Student Loans

Loans, both federal and private, are used to supplement personal and family resources, scholarships, grants, and work-study and must be repaid.

There are two types of Federal Student Loans you can receive while attending South Texas College of Law Houston.

Federal Direct Unsubsidized Stafford Loans are available to eligible law students who apply for federal aid using the Free Application for Federal Student Aid (FAFSA). Students may qualify for up to $10,250 every semester. Interest begins accruing following disbursement. Borrowers receive a six-month grace period, following graduation or withdrawal, before repayment begins.

Federal Direct Graduate PLUS Loans are available to students who do not have adverse credit. Students may borrow up to the cost of attendance, minus the Unsubsidized Stafford Loan. There is no grace period on this loan; however, there is an automatic six-month deferment.

Note: In some circumstances, the inability to borrow Graduate PLUS loans due to negative credit will affect your ability to finance your legal education. The law school doesn’t have the resources to lend money to students who cannot obtain Graduate Plus loans. Please review your credit report to correct any errors or make plans to get caught up on delinquent accounts. You may also wish to secure a cosigner or co-endorser for this loan.

Private alternative loans are credit-based and are designed to assist students who may have exhausted their Federal student loan eligibility. Interest rates on these loans vary from lender to lender. Based on your credit, you may receive a rate that is lower than the Federal GRAD PLUS and/or Federal Unsubsidized loan. We encourage all students to research which loan options are the best for you.

To assist you with researching private loans, visit this interactive website: FASTChoice

Texas College Access Loans (CAL Loan) are private alternative loans available from the state of Texas. Loans through this program require Texas residency. Additional student eligibility requirements are also required.

Schedule an appointment with a Student Services advisor to discuss your financial aid opportunities, including borrowing a student loan.

SCHEDULE YOUR APPOINTMENT HERE

Step 1: Complete the Free Application for Federal Student Aid (FAFSA)

Step 2: Accept your Loan:
-Log into Stanley
-Click on “Self-Service Quick Links”
-Click on the “Financial Aid” link from the Quick Links section (2nd bullet)
-On the Award Offer tab, you may either accept the full amount, a partial amount, or decline your offers.
-Click submit to save.

Please Note: If you do not have a STANLEY account, please contact the Office
of Admissions at (713) 646-1810.
Step 3: Complete Entrance Counseling
Step 4: Complete Master Promissory Note (MPN)

The Graduate PLUS Loan, unlike other federal educational loans, is credit-based. The credit review does not evaluate income-to-debt ratios or credit scores. To qualify, you cannot have an adverse credit history. Your credit history may be considered adverse if you are experiencing any of the following credit conditions:

Bankruptcy discharge within the past five years
Voluntary surrender of personal property to avoid repossession within the last five
years.
Repossession of collateral within the last five years.
Foreclosure proceedings started.
Foreclosure within the last five years.
Conveying your real property that is subject to a mortgage (by deed) to your lender to
avoid foreclosure (deed in lieu of foreclosure).
Accounts currently 90 days or more delinquent.
Unpaid collection accounts.
Charge-offs/write-offs of federal student loans.
Wage garnishment within the last five years.
Defaulting on a loan, even if the claim has been paid.
Lease or contract terminated by default.
County/state/federal tax lien within the past five years.

Direct Loans does not share the details of the denial of your grad plus loans due to privacy laws. In order for you to receive this information you can contact the Applicant Services Department at 1-800-557-7394.

The Department of Education allows borrowers whose credit was denied the opportunity to document either of the following situations:

Information showing that credit reporting used in the credit denial is incorrect and/or has been corrected.
Extenuating circumstances exist relating to the adverse credit history. For additional information visit studentaid.gov/.

Borrowers may appeal the credit decision through one of these means.

Visit Appeal a Credit Decision and log in to apply for extenuating circumstances appeal. Follow the directions and a representative from the Department of Education’s Applicant Services will contact you with further instructions.
Contact the Applicant Services Department at 1-800-557-7394.

