Understanding Financial Implications Of A Legal Education: It’s a Huge Investment

Law School education does not come cheap. In fact it is expensive - very, very expensive indeed. A majority of the students who pursue a legal education hardly have the resources to cover even the cost of tuition and have to seek recourse to external financial assistance to manage three years of tuition, living expenses, books and other sundry costs. Most students have no other alternative but to seek loans to finance their education.



Fortunately for such students, there are many avenues of financial aid open to them that will not only provide them with the finances but also mitigate and alleviate their debt burden. It is in the interest of the student that he seeks out the most affordable and reasonable loan so that payback time does not become an unmanageable issue.

While adding total costs and the amount you will need to borrow do not fail to factor that tuition and fees are not the only law school costs. You also need to consider fees to register with LSDAS and to take the LSAT exam, an LSAT review course fee, application fees, the Declaration of Intention to Study Law fee, books, supplies, study aids, parking permits, bar review courses, bar exam fee, copy costs for research materials, and dues to join various societies and the Student Bar Association, as well as other related expenses. In addition, you must consider your living expenses. Law school is, indeed, an expensive proposition.
 

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Scholarships, Grants, Loans, Other Financial Aid:

The first step in to list your various sources of financing. These sources may include such items as scholarships, grants, savings, earnings from summer jobs, part-time work during the last two years of law school, College Work Study (CWS) for those who are extremely needy, family assistance, applicable GI bill benefits, and loans.

Loans, which may be the largest component of your financial aid package, are available from various sources including Law Services, which deals with Law Access Loans. To assist you in determining how much you will be entitled to borrow, you must complete such federal financial-aid forms as the Free Application for Federal Student Aid (FAFSA), which is used by most law schools, or those provided by the Graduate and Professional School Financial Aid Service (GAPSFAS). For purposes of federal programs, graduate and professional students are considered "independent."

Obtain A Free Credit Card:

To avail of federal loans you have to fill a requirement analysis form called FAFSA. This for contains vital information from your income tax returns. Hence in order to submit a FAFSA report on time, you also cannot afford to be tardy with your income tax returns. When filling your FAFSA form you will also have to fill in the names of the law schools that you intend to join, your first choice and other alternatives. These schools will then conclude if you are eligible for the loans that you are seeking. Once you decide on the school that you intend to join, among the many that will offer you a seat, your loan process will officially begin.

Merit-Based Scholarships:

Most law school offer a substantial amount of merit-based scholarship to deserving students whose applications they find impressive and commendable. These scholarships can range from a few thousand dollars to covering the entire tuition costs but they all depend on the students past record and an established record of worth and excellence. Merit-based scholarship, if the student merits it, is probably the best and most welcome method of mitigating the cost of legal education.

Federal Student Loans:

Whatever loans you have managed through merit-based scholarships and other financial help that is free and does not have to be paid back, than its time to move on to the next best source of funding and that's federal student loans. The major difference between the scholarship and grant assistance is that this is not free money and it has not only to be paid back, but also paid back with interest. However, one advantage over seeking private loans, is that federal loans charge a lesser rate of interest, hence exhaust all avenues of federal loans before contemplating private bank loans.

Private Loans:

So you tried your best to get loans from avenues that would greatly assist you when it was time to return the loans. You are getting worried and tired of all the paperwork that is yielding no results. You find that you are not eligible for scholarships and grants because you cannot find endorsers or guarantors and what is worse; you still need money to pay for law school. Well as the last no-choice alternative, seek private loans.

The major difference between federal loans and private loans is that federal loans are given to assist a student in studying and to make his path to a degree easier - in fact the government heavily subsidies student loans and loses quite a lot of money owing to reduced interest that they charge from the students. On the other hand private funds are profit making enterprises and will happily give loans, but their interest rates are considerably higher, their repayment conditions are not student-friendly, neither are they flexible and they also charge hefty origination fees. Don't avail of the first private loan that you come across. Scout around banks, credit unions and corporations that give student loans and compare their conditions and interest rates. Private loan lenders practically own you until their loans are repaid, so be very carefully whilst settling for one.

Also be very careful to read the small print and ask questions and take things in writing. Understand the conditions totally, especially the term of the loan and if they are re-negotiation facility if you cannot repay on time. Unlike scholarships and federal loans, where you are more desperate to receive than for them to give, here it is the other way round. Their eagerness to loan you the money is far higher than your desperation to receive, so don't be afraid to negotiate and discuss.

Put your foot down if you find the conditions are too harsh and never be overawed by the lender. This is a serious decision that will have a lasting impact over the next few years and a large amount of money is involved and not being able to repay could lead to litigation and have even harsher consequences.

When To Apply:

Don't wait until you have been accepted into law school to apply for financial aid; if you procrastinate, there may not be any financial aid left. Request financial aid information concurrently with law school catalogs. There are also financial-aid deadlines at each of the various schools, so make sure you are aware of and strictly adhere to these deadlines. It is highly doubtful that filing for financial aid will jeopardize your chances for admission to a particular law school because law schools are cognizant of the fact that most students have to finance part of their legal educations.

Books in your school library list the many private scholarships and grants available from groups based on related religious and ethnic affiliations, college Greek sororities and fraternities, sports groups, other special interest groups, a Lawyer's Auxiliary associated with a regional or local bar association, and possibly the most obvious source-your employer or that of your parents. Scholarships and grants are considered gifts and, as such, do not have to be repaid. Send for information and apply for all financial assistance for which you possess the necessary qualifications.