Bar loans are private loans for bar study courses, bar exam fees and living expenses while you’re studying for the bar. They’re designed to cover costs that student loans don’t. You can apply for bar loans starting in your final semester of law school or up to a year after graduating.
Sitting for the bar can be pricey — bar exam application fees alone range from about $200 to $1,450, depending on the state, according to the National Conference of Bar Examiners. Bar preparation classes typically cost a couple thousand dollars, and you’ll also need money for basic living costs.
Still, skip bar loans if possible — they have high interest rates compared with student loans and typically cannot be included in student loan refinancing. If you take one, plan to pay it off as quickly as you can.
» MORE: Law school loans, financial aid and loan forgiveness
How to shop for a bar loan
- Compare your bar loan options. Look for the lender that offers the lowest interest rate you qualify for. Bar loans are credit-based, meaning the higher your credit score, the lower the rate you’ll get.
- Be aware of the fine print. Generally, lenders require that you apply for a bar loan in your last semester of law school or up to 12 months after graduation, and that you sit for the bar within 12 months of graduation.
- Budget your bar loan disbursement. Unlike student loans, which are first disbursed to schools to be applied to tuition and fees, a bar loan will be disbursed directly to you.
- Plan to pay off the loan relatively quickly. Bar loan terms range from one to 20 years, depending on the lender. Pay it off as soon as possible to save on interest — the major bar loan lenders don’t charge prepayment penalties. Repayment typically begins after a six- to nine-month grace period.
- Refinance your law school loans if it makes sense for you. While you can’t typically refinance bar loans, refinancing your student loans may free up cash to pay off the bar loan more quickly. Refinancing isn’t for you if you plan to use federal income-driven repayment plans or loan forgiveness programs.
Top bar loans 2018
| Lender | Get started |
|---|---|
Fixed: 6.42% to 12.99%; Variable: 4.86% to 11.99% |
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  NerdWallet rating: 4.5 / 5.0 | Discover review |
  NerdWallet rating: 4.0 / 5.0 | PNC review |
 NerdWallet rating: 4.0 / 5.0 | Sallie Mae review |
 NerdWallet rating: 4.0 / 5.0 | Wells Fargo review |
Bar loan details
Discover bar loan
- Loan term: 20 years
- Loan amount: $1,000 to $16,000
- Grace period: 9 months
- Application deadline: 6 months after graduation
How it stands out: Discover offers generous repayment flexibilities for borrowers who are struggling to make payments. If you’re in a pinch, you may be able to temporarily postpone loan payments, reduce your payments or lower your interest rate.
PNC bar loan
- Loan term: 1 to 15 years
- Loan amount: $1,000 to $15,000
- Grace period: 6 months
- Application deadline: 6 months after graduation
How it stands out: You can apply to release the co-signer on your PNC bar loan after you make 48 consecutive on-time payments.
Sallie Mae bar loan
- Loan term: 15 years
- Loan amount: $1,000 to $15,000
- Grace period: 9 months
- Application deadline: 12 months after graduation
How it stands out: Sallie Mae is the only lender whose bar loans don’t have fixed rates — rates are variable, meaning they’re subject to change as economic conditions fluctuate. Sallie Mae also has a generous co-signer release program that allows co-signers to get off the hook after the borrower makes on-time payments for 12 consecutive months.
Wells Fargo bar loan
- Loan term: 7 years
- Loan amount: $1,000 to $12,000
- Grace period: 6 months
- Application deadline: 30 days after graduation
How it stands out: Wells Fargo offers 0.25% and 0.50% interest rate discounts for its existing student loan and checking account customers.
Bar study course loans
Barbri bar loan
- Loan term: 3, 6 or 12 months
- Loan amount: Cost of the Barbri course
- Grace period: None
- APR: 0% to 30%
Barbri offers bar exam courses online and in classrooms around the country. Prices start at $2,695 and vary by state and the package you select.
Barbri bar loans are available through Affirm, a lender that offers small, personal loans to help people cover relatively big purchases. It covers only the cost of Barbri bar exam review courses — not bar exam fees or living costs. You’ll have the option to finance through Affirm during the checkout process for your Barbri bar review course.
» MORE: NerdWallet’s Affirm review
Lender disclosures
6. The interest rate range represents the lowest and highest interest rates offered on Discover student loans, including Undergraduate, Graduate, Health Professions, Law and MBA Loans. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable Margin percentage. The margin is based on your credit evaluation at the time of application and does not change. For variable interest rate loans, the 3-Month LIBOR is 2.25% as of April 1, 2018. Discover Student Loans will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Please visit https://www.discover.com/student-loans/interest-rates.html for more information about interest rates.
