Federal Loans
NOTE: The Student Loan Payment Pause is extended until the earliest of either 60
days from the date the debt relief program has been implemented OR, 60 days from June
30, 2023 if the debt relief program has not been implemented and the litigation has
not been resolved.
Direct Stafford Loans
The Direct Unsubsidized Stafford Loan is a federal loan borrowed directly from the U.S. Department of Education and administered
by the school. The annual loan limit is $20,500 per academic year. Interest accrues
on the Unsubsidized Direct Stafford Loan from the time the loan is disbursed until
it is paid in full. Interest accumulated while in school or during other periods of
nonpayment is capitalized (added to the principal amount of the loan), but a student
has the option to make interest payments while in school.
- Interest Rate: 6.54% (for loans disbursed between July 1, 2022 and before July 1,
2023. The interest rate is fixed for the life of the loan.
- Origination Fee: For loans disbursed between October 1, 2020 and October 1, 2023,
1.057 % will be deducted proportionally from the gross amount of each loan disbursement.
- Grace period: 6 months after graduation, withdrawal, leave of absence, or drop to
less than half-time status.
- Repayment Plans: Federal Direct Stafford Loans have various payment options ranging from 10 years
to 25 years, as well as income drive plans. We recommend that you utilize the Repayment Estimator as a guide in determining monthly payment amounts when you enter repayment.
- Aggregate Stafford Loan debt: $138,500, which includes undergraduate debt.
- Direct Loan Consolidation is available.
- Application Procedures.
Direct Graduate Plus Loan
After applying for the Direct Unsubsidized Stafford Loan, Law students may apply for
a Direct Graduate Plus Loan to cover remaining educational costs up to the Cost of Attendance minus all other estimated financial assistance. Direct Graduate Plus Loans are another option in addition to private (alternative) loans. Direct Graduate PLUS loans are credit based, meaning that a credit check is performed to determine eligibility
for the Direct Plus Loan. Your credit score is not used in determining eligibility,
however, borrowers must demonstrate that they do not have an adverse credit history*.&
If adverse credit exits, the borrower may be approved for the loan by obtaining a
credit worthy endorser (co-borrower).
- Interest Rate: 7.54% (for loans disbursed between July 1, 2022 before July 1, 2023.
The interest rate is fixed for the life of the loan.
- Origination Fee: For loans disbursed between October 1, 2020 and October 1, 2022,
4.228% will be deducted proportionally from the gross amount of each loan disbursement.
- Grace period: 6 months after graduation, withdrawal, leave of absence, or drop to
less than half-time status.
- Repayment Plans: Federal Direct Stafford Loans have various payment options ranging from 10 years
to 25 years, as well as income driven plans. We recommend that you utilize the Repayment Estimator as a guide in determining monthly payment amounts when you enter repayment.
- Direct Loan Consolidation is available.
- Application Procedures.
*Please contact the Office of Enrollment Services for information on the definition
of adverse credit history.
Private Loans
About Private Student Loans
Private educational student loans may be borrowed as an alternative to the Federal
Direct Graduate Plus Loan if you require additional funding to cover educational expenses (the
Cost of Attendance) not covered by other sources of financial aid. Both are considered a part of your
financial aid package. Private student loans often require a creditworthy co-signer.
A credit-worthy co-signer may enable to you keep the loan fees and interest rates
at their lowest. Co-signers must be a creditworthy U.S. Citizen or Permanent Resident.
We encourage you to seriously evaluate the differences between federal and private
student loans to ensure you are comparing the terms, interest rates, and repayment
terms. Differences between federal and private student loans.
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. Interest rates vary by lender and can depend on the creditworthiness
of the student and their co-signer.
Applying for a Private Loan
You may borrow up to the cost of attendance minus any other financial aid received.
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 FinAid. You must reapply each year for a private loan. You may research lenders and apply
for a private loan our Private Loan Lender comparison page. Additional information on the application process is available under Applying for Loans.
Bar Study Loans
Bar Study Loans are available to graduating students to cover the cost of Bar Exam expenses, such
as Bar Review Courses, Bar application fees, and living expenses incurred while studying
for the Bar Exam. Bar Loans are private loans that require credit approval by independent
lenders and eligibility depends on criteria established by the lender.
Students and co-borrowers must also meet citizenship requirements as established by
the lender. Funds are sent directly to the student. Typically, you may apply for a
Bar Study Loan if you are enrolled at least half time in your final year of study
at an ABA-accredited law school, or have graduated from one within the last 12 months.
Please contact the Office of Enrollment Services for additional information.
Managing your Debt
Your Credit Counts!
The interest rates and fees you pay on a private student loan are based on your credit
score and the credit cosigner, if any. It is better to apply for a private student
loan with a cosigner even if you could qualify for the loan on your own. Applying
with a cosigner usually results in a better rate.
If you plan to utilize a private loan for living expenses to help finance your Seton
Hall Law education, we recommend that you verify your credit report is accurate and
in good standing. Credit reports frequently contain misinformation that can take time
to correct. Obtaining a copy of your credit report early allows you to correct any
adverse information prior to applying for a private loan. You should also periodically
obtain a copy of your report while in school to ensure that your private loan eligibility
in future years will not be affected because of adverse credit information.
You are entitled to receive one free credit report file every 12 months from each
of the nationwide consumer credit reporting companies. You may obtain your free credit
report from Annual Credit Report or by calling 1-877-322-8228. Regularly checking a credit report from the three
nationwide credit bureaus is a great way to fight identity theft.
However, if you would like a copy of your credit score, you must purchase the credit score. A credit score is a complex mathematical model
that evaluates many types of information in a credit file. A credit score is used
by a lender to help determine whether a person qualifies for a particular credit card,
loan (such as a private loan) or service. Generally, the higher your score, the less
risk you represent and the better rates you will be offered.
The credit score may also be purchased though Annual Credit Report, or by contacting one of the three nationwide consumer credit reporting companies
directly:
Equifax
800-685-1111
P.O. Box 740241, Atlanta, GA 30374-0241
Experian
888.EXPERIAN (397-3742)
P.O. Box 2002, Allen TX 75013
TransUnion
800-888-4213
P.O. Box 1000, Chester, PA 19022
Should you obtain a copy of all three credit file disclosures simultaneously?
It is entirely your choice whether you order all three credit file disclosures at
the same time or order one now and others later. The advantage of ordering all three
at the same time is that you can compare them (However, you will not be eligible for
another free credit file disclosure from the Central Source for 12 months). On the
other hand, the advantage of ordering one now and others later (for example, one credit
file disclosure every four months) is that you can keep track of any changes or new
information that may appear on your credit file disclosure. Remember, you are entitled
to receive one free credit file disclosure through the Central Source every 12 months
from each of the nationwide consumer credit reporting companies – Equifax, Experian
and TransUnion – so if you order from only one company today you can still order from
the other two companies at a later date.
Additional information on private loans is available at the Office of Enrollment Services.