Loans
Students may apply for the following types of loans:
Federal Direct Stafford Loans
All students are automatically reviewed for loan eligibility based upon submission of a FAFSA for the applicable academic year. Students who demonstrate sufficient need will be awarded a subsidized Federal Stafford Loan, for which the government pays the interest during school. Students who do not demonstrate financial need will also be awarded loan funds; however, they will be unsubsidized, and thus will accumulate interest even during school. Eligibility for Stafford loans is determined by an analysis of the information provided on the FAFSA.
To receive Stafford loans, students must be enrolled at least half-time (5 hours at the law school) and be United States citizens or eligible noncitizens. The maximum amount for graduate students as set by federal regulations is $20,500 per year, of which $8,500 can potentially be subsidized depending on the student's need. The difference between the Subsidized offer and $20,500 will be unsubsidized. The total amount for which a student qualifies up to the $20,500 is dependent upon the cost of attendance, but in most cases, law students will be eligible to borrow the full $20,500. The aggregate maximum amount for a student's entire school career is $138,500.
The Stafford loans are set at a 6.8% interest rate, fixed for the life of the loan. Repayment begins 6 months after the borrower leaves school or ceases to be enrolled at least half time. Interest on unsubsidized loans may be paid quarterly or allowed to accrue. Interest on subsidized loans is paid by the government until after the 6-month grace period.
Graduate PLUS Loans
Graduate and professional students are able to borrow PLUS loan funds through the Federal Direct Loan Program, above the subsidized and unsubsidized Stafford Loan limits up to the full cost of attendance. These loans are deferrable while in school but DO NOT have a grace period. Borrowers will pay a fixed interest rate for of 7.9%. Unlike the Stafford loans, these loans will require an approved credit check and for that reason, require a paper acceptance form. The University of Colorado automatically offers this type of loan as part of the initial financial aid award if the student’s Cost of Attendance is more than the $20,500 that would be covered by Stafford Loans.
Graduate PLUS and Stafford loans can be consolidated together upon separation from school. This flexibility and the favorable interest rate make the Grad PLUS a better choice in many cases than borrowing privately.
Private Alternative Law Loan Programs
The Colorado Law School participates in several private loan programs. All applicants for private loans must undergo a credit check. The interest rates and fees charged by these programs may vary according to the lender, the credit rating of the student, and if there is a co-signer. Both loan fees and interest rates are higher than those of the Stafford Direct loans, and in many cases the Grad PLUS loans and there is no cap in interest rates. Students should discuss loan terms with several lenders before deciding which lender best suits their needs. Lenders used frequently by law students are:
Law Access: 1-800-282-1550
CitiAssist: 1-800-692-8200
