Seton Hall | Law - Private Loans

Student Loans

Private Loans   

About Private Student Loans
If you require additional funding to cover educational expenses (the Cost of Attendance) not covered by other sources of financial aid, you may borrow either a Federal Direct Graduate Plus Loan or a Private Educational Loan (offered by a private lender.)  Both are considered a part of your financial aid package.

Since federal education loans are less expensive and offer better terms than private student loans, you should exhaust your eligibility for federal students loans before resorting to private student loans. Access our Federal Grad Plus/Private Loan Comparison sheet.

Interest Rates
Private student loans typically have variable interest rates, with the interest rate tied to an index, such as LIBOR or PRIME, plus a margin.  Some private loans do offer a fixed interest rate.  The LIBOR index is the London Interbank Offered Rate and represents what it costs a lender to borrow money. The Prime Lending Rate is the interest rate lender offers to their most creditworthy customers. A rate of LIBOR +2.8% is roughly the same PRIME + 0.0%. The spread between LIBOR and Prime has been growing over time. So all else being equal, it is better to have an interest rate pegged to the LIBOR index, as such a rate will increase more slowly than a rate pegged to the Prime index.

Applying for a Private Loan
You may borrow a private loan up to the amount listed on your award letter. Before borrowing a private loan, we encourage you to create a budget and seriously consider the minimum amount you will need to meet your basic expenses while in law school. We encourage to check out various in-school budget calculators such as the one available at You must reapply each year for a private loan.  Additional information on the application process is available under Applying for Loans.