- Bar exam loans can help you cover living expenses and exam fees while studying for the bar exam.
- Bar exam loans are not technically student loans — they are personal loans.
- Loan limits on bar exam loans are relatively low.
Bar exam loans are special loans to help you cover living expenses and exam fees while studying for the bar after law school.
Navigating the world of law can be a challenge, but financing your bar exam preparation doesn’t have to be difficult. With so many bar exam loan providers offering tailored solutions for law students, making an informed decision is crucial.
We’ll explore the best bar exam loan options, their unique features, and alternative financing methods to support your journey to becoming a successful attorney.
What to Look for in a Bar Exam Loan
When shopping for a loan, it’s important to compare products from different loan providers. Here are some key features to consider:
- Interest rates: Getting a competitive interest rate is crucial. Do your best to secure the best price for your situation.
- expenses: Many lenders charge fees for their loans. Common fees include late payment fees and loan origination fees. It is important to compare fees to avoid overpaying.
- Borrower Protection: Life doesn’t always go according to plan. Some lenders offer hardship options, such as forbearance, as a reprieve during difficult times.
- Loan terms: The correct loan term depends on your situation. But you may want to work with a lender that offers multiple term length options.
Best Bar Exam Loans
The best bar exam loans can help you cover living expenses and bar school classes. It is the last payment before you become a full-fledged lawyer. Here’s a look at the best options:
Sallie Mae
Sallie Mae offers law school loans to law students who have graduated in the last 12 months or are currently enrolled at least half-time. US citizens and permanent residents can apply for this loan.
International students can apply with one of the two sites. While approximately 70% of applicants are approved without a co-signer, Sallie Mae offers the option to add a co-signer to this loan. If you make 12 payments on time, it is possible to apply for release from the co-signer.
Loan amounts range from $1,000 to $15,000. You will not be subject to origination or early repayment penalties with this loan. If you sign up for automatic payments, you can get a 0.25% interest rate reduction.
After disbursing the loan funds, you will have the option to defer payments for nine months after leaving school. If you are unable to make large monthly payments, you can request that interest-only payments be made for the first two to four years of the repayment term.
Sallie Mae offers:
- Fixed annual interest rate: 7.01% to 15.26% annual interest rate
- Variable annual interest rate: 6.88% to 16.49% annual interest rate
- Loan terms: Up to 20 years
BNC Bank
PNC Bank offers bar exam loans to students who plan to take the exam within six months of graduating from a PNC-accredited law school. U.S. citizens and permanent residents can apply, with or without a co-signer, and you can apply to be released from the loan after making 48 on-time payments.
The loan amount can be up to $15,000. However, PNC sets a total limit for all student loan debt, including this bar exam loan, at $225,000. If you have more student loans than this limit, a bar exam loan from PNC Bank is not an option.
If you sign up for automatic payments, you will enjoy an interest rate discount of 0.50%. Once you receive the loan, you will have the option to start making payments immediately. If this is not an option for your budget, you can choose to defer payments until six months after your graduation date or make interest-only payments until six months have passed.
PNC Bank offers:
- Fixed annual interest rate: 3.19% to 14.24% annual interest rate
- Variable annual interest rate: 4.49% to 14.74% annual interest rate
- Loan terms: Up to 15 years
Understanding bar exam credits
Bar exam loans are specifically designed to help law students finance expenses related to taking the bar exam, such as registration fees and living expenses during the preparation period. These loans differ from traditional student loans in their terms and purpose, as they are designed to help law students meet the unique financial requirements of preparing for the bar exam.
When evaluating your bar exam loan options, considering the loan limits, repayment terms, and interest rates offered by each lender becomes important because these factors will determine the amount financed and the total cost of the loan.
In addition to federal student loans, private student loans can be a viable option for law students looking for tailored financial support to prepare them for the bar exam.
Choosing the right bar exam loan
When choosing the right bar exam loan, considering your circumstances and financial goals is important. Start by evaluating your current financial situation, including your credit score, income, and current loan obligations. This information will help you determine your eligibility for different loan options and whether you may need a creditworthy cosigner to secure a loan or get a lower interest rate.
Next, compare the interest rates, loan terms, and repayment options offered by different lenders. Keep in mind that interest rates can vary greatly between private loans and federal student loans, so it’s essential to weigh the pros and cons of each option before making a decision. Additionally, consider any potential lender-specific benefits, such as interest rate discounts for automatic payments or flexible repayment options, when making your choice.
Finally, before committing to a bar exam loan, don’t forget to explore alternative financing options such as scholarships, personal loans, and employer assistance programs. These alternatives may provide more favorable terms or additional financial support that can help ease the burden of financing your bar exam preparation.
Alternatives to Bar Exam Loans
If you are considering alternatives to bar exam loans, there are many options available to help finance your bar exam preparation. Scholarships are a popular option, because they provide financial aid based on merit or need and do not require repayment. Search and apply for scholarships specifically targeted to law students preparing for the bar exam.
Another option is to obtain a personal loan from a bank or credit union, which can offer more flexible repayment terms and lower interest rates than private bar exam loans. In addition, some employers offer assistance programs such as tuition reimbursement, loan repayment assistance, and other forms of financial support.
Be sure to explore these alternatives and weigh their pros and cons against bar exam loans before making a final decision.
Bottom line
A bar exam loan can help you finish the final phase of your law degree with minimal financial stress. Although taking out a loan will increase your debt load, you will have the space you need to study for the bar exam.
When shopping, remember to compare the most important features, such as interest rates, term and payment flexibility.
Related to: Student loan forgiveness for lawyers
Frequently asked questions
What is a pub study loan?
Bar study loans are private loans available to law students to cover expenses associated with bar exams, such as exam fees, course costs and living expenses. They provide a means for law graduates to finance their studies in law in order to begin practicing law.
How do strip loans work?
Bar loans are a form of private student loans that can cover living expenses and bar exam preparation fees. Generally, you must be in your final year of law school or have graduated within the last six to twelve months to be eligible, and you will need to take the exam within twelve months of graduation. The amount you can borrow is not limited to the cost of attending school, and lenders will base their rates on your credit score.
Is it difficult to get loans for law school?
Getting a loan for law school depends on having a good credit score. Banks and credit unions offer private loans with fixed or variable interest rates.
How to afford living costs while in law school?
Apply for school and government aid to help cover living expenses while in law school. You may also be eligible for a federal work-study position, which allows you to work part-time on campus to earn money.
What is the purpose of bar exam loans?
Bar exam loans are designed to help law students finance expenses related to the bar exam, such as registration fees and living costs during preparation.
