Feb 9, 2012 55°F/13°C
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LAW > Financial Aid > Loans Chapman University School of Law

Loans

There are a variety of loan types available to the Law School student. There are federal loans such as the Stafford, Perkins, and Graduate PLUS, as well as private and emergency loans.

Federal Stafford Loans

(Subsidized and Unsubsidized)

Graduate students may be eligible for up to $20,500 annually with a total aggregate limit (including any undergraduate borrowing) of $138,500. The maximum amount may be limited by the actual cost of attendance. The maximum amount for the subsidized portion of the loan, which is need-based as determined by the information provided on the FAFSA, is $8,500 annually. The amount you qualify for may be lower. The Federal government pays the interest on the subsidized portion of the loan during in-school, grace, and deferment periods. Borrower pays all interest, which begins accruing upon first disbursement. Borrowers are encouraged to make interest payments while attending school. Otherwise, the interest will be capitalized according to the policy of the lender. Stafford loans disbursed after July 1, 2006 will have a fixed interest rate of 6.8%. Up to a 3% origination fee to the government and up to a 1% insurance fee to the loan guarantor may be charged. These fees are deducted from the loan amount prior to disbursement.

Federal Perkins Loans

For 2009-2010 the maximum amount awarded to Chapman students was $750. The federal maximum is $5,000 annually and $30,000 cumulatively, including undergraduate and graduate combined. The interest rate is fixed at 5% and does accrue during enrollment, grace and deferment periods.

Federal Graduate PLUS Loan

Federal loan to help fill the gap between the total cost of attendance and the combined amount of all other scholarships, grants, and federal institutional aid. Borrowers must meet credit requirements for this loan. The maximum amount is limited by the actual cost of attendance minus the combined amount of all other scholarships, grants, federal, and institutional aid. There is no aggregate maximum on this loan. The interest accrues while the student is in school an during grace periods and eligible deferment periods. The current interest rate is fixed at 8.5%. Up to a 3% origination fee to the government and up to a 1% insurance fee to the loan guarantor may be charged. These fees are deducted from the loan amount prior to disbursement.

Please note: Your credit will be pulled by your lender if you are applying for the Grad PLUS loan.

Credit approval is based on federally mandated criteria, not a credit score. In order to qualify you must not have any of the following items on your credit report:

Any current delinquency of 90 days or more
Any of the following within the preceding 5 years of the date of the credit check: default, bankruptcy, discharge, foreclosure, repossesion, tax lien, wage garnishment, write-off of a Title IV debt, open collection

Private and Bar Exam Loans

Private loans help to fill the gap between the total cost of attendance and the combined amount of all other scholarships, grants, and federal institutional aid. Borrowers must qualify for private loans, with each lender determining its own borrower eligibility.

Bar loans are designed to help students pay for bar preparatory classes and living expenses while studying for the bar. Generally these can be borrowed during the student’s final year of study or up to six months after graduation.

Rates, fees, and terms will vary among lenders (based on market indicators), but they will generally cost more to borrow than the Stafford or Perkins Loans. Borrowers are encouraged to compare the rates and terms of several lenders before completing an application.

Lenders require credit checks and may offer better rates to students with good credit or with cosigners. Students with questionable or bad credit may not be able to borrow this type of loan.

When considering which lender to use, interview potential lenders and ask about:

Fees charged up front and upon repayment
The interest rate: Is it variable? Is there a rate cap (maximum rate)?
Repayment incentives
If principle and/or interest can be deferred, and for how long
How often the interest is capitalized

Emergency Loans

Emergency loans are available up to a maximum of $300 and are granted to students who have a valid emergency and can demonstrate the ability to repay the loan according to the terms required by Chapman University’s Office of Student Business Services. Applications are available in the Office of Financial Aid.

Chapman University Law graduates