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.
• New Graduate Loan Limits: Graduate students who have borrowed prior to July 1, 2026 may continue to borrow Unsubsidized loans at their current limits. For new borrowers starting 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. 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 implementation guidance is released by the Department of Education.
• Continuous Enrollment Toward Degree: For continuing borrowers to maintain eligibility for the loan programs under pre-July 1, 2026 rules, they must be continuously enrolled in the same academic program at UChicago. Eligibility to use the prior rules lasts for three years or until the current academic program is completed, whichever is less.
• 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 federal student loans, private (alternative) student loans, or a combination of both.

Federal Student Loans

To apply for federal student loans through the Department of Education, students must submit the FAFSA. The UChicago Law priority deadline for submitting the FAFSA for federal student loan purposes is the May 31st prior to the start of the applicable academic year. The Law School uses the University of Chicago FAFSA code: 001774. 

Federal student loans for Law students, including the Unsubsidized Loan and the Graduate PLUS Loan, are not offered based on a demonstration of financial need. The loans begin accruing interest at the time funds are paid to your student account. The interest rates for newly borrowed Federal Direct student loans can change from academic year to academic year but are locked in once a loan is borrowed, until the loan is paid off. Federal student loans also carry federally-mandated loan fees, which are 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.. 

Direct Unsubsidized Loan

All eligible Law students can borrow up to $20,500 in Direct Unsubsidized Loan funds each academic year. There is no credit check required for a Direct Unsubsidized Loan. Most students will supplement the Direct Unsubsidized Loan with Direct Graduate PLUS Loan funding.

Direct Graduate PLUS Loan 

Direct Graduate PLUS loans can be used to cover the difference between the cost of attendance and other forms of financial aid that you have received, including Law School scholarship funding and other student loans.

Unlike the Direct Unsubsidized Loan, a credit check is required for the Graduate PLUS Loan. The Graduate PLUS Loan credit check does not use any kind of debt-to-income ratio or FICO/credit score, but the borrower cannot have adverse credit history. However, it is possible for someone with adverse credit history to borrow a Graduate PLUS Loan with a qualified endorser (co-signer) or through an appeal that is approved by the Department of Education. It is important to note that an endorser agrees to repay the loan if the borrower stops repaying.

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 loans should carefully compare their options, as federal student loans offer terms and conditions a private student loan may not.

All eligibility decisions and the terms and conditions are determined by the lender through whom you choose to apply. Approval for a private student loan is contingent upon your credit rating and a loan request may be denied by a lender if there is an adverse credit rating. If this happens, it’s recommended that you to contact the lender to appeal the decision or reapply with a cosigner. Private student loans are NOT eligible for the Law School's Loan Repayment Assistance Program (LRAP).