While it has always been important to understand your options and to have a plan in place before deciding to enroll in a school, this planning is even more important now, given recent changes in federal aid enacted by the Budget Reconciliation Act. The good news is that students still have multiple pathways to finance law school with careful preparation.
Prior to the passage of the act, eligible law school students could receive federal direct unsubsidized loans of up to $20,500 per academic year and Graduate PLUS Loans up to the cost of attendance at a school each year (minus other aid). This structure made it possible for many students to finance law school primarily through federal aid and scholarships. Beginning in 2026, students will need to rely on a broader mix of funding sources.
Beginning on July 1, 2026, Graduate PLUS Loans will be eliminated for new borrowers, and Direct Unsubsidized Loans will be capped at $50,000 annually, with a lifetime borrowing limit of $200,000. The example below illustrates how these changes may affect future law students.
While costs and aid packages vary widely by school and student, the following simplified example illustrates how the new federal loan limits can create an “aid gap” for some students.
Scenario: Two students who attend a T14 law school in a high-cost metropolitan city with a $120,000 cost of attendance for the 2026 – 2027 academic year.
Student A: Continuing student (borrowed federal loans prior to July 1, 2026):
- Scholarship: $20,000
- Direct Unsubsidized Loan: $20,500
- Graduate PLUS Loan: $79,500
- Total Aid = $120,000
- Aid Gap (Cost of attendance – Total Aid) = $0
Student B: New 1L student (borrowing begins after July 1, 2026):
- Scholarship: $20,000
- Direct Unsubsidized Loan: $50,000
- Total Aid = $70,000
- Aid Gap (Cost of attendance – Total Aid) = $50,000
Many new law students like Student B will need to close an aid gap using one or more of the following options:
- Institutional Aid: Law schools offer institutional aid at the time of admission, including merit- and need-based scholarships and fellowships. Sometimes applicants are matched to aid options based on their applicant profile (e.g., GPA, LSAT, financial information from the FAFSA form, other facets of background and experience). No additional information beyond what’s in the application or FAFSA form is needed.
Other times, applicants must submit supplemental applications to a school to be considered for a specific scholarship, fellowship, or need-based aid (e.g., NYU’s Root-Tilden-Kern Public Interest Scholarships). Make sure to research each school’s aid options carefully to understand their institutional aid policies and application instructions.
- External Aid: Several organizations and companies offer scholarships to incoming law students. The AccessLex Law School Scholarship Databank is a great resource for searching for scholarships. Additionally, Amherst awards seniors and recent graduates who will enroll in graduate and professional studies, including law school, with fellowship awards. Please review this page for more information about AC Fellowships, including eligibility requirements and application instructions.
- Personal Resources: Examples include your own personal savings or wages from a part-time job. You should be aware that some law schools put restrictions on how many hours per week full-time students may work part-time.
- Private Student Loans: While private loans work differently from federal loans, understanding how they function ahead of time can help you make informed borrowing decisions and avoid surprises later.
Private loans work differently from federal loans. For instance, to qualify, banks will conduct credit checks, and your loan rate will depend on your credit score. If you have low or no credit, you may be required to seek out a cosigner before being approved. Therefore, it is important to maintain a positive credit history, especially if you intend to take time off before law school.
Given these changes, it is especially important to consider the full cost of attendance when applying to and enrolling in law school.
What is included in the cost of attendance? In addition to direct educational costs such as tuition and fees, it includes indirect costs, such as books, supplies, room and board, transportation, and personal expenses like clothing, phone bills, and other basic needs. You can find a school’s cost of attendance on its website, typically in its financial aid or admissions sections.
Check out the resources below to learn more about the changes in federal aid and how you can create your own financial plan to pay for law school. Contact the financial aid office at a specific school for details on the resources they make available to enrolled students.
- The One Big Beautiful Bill Act: Fact Sheet for Students and Higher Education Institutions
- AccessLex Paying for Law School Guide: Comprehensive guide providing in-depth information about financing options.
- AccessLex Guide to Private Student Loans: Learn more about the pros and cons of private student loans, along with how to qualify and apply for them.
- Law School Transparency Tools: Compare law schools by researching their cost of attendance, scholarship awards, average student debt, and employment outcomes.
- LawHub Webinar – How Do I Pay for Law School? (After June 2026): Free financial planning course and webinar.
- Have more questions about your financial options? Consider making an appointment with an AccessLex financial counselor for free.
Paying for law school may look different from how it did in the past, but with the right information and planning, it remains an achievable goal.
