National Jurist - March 2009 - (Page 39) Financing options But while scholarships are out there — for most students — law school loans will still be the primary source of financing their legal education. One myth about law school finances is that there is no money available, said Matasar, along with myths that law school is either a terrible deal or a great deal. The truth is that for many — if not most — law students, law school will offer a sound education that will eventually lead to a job. And when it comes to financing that education, students do have options. Most law students will opt for federal student loans, such as the Grad PLUS loan, Berman said. Under that loan, students can borrow the maximum cost of their attendance, using a fixed interest rate and ending up with generally more advantageous repayment terms than many private loans. For some students, private loans are still an option, though Berman cautions that many private lenders have tightened their credit requirements in response to current economic pressures, and some have even left the market. Matasar and Berman both caution against using credit cards to pay for any costs associated with attendance. Whatever loan you ultimately select, make sure you understand the financial terms of the loan before you take it out. Also understand what will be required of you when it’s time to repay the loan. When borrowing, consider also the interest rate and what you can do with your money in other places, advises Berman. For example, if a student is borrowing excess money at an 8 percent interest rate and then putting it into a checking account to pay living expenses, that loan is accruing interest without providing any return for the student. For that reason, Berman recommends that students borrow as they need — that they look at their anticipated expenses at the beginning of the school year and plan to take out loans as those expenses are incurred. Johnson has another solution. He said he puts his loan proceeds in a high- interest savings account until he needs to use them. To navigate your financing options: $Consider the most attractive loans available to you based on your financial situation. $Familiarize yourself with loan terms before you take out the loan, and understand what will be expected of you when it’s time to repay the loan. applicable, consider taking out money as you need it in order to minimize interest costs. $If Loan repayment options The biggest buzz of the year in law student financial aid is the College Cost Reduction and Access Act, a new federal income-based loan repayment and loan forgiveness program which will be avail- Hofstra Law School Training Leaders to Make an Impact • Ranked by U.S. News as a Top 100 ABA accredited Law School • Extensive Hands-On Skills Training and Programs, Including seven Live Client Clinics • Bright, Engaged and Accomplished Students from 35 countries, 45 states and 150 colleges • Featured by U.S. News as one of The Most Diverse Schools • Respected Partners, Shareholders and Members of International Law Firms “Hofstra Law School prepares passionate students to make an impact in the legal community and beyond.” Nora V. Demleitner Dean and Professor of Law Transfer Application Deadline: July 15 School of Law law.hofstra.edu/Apply March 2009 THE NATIONAL JURIST 39 http://law.hofstra.edu/Apply http://law.hofstra.edu/Apply
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