Major changes are ahead for the world of law school financing. To help you plan, and to keep you updated on all that’s new, we’ve compiled a list of frequently asked questions about those changes. The information is based on what we know right now and will be updated as new guidance is announced, so check back often.
I will be starting a full-time JD program after July 1, 2026. What types of federal student loans are available to me?
New borrowers (“new” in this instance refers to a student beginning a JD program after July 1, 2026) will have access only to the Direct Unsubsidized loan. The maximum amount that can be borrowed under this program is $50,000 per academic year.
New borrowers in a professional program (which includes the JD) may not borrow more than the lifetime loan limit of $200,000. The $200,000 lifetime loan limit does not include any undergraduate loans. Undergraduate loans are capped at a maximum of $57,500. Therefore, the lifetime maximum amount of federal student loans a student would be able to borrow is $257,500.
As a new borrower will I have access to the Direct Graduate PLUS loan?
No. If you have not borrowed federal student loans within your JD program prior to July 1, 2026, you will not be able to borrow a Direct Graduate PLUS loan. The only loan you will be able to borrow is the Direct Unsubsidized loan at a maximum of $50,000 per academic year.
I will be starting a part-time JD program after July 1, 2026. Do I have access to the same federal student loans as a full-time student?
Students who are beginning a part-time JD program or who are otherwise not attending full-time (as defined by your school) will have access to the Direct Unsubsidized loan at a prorated amount. This most likely means you will not be able to borrow the full $50,000 Direct Unsubsidized loan that is available to full time students in an academic year. The Department of Education will soon release a proration schedule which will clarify just how much a part-time student will be able to borrow each year. Please note, to qualify for any federal student loans, you must be enrolled at least half-time. Half-time status will be determined by your school. This regulation has not changed.
I am a current student in a JD program. What federal student loans am I now able to borrow?
It depends. If you have borrowed loans within your current JD program prior to July 1, 2026, you will not see any major changes to what you are able to borrow. You will still have access to the Direct Unsubsidized loan at the previous limit of $20,500 per academic year. You will still have access to the Direct Graduate PLUS loan for an additional three academic years, or until the end of your program, whichever comes first.
If you are a current student in a JD program and have not borrowed any federal student loans within your current program and do not plan to prior to July 1, 2026, you will be subject to the new limits. This means you will be able to borrow up to $50,000 of a Direct Unsubsidized loan and will not have access to the Direct Graduate PLUS loan.
I’m a current student in a JD program and have already borrowed federal student loans within my program. I’d like to take advantage of the new, higher, Direct Unsubsidized loan amounts, am I able to do that?
No. If you are a current borrower, you will be subject to the previous loan limits, which include a maximum Direct Unsubsidized loan of $20,500. You may not opt in to the new loan limits.
With Graduate PLUS no longer an option, what other resources are available to help me cover the cost of attendance?
The first step is to contact your school’s financial aid office to see what institutional aid they offer. This can include scholarships and need-based grants. During the lead up to law school you can also seek out and apply for external scholarships or grants.
Private student loans may be an option, but it is generally recommended that you exhaust all institutional and federal financial resources before pursuing a private student loan. Private student loans do not offer the same benefits as federal student loans, such as a fixed interest rate regardless of credit score, income-driven repayment plans, and loan forgiveness programs. They often come with higher interest rates and may require a cosigner.
If you are considering a private student loan, it is very important to extensively research and compare lenders as well as loan terms, rates, and conditions before applying.
I will be starting an LLM program or pursuing another non-JD law program. Do the new loan limits apply to me?
Law students in programs such as an LLM or Master of Legal Studies are considered graduate students, not professional students, for the purposes of federal financial aid. If you will be a new borrower after July 1, 2026, you will still have access to the Direct Unsubsidized loan at an amount of $20,500 per academic year, with an aggregate limit of $100,000. You will not be able to borrow a Direct Graduate PLUS loan.
Who can I talk to if I have more questions? How can I stay up to date on all these changes?
The single best source of information about financing a legal education is the financial aid office (or the website) serving any LSAC-member law school. LSAC.org provides links to many law schools as well as several good sources of financial aid information. LawHub offers free courses and webinars about financial aid.
In addition, this page will be updated whenever new information is available.
Changes to Student Loan Repayment
With these changes, is Public Service Loan Forgiveness still available?
Yes. The Budget Reconciliation Act did not make any changes to Public Service Loan Forgiveness (PSLF). It is worth noting that only loans made through the Direct Loan Program are eligible for PSLF. While there will be a greater reliance on private loans with the removal of the Direct Graduate PLUS loan program, private loans are not eligible for PSLF. You can find more information about Public Service Loan Forgiveness here .
What repayment options will I have when I graduate?
It depends. If you borrowed all your federal student loans prior to July 1, 2026, you have access to the Standard, Graduated, and Extended repayment plans as well as the Income-Based Repayment Plan (IBR) and the Repayment Assistance Program (RAP). The Standard, Graduated, and Extended repayment plans base your monthly payment on how much you have borrowed. The IBR and RAP plans base your monthly payment on your income.
If you borrow any federal student loans after July 1, 2026, you will have access only to the new Standard Repayment Plan or the Repayment Assistance Plan (RAP).
What is the new Standard Repayment Plan?
The new Standard Repayment Plan is based on your student loan balance and does not take your income into account. The calculated monthly payment ensures that your balance is completely paid off within the length of the repayment period. The repayment period is based on how much you have borrowed and ranges from 10 years to 25 years. Please see the chart below for each fixed term:
| Repayment Term | Loan Balance* |
|---|---|
| 10-year | Less than $25,000 |
| 15-year | Between $25,000 and $49,999 |
| 20-year | Between $50,000 and $99,999 |
| 25-year | $100,000 or greater |
* Undergraduate and graduate/professional combined
What is the Repayment Assistance Plan?
The Repayment Assistance Plan (RAP) is a repayment plan that is based on your income, not how much you have borrowed. Your monthly payment is calculated based on a percentage of your adjusted gross income from your most recently filed tax return and how many dependents you have (if applicable). This means, to remain in the RAP, you will have to re-certify your income each year. The chart below details how your monthly payment amount will be calculated:
| Adjusted Gross Income (AGI) | Monthly Repayment Amount |
|---|---|
| Below $10,000 | You will pay the minimum monthly payment amount of $10 per month |
| $10,001 to $20,000 | 1% of AGI |
| $20,001 to $30,000 | 2% of AGI |
| $30,001 to $40,000 | 3% of AGI |
| $40,001 to $50,000 | 4% of AGI |
| $50,001 to $60,000 | 5% of AGI |
| $60,001 to $70,000 | 6% of AGI |
| $70,001 to $80,000 | 7% of AGI |
| $80,001 to $90,000 | 8% of AGI |
| $90,001 to $100,000 | 9% of AGI |
| Greater than $100,000 | 10% of AGI |
Take the applicable percentage of your AGI and divide that number by 12. This will be your monthly payment amount. If you have dependents, you will deduct $50 per month per dependent.
Under the new Repayment Assistance Program, your loan balance will not increase. Any unpaid interest that has accrued for the month is waived.
Does the Repayment Assistance Plan offer any sort of loan forgiveness?
Yes. Once you have made 360 (30 years) on-time monthly payments, any remaining balance will be forgiven.
Do I qualify for Public Service Loan Forgiveness if I am enrolled in either the new Standard Repayment Plan or the Repayment Assistance Program?
As of now the Department of Education has confirmed that payments made under the Repayment Assistance Program will count towards Public Service Loan Forgiveness (PSLF). There has not been confirmation yet about the new Standard Repayment Plan.