The Bankrate guide to choosing the best student loans for law school
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When shopping for a law school loan, compare APRs across multiple lenders to make sure you’re getting a competitive rate. Also look for lenders that keep fees to a minimum and offer repayment terms that fit your needs. Loan details presented here are current as of the publish date. Check the lenders’ websites for more current information. The law school lenders listed here are selected based on factors such as APR, loan amounts, fees, credit requirements and more.
Best law school student loans in April 2021
| Federal grad PLUS loan |
Fixed: 5.3%
|
10 to 25 years
|
Not specified
|
100% cost of attendance
|
Overall loans
|
| SoFi |
Fixed: 4.3% to 11.52% (with autopay)
Variable: 1.94% to 11.89% (with autopay)
|
5 to 15 years
|
$5,000
|
100% cost of attendance
|
Overall private loans
|
| Earnest |
Fixed: Starting at 3.49% (with autopay)
Variable: Starting at 1.05% (with autopay)
|
Not specified
|
$1,000
|
100% cost of attendance
|
Flexible repayment options
|
| Sallie Mae |
Fixed: 4.75% to 11.98% (with autopay)
Variable: 2.12% to 11.48% (with autopay)
|
Up to 15 years
|
$1,000
|
100% cost of attendance
|
Part-time students
|
| College Ave |
Fixed: 4.24% to 11.46% (with autopay)
Variable: 1.74% to 10.45% (with autopay)
|
5 to 20 years
|
$1,000
|
$150,000
|
Competitive rates
|
| Citizens Bank |
Fixed: 4.38% to 9.72% (with autopay)
Variable: 1.91% to 9.47% (with autopay)
|
5 to 15 years
|
$1,000
|
$225,000
|
Multiyear funding
|
| Ascent |
Fixed: 3.49% to 13.5% (with autopay)
Variable: 2.17% to 11.87% (with autopay)
|
7 to 15 years
|
$2,001
|
$200,000
|
Loans without a co-signer
|
| Discover |
See rates above
|
20 years
|
$1,000
|
Up to 100% of school-certified college costs. Aggregate loan limits apply.
|
Offering rewards
|
Details: Best student loans for law school in April 2021
Federal grad PLUS loan: Best overall
Overview: Federal grad PLUS loans offer loans up to the entire cost of attendance (minus any aid you receive) and a variety of generous repayment options.
Perks: Federal loans offer unique benefits like loan forbearance, income-driven repayment plans and forgiveness when you meet certain criteria. You may also be able to qualify for a loan without a co-signer if you meet certain requirements, so it's a viable option if you have a poor credit history.
What to watch out for: Grad PLUS loans have loan fees (currently at 4.228 percent), and borrowers need to complete entrance counseling before the loan is disbursed. The interest rate may also be higher than that of some private lenders.
| Federal grad PLUS loan |
| Not specified |
| Fixed: 5.3% |
| Up to 100% cost of attendance |
| 10 to 25 years |
| 4.228% loan fee |
SoFi: Best overall private law school loan lender
Overview: SoFi offers competitive rates (both fixed and variable), no fees and myriad repayment options. The entire loan process happens online.
Perks: Borrowers can get a rate estimate without affecting their credit score and get an approval within minutes. SoFi also offers unique benefits, such as a 0.25 percent rate discount for those who make automatic payments and free access to financial advisors, career coaching and more.
What to watch out for: While SoFi doesn't disclose a minimum credit score requirement for its law school loans, its high credit score requirement for personal loans may indicate that the lender is best suited for borrowers with good to excellent credit.
| SoFi |
| Not specified |
| Fixed: 4.3% to 11.52% (with autopay)
Variable: 1.94% to 11.89% (with autopay) |
| $5,000 to 100% cost of attendance |
| 5 to 15 years |
| None |
Earnest: Best for flexible repayment options
Overview: Earnest is a private student loan lender offering flexible repayment options, no late fees and competitive rates.
Perks: Borrowers can skip one payment every 12 months, change their repayment due date and enjoy a grace period of nine months. There is also a 0.25 percent rate discount for autopay customers.
What to watch out for: Earnest borrowers must have a minimum credit score of 650 and at least three years of credit history. Additionally, if you're using a co-signer, the co-signer must have a minimum income of $35,000 per year.
| Earnest |
| 650 |
| Fixed: Starting at 3.49% (with autopay)
Variable: Starting at 1.05% (with autopay) |
| $1,000 to 100% of cost of attendance |
| Not specified |
| Returned payment fee: $8; Florida stamp tax: 0.35% |
Sallie Mae: Best for part-time students
Overview: Sallie Mae is one of the more well-known private student loan lenders that offers flexible repayment terms and minimal fees.
