Changes to the federal student loan programs impact new law students
The federal student loan programs were significantly changed with the passage of the One Big Beautiful Bill Act in the summer of 2025.
Law students who begin their studies on or after July 1st, 2026, should be able to borrow up to $50,000 per academic year through the Federal Direct Unsubsidized Loan program. These students will not be eligible to borrow Direct Graduate PLUS Loan. Instead, students who need to borrow more than $50,000 per year to meet their expenses, may need to borrow a private education loan.
Current law students who borrow federal student loan for law school, should still be eligible to borrow Direct Graduate PLUS Loans for up to three years after July 1st, 2026, or until they have completed their degree, whichever comes first.
Applying for federal student loans (for borrowers beginning law school after July 1st, 2026)
To apply for the Direct Unsubsidized Loan, you simply need to complete your FAFSA. Eligible students will automatically be awarded their maximum loan eligibility sometime in early March and will be sent a financial aid notification (FAN) to the email address you listed on your application. You should be able to borrow up to $50,000 in Direct Unsubsidized Loan per academic year.
Your maximum annual loan amount is determined by taking the Cost of Attendance less other aid received, not to exceed $50,000. Your FAN will include instructions for accepting/reducing your loan as well how to complete a master promissory note (MPN) and loan entrance counseling.
Loan Terms (for borrowers beginning law school after July 1st, 2026.)
The interest rate on the Direct Unsub Loan is currently fixed at 7.94%. There is an upfront 1.057% origination fee, which is deducted from your loan upon disbursement.
The Direct Sub/Unsub Loan lifetime aggregate limit for graduate & professional students is $257,500. That said, students may borrow no more than $200,000 towards a professional degree or $100,000 towards a graduate degree. Federal loans borrowed for graduate school will count against the professional borrowing cap.
Interest begins accruing on the disbursed portion of the loan within 30 days of disbursement. Any unpaid interest will be added onto the principal balance of your loan(s) 6 months after your enrollment drops below half-time status. For most students, this means 6 months after you graduate, which is also when your loans would enter repayment. While you are in school, you could work on paying down your accrued interest to help limit your final loan balance. These payments are submitted on your loan servicer's website.
Borrowing Responsibly
It’s very important to understand the implications of borrowing to finance your education. Loans will become a debt that you will be obligated to repay with interest after you graduate or leave school. These loans will accrue interest while you are in school. Loans are a true investment in your education and your future as an attorney. Therefore, it is wise to be cautious and somewhat conservative in the amount you choose to borrow.
Student loans can only cover educational expenses that are non-discretionary and that occur during the time you are officially enrolled as a student. For example, while modest living expenses are covered, your financial aid budget does not allow for the purchase of a car, car payments, credit card debt, or a spring break trip.
If you need assistance determing how much to borrow our financial aid office is here to help you craft a plan. In addition, you can try using a tool like AccessLex's Student Loan Calculator. You can also set up an appointment with one of AccessLex's accredited finacial counselors, through AccessConnex.