Financial Aid

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14.1 Financial Aid at the UW Law School

There are two sources for financial assistance for students at the UW Law School. First, the University’s financial aid office, The Office of Student Financial Aid - OSFA, awards all federal Stafford loans and federal work-study funds. The Law School itself then awards private merit-based and need-based scholarship dollars based on a variety of criteria. Thus, to complete the financial aid application process, students are required to apply to both the Law School and the OSFA.

Neither the Law School nor the OSFA requires financial data from or about parents when applying. You are considered an independent student, and generally you will be eligible for more aid than you may have had access to as an undergraduate. Even if you are working full-time prior to enrolling in law school, we encourage you to apply for federal aid, as most students will resign their full-time positions and thus will have very different financial situations once the school year begins. Most applicants will find themselves eligible for at least unsubsidized Stafford loans, despite their prior income history.

14.2 To Apply for Federal Aid

To apply for Federal Aid, you must complete the Free Application for Federal Student Aid (FAFSA), available online at www.fafsa.ed.gov. You must specify the University of Wisconsin Law School as one of the schools that has access to your data. To do so, you must enter our Federal School Code: 003895.

Once the Office of Student Financial Services receives your FAFSA information, they will contact you if they need additional forms, including tax forms from prior years.

14.3 To Apply for Private Need- and Merit-Based Scholarship

Total Credits	Resident	Non Resident	Minnesota Compact	Segregated Fees*
1	$615.60	$1,445.77	$912.50	$38.92
2	$1,229.20	$2,889.54	$1,825.00	$75.84
3	$1,842.80	$4,333.31	$2,737.50	$112.76
4	$2,456.40	$5,777.08	$3,650.00	$149.68
5	$3,070.00	$7,220.85	$4,562.50	$186.60
6	$3,683.60	$8,664.62	$5,475.00	$223.52
7	$4,297.20	$10,108.39	$6,387.50	$260.44
8	$4,910.80	$11, 552.16	$7,300.00	$297.36
9	$5,524.40	$12,995.93	$8,212.50	$334.28
10	$6,138.00	$14,439.70	$9,125.00	$371.20
11	$6,751.60	$15,883.47	$10,037.50	$408.12
12+	$7,365.20	$17,327.24	$10,950.00	$445.04

*Note: Segregated fees are included in the Resident, Nonresident, and Minnesota figures.

* 2009 - 2010 tuition and fees not available at time of printing.

14.5.2 Residency for Tuition Purposes

Residency for tuition purposes can be a complex issue and is governed by a Wisconsin state statute.

Not all Wisconsin residents are eligible for resident tuition. In general, you must be a bona fide resident of Wisconsin for at least 12 months prior to enrollment to be eligible for in-state tuition. If you do not qualify as a Wisconsin resident, you will be assessed nonresident tuition. In determining residence status for tuition purposes, different standards are used than those which may be used for voting, paying taxes, etc. Individuals who come to Wisconsin primarily for educational purposes do not automatically qualify as Wisconsin residents for tuition purposes even after living in Wisconsin a year or more.

For more information, on the application of the Wisconsin Statutes 36.27(2) governing residence status for tuition purposes and an extract of the statutes, link to the Registrar's Residence for Tuition Purposes Page at http://registrar.wisc.edu/students/residence/#RES7 or phone the Residency Section of the Office of the Registrar at (608) 262-1355.

14.5.3 Minnesota Reciprocity

Students who are residents of Minnesota can attend the University of Wisconsin at a special reduced tuition rate under the Wisconsin-Minnesota Tuition Reciprocity Agreement (http://registrar.wisc.edu/students/residence/faq.php?ans=9#9).

To take advantage of this rate, a Minnesota resident wishing to attend any public university in Wisconsin must be certified by the Minnesota Higher Education Services Office (MHESO). Applications are available from MHESO. For more information, visit www.mheso.state.mn.us or contact MHESO at:

Minnesota Higher Education Service Office (MHESO)
1450 Energy Park Drive, Suite 350
St. Paul, MN 55108-5227
Telephone: (651) 642-0567 or (800) 657-3866

Recertification by MHESO is required for each academic year. Benefits generally will be renewed automatically by that agency for students who are registered and remain enrolled in credit courses during any term of the previous academic year and paid reciprocity tuition for that term.

If you have additional questions about the reciprocity system, you may call the Residence Counselors Office at the University of Wisconsin-Madison at (608) 262-1355.

14.6 Estimated Total Student Expense Budget

The following estimated costs provide a guide to the expenses you can expect during the UW Law School year. Of course, expenses vary from student to student, depending on living arrangements, personal expenses, and travel costs, etc. This budget assumes you are sharing rent or living on campus in a dorm. If you live alone, your housing costs will be higher. Also remember that costs may increase each year depending on the rate of inflation.