Perks: Sallie Mae doesn't just cater to full-time students; it also offers loans for part-time students. Borrowers benefit from no origination fees, a nine-month grace period, a 0.25 percent autopay discount and a co-signer release if you meet certain credit requirements and make 12 consecutive on-time payments.
What to watch out for: You won’t be able to prequalify for a loan, meaning you’ll be subjected to a hard inquiry and your credit score could be affected.
| Sallie Mae |
| Not specified |
| Fixed: 4.75% to 11.98% (with autopay)
Variable: 2.12% to 11.48% (with autopay) |
| $1,000 to 100% of cost of attendance |
| 15 years |
| Late fee: 5% or $25; Returned check fee: Up to $20 |
College Ave: Best for competitive rates
Overview: College Ave offers loans for U.S. residents and international students. You can check your rate without impacting your credit, and a co-signer release is available to qualifying borrowers.
Perks: The lender offers four repayment options, and its rates are competitive with other big-name lenders like SoFi. There’s also a 0.25 percent autopay rate discount.
What to watch out for: International students must apply with a co-signer. The lender also does not disclose its minimum credit score requirements, so you must complete an application to learn if you qualify.
| College Ave |
| Not specified |
| Fixed: 4.24% to 11.46% (with autopay)
Variable: 1.74% - 10.45% (with autopay) |
| $1,000 to $150,000 |
| 5 to 20 years |
| None |
Citizens Bank: Best for multiyear funding
Overview: Citizens Bank offers student loans through a completely online application process. Existing Citizens Bank customers may be rewarded with a rate discount.
Perks: Borrowers are eligible for a 0.25 percent autopay discount, and customers who have a qualifying Citizens Bank account can get an additional 0.25 percent rate reduction. Citizens Bank also offers a unique multiyear approval option, which allows you to secure funding for additional years in school without needing to go through a hard credit check for each application.
What to watch out for: While the limit is high, Citizens Bank does specify a maximum lifetime loan limit of $225,000.
| Citizens Bank |
| Not specified |
| Fixed: 4.38% to 9.72% (with autopay)
Variable: 1.91% to 9.47% (with autopay) |
| $1,000 to $225,000 |
| 5 to 15 years |
| None |
Ascent: Best for loans without a co-signer
Overview: Ascent is an online lender that is unique in advertising loans for students without co-signers. It offers competitive rates and puts financial literacy at the forefront. Check your personalized rates from Ascent today.
Perks: Many lenders require students to use co-signers, but Ascent has an option specifically for students without one: an "income-based loan" that takes into account the student's school, program, graduation date, major and more. Borrowers who go the traditional route can release their co-signer after 24 months of consecutive on-time payments and meeting other eligibility requirements. Plus, borrowers can receive an up to 1 percent cash back graduation reward and an up to 2 percent rate reduction for automatic qualifying loan payments.
What to watch out for: Loan limits are lower than those of other online lenders: Credit-based loans have a $200,000 maximum per academic year.
| Ascent |
| Not specified |
| Fixed: 3.49% to 13.5% (with autopay)
Variable: 2.17% to 11.87% (with autopay) |
| $2,001 to $200,000 (aggregate) |
| 7 to 15 years |
| None |
Discover: Best for offering rewards
Overview: Discover is known for its credit cards, banking products and personal loans, but it also offers student loans. The lender has generous discounts for setting up autopay, making interest-only payments and receiving good grades in school.
Perks: Borrowers can receive a 0.25 percent autopay discount, a 0.35 percent rate discount for making interest-only payments during school and one-time cash reward for receiving at least a 3.0 GPA (or equivalent).
What to watch out for: Discover doesn’t allow a co-signer release, and there's no prequalification option, meaning you'll have to go through a hard credit check to find out if you qualify.
| Discover |
| Not specified |
| See rates above |
| $1,000 to 100% of school-certified college costs. Aggregate loan limits apply. |
| 20 years |
| None |
Best ways to pay for law school
There are many ways to finance law school — some of which you have to pay back and some of which are "free" money. Here are a few of the best ways to pay for law school:
- Law school loan: With high loan amounts and flexible repayment periods, law school loans allow you to pay off your degree over time, rather than upfront.
- Federal and state grants: The federal government offers Pell Grants to students with financial need, and many states and organizations have their own opportunities for grants that do not need to be repaid.
- Scholarships: Like grants, scholarships do not need to be repaid. Some scholarships are based on financial aid, while others are merit-based.
- Personal savings: Some students may also find it most convenient to pay for law school with their own savings. If you can, keep any funds designated for law school in a high-yield savings account before you need to withdraw them.
