We have put together a list of items to assist you with making your loan repayment.
Students or graduates are welcome to schedule an individual appointment with our loan
counselors to address their individual situation. You may also find the following
checklist and presentation helpful.
The National Student Loan Database (NSLDS), www.nslds.ed.gov, is the online site where you can find a complete listing of your federal student loans for all institutions you have
attended. You may start here to obtain the information required to complete your
Bar Exam Application. You must contact your lender directly for loan account numbers
that are required for the Bar Exam Application.
If you have borrowed private loans, contact the lender directly for detailed loan
and repayment information.
DETERMINE IF YOU NEED FUNDING FOR BAR EXAM COSTS
If you have not exhausted all of your Federal Loan or Private Loan eligibility for
the current academic year, you should request the additional funds before seeking
a Bar Study Loan.
If you pay the Bar Exam Application fee while you are still enrolled (before the semester ends in May), you may have this
fee added to your cost of attendance. Please submit a request for a Budget increase,
along with receipt of payment, to the Office of Financial Resource Management.
Bar Study Loans- Bar Study Loans are private loans available to graduating students to cover the
costs of bar exam expenses and living expenses while studying for the bar exam. Bar
Study Loans require credit approval and specific eligibility criteria established
by each lender. You may apply for a Bar Study Loan in your final year of study or
up to 12 months after graduation from law school. You must also sit for the bar exam
within 12 months after graduation. We recommend that you check your credit report
(annualcreditreport.com) prior to applying to ensure that your information is accurate. The following is
an alphabetical list of lenders offering Bar Study Loans (as of Spring 2014). Lenders
are not ranked or endorsed by our office. Students should research the terms and
conditions of each loan prior to applying.
Wells Fargo Bar Study Loans (Must have Wells Fargo account.) wellsfargo.com 800-378-5526
COMPLETE STUDENT LOAN EXIT COUNSELING
Student Loan Exit Counseling is required for any student who has borrowed a Federal
Stafford, Graduate Plus or a Perkins Loan. Exit Counseling discusses your rights
and responsibilities, and will provide a loan summary as well as estimated repayment
Understanding your repayment options may help you to estimate your projected monthly
payments while in repayment. Direct Stafford and Direct Grad PLUS loans offer the
following repayment plan options:
Standard RepaymentPlan - Fixed monthly payments for up to 10 years. It will cost you approximately $115/month
for every $10,000 you owe, assuming the interest rate is 6.8%, the repayment term
is ten years, and you are making equal monthly payments.
Graduated RepaymentPlan - Payments are lower at first and increase, usually every two years, for up to 10
Extended Repayment Plan - Payments may be fixed or graduated for a period up to 25 years. You must have
a Direct Loan or Federal Family Education Loan (FFEL) balance totaling more than $30,000
for this payment option.
Income-Based Repayment Plan (IBR) - Payments are based on your income for those experiencing partial financial hardship,
and monthly payments will be limited to 15% of your monthly discretionary income.
Discretionary income is the difference between adjusted gross income (AGI) and 150%
of the federal poverty line that corresponds to your family size and the state in
which you reside. There is no minimum monthly payment. While extending your repayment term to lower your monthly payment might sound appealing,
remember that the longer you take to repay your loans the more you will pay in interest
over the life of the loan. If you must lower the payments at the beginning of your
repayment, try to position yourself to be able to begin making larger payments as
soon as possible. Remember, you may prepay all or part of your loan at any time without
penalty. Prepayment may substantially reduce your interest costs. Any loan balance
not paid after the equivalent of 25 years of payments will be forgiven. You may have
to pay income tax on any amount that is forgiven.
Pay As You Earn (PAYE) Repayment Plan - Payments are also based on your income and you must be experiencing partial financial
hardship. Monthly payments are limited to 10% of discretionary income. You must
be a new borrower on or after October 1, 200 and must have received a disbursement
of a Direct Loan on or after Oct. 1, 2007 to be eligible for this repayment plan.
Any loan balance not paid after the equivalent of 20 years of payments will be forgiven.
You may have to pay taxes on any amount forgiven.
Income Contingent Repayment Plan - Monthly payments are calculated on the basis of your adjusted gross income, family
size, and the total amount of your Direct Loans. Your monthly payment changes as your
income changes. The maximum repayment period is 25 years. Under the ICR plan you
will pay each month the lesser of: The amount you would pay if you repaid your loan
in 12 years multiplied by an income percentage factor that varies with your annual
income, or 20% of your monthly discretionary income. If your payments are not large
enough to cover the interest that has accumulated on your loans, the unpaid amount
will be capitalized once each year. However, capitalization will not exceed 10 percent
of the original amount you owed when you entered repayment. Interest will continue
to accumulate but will no longer be capitalized (added to the loan principal). If
you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance
does not count) under this plan, the unpaid portion will be discharged (forgiven).
You may, however, have to pay taxes on the amount that is discharged.
Federal Student Loan Consolidation allows you to combine multiple federal student loans into one loan, resulting in
a single monthly payment. Borrowers should carefully compare all repayment options
to determine if loan consolidation is right for them.
While loan consolidation can simplify loan repayment and lower your monthly payment,
it also can significantly increase the total cost of repaying your loans.
Please note that borrowers, who have loans from the FFEL Program (private lenders)
and intend to apply for loan forgiveness under the Public Service Loan Forgiveness
Program, must consolidate into the Direct Loan program. For more information, contact
the Department of Education (http://loanconsolidation.ed.gov)
The interest rate for a consolidation loan is based on the weighted average interest
rate of the loans being consolidated, rounded up to the next nearest one-eighth of
one percent. For this reason, consolidation may not be right for you if you only have
loans with fixed interest rates.
If you would like further information on these interest rates or other details regarding
your student loans, please contact us at 973-642-8850.
The average amount borrowed in law school by Seton Hall Law 2012-13 J.D. graduates
who borrowed at least one educational loan in law school is $127,075. The percentage
of 2012-13 J.D. graduates who borrowed at least one educational loan in law school: