Loans

Upcoming Changes to Student Loans: On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (or OBBBA), which contains many changes to federal financial aid programs beginning July 1, 2026. Some of the changes in the bill include:

• Grad PLUS Loans: While completing their current degree, students can continue to borrow Grad PLUS Loans, provided they borrowed prior to July 1, 2026. The Grad PLUS program is discontinued for new borrowers beginning in 2026-2027.
• Legacy Borrowing and Continuous Enrollment Toward Degree: Graduate and professional students who have borrowed prior to July 1, 2026 for their current program at UChicago may continue to borrow the Unsubsidized and Graduate PLUS loans at their current limits. For borrowers to maintain eligibility for the Unsubsidized and Graduate PLUS loan programs under pre-July 1, 2026 rules, they must be continuously enrolled in the same academic program at UChicago and have borrowed for their UChicago academic program prior to July 1, 2026. Eligibility to use the prior rules lasts for three years or until the current academic program is completed, whichever is less.
• New Borrowing Limits: For new borrowers starting their UChicago academic program after July 1, 2026, there will be an annual limit of $20,500 for graduate students and $50,000 for professional students. The lifetime borrowing limit is capped at $100,000 for graduate students and $200,000 for professional students (which is also inclusive of any graduate borrowing). We expect JD students to be classified as professional students and LLM students to be classified as graduate students, but we cannot confirm this until final implementation guidance is released by the Department of Education.
• Loan Reduction for Less Than Full Time: For students enrolled less than full-time during the academic year, loan amount eligibility will be reduced in proportion to the level of enrollment.
• Repayment Plans: Borrowers with new loans made on or after July 1, 2026 are eligible for two repayment plans: a new standard repayment plan with fixed monthly payments and terms from 10 to 25 years based on the amount borrowed or a new income-based repayment assistance plan, known as RAP, with a 30 year repayment plan These two options apply to any direct loan borrower beginning in 2026-2027; both new students and current students completing their program. Students with no new loans after July 1, 2026 may continue to enroll in current repayment plan options.

Based on current information from the U.S. Department of Education, federal loan programs and borrowing rules remain unchanged for the current 2025-2026 academic year and will allow current students to borrow under current loan limits until completion of their program. The federal Public Service Loan Forgiveness (PSLF) program also remains unchanged from the reconciliation bill, though private student loans continue to be ineligible for PSLF.

The Law School's Financial Aid Office, in concert with the University Financial Aid Office, continues to monitor any updates and will provide additional information to our students and updates to this website as we learn more from the Department of Education. We are investigating financing options to allow UChicago Law students to complete their degrees as planned.

The University of Chicago Law School Financial Aid Office processes all student loans and financial aid for UChicago Law students. You may be eligible for a Federal Direct Unsubsidized Loan, private (alternative) student loans, or a combination of both.

Federal Direct Unsubsidized Student Loan

To apply for a Federal Direct Unsubsidized Loan through the Department of Education, students must submit the FAFSA. The UChicago Law priority deadline for submitting the FAFSA for is the May 31st prior to the start of the applicable academic year. The Law School uses the University of Chicago FAFSA code: 001774. 

JD students can borrow up to $50,000 in Direct Unsubsidized Loan funds each academic year, up to a lifetime maximum of $200,000 (which also includes any other graduate Direct Unsubsidized Loan borrowing). There is no credit check required for a Direct Unsubsidized Loan and it is not offered based on a demonstration of financial need. The loan begins accruing interest at the time funds are paid to your student account for a quarter. The interest rate for a newly borrowed Direct Unsubsidized Loan can change from academic year to academic year but is locked in once a loan is borrowed, until the loan is paid off. The Direct Unsubsidized Loan also carries a federally-mandated loan fee, which is taken off the top of the loan prior to it being paid out to your student account. The following StudentAid.gov webpages provide more information:

• Federal eligibility criteria
• Interest rates
• Loan fees

Once your FAFSA has been processed, you will receive your FAFSA Submission Summary from the Department of Education. You can review the status of your FAFSA by logging into studentaid.gov.

Private Student Loans

Private student loans (also known as alternative student loans) are non-Federal, market-based loans offered by private lenders, including banks, credit unions, and other private organizations. Private student loans can usually be offered to U.S. citizens, nationals, permanent residents, and international students. Students are who eligible for federal student loan funding should carefully compare their options, as federal student loan funding offers terms and conditions a private student loan may not. The University is working to gather a lender list that students can use to begin their search. More information on this list and next steps in the loan process will be available early Spring 2026.

The Law School strongly suggests that students consider maximizing their Federal Direct Unsubsidized Loan eligibility each academic year prior to borrowing private student loan funding. The Direct Unsubsidized Loan provides a fixed interest rate, multiple repayment options (including option(s) based on income), cancellation provisions, deferments, and forbearances. Private student loans may not offer these same options. Students are encouraged to review more information about the differences between the Federal Direct Unsubsidized Loan and private student loans on the Federal Student Aid website or to contact the Financial Aid Office to discuss further.