Loans

Drake’s Office of Student Financial Planning (Carnegie Hall) awards, certifies and disburses student loans for law students.

In order to be considered for loan programs, a student must be admitted to the law school, enroll at least half-time each term (5 credits), and complete the following: 
     
        • file a Free Application for Federal Student Aid (FAFSA) for the appropriate year;
        • provide documentation as requested by the Office of Student Financial Planning;
        • be awarded the loan(s) on his/her financial aid award notice;
        • submit a loan request form(s) and complete a Master Promissory Note (MPN) or other  
           borrowing instrument as provided by specific lenders;
        • comply with satisfactory academic progress guidelines.

The financial aid award notice will indicate the maximum dollar eligibility for each loan program per enrollment period. This notice will also provide instructions and/or other materials that must be completed to finalize loan borrowing.

FEDERAL LOAN PROGRAMS

Federal Subsidized and Unsubsidized Stafford Loans
The Federal Subsidized Stafford Loan is a need-based loan which enables students to borrow, pay no interest, and defer loan repayment while enrolled in law school at least half-time. Students are awarded this loan on their financial aid award notice and must complete the instructions and/or applications for the loan as indicated in the notice. The maximum subsidized eligibility for any academic year (summer, fall, and spring combined, in that order) is $8,500. The federal government pays the lender the accrued loan interest during the in-school and grace periods. For both the subsidized and unsubsidized loan programs, the student defers payment during the in-school period and begins repayment following a six month grace period. The grace period begins when the student withdraws, graduates or drops below half-time.

The Federal Unsubsidized Stafford Loan is a non-need-based federal loan which also allows the student to defer payment while enrolled at least half-time. Students are awarded this loan on the financial aid award notice and must complete the instructions and/or applications for the loan as indicated in the notice. The maximum possible eligibility is $20,500 per academic year MINUS any Federal Subsidized Stafford Loan awarded for the same enrollment period. Interest begins to accrue for this loan at disbursement with the option of paying or capitalizing the interest.

The interest rate for both Federal Subsidized and Unsubsidized Stafford Loans is 6.8 per cent. The aggregate borrowing maximums (which include all Federal Stafford loans no matter what the grade level at the time of the borrowing) are $65,500 in Subsidized Loan and no more than $138,000 in total Subsidized and Unsubsidized Loan.

Federal Graduate PLUS
The Graduate PLUS loan is a non-need based loan which also allows the student to defer payment while enrolled at least half-time. Students are awarded this loan on the financial aid award notice and must complete the instructions and/or applications for the loan as indicated in the notice. A credit review is required for certification of this loan, and the loan will not be made to borrowers with adverse credit. The maximum possible eligibility is the Cost of Attendance for an enrollment period (as established by Drake University) minus all other forms of financial aid. The interest rate for the Graduate PLUS is 8.5 per cent, and interest begins to accrue at disbursement with the option of paying or capitalizing the interest.

Federal Perkins Loan
The Federal Perkins Loan program is a campus-based program with very limited funding available. Eligibility is determined by student financial need and the amount of other sources of aid the student receives. If a student has Federal Perkins Loan eligibility, the loan will be awarded on the financial aid award notice along with the instructions needed to borrow the loan. The Federal Perkins Loan requires at least half-time enrollment; the interest rate is 5%, and interest begins to accrue at the point of repayment. Repayment may extend over 10 years and begins 9 months after a student ceases to be enrolled at least half-time (five credit hours).


OTHER LOAN PROGRAMS

Private Student Loans
Private student loans may provide other sources of funding for students (up to the identified Cost of Attendance in combination with all other financial aid awards). Drake’s current policy is to award all federal loan eligibility first since the federal loans, in general, provide the lowest interest rates and best terms and are also eligible to be included in Federal Loan Consolidations.

Bar Study Loans
Qualified third-year students may also process a "bar study" loan. Bar Study Loan eligibility guidelines are specific for each lender but all programs require the student to be without adverse credit. Most programs require the student to have an existing borrowing relationship with the lender (have borrowed a Federal Stafford, Federal Graduate PLUS, or private loan with the lender). Information about Bar Study Loans may be found by calling the University Office of Student Financial Planning at (515) 271-2905. 

Short Term Emergency Loans
Students faced with unusual and/or unexpected financial obligations may contact the Law School Office of Admission and Financial Aid (Cartwright Hall) to discuss a short term loan. Short term loans typically require the student to have an identified source for loan repayment (for example, using the short term loan for a rent payment pending the receipt of a federal loan disbursement). 

                             Call 1-800-44-DRAKE, x2782 or e-mail at lawadmit@drake.edu.