How do law school loans work?
Law school loans are a type of graduate student loan, usually offering a higher loan amount than undergraduate loans — since law school typically costs more. There are both federal and private loan options, both offering varying APRs and terms. Loan proceeds are to be used for tuition or related law school expenses, and many loans can be taken out with or without a co-signer.
When you accept a law school loan, your lender will send the funds to your school and you'll begin payments. Typically you have the option to defer principal payments until after graduation (or after the agreed-upon grace period); in that case, you can choose to make interest-only payments each month. Once you have graduated and you reach the end of your grace period, you'll begin making payments on both the principal and interest.
Types of law school loans
There are two broad categories of law school loans: federal loans and private loans.
Federal student loans include Direct Unsubsidized and grad PLUS loans. Unsubsidized loans tend to have lower fees and rates, although loan limits aren’t as high as those of grad PLUS loans.
Private student loan lenders also offer higher loan limits, and many companies brand their products specifically as law school loans. With these loans, you may be able to defer payments while you’re going through clerkship or fellowship in addition to while you're in school. However, private student loans lack some of the benefits of federal loans, such as loan forgiveness programs and forbearance options.
What is the best student loan for law school?
Choosing a student loan lender is a big decision. The right student loan for one person may not be the right loan for another, so it's important to compare all of your options and check your rates when possible.
Federal student loans are a popular option, since they come with one fixed interest rate and benefits like loan forgiveness programs. Private lenders, on the other hand, offer fixed- and variable-rate APRs. Fixed-rate loans will have the same monthly payment throughout the lifetime of the loan, whereas variable ones will fluctuate depending on the index rate. If you’re confident that you can pay off your loan quickly, a variable rate loan could work if you feel you can do so before the rate goes up.
When looking at law school loans, you'll also want to compare repayment options. The best lenders offer many options, such as the ability to make payments while you’re still enrolled or the ability to defer them, so you can choose the best fit for your financial situation.
How to apply for a law school loan
You'll apply for a law school loan in the same way that you'll apply for any other student loan. If you're applying for a federal loan to help with the cost of law school, you'll apply through the Free Application for Federal Student Aid (FAFSA).
If you're applying for a private student loan, you can typically do so on the lender's website. Lenders often provide prequalification tools, so you'll get an idea as to whether or not you meet the approval requirements before you submit a full application.
When applying for a law school loan, you'll need to provide details about your school, personal information like your Social Security number, proof of income, proof of employment and any relevant details about your co-signer, if applicable.
How to get a law school student loan with bad credit
Getting a law school student loan if you have bad credit is possible, but your options could be limited. Lenders tend to offer the best rates to borrowers who have good credit, which means that if you do get approved, your rates may be higher. In other words, you’ll be paying more in interest throughout the life of your loan.
If you're having trouble getting approved or if you're seeing high rates, it may be worthwhile to use a co-signer. Co-signers are common for student loans, since many students don't have enough credit history for a lender to determine their eligibility. On a co-signed loan, the lender takes into account the co-signer's credit profile, which can improve your chances of getting approved for a student loan with better rates and terms.
Frequently asked questions
How much can you borrow with a law school loan?
How much you can borrow with a law school loan depends on which lender you choose. The federal government, for instance, sets a limit of $20,500 per year and $138,500 total for its Direct Unsubsidized Loans for graduate students. Federal grad PLUS loans, on the other hand, let you borrow up to the full cost of education.
Many private lenders also let you borrow up to the full cost of education, although you may also be subject to aggregate limits, whether advertised or not.
Do law school loans cover living expenses?
The "total cost of attendance" covered by law school loans includes tuition, fees, food, transportation, books and housing.
Can law school loans be forgiven?
While law school loans taken out from private lenders typically cannot be forgiven, there are a few ways you could find forgiveness for your federal loans. One method is an income-driven repayment plan, which bases your monthly payment on your income and forgives any remaining balance after 20 to 25 years of payments.
You may also qualify for Public Service Loan Forgiveness if you find a job as a public service lawyer, and some states or schools could offer you loan repayment assistance.
What is the average student loan debt for a lawyer?
The National Center for Education Statistics pins the average law school debt at $145,500. However, the amount of debt you leave with depends entirely on the cost of your school, the length of your program and how much financial aid you receive.
Is going into debt for law school worth it?
Whether law school is worth the cost is a highly personal question — it largely depends on your finances, the amount of debt you have to take out and your job prospects after you graduate. The Bureau of Labor Statistics lists the average lawyer salary as $148,910, while legal occupations as a whole have an average salary of $112,320. While salaries vary by location and specific occupation, those prospects could offset the higher costs of earning your degree.
