For many students, borrowing student loans for law school is a major undertaking and can feel daunting. There are many steps that you can take to prepare financially regardless of whether you’re an incoming, current, or graduating student. Choices you make now will impact your financial circumstances far into the future. Understanding the Cost of Attendance and developing sound financial habits such as building a budget is vital to mitigating debt.
The key to financial success in law school is to prepare, plan, and be proactive. Here are some useful tips as you think about your own financial situation:
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- Develop a budget – Plan ahead and budget for fixed expenses and variable expenses. There are a number of budgeting apps to help you understand your spending habits. You may also use our Monthly Expense Worksheet to guide you. Periodically review your budget and make adjustments accordingly to ensure you’re on track.
- Minimize living expenses and discretionary spending habits so that you can minimize how much you have to borrow.
- Adopt a more frugal, economical lifestyle while being a law student and stick to it.
- Remember the budget is only for the months you’re enrolled in school, not for the summer months that you’re not enrolled.
- Reduce existing debts (especially consumer debt) – Having to pay off debt during law school is challenging, so do your best to pay off any debt before law school. Note that financial aid is intended to cover only educational expenses and reasonable expenses related to your education, not for expenses such as car payments, credit card payments, or other consumer debt.
- Anticipate other expenses – Refer to A Guide to Law School Expenses to prepare for other expenses that will arise during law school, e.g., parking, locker fee, or professional licensing fees.
- Borrow only what you need, not what you can borrow – Students are encouraged to return any unused disbursed financial aid funds. Returning unused financial aid equates to saving hundreds of dollars in future income that would be spent on interest.
- Register with MAX by AccessLex – MAX by AccessLex is a comprehensive financial wellness program that offers free content for law students. We highly recommend students participate.
- Apply for scholarships, awards, fellowships – There are a number of scholarships and awards that are offered during the academic year that may help minimize your loan indebtedness–apply to many and all that you may be qualified for. There are also awards offered to students based on their academic performance, interests, involvement in student organizations, and other funding opportunities.
- Subscribe to the Texas Law Financial Aid Listserv – By subscribing to the listserv, you will receive up-to-date information on scholarship opportunities and other important financial aid related matters.
- Notify the Office of Financial Aid ASAP – Aside from exams, financial aid is the number one stressor for many law students. Reach out to the financial aid staff as soon as you run into any issues (or think you will run into issues) so that we can help address them before it becomes an emergency.
- Develop a budget – Plan ahead and budget for fixed expenses and variable expenses. There are a number of budgeting apps to help you understand your spending habits. You may also use our Monthly Expense Worksheet to guide you. Periodically review your budget and make adjustments accordingly to ensure you’re on track.
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- Adjust your budget – Periodically review your budget and make adjustments accordingly to ensure you’re on track. Refer to A Guide to Law School Expenses to prepare for other expenses that will arise during law school, e.g., parking, locker fee, or professional licensing fees.
- Apply for scholarships, awards, fellowships – There are a number of scholarships and awards that are offered during the academic year that may help minimize your loan indebtedness–apply to many and all that you may be qualified for. There are also awards offered to students based on their academic performance, interests, involvement in student organizations, and and other funding opportunities.
- Participate in MAX by AccessLex – MAX by AccessLex offers free financial wellness courses for law students. We highly recommend attending sessions relevant to current students.
- Plan for summers – Remember the budget is set only for nine months for the period you’re enrolled. Determine your summer plans to cover living expenses during May-August including: summer associate positions, Summer Public Service Program funding, and public interest funding.
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- Adjust your budget – Review your budget and make adjustments accordingly to ensure you’re on track. Refer to A Guide to Law School Expenses to prepare for other expenses that will arise as a 3L, e.g., bar exam fees, MPRE, etc.
- Apply for scholarships, awards, fellowships – There are a number of scholarships and awards that are offered during the academic year that may help minimize your loan indebtedness–apply to many and all that you may be qualified for. There are also awards offered to students based on their academic performance, interests, involvement in student organizations, and and other funding opportunities.
- Participate in MAX by AccessLex – MAX by AccessLex offers free financial wellness courses for law students. We highly recommend attending sessions relevant to graduating students.
- Plan for bar exam studies – While you’re studying for the bar exam during the summer, determine what living and other expenses you will need to have covered before you start earning income from your job. Here are some questions to consider:
- Do I need to take a bar exam loan?
- Do I have enough funds left over from the academic year to cover my expenses?
- Will my firm cover my bar exam course fees?
- How much time will I have before I start my job?
- Prepare for repayment – If you borrowed federal student loans, in general your loans will enter repayment 6 months after graduation. Review their guide The Road to Zero: A Strategic Approach to Student Loan Repayment to get an overview of the repayment process.
- Meet with the Financial Aid team – We are always here to ensure you’re on the right track before graduating. Contact Us to schedule an appointment.