Law Schools Implement Financial Aid Strategies Amid New Loan Caps
In response to new federal loan caps, several law schools are introducing financial aid measures to support students. The GOP-led tax and spending bill, effective July 1, limits federal loans for graduate students to $50,000 annually, with a lifetime cap of $200,000. This change has prompted schools like Santa Clara University School of Law to offer scholarships and Kansas University School of Law to provide flexible loan programs. These initiatives aim to reduce reliance on private loans, which often have higher interest rates. The Santa Clara scholarship offers $16,000 annually, while Kansas University offers loans with a fixed 5% interest rate. Washington University School of Law has also introduced a supplemental loan program. These efforts are designed to maintain accessibility to legal education despite the new borrowing limits.