If you have other questions or concerns regarding financial aid, please contact the Office of Student Financial Services, Room 231, 432 N. Murray Street, Madison, WI 53706 - (608) 262-3060.

Estimated Total Student Expense Budget for the 2008-2009 Academic Year*

Expenses	Resident	Non-Resident	Minnesota Reciprocity
Tuition	$14, 730	$34,654	$21,900
Fees	(included above)	(included above)	(included above)
Food & housing (9 months)	$7,220	$7,220	$7,220
Miscellaneous (clothing, recreation, travel, etc.)	$4,330	$4,330	$4,330
Books & Supplies	$2,100	$2,100	$2,100

Part-time students are charged on a per-credit basis.

* 2009 - 2010 tuition and fees not available at time of printing.

14.6.1 Calculating your Personal Expense Budget

In order to determine how much financial aid you will need to take (i.e. how much in loan and scholarship funds), you need to compare your personal nine-month school- year budget to the estimated student expense budget created by the OSFA. OSFA estimates the average law student living in Madison will need $1,510 per month to sustain him/her. This figure is obtained by adding the food/housing, miscellaneous and books/supplies figures together and dividing by 9 (i.e. the number of months in the 9-month academic school year). Each student then needs to determine whether her/his expenses total more or less than this budgeted figure. If your expenses are less than $1,510/month, then you may not need to take all the loans for which you are eligible. If your expenses are more than $1,510/month, you may need to see the OSFA and complete the Budget Adjustment Process, which is described below.

Please note: The federal financial aid guidelines do not allow schools to incorporate expenses such as car payments or commercial credit debt into your estimated budget of expenses. If you will carry such expenses into law school, you will need to make other arrangements to have those costs covered, or reduce your expenses in another area to compensate.

* Remember - you will have to pay back whatever loans you take out.

14.6.2 Students who worked full-time during the year preceding law school

If you worked full-time during the calendar year preceding the year you enrolled in law school, the FAFSA data used to complete your federal award letter is based on the preceding calendar year’s income. Generally, when students return to law school, they resign their full-time positions and thus are in significantly different financial circumstances than when they completed the FAFSA. Students in this situation should notify the OSFA of their change in level of income as soon as possible so that this special circumstance can be considered. Students can list these special circumstances on Section III of the Student Federal Tax Return Cover Form provided by OSFA or by submitting a written statement to OSFA outlining the special circumstances.

14.6.3 Budget adjustment process

In some instances, students’ financial aid award letters are not sufficient to cover their tuition/fees and living expenses. This generally occurs for two kinds of students: (1) students who experience unexpected expenses during the academic year; and (2) students with expenses beyond the usual full-time graduate student budget.

14.6.4 What to do if you are experiencing financial difficulties

If you find that you are having significant difficulty meeting your expenses with your financial aid funds, you should consult the OSFA to see if your situation warrants completion of a Budget Adjustment Form. In some cases, completing the form will increase your federal loan eligibility, solving your problem. Additionally, the OSFA may be able to suggest other forms of assistance such as alternative loans or private loans.

If you have additional questions regarding financial aid, or if you continue to have financial difficulty, you should consult the Law School Admissions and Financial Aid Office.

14.6.5 Short term emergency loans

Short term loans are intended to assist students who need a small amount of money for a short period of time. Short term loans are commonly used to assist students buying books or paying rent while they wait for the financial aid to arrive. Please contact the Law School Admissions and Financial Aid Office for more information.

14.7 Reapplication process for continuing students

As a continuing student, you must reapply for aid for the coming fall at the beginning of the Spring term each year. To reapply, you must follow the same steps detailed above. You can complete your FAFSA on-line at www.fafsa.ed.gov as soon after January 1st as you have the information to complete your federal income taxes. Continuing students should also submit an updated Scholarship Application Form for the coming year. Students intending to study abroad on another law school’s program should consult the law school’s financial aid office for a list of the additional information you will need to submit with your financial aid application.

14.8 Managing your student loans during school and upon graduation

Over 90% of all law students have student loans. And because student loan debt can work to limit your career choices upon graduation, it is essential that you manage your student loan portfolio both during law school and after graduation. We encourage you to manage your financial aid actively and intentionally, and not to avoid dealing with the realities of repayment until graduation. Remember, you can contact your lender and they can provide you with a tentative repayment schedule and can estimate the size of your payment at any time.

