Miami Law Student Loans: Application Process Simplified

Applying for student loans can be a daunting task, but understanding the process can make it more manageable. For those seeking to finance their legal education at Miami Law, there are various options available, including federal loans, external scholarships, and private loans. The University of Miami offers a comprehensive guide to navigating the financial aid process, providing valuable information on its website. This introduction will outline the steps to apply for student loans at Miami Law, including key considerations and resources to help you make informed decisions about financing your legal education.

Federal Direct Unsubsidized Loan

The Federal Direct Unsubsidized Loan is the most attractive type of federal loan offered by the University of Miami School of Law. All eligible law students are offered this loan as part of their award package, and need and creditworthiness are not requirements.

To apply for federal loans, you must:

• Apply to the University of Miami School of Law as a degree-seeking student.
• Complete the Free Application for Federal Student Aid (FAFSA) online. The Federal School Code for the University of Miami School of Law is E00532.
• Accept/Decline Aid in CaneLink.
• Complete the Master Promissory Note and Entrance Counselling via www.studentloans.gov for both the Federal Direct Unsubsidized Loan and the Graduate PLUS Loan before loan funds can be disbursed.

The Federal Direct Unsubsidized Loan has a cap of $20,500 for each academic year. The interest rate for loans disbursed between July 1, 2024, and July 1, 2025, is 8.08%. Interest accrues on these loans while you are in school. The loan origination fee is 1.057% for loans disbursed between October 1, 2020, and October 1, 2025. For example, if you borrow $20,500, $20,284 will be applied to your student account ($10,142 per semester).

To apply for the Federal Direct Unsubsidized Loan, you must complete the Graduate Loan Entrance Counselling and the Master Promissory Note at studentaid.gov.

Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan is a type of federal loan offered by the University of Miami to graduate and professional students. It is one of the two types of federal loans that are commonly used to finance law school. All eligible law students are offered this loan as part of their award package, regardless of their financial need. However, a credit check is required, and applicants must not have an adverse credit history.

Interest and Origination Fee

The interest rate for the Federal Direct Graduate PLUS Loan is 9.08% for loans disbursed between July 1, 2024, and July 1, 2025. Interest accrues on these loans while the student is in school. The loan origination fee is 4.228% for loans disbursed between October 1, 2020, and October 1, 2025. For example, if you borrow $20,000 at this interest rate, $19,154 will be applied to your student account ($9,577 per semester).

Application Process

To apply for the Federal Direct Graduate PLUS Loan, you must first complete the Free Application for Federal Student Aid (FAFSA) and submit it by February 1 for priority consideration. The Federal School Code for the University of Miami School of Law is E00532. After submitting the FAFSA, you will receive a loan package notification from the Office of Financial Aid between March and June. You can then view and accept your financial aid package on CaneLink.

Once you have accepted the loan, you must complete the required documentation, including the Master Promissory Note (MPN) for the Graduate Direct Plus loan at studentaid.gov. The Department of Education will then conduct a credit check for the Graduate PLUS Loan. If you are approved, the loan funds will be disbursed to your student account.

Federal Direct Subsidized Loan

The Federal Direct Subsidized Loan is a type of financial aid that is available to undergraduate students only. It is a loan provided to the student by the U.S. Department of Education, through Miami University. Undergraduate students with financial need can qualify for a subsidized loan.

Eligibility

To be eligible for a Federal Direct Subsidized Loan, you must:

• Be an undergraduate U.S. citizen or permanent resident
• Demonstrate financial need
• Be enrolled at least half-time

Interest

The Federal Direct Subsidized Loan has a fixed interest rate, and interest does not accrue while you are in school. Repayment begins six months after you leave school or drop below half-time enrollment.

Loan Limits

There are annual limits on the amounts that may be borrowed, which vary by the student's academic year in school and the student's dependent or independent status. The loan must be disbursed in two equal amounts at the beginning of each term. If the disbursement exceeds the amount owed on the bill, a refund will be issued to the student.

Application Process

To apply for a Federal Direct Subsidized Loan, you must complete the Free Application for Federal Student Aid (FAFSA) each year. You must also complete entrance counseling, which ensures you understand the terms and conditions of your loan, and a Master Promissory Note (MPN), which is your promise to repay your loan.

Cancelling Your Loan

You may cancel all or portions of your loan after the funds have been credited to your account by contacting the One Stop in writing within 30 days after the date of the disbursement notice.

Federal Direct Parent PLUS Loan

To apply for federal aid as a student at the University of Miami School of Law, you must:

• Apply to the University as a degree-seeking student.
• Complete the FAFSA (Free Application for Federal Student Aid) Online. The Federal School Code is E00532 for all students accepted into the Law School.
• Accept/Decline Aid in CaneLink.
• Complete the Master Promissory Note and Entrance Counselling via www.studentloans.gov.

The Federal Direct Parent PLUS Loan is a federal loan program that allows parents with no adverse credit history to apply for a loan amount up to the cost of attendance each year, less any financial aid received by the dependent student. The borrower must be a natural parent, adoptive parent, or stepparent of the dependent student.

• Complete the FAFSA (Free Application for Federal Student Aid). The FAFSA must be submitted before a PLUS Loan Application can be processed.
• The parent must apply for the PLUS Loan at StudentAid.gov.
• Complete the PLUS Master Promissory Note (MPN) at StudentAid.gov. The MPN is a legal document in which the parent promises to repay their loan and any accrued interest and fees to the U.S. Department of Education.
• The loan will be applied to the student's account and disbursed in two equal amounts at the beginning of each term.
• Repayment of the loan begins 60 days after the loan is fully disbursed, with options to delay repayment available. Interest accrues as soon as the first disbursement is made.

Private Educational Loans

Private student loans are offered by private organisations such as banks, credit unions, and state-affiliated organisations. They are generally more expensive than federal loans and have less favourable terms.

Private bar study loans are available to law students in their final year of study. These loans are not need-based and require creditworthiness. Students can borrow from the lender of their choice and may use the Private Student Loan Comparison Chart to aid in selecting a lender.

Private loan options include:

• Ascent Funding: Ascent Funding offers fixed and variable APRs ranging from 3.69% to 17.99% with autopay. The minimum credit score required is in the mid-600s.
• College Ave: College Ave offers a rapid application and approval process, with a 0.25% interest rate reduction when autopay is activated.
• SoFi: SoFi offers four repayment options and a co-signer release after 24 months of full payments. They do not charge application, origination, late, or insufficient funds fees.
• Credible: Credible is a loan comparison marketplace that allows borrowers to shop around for student loans and refinancing without hurting their credit score.
• LendKey: LendKey is a digital platform that connects borrowers with nonprofit credit unions and banks. They do not charge origination or application fees.
• Education Loan Finance: Also known as ELFI, this is a student loan program offered by SouthEast Bank. There are no origination or application fees, but borrowers must have a minimum credit score of 680.
• PNC: PNC offers a range of loans for undergraduate, graduate, and professional education in all 50 states. They offer a 0.5% interest rate discount for automatic payment.

It is important to carefully research and compare the terms of private loans before applying.

Frequently asked questions