An endorser is someone who does not have an adverse credit history and agrees to repay the loan if the borrower does not repay it. The endorser must be 18 years of age or older and must be a U.S. Citizen or Permanent Resident.

If you choose to obtain an endorser:

The endorser should complete the endorser addendum online. For additional
information visit: https://studentaid.gov/endorser-addendum/
The endorser will need to login at studentaid.gov with your account username and
password (FSA ID). If the endorser does not already have an FSA ID, they may obtain one
at https://studentaid.gov/fsa-id/create-account/launch
The endorser will need the Loan ID Number to connect the endorsement to the denied
Grad PLUS Loan. The Loan ID Number is included in the Grad PLUS Loan Denial
Notification email that was sent to you.

Also, any additional PLUS borrowing during the academic year will require a new MPN and endorser addendum (the same endorser can be used).

For those students that have been previously approved for a Grad PLUS and now have been denied you will also be required to complete a new Master Promissory Note (MPN).

NOTE: MPNs are used for PLUS Loans and allow for multiple year borrowing under the same terms. However, when an endorser is used, the terms of the MPN used for that loan is specific only to that loan.

For any PLUS loan applicant who has adverse credit history but who qualifies for a PLUS Loan through the process for reconsideration due to extenuating circumstances or obtaining an endorser for the loan will be required to take additional special Grad PLUS counseling.

A Direct Consolidation Loan allows you to combine multiple federal education loans into one loan. The result is a single monthly payment instead of multiple payments. There is no application fee to consolidate your federal education loans. Beware of private companies that offer to help you apply for consolidation for a fee. These companies have no affiliation with the U.S. Department of Education.

If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you might want to consider deferment or forbearance as options for short-term payment relief.The Pros and Cons of consolidation are as follows:

If you currently have federal student loans that are with different servicers, consolidation can greatly simplify loan repayment by giving you a single loan with just one monthly bill.
Consolidation can lower your monthly payment by giving you a longer period of time (up to 30 years) to repay your loans.
You’ll be able to switch any variable-rate loans you have to a fixed interest rate.

Because consolidation usually increases the period of time you have to repay your loans,
you might make more payments and pay more in interest than would be the case if you
don’t consolidate.
Consolidation may also cause you to lose certain borrower benefits such as interest rate
discounts, principal rebates, or some loan cancellation benefits that are associated with
your current loans.
If you’re paying your current loans under an income-driven repayment plan, or if you’ve
made qualifying payments toward Public Service Loan Forgiveness, consolidating your
current loans will cause you to lose credit for any payments made toward income-driven
repayment plan forgiveness or Public Service Loan Forgiveness.
Once your loans are combined, they cannot be removed. The loans that were
consolidated are paid off and no longer exist.

Bar loans are private, credit-based student loans designed to assist students and recent graduates with the costs of preparing for and taking the Bar Exam. Interest rates on these loans are variable and none of these loans are eligible for Federal repayment benefits including: Federal Income-Based Repayment, Federal Deferment, Federal Forbearance or Federal Public Service Loan Forgiveness. These loans are repayable to the chosen lender under the terms that are agreed upon.

NOTE: South Texas College of Law Houston has no agreements with lenders for volume and cannot warrant that any terms are guaranteed or are the best available; better terms may exist. To compare all aspects of the loan programs, we encourage our students to contact the individual lenders. The lenders listed below are included solely because they offer bar loans at this time. STCL Houston does not endorse or recommend any of these lenders.

Students may also use an independent and interactive web-based loan analyzer located here.

How to Apply

Compare lenders at FASTChoice
Choose a lender and apply directly on their website.
After approval, email the following information to studentservices@stcl.edu: Full name, student ID number, lender name, loan amount, and requested disbursement date.

Bar loan disbursements are mailed directly to the borrower instead of South Texas College of Law Houston. Students should contact their lender directly if they have any questions regarding when they will receive their funds.

Visit www.studentaid.gov/loan-simulator/ to estimate your Federal Direct Loan Repayment.

Click here to view Additional Loan Resources.