BEST OF
8 Best Law School Loans of November 2020
If free financial aid won’t cover all your law school costs, opt for federal student loans before private loans.
Even if you’re planning for a future in Big Law, you shouldn’t choose just any law school loan. Compare interest rates, fees and repayment options to find the right loan — and only borrow after exhausting grants and scholarships.
If you a law school student loan, choose federal loans before private ones. Private loans may cost less if you have good credit, but federal programs like income-driven repayment protect you if you want to work in the public sector or don’t land a high-paying job.
Our picks for the best law school loans are below, as well as some additional information on choosing between federal and private options. Note that the ratings apply to each company's standard undergraduate loan, but we've noted specific features that apply to law students.
Even if you’re planning for a future in Big Law, you shouldn’t choose just any law school loan. Compare interest rates, fees and repayment options to find the right loan — and only borrow after exhausting grants and scholarships.
If you a law school student loan, choose federal loans before private ones. Private loans may cost less if you have good credit, but federal programs like income-driven repayment protect you if you want to work in the public sector or don’t land a high-paying job.
Our picks for the best law school loans are below, as well as some additional information on choosing between federal and private options. Note that the ratings apply to each company's standard undergraduate loan, but we've noted specific features that apply to law students.
Summary of Best Law School Loans of November 2020
| Lender | NerdWallet Rating | Fixed APR | Variable APR | Min. Credit Score | Learn More |
|---|---|---|---|---|---|
Best for All borrowers as a first option | 2.75 - 4.30% | N/A | None | Read review | |
Best for Manageable payments post-graduation | 5.30 - 5.30% | N/A | None | Read review | |
Best for Private law school loans | 4.56 - 13.42% | 3.65 - 12.40% | mid-500's | Check Rate on Ascent's website | |
Best for Private law school loans | 4.25 - 12.35% | 1.25 - 11.15% | Does not disclose | Check Rate on Sallie Mae's website | |
Best for Private law school loans | 4.49 - 9.95% | 1.39 - 8.99% | Mid-600s | Check Rate on College Ave's website | |
Best for Private law school loans | 3.49 - 12.78% | 1.24 - 11.44% | 650 | Check Rate on Earnest's website | |
Best for Private law school loans | 4.13 - 11.37% | 1.77 - 11.89% | Does not disclose | Check Rate on SoFi's website | |
Best for International law students | 7.52 - 13.63% | N/A | N/A | Read review |
Our pick for
All borrowers as a first option
You can borrow up to $20,500 per year in unsubsidized loans, which may not be enough to cover all your law school costs.
Federal Subsidized/Unsubsidized Loan
Fixed APR
Variable APR
Min. Credit Score
Our pick for
Manageable payments post-graduation
Federal programs like income-driven repayment and Public Service Loan Forgiveness make graduate PLUS loans best for those who plan to go into public interest law or government — or who want to keep their options open.
Federal Grad PLUS Loan
Fixed APR
Variable APR
Min. Credit Score
Our picks for
Private law school loans
These lenders offer specific loans for law students. Some have features designed to meet law students’ needs — like deferments during clerkships. Weigh those benefits vs. your career goals. You or a co-signer will need excellent credit to get the lowest rate possible.
on Ascent's website
Ascent Law Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Ascent's website
on Sallie Mae's website
Sallie Mae Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Sallie Mae's website
on College Ave's website
College Ave Law Student Loan
Fixed APR
Variable APR
Min. Credit Score
on College Ave's website
on Earnest's website
Earnest Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on Earnest's website
on SoFi's website
SoFi Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
on SoFi's website
Our pick for
International law students
Many lenders let international students take out loans with an eligible co-signer; MPOWER is one of few that waives this requirement.
MPOWER Private Student Loan
Fixed APR
Variable APR
Min. Credit Score
Types of law school loans
Law students may be eligible for two types of federal student loans:
Direct unsubsidized loans. These have a lower interest rate and fee than other government loans, so take them out first. But there’s a limit to the amount of direct unsubsidized loans you can borrow.
Graduate PLUS loans. You can borrow up to your cost of attendance, minus other aid received, in graduate PLUS loans. If you max out your unsubsidized loans and still have a gap, PLUS loans can fill it.
Some private lenders, such as Sallie Mae, offer branded “law school loans” or loans for bar exam expenses. These may have features that cater to law students’ specific needs — like deferring payments during a clerkship or fellowship.
