Best private loans for law students

Introduction to private law school loans

The best private loans for law students are from Sallie Mae, College Ave, and Ascent—offering specialized bar study coverage, extended grace periods for clerkships, and competitive rates. While federal loans should be the first step, these lenders bridge the gap for tuition, living expenses, and bar exam preparation.

For families, utilizing these options means protecting long-term financial stability and credit health; for students, it offers the necessary capital to focus on rigorous coursework and the bar exam without immediate repayment pressure. Law school presents a unique financial challenge. Unlike undergraduate programs, the path to a JD involves higher tuition costs, extended study periods for the bar exam, and potential delays in income during judicial clerkships. While federal aid covers a significant portion of these costs, many students face a funding gap that requires careful management.

Navigating this landscape requires balancing the safety of federal protections with the flexibility and potential cost savings of private lending. Whether you are a parent looking to support a future attorney or a student managing your own debt portfolio, understanding the specific features of law school loans is essential for financial success.

By the end of this guide, you will be able to:

• Identify the top private lenders specifically serving law students and their unique benefits.
• Compare interest rates, repayment terms, and bar study loan options effectively.
• Determine when to use private loans to supplement federal financial aid.
• Develop a strategy for application timing and cosigner selection to secure the best rates.

Understanding law school financing landscape

Before comparing private lenders, it is crucial to understand where they fit in the broader hierarchy of law school financing. The most effective strategy for funding a legal education typically follows a “federal-first” approach, utilizing government-backed options that offer income-driven repayment plans and potential forgiveness programs.

The financing sequence generally begins with Federal Direct Unsubsidized Loans. According to StudentAid.gov, graduate students can borrow up to $20,500 per year in Direct Unsubsidized Loans for the 2025–2026 academic year. These loans are not based on financial need, but they do accrue interest while the student is in school.

Once the $20,500 limit is reached, many students turn to Federal Direct Grad PLUS Loans. These allow borrowing up to the full cost of attendance minus other financial aid. However, Grad PLUS loans often carry higher interest rates and significant origination fees compared to other options. According to StudentAid.gov, Grad PLUS loans carry an origination fee of over 4% for disbursements made between October 1, 2024 and September 30, 2025. Learn more about federal loan options.

This is where private student loans play a pivotal role. They are frequently used to fill the gap when federal limits are exhausted or when the cost of Grad PLUS loans—specifically the origination fee—makes a private loan with a high credit score mathematically superior. Additionally, private lenders offer specialized “bar study loans” to cover living expenses during the critical months between graduation and the bar exam, a period when federal student aid is no longer available.

Essential criteria for evaluating law school private loans

Evaluating private loans for law school requires looking beyond just the advertised interest rate. Because the trajectory of a legal career often involves specific milestones—such as the bar exam and potential clerkships—the “best” loan is one that offers flexibility during these transition periods.

According to Mark Kantrowitz, financial aid expert, “Private loans can offer variable interest rates, which may be lower than federal fixed rates initially.” This potential for savings is a primary evaluation criterion, but it must be weighed against other factors.

Interest rates are heavily influenced by creditworthiness. Lenders typically offer tiers of rates based on the borrower’s (or cosigner’s) credit score and debt-to-income ratio. It is vital to check if a lender offers a “soft pull” rate check, allowing you to see potential rates without impacting your credit score. Additionally, consider whether the lender offers an autopay discount, which according to lender disclosures as of January 2025 usually reduces the rate by 0.25%.

Most private lenders allow students to borrow up to the school-certified total cost of attendance (COA) minus other aid received. However, according to lender disclosures as of January 2025, some have aggregate lifetime limits (e.g., $180,000 for all student loans). Law students attending expensive private institutions or those with significant undergraduate debt should ensure the lender’s aggregate limit accommodates their total funding needs.