14.8.1 Preparing for Graduation

As you prepare for graduation, you should ensure that you have a firm command of all of your student loan data. Make sure you have a comprehensive list of all your loans (from both undergraduate and graduate studies), as well as who the lender was for each, each account number and the type of loan you have. Generally, your federal Stafford loans will have a six-month grace period for repayment after graduation. You should ensure that you know when your first payment is due for each loan. If you are not contacted around graduation time regarding repayment, you should contact your lender(s). You should make certain that your lender(s) always has your most up-to-date contact information. Not receiving the bill is not a valid defense against defaulting on your loans. You can contact either your lender or the Student Loan Office (608) 262-1791 for assistance in determining your full debt load. You are ultimately responsible for repaying your student loans. Failing to do so in a timely manner may result in damage to your credit score and other long-term consequences.

14.8.2 Difficulty making payments or taking a low paying job

Remember that you have several tools at your disposal to assist you in managing your student loan debt. All federal loan payments are calculated over a 10-year repayment schedule, but you may be eligible for an extended repayment plan. Should you have difficulty making your payments once your post-graduation grace periods have ended, you should speak to your lender (bank or financial institution) about the following options:

14.8.3 Forbearance

Students generally have access to up to 36 months of forbearance during the life of your loans. A forbearance means that you are temporarily forbearing/putting off your payment obligation for a period of time. These are generally granted in 6-month increments, and you usually need to provide some sort of documentation of your difficult financial circumstances. Remember however, that interest on the loan continues to accrue during the time of forbearance.

14.8.4 Graduated Repayment

Payments are lower at the beginning of repayment and step up at specified periods and in specified amounts over the term of the loan.

14.8.5 Income-sensitive repayment

Monthly payments are based on a percentage of your monthly income for Stafford, Grad PLUS and federal consolidation loans.

14.8.6 Extended repayment

Eligible borrowers can receive payment relief through lengthening your repayment term up to 25 years. Remember however, that if you extend the repayment period you usually end up paying significantly more interest over the life of the loan.

14.8.7 Consolidation

Federal consolidation loans allow borrowers to refinance one or more federal education loans and significantly lower their monthly payment by extending the payback period. The original loans are paid-in-full, and a new loan for the combined balances is issued with new terms, etc.

14.8.8 Serialization

Your lender may purchase a borrower’s loans held by other Federal Family Education Loan Program lenders or institutions and service them in one account, allowing the borrower to make one monthly payment and retain the original terms and interest rates on their loans.

14.8.9 The College Cost Reduction and Access Act (CCRAA)

The College Cost Reduction and Access Act (CCRAA) was passed in 2007, and is intended to to reduce the the financial pressure on college and university graduates, particularly those with current student loan burdens.

The CCRAA may help you in one of two ways:

1.) Lowers monthly student loan payments on federally guaranteed student loans (Income Based Repayment or IBR)

2.) Cancels remaining debt for public servants after 10 years of public service employment (Loan Forgiveness for Public Service)

Income Based Repayment (IBR)
This repayment program significantly reduces monthly payments for high debt/low income borrowers with "partial financial hardship". Annual educational payments under IBR are capped at 15% discretionary income, which is defined as adjusted gross income minus 150% of the poverty level for the borrower's family size. IBR went into effect July 1, 2009.

A married borrower who files a separte federal income tax return (Married-Filing Separately) will have the amount of the borrower's income-based repayment calculated solely on the basis of the borrower's student loan debt and adjusted gross income, rather than on the combined income of the borrower and the spouse.

All Federal Direct Loans (FDL) and federally guaranteed loans (FFEL) are eligible, including subsidized and unsubsidized Federal Stafford Loans, Federal Grad PLUS loans (but not Parent PLUS loans), and Federal Direct Consolidation loans. However, only Federal Direct loans (including Federal Direct Consolidation loans) are eligible for Loan Forgiveness for Public Service.

Loans made by a state or private lender and not guaranteed by the federal government (ex. Access Group, Law Loans etc) are never eligible.

Loan Forgiveness for Public Service Employees
If a borrower in a public service position makes 120 qualifying loan payments on a Federal Direct Loan while working full-time for 10 years in public service employment after October 1, 2007, the unpaid balance on the loan is forgiven by the federal government. A qualifying payment is one made using the amount calculated under either the Income-Contingent Repayment (ICR) plan, the Income-Based Repayment (IBR) plan, or not less than the amount required under a Standard Repayment plan based on a 10-year repayment schedule. Only payments made on Federal Direct loans (including Federal Direct Consolidation loans) count toward the 120 payments required to qualify for Loan forgiveness.

14.8.10 Bar Loans

A bar loan can help with bar exam expenses, including bar review course fees, bar exam deposit and/or fees and living expenses. For more information about bar loans, please contact the Law School Admissions and Financial Aid Office, room 4314, or call the office at (608) 262-5914.

For questions about your federal financial aid or private loans, please contact the Office of Student Financial Aid at (608) 262-3060 or go to their website http://www.finaid.wisc.edu/. For other questions about financial aid or about merit or need-based scholarships please call the Law School Admissions and Financial Aid Office at (608) 262-5914.