Education Law
New directory of private lending options created as student loan regulations shift
As federal policy changes shift student loan limits, the AccessLex Institute has launched a directory of private education loan options to help law students navigate lenders and their loan stipulations. (Image from Shutterstock)
As federal policy changes shift student loan limits, the AccessLex Institute has launched a directory of private education loan options to help law students navigate lenders and their loan stipulations.
The AccessLex Private Loan Exchange, a new nonprofit-curated resource, was developed in response to feedback from financial aid administrators, according to a Feb. 26 press release, and it offers information from private and state-based lenders to help law students navigate their options.
The Grad PLUS loans, which have no borrowing limits, that have been available for two decades will end July 1 when unsubsidized federal loans to law students are capped at $50,000 per year and $200,000 total for graduate education.
With average law school total costs at $230,163, according to Juris Education, many law students will be forced to take out private loans, which tend to have higher interest rates and limited repayment options.
There is concern from law deans that some student will not qualify for private loans.
Nearly 40% of students whose loans exceed the new limits “may not be able to secure private loans without a cosigner under existing underwriting standards,” according to a December study by the Federal Reserve Bank of Philadelphia. “Students with limited or poor credit histories, or those without cosigners, may struggle to secure private loans.”
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