Included in the health care reform modification bill that (finally) passed the Senate today was some much-needed student loan reform. The biggest impact this will have on law students is the elimination of federal backing for third-party lenders. No longer will you have to go to Discover or Chase Student Loans to get approved for high-interest 8.5% GradPLUS loans; instead, all schools starting this summer will offer "direct lending" which cuts out the corporate lending middleman and brings a lower interest rate. Loans are approved directly by the school's financial aid office and you don't need outside approval. This kicks in this summer, so everyone should benefit from it whether they're a new or continuing law student this fall.
Chase and Discover were not charging high rates, in fact they cahrged much lower prime based variable rates, AND did not charge the 4% government origination fee.
Read INR carefully and se what happens if you do PI for 5 years and then go foir private law.
Do the same thing and look how much you will pay over 25 years in IBR for non PI.
GRAD PLUS is at a higher rate than Staffords. Why?
Read this all carefully, you're being screwed.