How to Pay for Law School: The Top 4 Strategies You Need to Know

According to the Law School Admission Council, a law degree can cost upwards of $150,000. While there are more affordable law programs, it isn’t uncommon for law school graduates to end up in a fair amount of student debt. If you’re headed to law school any time soon, the reality of how much it costs may be setting in…hard.

Before you let this number consume your mind, know that there are a variety of ways to pay for law school. Here’s how you can do it.

#1: Scholarships

Scholarships are a form of free money because they don’t need to be paid back. So, the more scholarships you can rack up, the better.

Where Can I Find Scholarships for Law School?

Law school scholarships can come from various sources such as professional organizations, your university, the Law School Admission Council, and search engines.

Professional Organizations

Professional organizations are typically focused on furthering the development of individuals within their industry. So, many professional organizations offer scholarships to students pursuing a degree in their field. Organizations such as the American Bar Association and the National Bar Association both offer compelling scholarships options for law school students.

Your University

Universities also tend to offer a hefty amount of scholarship money. While most scholarships are merit-based, some university scholarships may require you to meet a certain level of financial need. Sometimes, your university will automatically award you a scholarship upon acceptance. Other times, you may need to reach out to your school’s financial aid office to see what scholarships are available to you.

The Law School Admission Council

The Law School Admission Council (LSAC) website has a frequently-updated list of reputable law school scholarships, with many designed specifically for marginalized students. With over twenty scholarships on the list, LSAC is a great source for trustworthy scholarship programs.

Search Engines

Scholarship search engines will allow you to refine your scholarship search a bit more than the other options. Sites like Sallie Mae’s Scholarship Search Tool and Bold.org’s Scholarship Search Engine allow you to filter your search based on a variety of factors such as your year in school, your interests, your LSAT score, and more. This allows you to find scholarships that match your unique qualifications, which increases your chances of winning the scholarship once you apply.

What LSAT Score Do I Need to Get a Scholarship?

Generally speaking, you’ll need an LSAT score of 165 or higher to be a competitive applicant for most law scholarships. That said, there are a variety of law scholarships catering to applicants with lower LSAT scores.

#2: Grants

Grants are another form of free money, so you’ll want to maximize how much you can receive in these, too. That said, grants are almost always need-based, so they won’t be accessible to every law school student.

If you do demonstrate financial need, there are a few main places you’ll want to look for grants.

University Grants

University grants are similar in nature to university scholarships, except they’re typically based on financial need rather than merit. If you receive a grant from your university, you’ll usually see it on your financial aid package. That said, your university may have grant programs that require a separate application. Reach out to your school’s financial aid office to inquire about any grant programs they may offer.

Private Grants

Private grants are offered by private institutions such as nonprofit organizations, professional organizations, and businesses. To secure a private grant for law school, you will typically need to submit an application with each individual organization that may require your transcript, an essay, and your FAFSA application. Because each private organization is its own unique entity, they may have different eligibility or application requirements.

The Law School Admission Council, for example, offers a variety of private grants such as pipeline grants, grants for underrepresented groups, and outreach grants.

Can Pell Grants be Used for Law School?

Unfortunately, Pell Grants cannot be used for law school. The Pell Grant is an award given to undergraduate students.

#3: Work-Study

Work-study is a form of need-based financial aid that is considered earned money. While you may be awarded a specific amount in work-study, you’ll need to complete a work-study job to receive that money.

Due to the caliber of law school, many universities do not participate in the work-study program or limit the number of work-study hours a first-year student can complete. For second- and third-year law students, universities typically limit work-study employment to 20 hours per week.

Because work-study requires you to complete working hours to receive it, you won’t be able to use work-study funds to cover tuition expenses up front. However, a work-study role can help you cover living expenses while in school.

If you’re attending law school part-time while working, always check with your employer to see if they offer tuition assistance programs to help fund your law school education. If not, it may be worthwhile to explore other part-time employment opportunities that offer tuition assistance or programs to cover education expenses.

#4: Loans

After pursuing all free money and earned money options, you may need to explore borrowed money options to cover that last bit of tuition. In general, law school loans come in two forms: federal and private.

Federal Student Loans

To be eligible for federal student loans, you will need to submit the Free Application for Federal Student Aid (FAFSA). As a law school student, you are eligible for two types of federal loans: Direct Unsubsidized and PLUS Loans.

With Direct Unsubsidized Loans, you are eligible to borrow up to $20,500 per academic year. There is a lifetime borrowing limit of $138,500.

With Direct PLUS Loans, you are eligible to borrow up to the cost of attendance minus other aid you’ve received. There is no lifetime limit for Direct PLUS Loans. You will, however, need to pass an adverse credit check to be able to borrow Direct PLUS Loans.