However, you can also use any private graduate student loan for law school. Compare rates and features to find the least expensive option if you opt for private loans.
» MORE: How to pay for law school
Which law school student loan is right for you?
If you’ve exhausted free aid like scholarships and are torn about which law school loan to borrow, federal loans are a safer bet. Opt for these if:
You have bad credit. Direct unsubsidized loans are not credit-dependent. You will need to pass a credit check to get PLUS loans for law school, but these standards aren't as strict as with private lenders. All eligible federal loan borrowers also receive the same interest rate, regardless of their credit score.
You want flexible repayment options. Law students finish school owing an average of $145,500 in student debt, according to the National Center for Education Statistics. Federal loans offer more repayment options to handle that debt load, such as income-driven repayment plans, and and may be eligible for law school loan forgiveness or repayment programs.
Private student loans may make sense — and save you money — if you have excellent credit and don’t think you’ll need or qualify for federal loan benefits.
For example, repaying $145,500 in grad PLUS loans with a 5.30% interest rate would cost $187,761 over 10 years. Opting for private loans with an interest rate of 5% would drop that amount to $185,191. The PLUS loan would also come with an origination fee above 4%; most private lenders don’t charge these fees.
Monthly payments on that much debt would be roughly $1,500 for private loans and $1,565 for PLUS loans. Either might be unaffordable if you choose to be a legal services attorney, public defender or prosecutor, whose median starting salaries range from $48,000 to $58,000, according to the National Association for Law Placement. But with federal loans, income-driven payments at that salary could be closer to $250, and Public Service Loan Forgiveness could erase the balance after 10 years.
Projected starting salaries are higher if you plan to practice in the private sector, with a median of $155,000 according to NALP. Wages rise even more if you join a Big Law firm. Still, opting for federal loans can protect you if you don’t land the job or salary you expect. And if you do, you can always refinance law school loans after graduating to recoup some savings.
How to take out loans for law school
Taking out loans for law school requires only a few steps. If you applied for financial aid as an undergrad, you’ll likely know what to do — though there are a couple of differences.
1. Fill out the FAFSA
You must complete the Free Application for Federal Student Aid, or FAFSA, to receive all types of federal financial aid, including work-study and student loans. Many private scholarships and grants require the FAFSA as well.
When completing the FAFSA, indicate that you’re going to be or already are a graduate student. This means you don’t have to include your parents’ information on the form; it also increases your borrowing limits.
2. Complete other required applications
In addition to the FAFSA, some law schools may make you submit the CSS Profile to receive nonfederal financial aid. Alternatively, your school might require an aid application that’s unique to its program.
Unlike on the FAFSA, you may need to provide your parents’ financial information on these forms to receive institutional scholarships or grants. Double-check the application process with the school’s financial aid office — including when its priority filing deadline is — so you don’t miss out on free money.
3. Work directly with private lenders
You don't need to complete the FAFSA for private student loans. If you've decided a private student loan makes sense for you, apply directly with the lender. The lender will likely require proof of your identity, income and law school you're attending, among other information.
Each lender has its own underwriting standards. Be sure to shop around and compare interest rates. You may need a co-signer to get the best possible deal.
Last updated on October 22, 2020
To recap our selections...
NerdWallet's Best Law School Loans of November 2020
- Federal Subsidized/Unsubsidized Loan: Best for All borrowers as a first option
- Federal Grad PLUS Loan: Best for Manageable payments post-graduation
- Ascent Law Student Loan: Best for Private law school loans
- Sallie Mae Private Student Loan: Best for Private law school loans
- College Ave Law Student Loan: Best for Private law school loans
- Earnest Private Student Loan: Best for Private law school loans
- SoFi Private Student Loan: Best for Private law school loans
- MPOWER Private Student Loan: Best for International law students
Frequently asked questions
You can take out unsubsidized federal student loans, federal PLUS loans and private student loans to pay for law school. You should typically max out federal loans as a first option.
Yes. You can borrow up to your law school’s total cost of attendance in loans. Cost of attendance typically includes money for living expenses such as off-campus housing and transportation.
Loans for bar exam expenses are more like personal loans than student loans. Bar loans have higher interest rates than student loans, and you usually cannot refinance them with your student loans.
On average, law students graduate with $145,500 in student loans, including undergraduate debt, according to the most recent data from the National Center for Education Statistics.
