Overview

Federal Title IV Code: 001434
Priority Deadline:March 1^st

Your legal education is a major investment and you are urged to begin financial planning as you begin the admissions process. The Washington College of Law financial aid program is designed to assist you in filling the gap between your resources and educational costs. The law school, the university and a variety of federal and private lenders all offer resources which can be utilized to meet expenses. For most students the major portion of law school costs are met through loan programs. Loans are available through the Federal Stafford Loan and Graduate Plus Programs and through banks and other lenders.

Aid offered by the Washington College of Law is awarded on the basis of need. While assistance is available through our grant program, it is expected that you and your family will make a reasonable effort to contribute to your expenses from your own resources. Further, grant applicants are expected to exhaust all available resources including the maximum available under the Stafford Loan Program as a condition of grant consideration.

Debt Ceiling Legislation and Student Loans ^*

The recently passed Budget Control Act of 2011 increasing the nation’s debt ceiling and reducing the federal budget deficit will mean changes to the federal student loan programs beginning July 1, 2012.  The changes do NOT affect 2011-2012 awards, they are effective with the 2012-13 academic year. 

The new law does not affect funding levels; it will affect the cost to borrow (loans will cost more). The legislation eliminates the interest subsidy on federal Direct Loans for graduate and professional students beginning July 1, 2012 (next year).  Eligible students are still able to borrow $20,500 annually but interest will accrue on the entire amount beginning with disbursement.  Currently, students are not charged interest while in school or during grace and deferment periods. The loss of the interest subsidy for a full-time student who borrows for the first time in 2012-13 and was eligible for the $8,500 in the past is about $2,800 over the time in school and another $900 during the grace period (total $3,700). The added interest costs for part-time students over 4 years is about $6,000; $4,800 in school and $1,200 during the grace period.  Even though interest will now accrue during school, interest and principal payments are still deferred until after graduation.  The option to make interest payments while in school remains.

Additionally, students will lose the "origination fee rebate" on Direct and Grad PLUS loans disbursed after July 1, 2012. Currently there is a 1% origination fee on Direct loans (0.5% of which is assessed at disbursement and 0.5% at repayment if the borrower fails to make the first 12 payments on time). Under the new rules, borrowers will be charged the full 1% fee at disbursement; the back end rebate is eliminated.   For the Grad PLUS, the fee is 4% (2.5% on disbursement and 1.5% at repayment if the borrower fails to make the first 12 payments on time).  Similarly, Grad PLUS borrowers will be assessed the full 4% fee at disbursement.   This reduces the amount the borrower receives.  For now, the 0.25% interest rate reduction incentive that applies to electronic loan payments is unchanged.  Regulations governing these changes will be issued over the next few months.  We will provide updates as details become available.