Best Bar Exam Loans: Everything You Need To Know

After law school, prospective lawyers have to face the final hurdle of passing the bar exam. But studying for the bar is a major commitment, making it difficult to work while you study. That’s why some lawyer candidates take out a bar exam loan to help.

If you don’t have savings to fall back on, a bar exam loan can help you cover the gap until you pass the big test. 

Keep in mind that bar exam loans aren’t the same thing as student loans. While a student loan is designed to cover educational costs, like law school tuition, bar exam loans are a type of personal loan designed to help you cover costs as you prep for this exam.

Like other types of loans, borrowers have a wide range of options. Let’s explore some of the best bar exam loans. 

What To Look For In A Bar Exam Loan

When shopping for a loan, it’s important to compare products from different loan providers. Here are some key features to consider: 

• Interest rates: Obtaining a competitive interest rate is critical. Do your best to secure the best rate for your situation. 
• Fees: Many lenders charge fees on their loans. Common fees include late payment fees and loan origination fees. It’s important to compare fees to avoid overpaying. 
• Borrower protections: Life doesn’t always go according to plan. Some lenders offer hardship options, like forbearance, as a reprieve during tough times. 
• Loan terms: The right loan term will depend on your situation. But you’ll likely want to work with a lender that offers multiple term length options.

Best Bar Exam Loans

The best bar exam loans can help you cover living expenses and bar study classes. It’s the final push before becoming a fully-fledged lawyer. Here’s a look at the top options, with information accurate as of July 2023:

Discover® Student Loans

If you have graduated from law school in the past six months or are currently finishing up your last year of law school, you can apply for Discover’s bar exam loan. It’s available to U.S. citizens, permanent residents, and international students who can pass a credit check. If you aren’t able to pass a credit check, you can apply with a cosigner.

Depending on your situation, you can apply for between $1,000 and $16,000 of loan funding. You’ll have the option to start making payments in-school, either of $25 or interest-only payments. You can defer payments while you are in school at least half-time, serving on active military duty, or serving in a public organization. You can also can defer payments for 9 months after your graduation. After the deferment period passes, the standard loan term is 20 years.

The lack of application, origination, and late fees is an enticing feature of this loan. Discover also offers borrowers a 0.25% interest rate reduction when they enroll in automatic payments. 

PNC Bank

PNC Bank offers bar exam loans to students planning to take the exam within six months of graduation from an PNC-approved law school. U.S. citizens and permanent residents can apply, with or without a co-signer, you can apply to release them from the loan after making 48 on-time payments.

The loan amount can be up to $15,000. However, PNC places an aggregate limit of all student loan debt, including this bar exam loan, at $225,000. If you have more student loans than this limit, PNC Bank’s bar exam loan won’t be an option.

If you sign up for automatic payments, you’ll enjoy a 0.50% interest rate discount. Once you take out the loan, you’ll have the option to start making payments immediately. If that’s not an option for your budget, you can choose to defer the payments until six months after your graduation date or make interest-only payments until the six month mark.

Sallie Mae

Sallie Mae offers bar study loans to law students who have graduated in the last 12 months or are currently enrolled at least half-time. U.S. citizens and permanent residents can apply for this loan.

International students can apply with a co-signer. While almost 70% of applicants are approved without a co-signer, Sallie Mae gives the option to add a co-signer to this loan. If you make 12 on-time payments, it’s possible to apply for co-signer release.

The loan amounts range from $1,000 to $15,000. You won’t run into origination or early repayment penalties through this loan. If you sign up for automatic payments, you can lock in a 0.25% interest rate reduction.

After the loan funds are disbursed, you’ll have the option to defer payments for nine months after leaving school. If you aren’t able to make large monthly payments, you can request to make interest-only payments for the first two to four years of the repayment period. 

The Bottom Line

A bar exam loan can help you wrap up the final stage of your law degree with minimal financial stress. Although taking out a loan will add to debt load, you’ll have the space you need to study for the bar exam. 

When shopping, remember to compare the most important features, such as interest rates, term and payment flexibility. 

Related:

• Student Loan Forgiveness For Lawyers