Student Loans

Federal and private student loans can help bridge the gap between your law school costs and the scholarships, grants, earnings, savings, or other financial resources available to you. Because student loans must be repaid, usually with interest, reviewing the loan amount, interest rate, fees, repayment options, and total expected loan indebtedness can help you make an informed borrowing decision that supports your educational goals.

Federal Student Loans for J.D. Students

The One Big Beautiful Bill Act (OBBBA) made significant changes to the federal student loan program, which went into effect on July 1, 2026. OBBBA introduced new limits on the amount of Direct Unsubsidized Loans professional students can borrow in a single academic year (i.e., annual limits) and in total for professional study (i.e., aggregate limits), and will gradually end Direct PLUS Loan Program eligibility for professional students. However, the law includes an exception that allows eligible professional students to retain pre‑OBBBA loan limits and continue borrowing Grad PLUS Loans for a certain period of time. This is referred to as the “Interim Exception.”

To qualify for the Interim Exception, you must meet the following federal conditions:

• You were enrolled in the same program of study at Southwestern as of June 30, 2026;
• You borrowed a federal Direct Loan for that program that was disbursed prior to July 1, 2026; and
• You have remained continuously enrolled in the same program at the same school.

If you qualify for the Interim Exception, you’ll be exempt from certain loan limits and loan eligibility changes for the lesser of three academic years or the remaining length of your academic program. If you believe the exception may apply to you, contact the Financial Aid Office before making financing decisions. The exception is limited, and the rules and borrowing limits for an eligible student may differ from the rules for a new borrower. Please visit the One Big Beautiful Bill Act Updates page for the latest updates from the U.S. Department of Education.

Generally, to be eligible for a Direct Unsubsidized Loan or Grad PLUS Loan (if you qualify under the Interim Exception, explained above), you must:

• Complete the Free Application for Federal Student Aid (FAFSA) form;
• Be enrolled or accepted for enrollment as a J.D. student on at least a half-time basis; 
• Have a high school diploma or its recognized equivalent;
• Be a U.S. citizen or an eligible noncitizen;
• Have a valid Social Security number;
• Sign the certification statement on the FAFSA stating that you’re not in default on a federal student loan;
• Not owe a refund, repayment, or overpayment on a federal Title IV grant or loan, as applicable (e.g., Pell Grant, Perkins Loan, or FSEOG); 
• Complete the Student Loan Entrance Counseling Requirement; and
• Complete a Master Promissory Note;

Additional eligibility requirements can apply in certain situations, including for non-U.S. citizens, students with criminal convictions, and students with disabilities.

A brief description of each type of federal student loan available to Southwestern J.D. students, including specific eligibility requirements and loan limits, is provided below. Review this information carefully before deciding how much you should borrow. 

Direct Unsubsidized Loans 

A Direct Unsubsidized Loan is a type of federal student loan that does not require a demonstration of financial need. Direct Unsubsidized Loans have a fixed interest rate, and interest accrues from the date the loan is disbursed, including while you are enrolled in school and during deferment or forbearance. There is a loan fee on all Direct Unsubsidized Loans. The fee is a percentage of the amount you borrowed and will be subtracted from each loan disbursement, meaning that the actual disbursement amount you receive will be less than the disbursement amount you must repay. For more information on interest rates and origination fees, visit StudentAid.gov and review the Interest Rates and Fees for Federal Student Loans section.

Repayment begins six (6) months after you graduate, withdraw, or drop below half-time enrollment status. See Loan Counseling and Repayment for more information.

Grad PLUS Loans 

A Grad PLUS Loan is a type of federal student loan designed to cover education costs not met by other financial aid. Grad PLUS Loans have a fixed interest rate, and interest accrues from the date the loan is disbursed, including while you are enrolled in school and during deferment or forbearance. There is a loan fee on all Grad PLUS Loans. The fee is a percentage of the amount you borrowed and will be subtracted from each loan disbursement, meaning that the actual disbursement amount you receive will be less than the disbursement amount you must repay. For more information on interest rates and origination fees, visit StudentAid.gov and review the Interest Rates and Fees for Federal Student Loans section.

New Grad PLUS Loans are no longer available to most professional students beginning July 1, 2026. However, if you qualify for the Interim Exception, you may request the Grad PLUS Loan when you submit your Southwestern Financial Aid Application (I-App). A credit check will be performed during the application process. If you have an adverse credit history (e.g., delinquencies, defaults, bankruptcy), you may still receive a Grad PLUS Loan if you add an endorser who does not have an adverse credit history or submit an appeal with documentation of extenuating circumstances.

Repayment begins six (6) months after you graduate, withdraw, or drop below half-time enrollment status. See Loan Counseling and Repayment for more information.

Federal Loan Limits 

Direct Unsubsidized Loans and Grad PLUS Loans have three (3) different types of loan limits:

1. Annual Loan Limit: The maximum loan amount you can borrow each academic year based on full-time enrollment. If you’re enrolled less than full-time for an academic year, your annual loan limits are adjusted downward proportionally based on your level of enrollment.
2. Aggregate Loan Limit: The maximum amount of unpaid principal balance minus any capitalized interest that you can have outstanding at any point in time on all of your subsidized and unsubsidized loans for undergraduate, graduate, or professional study.
3. Lifetime Maximum Loan Limit: The maximum amount you can receive, regardless of any amount paid or discharged, in any combination of subsidized loans, unsubsidized loans, and PLUS loans for graduate or professional study.