Standard graduate loans may not account for the unique timeline of a law student. Look for lenders that explicitly offer:

• Bar exam deferment: The ability to postpone payments while studying for and taking the bar exam.
• Clerkship deferment: Options to defer payments or make interest-only payments during a judicial clerkship, where salaries are often lower than private practice.
• Grace periods: A standard 6-month grace period is common, but some lenders offer up to 9 months for law students, aligning with bar results timing.

Since many law students rely on parents or guardians as cosigners to secure lower rates, the ability to release that cosigner from the loan obligation is a critical evaluation point. Review the specific requirements for release, such as according to lender disclosures as of January 2025, the number of on-time payments (typically 12 to 48 months) and income verification requirements once the graduate is employed.

Top private lenders for law students: detailed comparison

When comparing private loan options, three lenders consistently stand out for their specific attention to the needs of law students: Sallie Mae, College Ave, and Ascent. Each offers distinct advantages depending on whether the priority is bar study support, repayment flexibility, or independent borrowing.

The following table outlines the key features for law student loans as of early 2025.

Source: Lender disclosures and terms (rates and benefits effective as of January 2025).

Sallie Mae is a strong contender for law students due to its dedicated Bar Study Loan. This product is distinct from their standard graduate loan and is designed specifically to cover living costs after graduation. According to Sallie Mae’s current disclosures as of January 2025, they offer up to $15,000 for bar study expenses with a generous grace period for this specific product, acknowledging that students cannot work full-time while preparing for the bar. Their cosigner release period is among the shortest in the industry, which is attractive for students expecting high initial earnings in the private sector.

College Ave stands out for its customizable repayment terms. According to College Ave’s disclosures as of January 2025, borrowers can choose from multiple loan term lengths (e.g., 5, 8, 10, or 15 years), allowing them to tailor the monthly payment to their expected budget. This flexibility is valuable for students who may be unsure if they will enter public service or private practice immediately. Their application process is streamlined, and they provide clear calculators to estimate costs before applying. Compare more private loan options here.

Ascent is unique for its “Outcomes-Based” loan options, which allow juniors, seniors, and graduate students to qualify without a cosigner based on their future earning potential and school performance. For law students who may not have a creditworthy cosigner but are attending reputable programs, this can be a vital resource. According to Ascent’s disclosures as of January 2025, Ascent also offers a 9-month grace period on their law school loans, providing a longer runway after graduation than the standard 6 months.

Law school-specific loan features explained

Beyond standard tuition financing, law students have access to specialized loan products and features designed to address the specific hurdles of legal education. Understanding these nuances can save thousands of dollars and significantly reduce stress during the transition from student to attorney.

A Bar Study Loan is a private loan designed to cover the costs associated with sitting for the bar exam. Unlike standard student loans, these funds are often disbursed directly to the student rather than the school. This liquidity is essential for paying for bar review courses—which according to Barbri and Themis pricing as of 2025 can cost between $2,000 and $4,000—as well as bar exam fees and living expenses (rent, food, utilities) during the study period.

Most lenders allow you to apply for a bar study loan in your final semester or up to a few months after graduation. According to lender disclosures as of January 2025, the aggregate limits for these loans typically range from $12,000 to $16,000, depending on the lender.

The timeline for a law graduate is often delayed compared to other master’s graduates. Bar exam results in many jurisdictions are not released until late October or November for July test-takers. Consequently, a standard 6-month grace period might end just as a graduate is receiving their license to practice. Lenders like Ascent offer a 9-month grace period to align with this reality, ensuring repayment does not begin until the borrower is likely to be employed as a licensed attorney.

Judicial clerkships are prestigious positions that boost long-term career prospects but often come with significantly lower salaries compared to associate positions at law firms. Recognizing this, some private lenders offer specific clerkship deferments. This allows borrowers to postpone full principal and interest payments for the duration of the clerkship (usually 1-2 years), helping them manage cash flow without defaulting or facing financial hardship during this career-building phase.

Because law school is a three-year program often following four years of undergraduate study, law students accumulate higher debt loads. According to lender disclosures as of January 2025, lenders adjust for this by offering higher aggregate loan limits for JD students compared to other graduate programs. For example, while a standard graduate limit might be $150,000, limits for medical and law students can often exceed $200,000 to accommodate the higher cost of attendance at top-tier institutions.

