Loan Programs
PAL Law PREP (Practice Review & Exam Preparation) Loan
The PAL Law PREP is our private, no-fee loan program to assist law students in financing the costs associated with preparing for and taking the Bar Exam.
Select each of the options below to learn more:
A loan application may be submitted during a
12-month period beginning 6 months prior to
graduation from law school.
12-month period beginning 6 months prior to
graduation from law school.
To apply for this loan, simply download and complete a PAL Law PREP Application.
Eligibility Requirements
To be eligible for this loan, you must be:
- Creditworthy or able to supply a creditworthy cosigner. Cosigners can download and complete a Cosigner Application.
- In good standing with other education loans
- Enrolled in the final year of law school at an ABA accredited school or have graduated no more than six months prior to application
Current Maximum Loan Amounts
This is a one-time loan for up to $15,000. The loan funds are mailed directly to the borrower.
Repayment Information
Monthly payments begin six months after the date indicated for the Bar Exam. You have three (3) repayment options, each with a maximum fifteen (15) year term:
- Standard Repayment Plan
This plan provides for substantially equal payments of principal and interest for up to fifteen (15) years - Interest-only payments
You can make interest payments for three (3) years and then level payments of principal and interest for twelve (12) years - Graduated payments
This plan allows for an increase in your payments every 24 months, providing the greatest relief from the 'cash crunch' of starting your career.
Interest Rate
Loan applications received on or after June 1, 2008 will bear interest at a variable rate, indexed off of the 3-month LIBOR rate published by Bloomberg, L.P.®, adjusted each calendar quarter. The LIBOR (London Inter-Bank Offered Rate) rate is defined as the quoted 3-month rate two business days prior to the end of each calendar quarter. The current interest rate is the 3-month LIBOR + 4.5%, adjusted quarterly.
Loan applications received prior to June 1, 2008 will bear interest at a variable rate, indexed off of the Prime Rate published by Bloomberg, L.P.®, adjusted each calendar quarter. The Prime Rate is defined by the “bank prime loan” interest rate as reported on the last business day prior to the beginning of each calendar quarter.
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