Under OBBBA, the dollar amount of each loan limit depends on whether you are a new J.D. student or a continuing J.D. student who qualifies for the Interim Exception. The table below summarizes the applicable loan limits for each: 

Your actual eligibility may be lower because federal loans cannot exceed your Cost of Attendance minus other financial aid, and because other limits may apply. Southwestern’s Financial Aid Office determines your eligibility for a Direct Unsubsidized Loan or a Grad PLUS Loan (if approved), and the amount you may borrow each academic year is based on your cost of attendance, enrollment status, other financial aid, and your remaining eligibility under the applicable federal loan limits (e.g., annual, aggregate, or lifetime maximum loan limits). 

Borrow Only What You Need

Your Financial Aid offer may show the maximum amount you are eligible to borrow, which may be more than your estimated actual tuition and fees. Therefore, we recommend borrowing only what you need to cover your education costs to reduce your total loan debt. 

Loan Disbursements and Refunds

Loans are generally disbursed in two installments during the academic year, typically the week prior to each semester. For students enrolled in Southwestern’s Conceptual Approach to Legal Education (SCALE), a two-year accelerated J.D. program, disbursements generally occur the week before each quarter begins. 

Southwestern credits loan and scholarship funds directly to the student’s account and applies them to tuition, fees, and other eligible charges. If the amount credited to the student's account exceeds the amount owed for the term of the payment period, the resulting credit balance is refunded to the student in accordance with applicable requirements. Review Southwestern’s Return of Title IV Funds Policy on the Institutional Policies webpage for more information.

Students must sign up for Automated Refund Direct Deposit through Self-Service under Financial Information > Bank Information.

If You Withdraw or Reduce Enrollment

Reducing your enrollment status (for example, from full-time to half-time) or withdrawing from your program may affect your financial aid eligibility. If your financial aid was awarded based on full-time enrollment and you subsequently reduce your enrollment to less than full-time, your financial aid may need to be adjusted. If you withdraw, a portion of your federal student aid may be considered unearned and may have to be returned, and you may owe money to Southwestern. Contact the Financial Aid Office before you withdraw or make a major enrollment change, and review Southwestern’s Return of Title IV Funds and Student’s Right to Cancel or Withdraw Policies on the Institutional Policies webpage for more information.

Maintaining Eligibility

To continue receiving federal student aid, you must:

• Complete the Free Application for Federal Student Aid (FAFSA) and the Southwestern Financial Aid Application (I-App) for each academic year in which you want federal aid;
• Continue to meet the general eligibility requirements for federal student aid; 
• Remain enrolled as a J.D. student on at least a half-time basis; and
• Maintain Satisfactory Academic Progress according to the Financial Aid Satisfactory Academic Progress Policy on the Institutional Policies webpage.  

Private Education Loans

Private education loans are issued by banks, credit unions, or other private lenders, not the federal government.  Eligibility and terms vary by lender and may depend on the applicant’s credit history or require a creditworthy co-signer. Approval generally applies to one academic period, so students who need funding for a later period typically must submit a new application and meet the lender’s requirements again. 

Before obtaining a private education loan, consider available federal, state, institutional, and other financial assistance. You may qualify for federal student loans, other Title IV assistance under federal student aid programs, or alternative funding methods, which may offer more favorable terms and conditions than a private education loan. Before applying for a private education loan, ask the Financial Aid Office to review your federal aid eligibility.

Under the federal Truth in Lending Act, lenders of private education loans must disclose a loan’s terms and costs. Review these disclosures carefully before accepting a private education loan.

Before choosing a private education loan, compare:

• fixed or variable interest rate and annual percentage rate (APR);
• fees;
• when repayment starts;
• deferment and forbearance options;
• co-signer requirements and release options;
• protections in the event of death or disability; and
• the total amount you expect to repay.

For convenience, Southwestern provides a historical list of private lenders used by its students in the previous five years on the ELMSelect site.  You may choose any lender willing to make an eligible private education loan, and you are not required to select a lender from this list.

If you are approved for a private student loan, the lender may require Southwestern to certify your enrollment. Southwestern generally may certify a private student loan only up to your Cost of Attendance minus other financial assistance.

Short-Term Emergency Loans

Southwestern may have limited funds available for short-term, interest-free emergency loans to enrolled students who are experiencing a temporary financial need while awaiting an anticipated aid disbursement. These loans are advances against anticipated financial aid and may not be used for tuition or regular, recurring expenses. 

Eligibility, Selection, and Loan Amount. Enrolled students who are awaiting disbursement of approved financial aid may request an Emergency Loan to address a temporary financial need. The Financial Aid Office reviews each request individually, taking into account the student’s circumstances and the availability of funds. An Emergency Loan may not exceed the lesser of $2,000 and the amount of approved but undisbursed financial aid for the current term, as determined at the time the loan is approved. Because funds are limited, approval is not guaranteed.

Application and Repayment. Students seeking an Emergency Loan should contact the Financial Aid Office to request consideration and obtain any required documentation. Approved loans must be repaid during the current term in accordance with the repayment terms provided to the student.  

LL.M. Students

Southwestern’s LL.M. programs are not eligible for federal student aid. Some U.S. citizens and permanent residents may be able to obtain private education loans. Some private lenders may lend to international students who have a qualified U.S. co-signer. Loan terms vary by lender.

Last reviewed: October 2026.