Private Loans

Many lenders offer private educational loans to law students. These loans differ from federal loans in several significant ways:

  • Private loans are not federally guaranteed.
  • Private loan interest rates and fees are not subsidized.
  • They are only issued to students who have an "absence of bad credit."
  • Credit worthy co-signers may be required if the student has bad credit.
  • Since there is no guarantee or subsidization, they are usually more expensive.
  • Private loans may have a longer repayment period.
  • Private loans are not eligible for deferments, but lenders may offer forbearance.
  • Private loans are not forgiven in the event of death or disability.
  • Private loans may not be consolidated with federal loans.
  • Some Private loans may be used for less than half-time study.