. |
10 year repayment period. Repayment begins one year after the student is no longer enrolled at least half-time. No interest occurs while the student is in school at least half-time and during the one year grace period. |
Note: Loan criteria and interest rates may change without notice.
Loan Debt Management
The decision to acquire any form of debt is a serious obligation. It is helpful to anticipate your funding needs and to continuously monitor your level of debt at any given time. You can make it easier to deal with this long-term financial obligation by implementing sound debt management practices. It may be helpful in determining a personal debt management strategy to consider the following.
- Analyzing income projections
- Estimate how far your paycheck will go after you graduate
- Consider your repayment options including loan consolidation
- Consider incentive repayment programs and stay current on your educational loans
According to federal law, some types of federal loans must offer graduated or income-sensitive repayment options. Under these plans, you may be able to make lower monthly loan payments for the first few years when your income may be limited. Payments are gradually increased over a period of years as your income rises. Another alternative to consider is consolidation of your federal loans. This option allows you to consolidate your federal loans into a single loan and reduce your monthly student loan payment by as much as 20% to 40% by extending the repayment period. However, by extending your repayment period you will incur additional interest charges. It is best to discuss the various repayment options with your student loan lender. The staff of the Financial Aid Office will provide various informational tools to thoroughly look at the advantages and drawbacks to federal loan consolidation. Consolidation options may also be available to refinance private/alternative educational loans depending on the lender.
For more information, see the budgeting section of our website.
