Since July 1, 2010, the U.S. Department of Education has held sole, direct responsibility for oversight of the federal government's student aid programs. Federal student aid through the Direct Loan program includes both subsidized and unsubsidized Direct Stafford loans and Graduate PLUS loans. Law students can apply for financial aid through the Direct Loan program. For subsidized Direct Stafford loans, law students do not accrue interest while they complete their studies. However, students of unaccredited schools, including schools without ABA accreditation, generally cannot qualify for these types of federal student aid programs. Juris Doctor programs with regional accreditation, such as schools accredited by the California Board of Bar Examiners, also may not qualify for federal student loans.
The U.S. Department of Education does not grant accreditation to law schools. Rather, the department relies on accreditation bodies such as the ABA. On its federal Student Aid website, the department states that it does not allow non-accredited schools to participate in federal loan programs because students of unaccredited schools may have limited options for transferring their credits to other schools or have more difficulty with obtaining employment than graduates from accredited programs. The department also recommends that prospective students research the reputation of each school for which they may incur loans, regardless of accreditation status.
Students of non-ABA accredited law schools can apply for educational loans from private lenders that provide loans separately from the U.S. Department of Education's federal loan programs. Each private lender, bank or financial institution determines its own requirements, terms and interest rates. Students usually need to undergo credit history checks in order to qualify and lenders can refuse to issue loans to applicants with unsatisfactory credit scores even if they have offers of admission from law schools. Each non-ABA accredited law school's financial aid office may be able to suggest specific lenders or highlight types of private loans that other students have successfully obtained in the past.
Students at non-ABA accredited law schools who cannot obtain federal loans and private loans may need to seek other sources of funding. Some non-ABA accredited law schools, such as the Southern California Institute of Law, offer deferred payment programs through which students can pay their tuition through a monthly installment plan. Students may also wish to search for regionally accredited or unaccredited JD programs that will offer grants and scholarships to cover some of the funding that they would have received through student loans.