Forms of Aid

Law School Grants are provided through the generosity of our alumni and friends of the Law School and University. These grants serve to minimize the educational debt of students with demonstrated financial need. Although a Law School grant does not impose a legal obligation to repay the funds, the Law School hopes that those who receive grants will recognize that continuation of the grant program for future students depends upon donation, when the recipients are financially able, of an amount at least equal to the assistance they were given.

Law School Loans are provided through Law School funds. These loans have an interest rate of 7% and are awarded in cases of special hardship on a case-by-case basis to students unable to meet their need through federal and other external loan programs. Repayment and interest begin one year after a student leaves the Law School. 

Stafford Subsidized and Unsubsidized Loans are funded by the federal government through the Department of Education. Subsidized loans are limited to $8,500 per year and the recipient must demonstrate financial need to qualify. Unsubsidized loans may be as great as $20,500 per year and are available to students regardless of financial need. The total of subsidized and unsubsidized loans cannot exceed $20,500 per year.

The interest rate on subsidized and unsubsidized loans disbursed after July 1, 2006, is fixed at 6.8%. Subsidized loans do not accrue interest while you are enrolled at least half-time, during your grace period, and during deferment periods. Interest charges begin to accrue on unsubsidized loans at disbursement, although you do not have to make any payments while you are in school. The fee, after rebate, that is withheld on Direct Stafford loans is between 0.5 and 1%, depending on the date of disbursement. Repayment begins six months after a student leaves the Law School.

Since the University of Michigan participates in the Direct Loan Program, we do not process federal loans through private lenders. All federal loans are processed by our office and are serviced by Direct Loans. This decision is based on the University's opinion that it is in the students' best interest.

Alternative Loans targeted at law students are available from several entities, including the Department of Education Grad PLUS Program, Access Group, CitiAssist, and Sallie Mae. Typically, students must have a good credit history to be eligible for alternative loans. Alternative loans may be used to replace an expected parental ability to pay figure. Applications for these loans are available in the Financial Aid Office or can be obtained from your chosen lender. The loan comparison chart/FAQ [PDF] provides a sample list of alternative loan providers.

Additional Law School Aid Programs

The College Work-Study Employment Program enables students to earn money through employment within the University. Law students often work in the Law Library or serve as research assistants to law professors. The federal government subsidizes 60 percent of all Work-Study wages.

Student Funded Fellowships (SFF) provide funds for some first- and second-year students who wish to work at summer public interest and public service jobs for little or no pay. SFF, Law School, and summer Work-Study funds support this program.

The Debt Management/Loan Forgiveness Program at the Law School is the most progressive in the country. It provides graduates with maximum flexibility to choose jobs from any law-related area (excluding judicial clerkships) including modest-paying public interest positions, while still maintaining a reasonable lifestyle and remaining current on outstanding loan obligations.

Graduates whose combination of income and debt make them eligible receive assistance in meeting their loan obligations incurred during Law School and annually earn forgiveness of Law School loans. Consult the Financial Aid Office or visit the debt management FAQ for more details.