Types of Loans
- Federal Direct Unsubsidized Loan Program. The Federal Direct Unsubsidized Loan is available to students who have not had their Total Estimated Cost of Attendance met through other financial aid programs. The annual maximum for the Unsubsidized Ford Federal Direct Loan program is $20,500. The interest rate is variable and for 2016-17 is 5.31%. The federal government withholds a loan fee of 1.069%, for (2016-17) from each disbursement. You may defer payment on the principal and interest, but interest does accrue from the time the loan is disbursed. If you defer interest payments, the interest is capitalized when the grace period ends.
- Grad PLUS Loan. The Grad PLUS Loan is a federal educational credit-based loan that may be available to students who have not had their Total Estimated Cost of Attendance met through other financial aid programs and who do not have an adverse credit history. A credit check will be performed during the application process.
If you have an adverse credit history you may still be eligible to receive a Federal Direct PLUS Loan. Your credit history may be considered adverse if you are experiencing any of the following credit conditions: accounts currently 90 days or more delinquent, unpaid collection accounts, bankruptcy discharge within the past five years, voluntary surrender of personal property to avoid repossession within the last five years, repossession of collateral within the last five years. Other conditions apply; for the full list go to https://studentaid.ed.gov/sa/types/loans/plus#adverse-credit. To check your credit go to https://www.annualcreditreport.com/index.action.
A student with an adverse credit history may still receive a Direct PLUS Loan if the student obtains an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the loan if the student does not repay it. The interest rate is variable and for 2016-17 is 6.31%. The federal government withholds a loan fee of 4.276% (for 2016-17) from each disbursement. You may defer payment on the principal and interest, but interest does accrue from the time the loan is disbursed. If you defer interest payments, the interest is capitalized when the grace period ends.
- Bar Exam Loans are private educational loans. They are available for third-year students only and enable them to borrow funds for the costs associated with taking the bar, bar registration, bar review, and living expenses. A credit check is required, and you may need a creditworthy cosigner.
Information for Law Students Graduating with Student Loans
Equal Justice Works provides free, online resources and information about student loans and debt-relief programs, including downloadable checklists, podcasts, and an interactive forum.
You can manage your loans online. The University of Iowa Billing Office provides access to online loan management of your Perkins Loan or Iowa Law School Foundation Loan with Educational Computer Systems Incorporated (ECSI).
Loan Forgiveness and Management
- College Cost Reduction and Access Act: This Act benefits many people working in public service, especially if they have high federal student loan debt. For details, please see:
- Iowa Lawyer Law Foundation Loan Forgiveness Pilot Program
- Public Interest Iowa Law Foundation Loan Forgiveness
- Federal Direct Consolidation Loans
- UI Financial Literacy Services
- WiseBorrower tutorials from Access Group, Inc.
Questions and inquiries?
Office of Financial Aid
University of Iowa College of Law
276 Boyd Law Building
Iowa City, IA 52242-1113