Student Loan Programs
New England Law | Boston students may borrow from the following loan programs:
Federal Graduate PLUS Loan Program
Please refer to our Direct Loans page for the Federal Direct Loan Program for more information about how to accept and receive loans after receiving your financial aid award letter.
Federal Perkins Loan
The Federal Perkins Loan is a low-interest (5%) loan program administered by the Office of Financial Aid. Most funds for this program are supplied by former students who repay their loans, therefore it is considered a revolving loan fund. Priority for this program is given to the neediest students. Recipients must be U.S. citizens or permanent residents.
Award amounts vary based on need and available resources; the annual loan limit is $8,000 and the aggregate loan limit is $60,000. There are no origination or guarantee fees, and the federal government pays the accruing interest while you are in school and during the grace period. Repayment generally begins nine months after you cease to be enrolled at least half-time. The standard repayment term is 10 years and the minimum monthly payment is usually $40.
Although New England Law is the holder of your loan, all billing and servicing of your loan is coordinated through ACS Education Services. Before a loan can be credited to your account, a promissory note must be signed. New England Law will retain your original promissory note until the loan is paid in full. For more information on the process for applying for and receiving a Perkins Loan, see the Financial Aid Process.
All Federal Perkins Loans are reported to a national credit bureau at the time of disbursement. Delinquencies and defaults during repayment are also reported to the credit bureau.
Federal Stafford Loans
The Federal Stafford Loan is a low-interest loan available to students to help offset educational expenses. Most students are eligible for a subsidized and/or unsubsidized Federal Stafford Loan. The interest rate on the Federal Stafford Loan is fixed at 6.8% for new loans disbursed for the academic year 2011-2012.
You must demonstrate need as determined by federal formulas to qualify for the subsidized Stafford Loan. Students who are not eligible for the full amount of subsidized loan, or who need additional funding, may apply for an unsubsidized Stafford Loan.
Subsidized Stafford Loan |
Unsubsidized Stafford Loan |
|
| Maximum annual amount | $8,500 | $20,500, less any subsidized loan amount |
| Maximum cumulative borrowing | $65,500 | $138,500, including previous subsidized borrowing |
| Differences in Loan Terms | You are not charged interest until you begin repayment (usually six months after graduation). The interest is paid by the government. | You are responsible for the interest payments while enrolled; however, you have the option to allow the interest to accrue and capitalize. |
An origination fee of 0.5% will apply to your Stafford Loans.
Application Process
To apply for a Federal Stafford Loan, you must complete a Federal Direct Loan Request Form, which is included in your financial aid award packet. Both the subsidized and unsubsidized Federal Stafford Loan can be applied for on this form.
Students who plan to use Stafford Loan funds to help pay for tuition should submit the Loan Request Form to the Office of Financial Aid, along with all other required documents, no later than July 1, 2011, to avoid late fees. Approval of the loan may take up to four weeks after the loan has been processed by the Office of Financial Aid.
1L students or first-time financial aid borrowers at New England Law must also complete an entrance interview and Master Promissory Note. Entrance interviews can be completed online at Mapping Your Future and confirmation of completion will be automatically sent to the school. An Entrance must be received before the Office of Financial Aid will initiate your loan request. An MPN for your Stafford Loans (sub/unsub) can completed online at studentloans.gov and confirmation of completion will be automatically sent to the school. An MPN must be received before Direct Loans will disburse your fund request to the school.
Disbursement of Funds
Loan proceeds are sent to New England Law by Electronic Funds Transfer (EFT). Generally, Federal Stafford Loans are disbursed in two installments — at the start of the fall semester and the start of the spring semester. Any refund check due to the student after receipt of the loan will not be available until after the start of classes in either semester. Refund checks can be picked up at the Office of Student Accounts (46 Church Street, second floor).
Federal Graduate PLUS Loan Program
This program allows eligible graduate students to borrow up to their cost of attendance, minus other financial aid. Graduate PLUS loans have a fixed interest rate of 7.9%. As with unsubsidized Stafford Loans, the borrower is responsible for the interest, which begins to accrue after each disbursement.
There is a 2.5% origination fee on the Grad PLUS loan, deducted from the loan amount prior to disbursement. The maximum amount of Federal Grad PLUS Loans you may borrow each year is limited by the cost of attendance.
Students who receive award letters indicating an amount for a Graduate PLUS must initiate the loan. The amount listed on the award letter is the maximum amount the school will certify for you for a Grad PLUS - inclusion of a Grad PLUS loan on your award letter does NOT mean the loan has been certified or applied to your account. Students wishing to borrow a Grad PLUS loan must complete a Federal Direct Loan Request Form (included with your award letter) and return it to our office to begin loan processing. This form is due to our office by July 1, 2011.
1L students or first-time Grad PLUS Loan recipients are also required to complete an entrance interview and Master Promissory Note. Entrance interviews can be completed online at Mapping Your Future and confirmation of completion will be automatically sent to the school. An Entrance must be received before the Office of Financial Aid will initiate your loan request. An MPN for your Grad PLUS Loan can completed online at studentloans.gov and confirmation of completion will be automatically sent to the school. An MPN must be received before Direct Loans will disburse your fund request to the school. Grad PLUS loans are subject to credit review and the appearance of the loan on your award letter does not guarantee approval. If you are denied the loan based on credit, you will be contacted by Direct Loans to secure an endorser for the loan.
Disbursement of Funds
Loan proceeds are sent to New England Law by Electronic Funds Transfer (EFT). Generally, Grad PLUS loans are disbursed in two installments — at the start of the fall semester and the start of the spring semester. Any refund check due to the student after receipt of the loan will not be available until after the start of classes in either semester. Refund checks can be picked up at the Office of Student Accounts (46 Church Street, second floor).
Private Loan Programs
Private education loans are available from a variety of lenders. As with Federal Grad PLUS loans, private loan eligibility is based on a student's budget. Satisfactory credit is essential for approval. Students should exhaust their full eligibility in federal loans before resorting to a private loan. Federal loans may have more beneficial terms than the private loans available.
For more information on private loans vs. federal loans, please contact the Office of Financial Aid.
Understanding Credit
Many students find it necessary to secure funding beyond the Federal Stafford Loan and any institutional funds. If attending law school is contingent upon approval of a Grad PLUS/private loan, we recommend you review your credit report prior to applying, as approval requires satisfactory credit. Free credit reports can be obtained once every 12 months from AnnualCreditReport.com.
Bar Study Loans
Bar Study Loans are private education loans designed to assist law students and recent graduates with the costs of taking the bar exam. We recommend that you exhaust your academic year budget before using Bar Study funds.
Important facts about Bar Study Loans:
- These loans are not considered part of your financial aid package, so you should apply for them directly with the lender of your choice.
- The interest rate, fees, borrowing limits and timeframe in which you may borrow for the bar exam vary by lender.
- You select disbursement dates and funds are sent directly to you.
- Satisfactory credit is essential for approval.
Information for International Students
International students who are coming to New England Law and are ineligible for federal loans may email the Office of Financial Aid for a listing of appropriate private lenders along with an estimated budget.