What types of student loans are available for law school students?

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Types Of Student Loans Available For Law School Students

Most students need financial assistance when they apply for admission to the College of Law. The procedure for doing so is to submit an ONU Application for Financial Aid to the Financial Aid Office after duly filling it. However, you can only do so after you receive an application for admission. The other formalities to be observed are: submitting a financial aid transcript which should show all the aid that you have received in whichever college or university where you might have studied and completing the Free Application for Federal Student Aid (FAFSA). ONU will get the results of the FAFSA analysis electronically and you, as the applicant, would receive the original Student Aid Report.

Federal Perkins Loan Program

Disbursed by the Office of Financial Aid, these loans with a current interest rate of 5% are authorized by the Federal Government and are specifically created to enable needy students to receive federally subsidized long-term, low-interest loans. Of late, federal funds for this program have been drastically brought down and further cuts are in the pipeline. The students who are currently receiving these loans might get renewal of the same depending upon their need factor, the number of applicants, the available funds and the timing of the application.

Perkins funds are available in limited quantity for fresh students and the eligibility criteria are financial need and academic potential. The amount of the loan varies from $600 to $2,000 per year depending upon the need.

Federal Stafford Student Loan

The applications can be obtained from the Financial Aid Office, hometown banks and credit unions. The eligibility will be determined by the Aid Office and an amount up to $8,500 per year can be borrowed by graduate students. Based on 91-day T-bills, the interest rate varies but up to a maximum of 8.25% with a grace period of six months.

Students who do not qualify for Federal Subsidized Stafford Loans can apply for Federal Unsubsidized Stafford Loans (independent students). While in school, the student has to pay the interest charges but it can be delayed and capitalized. Students can borrow up to a maximum of $10,000 per year.

Methodist Loans

These loans are meant for students who have been members of a United Methodist Church for one year and graduate students can borrow up to $1,500 at 6% interest. The Financial Aid Office provides the application forms.

Legal Education- Other Law School Student Loans

Students can select either of the following two types of loans.

1. Law Access Loans: National City Bank and PHEAA Agency of Pennsylvania provide these private loans up to a maximum of the cost of attendance minus the other aids. Based on 91-day Treasury Bills plus 2.9 percentage points, the interest rate is variable. While in school the student can delay the payment of interest charges. The Federal Aid Office provides the applications.
    
2. Law Student Loans: Norwest Bank and the HEMAR Corporation provide these private loans up to a maximum of the cost of attendance minus the other aids. Based on 13-week Treasury Bills plus 3.25 percentage points while the student is in school and 3.5 percentage points when in repayment, the interest rate is variable. Students can get the applications from the Office of Financial Aid and they can defer the payment of interest charges.

CitiAssist Loan, the Ohio Supplemental Student Loan and the Law Achiever Loan are some of the other Alternate loans. Students can get more information from their Financial Aid Office.