Interest rates and cosigner strategies for law students

Securing a competitive interest rate is the most effective way to minimize the total cost of a private loan. For law students, the decision often comes down to choosing between fixed and variable rates and determining the strategic value of a cosigner.

As reported by lender disclosures as of early 2025, private student loan interest rates generally range from approximately 4.5% to over 15%, depending heavily on creditworthiness. Borrowers with excellent credit (scores of 750+) qualify for the lowest advertised rates. It is important to note that while federal Grad PLUS loans have a fixed rate, private loans offer a choice. In a high-rate environment, a fixed rate provides stability, while a variable rate might start lower but carries the risk of increasing.

According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” This is particularly true for students coming directly from undergraduate programs with limited credit history or income. Adding a creditworthy cosigner—typically a parent or guardian—can drastically reduce the interest rate offered. According to lender data as of January 2025, the difference between a cosigned and non-cosigned loan can be several percentage points, translating to thousands of dollars in savings over the life of the loan.

For parents concerned about the long-term liability of cosigning, the “cosigner release” feature is a vital exit strategy. This provision allows the primary borrower (the student) to apply to remove the cosigner from the loan after meeting specific criteria, such as making 12 to 48 consecutive on-time principal and interest payments and proving sufficient income. Law students entering high-paying private practice jobs are often well-positioned to qualify for this release relatively quickly, protecting their parents’ credit and debt-to-income ratios for retirement or other needs.

Students should actively look for rate discounts. The most common is the autopay discount, which according to lender disclosures as of January 2025 is usually 0.25%, available from almost all major lenders. Some lenders also offer loyalty discounts if you have existing accounts with them or have borrowed from them previously. Check current student loan rates.

Application strategy and approval tips

Applying for private law school loans requires strategic timing and preparation to ensure approval and the best possible terms. Unlike federal loans, which have a standardized process, private lending is an underwriting process based on financial risk.

The ideal time to apply for private loans is after you have received your financial aid award letter from your law school but at least 30 days before tuition is due. This allows time for the school to certify the loan and for the lender to disburse funds. For bar study loans, apply during your final semester to ensure funds are available immediately upon graduation.

Law students will need to provide proof of enrollment, cost of attendance information, and identification. If applying with a cosigner, their income verification (pay stubs, tax returns) will be required. Be prepared to show proof of graduation date specifically for bar study loan applications.

Always use the “pre-qualification” tools offered by lenders. These tools perform a soft credit check, which allows you to see your estimated rate and terms without affecting your credit score. You should only consent to a hard credit check (which can temporarily lower your score by a few points) when you are ready to submit the final application with your chosen lender.

Before proceeding to the application, it is important to address a common concern. Many families worry that private loans lack the safety net of federal options. While it is true that private loans generally do not qualify for federal programs like Public Service Loan Forgiveness (PSLF), many top lenders have introduced their own hardship protections and modification programs. If you are certain you will pursue a career in public interest law (public defender, NGO, government), federal loans are almost certainly the superior choice due to PSLF eligibility. For those entering the private sector, the savings from lower private interest rates may outweigh the loss of federal protections.

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Choosing the right lender: decision framework

Selecting the right lender depends on your specific career goals, credit profile, and financial priorities. Use this framework to guide your decision-making process.

If you are attending a top-tier school and anticipate a high starting salary in private practice:

• Priority: Lowest possible interest rate.
• Strategy: Use a cosigner to secure the lowest rate, then prioritize a lender with a short cosigner release period (e.g., 12 months) to free up your family’s finances quickly.
• Top pick: Sallie Mae or SoFi often offer competitive rates for high-credit borrowers.

If you are unsure about your career path or leaning toward public service:

• Priority: Flexibility and federal protections.
• Strategy: Maximize Federal Grad PLUS loans first for PSLF eligibility. If you must borrow privately, choose a lender with the longest repayment terms (15-20 years) to keep monthly payments manageable on a lower salary.
• Top pick: College Ave for term flexibility.

