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Financial Education Student Loans Legislation Article
Author: Derek Brainard
Author: Derek Brainard
Financial Education Student Loans Legislation Article

Navigating New Territory: Why Private Loan Information and Education Matter Now More Than Ever

If you’re a law student thinking about starting your program in the 2026-27 academic year or beyond, the financial landscape for your legal education is about to change significantly. The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, will fundamentally reshape how graduate and professional students pay for school, beginning in July 2026. For aspiring lawyers, this isn’t a distant policy shift. It’s a concrete, near-term development that demands attention and preparation.

What’s Changing – and Why It Matters for Law Students

For two decades, the federal Graduate PLUS loan program allowed graduate students to borrow up to the full cost of attendance. That era is ending. Under OBBBA, law students will face a new annual federal borrowing cap of $50,000 and a program cap of $200,000 – both limits that fall short of what many law students actually borrow. A December 2025 analysis by researchers at the Federal Reserve Bank of Philadelphia puts this shift into stark relief.

Using data from a representative sample of graduate students enrolled between 2015 and 2024, researchers found that among students in professional degree programs like law, 35% currently borrow more than the new federal loan limits would allow. The report further estimates that law students who exceed the new caps may need to secure, on average, an additional $23,700 per year in supplemental financing from private or other sources. That’s not a rounding error – it represents a significant funding gap with real implications for access to legal education nationwide.

Compounding this challenge is the limited role that private student loans have historically played in graduate school financing. The Philadelphia Fed data shows that while 67% of professional degree students currently borrow federal loans, only about six percent turn to private loans. As a result, the private lending market for graduate students is, in many ways, underdeveloped, and now it’s being asked to carry considerably more weight.

Who’s Most at Risk

The Philadelphia Fed researchers flag a sobering reality: not all law students will find it easy to obtain private loans. Private lenders underwrite based on creditworthiness, and many law students – particularly those from lower-income backgrounds or with thin credit histories – may struggle to qualify without a co-signer. The data shows that even among the small share of graduate students already using private loans, the majority (roughly 58% of professional degree borrowers) do so with a co-signer. For those who don’t have access to a creditworthy co-signer, the private market may be difficult to navigate, or simply out of reach.

This is precisely why informed comparison and transparent information about private lending options isn’t just useful, it’s essential.

Introducing the AccessLex Private Loan eXchange℠

In response to this shifting landscape, AccessLex Institute has launched the AccessLex Private Loan eXchange – a curated directory of private and state-based lenders offering education loans for law students. The eXchange is not a list of preferred or endorsed lenders; rather, it is designed to support informed decision-making at a moment when law students will increasingly need to evaluate private loan options alongside – or in place of – federal financing.

The eXchange brings together side-by-side information from a range of national private lenders, as well as a growing list of state-based lenders. For each lender, the eXchange surfaces key details that matter most to law school borrowers: interest rate ranges, repayment options during school and grace periods, aggregate borrowing limits, co-signer release policies, clerkship deferment provisions, hardship protections, and more.

Several of the lenders listed already offer features designed specifically for law students, including extended deferment periods that cover clerkships and internships, higher aggregate limits that can accommodate the cost of a three-year J.D., and flexible grace periods that reflect the reality of the bar exam and early career transitions. These are the kinds of loan features that can make a meaningful difference, but students often don’t realize they should be looking for them.

More Than a List – A Starting Point for Smarter Borrowing

At AccessLex, our commitment has always been to ensure that the pursuit of a law degree is not derailed by a lack of financial knowledge. The Private Loan eXchange is one part of that broader effort. Students who have questions about how private loans fit into their overall borrowing strategy are encouraged to review our Guide to Private Student Loans and to schedule a one-on-one conversation with an Accredited Financial Counselor (AFC®) through AccessConnex. These conversations are free, confidential, and tailored to the unique financial realities of law school.

Questions you can discuss with an AFC® include:

  • What are the key differences between private and federal student loans, especially in terms of interest rates, repayment options, and borrower protections?
  • How will taking on private loans impact my overall debt load and long-term financial goals after graduation?
  • Do I need a co-signer for private loans, and what are the risks and responsibilities involved for both me and my co-signer?
  • How can I manage my debt and credit to position myself for co-signer release in the future?
  • What are the specific repayment terms, deferment options, and hardship protections offered by the lenders I’m considering?
  • Are there any lender features tailored to law students, such as extended deferment for clerkships or flexible repayment during the bar exam period, that I should prioritize?

The changes brought by OBBBA are real and quickly approaching. Law students shouldn’t have to navigate this new terrain alone – or in the dark. The AccessLex Private Loan eXchange is here to ensure they don’t have to.

The AccessLex Private Loan eXchange is provided for informational purposes only and does not constitute an endorsement of any lender or loan product. Students are encouraged to compare all available options and consult with a financial professional before borrowing.

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