Private Student Loans

To borrow a private student loan, you will need to submit an application with the lender of your choice. To see what rates you would qualify for with several lenders at once, complete the Sparrow form.

How Much Can I Borrow in Law School Loans?

The amount you can borrow in private student loans will depend on the individual lender’s borrowing limits. Annually, most private lenders will allow you to borrow up to the cost of attendance at your law school minus other aid you’ve received.

Some lenders will have lifetime borrowing limits, which limit how much you can borrow cumulatively. For example, some lenders have a lifetime borrowing limit of $500,000. Note that this limit may include undergraduate loans as well. So, if you previously borrowed a loan to fund your undergraduate academic career, that loan amount may count towards your overall borrowing limit if you plan to use the same lender for law school loans.

What Do I Need to Qualify for a Private Student Loan for Law School?

Each private lender will have its own unique set of borrower eligibility criteria. In general, you’ll need to:

1. Be a U.S. citizen, permanent resident, or eligible non-citizen
2. Be enrolled in an eligible program at least half-time
3. Have a solid credit score, or a cosigner with a solid credit score
4. Have a steady income, or a cosigner with a steady income

What Can I Use Law School Loans For?

Both federal and private student loans will cover traditional law school expenses such as tuition, room and board, and fees. Private student loans, however, can cover a wider array of expenses including the bar exam. Some private lenders offer a specific bar exam loan designed to cover all bar exam expenses, from the actual exam cost to living expenses during your exam prep.

Best Student Loans for Law School

While there are a variety of lenders ready to help you cover the cost of law school, the following are our top picks.

Arkansas Student Loan Authority

The Arkansas Student Loan Authority (ASLA) is an Arkansas state entity that provides educational funding for all Arkansas students who wish to attend higher education institutions. ASLA is a great option for law students either from Arkansas or pursuing a degree in Arkansas.

Ascent – Cosigned Loans & Non-Cosigned Loans

Ascent is an online lender that offers educational funding for students. They offer three types of student loans: a traditional cosigned loan, a non-cosigned credit-based loan, and a non-cosigned outcomes-based loan. Collectively, the three options provide a great selection for law students who do not have a cosigner available, are international or DACA students, or have lower credit scores.

Brazos

Brazos is a non-profit lender offering educational funding through private student loans available only to Texas Residents. They offer a wide range of loan options, covering undergraduate, graduate, MBA, law, medical, dental, veterinary, and doctoral degree programs. Brazos is a great option if you live in Texas, have strong credit, and want competitive interest rates.

College Ave Student Loans

College Ave Student Loans offers educational funding for undergraduate, graduate, professional, and career school students, and parents of students. It’s a great option if you are seeking a more flexible repayment term that allows you to find a loan that matches your budget.

Earnest

Earnest’s student loans provide funding to undergraduate, graduate, and professional students. They’re a great option if you are seeking competitive interest rates, unique borrower perks, and flexible repayment options that allow you to find a loan that matches your budget.

LendKey

LendKey is an institution that offers educational funding to undergraduate and graduate students. By connecting borrowers with a network of 100+ lesser-known credit unions and community banks, LendKey allows you to work with smaller lenders with low rates and good customer service, rather than traditional lending institutions. It’s best for students with strong credit who want generous cosigner release and forbearance policies.

MPOWER

MPOWER is an online lender that offers educational funding to international, domestic, and DACA students. They offer non-cosigned undergraduate and graduate student loans. It is best for international students and DACA students who don’t have a credit history and can’t access a qualified cosigner.

Prodigy Finance

Prodigy Finance is an online lender that provides funding to international students. They offer non-cosigned graduate student loans. They’re a good option for international students who don’t have a credit history and can’t access a qualified cosigner.

Sallie Mae

Sallie Mae is an online lender that provides educational funding to students. They offer cosigned and non-cosigned undergraduate, graduate, and career training student loans. They’re a good option for students seeking competitive interest rates with a creditworthy cosigner.

SoFi

SoFi offers educational funding to undergraduate, graduate, law, and MBA students, and parents of students. With competitive interest rates, a diverse set of repayment options, and exclusive member benefits, SoFi is a good fit for borrowers with a strong credit score or a creditworthy cosigner.

Final Thoughts from the Nest

Borrowing money to pay for law school is incredibly common. In fact, the vast majority of attorneys take on student debt to pay for their J.D. So while financing such an expensive degree may feel overwhelming, know that you’re not alone.

Begin the process by exploring scholarship and grant options, see if you qualify for work-study, then dive into the loan process as your last step.

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