Financial Aid and Budgeting

KatherineatKaplan · 4:37PM

If you are anything like I was when I was in law school, you’re broke. Or maybe you’re not broke, but law school requires so much of your time and energy that you’re definitely not rolling in the dough of a full time salary. So managing your finances while in law school is often a necessary evil, but with careful planning and a strategic approach to budgeting, you can make your financial situation more manageable. Below are some tips and strategies:

1. Create a Realistic Budget

A well-structured budget is essential. Start by tracking your expenses for one month and come up with a solid foundation for how you spend your money each month:

Here are some examples of potential areas of spending: Law school tuition, fees, rent, utilities, insurance, and other recurring expenses.
Some things might be estimates like food, books, transportation, personal items, and entertainment, etc. and this is where tracking your actual expenses comes in handy.
Prioritize Spending: Look for ways to save on things like food (e.g., cooking at home vs. eating out) and textbooks (buy used or digital versions).

2. Explore Scholarship Opportunities

Scholarships can significantly reduce the financial burden of law school if you know where to find them:

Merit-Based and Need-Based Institutional Scholarships: Check with your school’s financial aid office for available opportunities based on your academic performance or your financial need.
External Scholarships: Many state/local bar associations and other private organizations, foundations, and corporations offer scholarships. Websites like Fastweb, Scholarships.com, and Niche can help you search for external scholarships. If you are a member of an underrepresented group, look for scholarships specifically targeting diversity in law.
Work-Study Programs: Many law schools offer work-study programs, where you can work part-time on campus or in the community to earn money while attending school based on need. Contact your Student Employment Office to see if you qualify.

3. Student Loans

Many students choose to take out loans to help cover law school expenses, but they can quickly accumulate, so understanding your repayment options is crucial. Here are some strategies for managing and repaying student loans:

Federal Student Loans
Income-Driven Repayment Plans: Federal student loans offer income-driven repayment plans, which adjust your monthly payments based on your income.
Public Service Loan Forgiveness (PSLF): If you plan to work in public interest law or a government job, consider pursuing the Public Service Loan Forgiveness program. After 10 years of qualifying payments while working in a qualifying job, your remaining federal loans may be forgiven.
Deferment or Forbearance: If you’re facing financial hardship, you can apply for deferment or forbearance to temporarily suspend loan payments without going into default. However, interest will likely continue to accrue.
Private Loans
Refinancing: Once you graduate and secure a stable job, you may consider refinancing private loans to lower your interest rates. Important note: refinancing federal loans with a private lender means you lose access to federal protections.
Payment Flexibility: Some private lenders offer flexibility in payment plans, but be cautious about interest rates and fees.
Loan Repayment Assistance Programs (LRAPs)
Many law schools and public interest organizations offer loan repayment assistance programs (LRAPs) to graduates working in public service or nonprofit sectors. These programs can help you manage your debt by offering partial loan repayment or assistance with interest accrual.

4. Maximize Income Opportunities

In addition to loans and scholarships, there are several ways you can supplement your income during law school:

Law School Employment
Research Assistantships or Teaching Assistantships: Many law schools offer positions as research assistants or teaching assistants. These positions not only provide a stipend or hourly wage but also valuable academic experience.
Paid Clerkships and Internships: You can seek paid internships or clerkships during the summer or part-time during the school year.

Freelance or Remote Work
Freelance Work: Reach out to small firms in areas of law of your interest to learn about freelance work. When I was in law school, I worked with a local elder abuse firm doing deposition transcription. It was a lot of reading and writing which was helpful in building those skills in law school and ahead of the bar exam in addition to being a steady source of income.
Tutoring: If you excel in certain subjects or have legal writing expertise, you could tutor fellow students for extra income.
Lowlift Jobs: There are tons of contractor jobs that can be completed by law students. When I was in law school, I also dog sat and house sat for extra cash. I was home all day studying so either working from my home or my client’s home allowed me to do that while earning money for my time.

Conclusion

Law school is a significant financial investment, but with a clear budget, proactive scholarship and loan management strategies, and additional income opportunities, you can navigate it successfully. By balancing academic, work, and financial goals, you can focus on your education while minimizing the financial stress.