For aspiring lawyers, choosing a school now means determining both whether they can get in and whether they can afford to finish.
For new borrowers beginning law school on or after July 1, 2026, federal Grad PLUS loans are no longer available. Law students can borrow up to $50,000 a year in federal Direct Unsubsidized Loans, with a $200,000 aggregate limit for professional study. A $257,500 lifetime cap across federal student loans also makes prior undergraduate debt an important consideration.
Those numbers may sound large, but tuition and living expenses at some schools can exceed the annual cap. Students who face a gap may need scholarships, savings, family help, earnings or private loans. Financing should be addressed before paying a seat deposit.
Start with the application
The first financing move is building an application that can attract scholarship money.
“First and foremost, maintain a good GPA and study for the LSAT to get the highest score you can achieve,” said Ray Sykes, associate dean of finance and operations at the University of Oregon School of Law. “These two factors are often among the top criteria used by law schools to determine scholarships.”
Applying early may improve a student’s chances to obtain a scholarship.
Morgan Cutright, regional director at the AccessLex Center for Education and Financial Capability, said preparation, a strong test score and a likely career path can help students evaluate scholarship options at various law schools and the available loan repayment plans.
Students should consider applying to a broad group of schools rather than eliminating one based on its published tuition. Austen Parrish, dean of University of California, Irvine School of Law, cautioned that sticker price can be misleading because scholarship practices vary considerably.
“There’s a difference between the tuition posted on law school websites and what students actually pay,” Parrish said. “Students generally want to err on the side of applying to more schools to see what their scholarship packages might be and to compare offers.”
Price all three years + bar exam
A first-year award letter does not show the full cost of becoming a lawyer. Build a budget through graduation and bar passage. Include tuition, mandatory fees, books, subscriptions, transportation, housing, food, health insurance, summer expenses, bar preparation and living costs during the period between graduation and employment. Allow for tuition and rent increases.
Examine every scholarship condition. Is the award guaranteed for three years? Does it require a minimum GPA or class rank? What percentage of recipients lost their scholarships or had them reduced? A conditional scholarship can change the plan quickly.
“Your law school budget should include the cost of tuition, fees, materials, living expenses and other personal expenses, minus scholarships and grants offered,” Sykes said. “Be sure to plan all the way through until you have passed the bar.”
Sykes recommends calculating the difference between total need and available federal loans, then identifying how savings, family support, grants, scholarships, employment and private loans could cover the gap.
Compare value as well as cost
The least expensive offer is not automatically the best choice. Compare accreditation status, bar passage, employment outcomes, geographic reach and support for the work you hope to pursue. A regional school may be a strong value for a student who wants to practice nearby.
Parrish said students should balance cost, geography, career and academic opportunities and a school’s perceived prestige based on their own life aspirations, professional goals and resources.
“It should be much more like, ‘Where and what kind of law do you plan to practice? What is your likely longer-term professional plan? What opportunities does the school provide? And how much financial flexibility do you need for other life goals? Most importantly, how do you think about paying for law school in a way that’s going to work for you and your family?’” he said.
Avoid relying on a projected starting salary. Review the school’s employment disclosures and research likely pay in the practice area and location you are considering. A future public defender has a different repayment calculation than a student pursuing a large law firm, but neither outcome is guaranteed.
Use federal loans first
Federal loans generally should remain the first borrowing option because they include repayment and forgiveness protections that private loans may not offer.
“Federal first is generally the best strategy, though the student’s credit and circumstances matter,” Cutright said. “For students pursuing public interest careers, federal loans often result in the lowest repayment cost over time because of Public Service Loan Forgiveness.”
Students considering government or nonprofit work should study current PSLF rules and ask schools about loan repayment assistance programs. LRAP requirements and benefits vary. Verify which loans, employers and repayment plans qualify before building forgiveness into a financial plan.
Shop private loans carefully
Private loans can fill a gap, but terms depend on the lender, the borrower’s credit and, often, a co-signer. They may lack federal income-based repayment, forgiveness and flexible hardship options. Compare the annual percentage rate, fixed or variable rate, fees, total projected repayment, in-school payments, grace period, hardship options, co-signer release and disability or death provisions.
Cutright said interest rates, access without a co-signer and repayment terms are especially important for future lawyers. Students should also check a lender’s aggregate limit and whether it counts existing federal student debt toward that limit.
“Fixed rates provide repayment clarity, while variable rates can fluctuate but may start lower,” Cutright said. “If a student wants predictable payments and may repay the loan over a long period, fixed is usually safer.”
Read the promissory note for prepayment penalties and required payments while enrolled. Cutright warned that even a $50 monthly payment can strain a law student’s budget and that a missed payment can damage credit. A lower advertised rate is not a bargain if the loan’s other terms create risk.
First-year private loan approval does not guarantee financing for years two and three. Students may have to reapply annually, and credit standards, rates and programs can change. Ask what options exist if a private loan falls through.
Protect your credit and cash flow
J. Rich Leonard, dean of Campbell University’s Norman Adrian Wiggins School of Law, reviewed borrowing by 553 of his students and found that 41% had borrowed more than $50,000 in one year. About half of that group borrowed between $50,000 and $65,000, and the rest borrowed more than $65,000. The findings showed how many students could face a financing gap under the new cap.
Leonard worked with a local bank on a supplemental loan for eligible Campbell Law students. The loan can consider 12 consecutive on-time utility payments as evidence of creditworthiness, which may help students with limited credit histories.
Ask each financial aid office about school-specific resources, but compare any loan offered with outside options. A lender list is no substitute for reviewing the contract.
Budgeting matters just as much. Cutright recommends keeping roughly $500 to $1,000 for emergencies such as a flat tire, broken laptop or replacement phone. If a federal loan disbursement exceeds actual needs, she noted, a student generally can return the unused portion within 120 days and reduce interest-bearing debt.
Plan separately for the bar exam period. Students may need to reserve part of their law school funding for bar preparation and living expenses.
“Create a realistic budget for living like a student, not like a lawyer,” Cutright said.
