Law school is a significant investment, and the cost can be daunting. Many students rely on loans to cover tuition and living expenses, with options ranging from federal loans to private student loans, or a combination of both, depending on individual financial needs. To help you navigate these options, we put together a comprehensive guide to help you determine which type of loan is the best fit for your circumstances.
Law School Student Loans
Federal Loan Options
Federal unsubsidized loans are a popular choice among law students, offering fixed interest rates and flexible repayment options. These loans also provide the added benefit of eligibility for certain student loan forgiveness programs, making them an attractive option for those embarking on a legal career.
Unsubsidized Direct Loans are available with a fixed rate of ~7.94% for graduate/professional students (academic year 2025–26). Interest accrues while students are in law school and until the loan is paid off. The yearly max loan amount for unsubsidized loans is currently $20,500.
Until recently, law students also had the option to take out Grad Plus Loans. Students could take out the full cost of their schooling (minus all other aid) without running into borrowing limits.
Changes to Federal Law School Student Loans After July 2026
The One Big Beautiful Bill, passed in July 2025, introduces significant changes to federal student loan programs starting July 2026. Key updates include the elimination of the Grad PLUS program and the implementation of stricter borrowing limits on other federal loans.
Law students borrowing federal loans now have an annual borrowing cap of $50,000/yr and a $200,000 aggregate cap. However, all students now have a total student loan lifetime cap of $257,500. This includes federal student loans you take out for all your higher education needs, including undergrad. Once that cap is hit, you cannot take out any more federal loans.
Sign up to get expert tips and exclusive invites to free LSAT classes and law school admissions workshops!
Private Loans
If scholarships, federal loans, and other funding sources aren’t enough to cover the full cost of law school, private loans can help bridge the gap. Private loans are offered by banks, credit unions, and online lenders. They may come with either fixed or variable interest rates, often significantly high, making them a costlier alternative to federal loans. Private loan borrowers also do not have access to federal income-driven repayment plans or loan forgiveness programs. Understandably, many students are apprehensive about taking out private loans.
However, there are some advantages to taking out private loans. They can provide funding beyond the federal student loan cap. This is especially helpful for students attending more expensive law schools or those who need additional funds for living expenses.
So, while not ideal, private law school loans are another option to help finance your education. Always make sure to carefully consider the terms and conditions before taking out any loan (whether federal or private) to ensure it will fit into your budget.
Further Reading
💰 7 Law School Scholarships You Need to Apply For
Law School Loan Repayment Plans
A key question to ask when deciding on the amount of federal or private law school loans you’ll be taking out is, “When and how quickly will I need to pay this amount of money back?”
Federal loans provide student borrowers with greater flexibility and extended timelines for repayment, as payments typically don’t begin until after graduating from law school. In contrast, while some private loans might delay payment until after graduation, most will require payments while still in school.
Federal Loan Repayment Plans
All federal student loan repayment programs will start to be consolidated into two programs by July 2026. Student borrowers are able to choose between three types of traditional repayment plans and many forms of income-driven repayment plans.
Borrowers must choose between:
- Standard Plan: Fixed payments over a set time. Payments are determined by the loan amount and will span 10-25 years.
- Repayment Assistance Plan (RAP): A new IDR-style plan with a $10 minimum monthly payment and 30-year forgiveness. No deferments are allowed for economic hardship or unemployment. Loan rehabilitation is available twice.
Public Service Loan Forgiveness
Public Service Loan Forgiveness (PSLF) is a federal program that forgives the remaining balance on eligible federal loans after you’ve made 120 qualifying monthly payments (typically 10 years) while working full-time for a qualifying public service employer, such as a government entity or a 501(c)(3) nonprofit organization.
Lawyers can qualify for PSLF if they work for a qualifying employer, such as a government agency or a 501(c)(3) nonprofit organization—think legal aid clinics, public defender offices, public universities, or governmental legal departments—and make the qualifying number of monthly payments.
Final Thoughts
Navigating law school, including financing options, can be tricky. However, it’s important to do your research and explore all available options for funding your education. If you are considering taking out loans for law school, carefully review and understand the terms and conditions. It’s important to have a plan for how you will repay these loans after graduation.
Don’t forget that schools also offer grants and scholarships to admitted students that could reduce the amount you need to borrow. Put yourself in the best position to get accepted AND receive funding for your legal education with a competitive LSAT score! Blueprint LSAT students increase their LSAT scores by 15 points on average. Whether you want the flexibility of a Self-Paced Course, prefer to navigate the LSAT with instructors in a Live Course or 170+ Course, or even private LSAT tutoring, we have the study method that fits your learning style.
Get access to tons of LSAT prep resources when you create a free Blueprint LSAT account!
