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10 Ways to Get Financially Ready for Law School

By U.S. News & World Report

Prepare to Pay for Law School

A law degree is often a costly investment. At private schools, students paid $40,000 on average for tuition and fees in 2012, according to the American Bar Association. Those at public schools in 2012 paid, on average, between $23,000 and slightly more than $36,000.

Below are 10 tips to help aspiring J.D.s make smart choices about how to finance a law degree.

1. Take Stock of Personal Finances

Before school begins, students should estimate how much they’ll need to spend on things like transportation, living expenses, and even undergraduate loans, says Shawn P. O’Connor, who writes the U.S. News blog Law Admissions Lowdown.

Payment for undergraduate loans may be deferred in some cases, but not without a cost. “When you defer payment on student loans, your loans will generally continue to accrue interest, which is usually added to the principal amount of the loan,” O’Connor wrote in a 2014 blog post.

2. Understand School Scholarship Requirements

Law schools may have strict requirements for students who receive scholarships.

For example: Because a school may predetermine the number or percentage of students who will get a certain GPA or grades, it may be impossible for all of the 1L scholarship recipients to meet the requirements that would enable them to keep their scholarship as 2Ls, Hanna Stotland, who advises law school applicants and legal professionals as a private consultant, told U.S. News earlier this year.

3. Look Outside of School for Free Money

A number of organizations also offer scholarships for students in law school. Citizens Bank, the Federal Circuit Bar Association and the American Bar Association are just a few organizations that award money to future J.D.s.

Some of these scholarships are specifically for minority students and law school applicants, while others welcome a larger pool of potential recipients.

4. Carefully Weigh Two-Year Options

Several schools have recently started to offer two-year options, instead of the traditional three years, for law school. These programs, however, aren’t guaranteed money savers.

“You get two years of a legal education, at some schools, but you pay for three. They charge you basically by the degree. That’s where the student as a consumer has to be very careful,” said Steven Sedberry, author of “Law School Labyrinth: The Guide to Making the Most of Your Legal Education,” in a previous U.S. News story.

5. Consider Career Goals

As students figure out how much they’ll pay in tuition and fees, they should also consider what type of law they’ll get into and where they’ll practice, experts say.

“If you’re going to be practicing in Kentucky, obviously the salary you’re going to be earning is less but at the same time the amount of money you’re going to have to spend to live is a lot less,” said Matthew Shinners, who helps prospective law students get into school, in a previous U.S. News story.

6. Research Debt for Past Graduates

Some schools are known for having students graduate with relatively low debt. The Bowen School of Law at University of Arkansas–Little Rock, for example, had the lowest average law school debt for 2013 graduates who borrowed out of 181 ranked institutions that reported data to U.S. News in an annual survey.

Researching how much debt students graduate with may help applicants decide which school will cost them the least.

7. Take a Gap Year

It’s common for people to wait a year or two after getting their bachelor’s degree before starting a J.D. program. A gap year before applying to law school can be spent doing volunteer work, exploring a nonlegal career or working in an area of law prospective students would like to learn more about in law school.

If applicants choose to work, they can save some of their salary for law school expenses.

8. Consider Part-Time Offerings

Going to school part-time allows law school students to work while getting their degree. Prospective students should see if their current employer will allow them to switch from working full-time to part-time, says O’Connor in the U.S. News blog Law Admissions Lowdown.

“In that scenario, you are familiar with the work environment and hopefully have a good relationship with your supervisor, whose understanding and flexibility will be invaluable during school. If that is not possible, consider searching for part-time work,” he said in a 2014 blog post.

9. Know About Graduate Student Aid

The type of financial aid available for a graduate student is different from what is available for an undergraduate student. For example: Graduate students cannot borrow federal subsidized loans and typically are not eligible for Pell Grants.

Knowing the loan options available can help aspiring law students decide how they’ll pay for school.

10. Understand Loan Repayment Options

A six-month grace period before repaying student loans, which is common for those paying back undergraduate loans, is not always available for law school graduates who borrowed. On the other hand, those with high graduate school debt may be able to use income-based repayment plans for getting rid of their loans.

Experts encourage graduate students to understand the range of repayment options for all of their student loans.

Learn More About Paying for Law School

Consider more ways to reduce law school expenses and get our complete rankings of the 2015 Best Law Schools to help make your decision.

For more advice and information on how to finance a law school education, connect with U.S. News Education on Twitter and Facebook.

More from U.S. News

Figure Out Which Area of Law Fits Your Career Goals

Sharpen Law Skills With a Master of Legal Studies

Consider Practicum Offerings When Deciding on a Law School

10 Ways to Get Financially Ready for Law School originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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