If you cannot or prefer not to use a cosigner:

• Priority: Approval odds without a cosigner.
• Strategy: Look for lenders that underwrite based on future potential or academic performance rather than just credit history.
• Top pick: Ascent’s non-cosigned outcomes-based loan.

Frequently asked questions

The “best” loan varies by borrower, but Sallie Mae, College Ave, and Ascent are top-rated for 2025. Sallie Mae is excellent for bar study support, College Ave offers superior repayment flexibility, and Ascent is ideal for students without cosigners. Compare rates via soft credit checks to find the best offer for your specific credit profile.

Yes, but it is more difficult. Most law students need a cosigner to qualify for competitive rates due to limited income while in school. However, lenders like Ascent offer non-cosigned options for eligible juniors, seniors, and graduate students based on creditworthiness and future earning potential. Borrowers with established credit histories may also qualify alone.

Yes, several major lenders offer specific “Bar Study Loans.” These are designed to cover living expenses and bar review course fees. The funds are typically sent directly to the student. Sallie Mae, College Ave, and Discover (if active in the student space) historically offer these products. Check specifically for “Bar Study” products, as they differ from standard tuition loans.

According to StudentAid.gov as of 2024-2025, Federal Grad PLUS loans have fixed interest rates and come with federal protections like Income-Driven Repayment (IDR) and Public Service Loan Forgiveness (PSLF), but they charge a high origination fee (over 4%). Private loans may offer lower interest rates for borrowers with good credit and charge zero origination fees, but they lack PSLF eligibility and federal income-driven repayment options.

Private student loans are not eligible for Public Service Loan Forgiveness (PSLF). According to StudentAid.gov, only federal Direct Loans qualify. If you plan to work in public service (government or 501(c)(3) non-profit) and seek forgiveness after 10 years, you should prioritize federal borrowing. You cannot consolidate private loans into federal loans to gain eligibility later.

Repayment typically begins after your grace period ends. For most lenders, this is 6 months after graduation. However, according to lender disclosures as of January 2025, some lenders offer 9-month grace periods for law students to accommodate the bar exam results timeline. You can usually choose to make interest-only or fixed payments while in school to reduce the total cost, or defer all payments until after graduation.

Funding a law degree is a significant investment, but with the right strategy, it is manageable. While federal loans provide a safety foundation, private lenders like Sallie Mae, College Ave, and Ascent offer critical solutions for funding gaps, bar study expenses, and potential interest rate savings.

Key takeaways:

• Maximize federal aid first: According to StudentAid.gov, always utilize the $20,500 in Direct Unsubsidized Loans before turning to private options to ensure access to federal protections.
• Compare Grad PLUS vs. private: For borrowers with excellent credit, private loans can be cheaper than Grad PLUS loans due to the lack of origination fees and potentially lower interest rates.
• Plan for the bar exam: Remember that federal aid ends at graduation. Secure a Bar Study Loan or set aside funds early to cover the crucial months of bar preparation.
• Leverage cosigners: Using a creditworthy cosigner can significantly lower your interest rate. Look for lenders with clear cosigner release policies to provide financial freedom for parents later.
• Align loan terms with career goals: Choose flexible repayment terms if pursuing public interest law, or aggressive repayment strategies if entering private practice.

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References and resources

For further research and tools to help you manage your law school financing journey, explore the following resources:

• College Finance federal loans guide: A comprehensive breakdown of federal borrowing limits and terms.
• FAFSA guide: Step-by-step instructions for completing the Free Application for Federal Student Aid.
• Income-driven repayment options: Understand federal repayment plans for public interest careers.
• StudentAid.gov: The official U.S. Department of Education site for managing federal loans and checking current interest rates.
• AccessLex Institute: A non-profit organization dedicated specifically to financial education for law students.
• American Bar Association (ABA): Provides employment statistics and bar passage data to help assess ROI.