Private Student Loans
Private student loans may provide other sources of funding for law students who have exhausted or who are ineligible for federal student loans.
Private student loan lenders have their own application and repayment terms, you should review all terms and disclosures before applying for one of these credit-based loan alternatives. As you consider your borrowing options, you should keep in mind that federal student loans are required by law to provide a range of flexible repayment options, including income-based repayment plans, and loan forgiveness benefits, which private loans are not required to provide. Also, federal Direct loans are available to students regardless of income.
Santa Clara University School of Law does not promote nor endorse any particular private student loan lender.
IMPORTANT: You should first consider Federal loan funding and then, if additional funding is needed, apply for a private student loan.
What are the differences between federal and private student loans?
Federal student loans are made by the government, with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.
In contrast, private loans are made by private organizations such banks, credit unions, and state-based or state-affiliated organizations, and have terms and conditions that are set by the lender. Private student loans are generally more expensive than federal student loans.
Click here for a summary view of the differences between federal and private student loans.
How to Choose a Private Loan
If you decide to pursue a private student loan, it’s smart to compare several options to find what best fits your needs.
You can use the ELM Select tool to view and compare private loan terms from lenders most commonly used by Santa Clara Law students:
You are not limited to the lenders listed on ELM Select. You may apply with any lender offering a program that works for your situation. Most private loan applications can be completed online.
Questions to Ask When Evaluating a Private Loan
Before choosing a lender, ask:
- What is the interest rate? Is it fixed or variable? Is there a cap?
- Are there any fees? When are they charged?
- Is there a grace period before repayment starts?
- What will my monthly payment be?
- What is the total repayment cost over the life of the loan?
- Are there prepayment penalties?
- Are deferment or forbearance options available if needed?
Right To Cancel a Private Loan
Private Education Loan Lenders are required by law to provide borrowers with a "Right to Cancel" period before any funds can be disbursed to the school.
The “Right to Cancel” period begins after:
- The lender receives the Private Education Loan Application Self-Certification Form and the loan certification form the school, and
- All other required documents have been submitted to the lender by the borrower.
The timing of disbursement may vary depending on your lender’s policies. Please contact your lender directly to confirm the specific date your loan funds will be released to Santa Clara University.
Bar Study Loans
Once you have graduated you are no longer eligible for federal financial aid so planning ahead for your bar study period is important. Bar Study Loans are loans from private lenders for the purpose of paying for bar study courses and living expenses while you study for the bar. A Google search will yield some results for you, however we cannot recommend a lender. Be sure you understand all the terms of the loan and comparison shop for the best option. These types of loan cannot be consolidated with your federal loans and will have differing repayment terms so be sure to plan for that when budgeting for repayment.
- Bar Exam Fees These are the charges for taking the exam. You may request to have your cost of attendance increased to include these fees, which would allow your federal student loan offer to be increased to cover the fee associated with the exam.
- Bar Study Classes, Bar Study Materials and living expenses. These expenses cannot be included in your cost of attendance; therefore, you may consider a Bar Study Loan to help with your costs.
As you review the costs, you may want to learn about costs, how to apply for financial aid, types of financial aid, repayment, contact information and other terms and conditions related to financial aid.
Contact Us: lawfinancialaid@scu.edu
FAFSA School Code: 001326