Financial Aid | University of Wisconsin Law School

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14.1 Financial Aid at the UW Law School

There are two sources for financial assistance at the UW Law School. First, the University's financial aid office, the Office of Student Financial Aid (OSFA), awards all federal Stafford and Grad PLUS loans as well as federal work-study funds. The Law School itself then awards private merit-based and need-based scholarship dollars based on a variety of criteria.

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 Scholarships

Prospective students seeking private need- and merit- based scholarships must complete the Law School’s Scholarship Application Form, which will be sent to them after they submit their law school application.

Continuing students should submit an updated scholarship request by the summer prior to the coming academic year or any time thereafter. The reapplication should take the format of a written letter submitted to the Law School Admissions and Financial Aid Office.

14.4 Award Letters and Processing of Financial Aid

Once your financial aid application is complete, the OSFA will generate a financial aid award for you. This award letter will reflect any private need or merit-based scholarship awarded by the Law School, any Stafford loan eligibility, and any federal work-study grant. Once you receive it, you can do one of three things: (1) accept all of it (meaning all the loan eligibility); (2) accept part of it (i.e. you may not need all the federal loans you are eligible for); (3) accept none of it. Remember that you retain this maximum eligibility throughout the academic year up until roughly a month before the end of the spring term. This is why it is important to calculate and compare your personal student expense budget to the estimated one generated by the OSFA.

A financial aid notification will be sent by email from the OSFA. It will contain instructions on how to access your award information online. There you will accept or decline your award and select a lender (a bank or financial institution) to process your loans. This process should be completed by early summer prior to your fall enrollment.

14.5.1 Fall 2011-2012 Tuition & Fees - Law School*

Total Credits	Resident	Non-Resident	Minnesota	Segregated Fees**
1	$822.88	$1,619.86	$1,379.71	$47.71
2	$1,642.76	$3,236.72	$2,756.42	$92.42
3	$2,462.64	$4,853.58	$4,133.13	$137.13
4	$3,282.52	$6,470.44	$5,509.84	$181.84
5	$4,102.40	$8,087.30	$6,886.55	$226.55
6	$4,922.28	$9,704.16	$8,263.26	$271.26
7	$5,742.16	$11,321.02	$9,639.97	$315.97
8	$6,562.04	$12,937.88	$11,016.68	$360.68
9	$7,381.92	$14,554.74	$12,393.39	$405.39
10	$8,201.80	$16,171.60	$13,770.10	$450.10
11	$9,021.68	$17,788.46	$15,146.81	$494.81
12+	$9,841.56	$19,405.32	$16,523.52	$539.52

* Tuition and fees for the 2012-2013 academic year will be announced by the Board of Regents in late July or early August.

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

14.5.2 Residency for Tuition Purposes

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/residence.htm or phone the Residence Examiner's Office at 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/residence.htm.

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 http://www.getreadyforcollege.org/hesod/reciprocity/apply1.cfm 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

If you have any other questions or concerns regarding financial aid, please contact the Office of Student Financial Aid at 333 East Campus Mall #9701, Madison, WI 53715 or call them directly at (608) 262-3060.

Estimated Total Student Expense Budget for the 2011-2012 Academic Year*

	Wisconsin Resident	Non-Resident	Minnesota Resident
Tuition & Fees	$19,684	$38,811	$33,048
Books/Supplies	2,340	2,340	2,340
Room & Board	9,370	9,370	9,370
Miscellaneous	4,550	4,550	4,550
Computer	1,000	1,000	1,000
Travel	770	770	770
Total	$37,741	$56,841	$51,078

* The estimated total student expense budget for the 2012-2013 academic year has not yet been set. We expect these figures to be finalized by late July or early August 2012.

Part-time students are charged on a per-credit basis. The estimated cost of attendance listed above is the Office of Student Financial Aid estimate for the 2011-2012 school year.

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. During the 2011-2012 academic year, the OSFA estimated that the average law student living in Madison will need an average of $1,806.67 per month to sustain him/her. This figure is obtained by adding the room/board, miscellaneous and books/supplies figures together and dividing by 9 (i.e. the number of months in the 9-month academic school year). If you are interested in pursuing an unpaid internship over the summer, your monthly budget amount during the 2011-2012 academic year would have been $1355.00 per month for a 12-month period. Each student then needs to determine whether her/his expenses total more or less than this budgeted figure. If your expenses are less than your estimated monthly budgeted amount, then you may not need to take all the loans for which you are eligible. If your expenses are more than that amount, you may need to speak with a financial aid advisor at the OSFA or Law School Admissions Office to discuss your special circumstances or complete a Budget Adjustment Form, if necessary.

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.

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 their financial aid award 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 online at www.fafsa.ed.gov as soon after January 1st as you have the information to complete your federal income taxes. Students intending to study abroad through another law school's program should consult that 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 law students take out student loans to cover their cost of attendance. Because student loan debt can factor into 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 avoid addressing realities of repayment until graduation.

The Law School Admissions & Financial Aid Office will host regular seminars and presentations throughout your time in law school to help you understand your loan obligations as well as repayment options, and we encourage you to meet with Assistant Dean Rebecca Scheller to assess your loan situation and plan for managing loans post-graduation.

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. Much of this information is found at nslds.ed.gov. 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.

Remember, 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

In graduated repayment, payments are lower at the beginning of repayment and increase at specified periods and in specified amounts over the term of the loan.

14.8.5 Income-sensitive repayment

Income-sensitive repayment allows your monthly payments to be 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), passed in 2007, is intended to reduce the financial pressure on college and university graduates, particularly those with current student loan burdens. Please note: Legislation on the CCRAA is always changing, so it is important to check with the U.S. Department of Education for the latest developments.

The CCRAA may help you in one of two ways:

Lowers monthly student loan payments on federally guaranteed student loans (Income Based Repayment or IBR)
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% of 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 separate 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. However, this may also result in reduced tax benefits that might be attained by filing jointly.

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 in public service employment after October 1, 2007, the unpaid balance on the loan will be 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. Bar loans are private, credit-based, and interest rates are usually variable. These loans are not eligible for IBR or Public Service Loan Loan Forgiveness.

To inquire about bar loans, contact your local lender. Bar loan availability has diminished since 2008, but we are current aware of the following lenders that continue to offer bar loans: Graduate Leverage, Citibank, and Sallie Mae, and there may be others.

14.9 Repayment Options

Standard Repayment – With this plan, you will pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you will have up to 10 years to repay your loans. Because your monthly payments will be higher than with other plans, you pay the least amount of interest on your loans with Standard Repayment.

Extended Repayment –
With the Extended Repayment plan, you will pay a fixed amount each month over a period of not more than 25 years. You must have at least $30,000 in either FFEL or Direct loans in order to qualify for this plan. Although your monthly payments will be lower than under the Standard Repayment plan, you ultimately will pay more on your loans because interest will accrue for a longer period of time.

Graduated Repayment – Under this plan, your loan payments start out low and increase every two years. The length of repayment is up to 10 years. This plan is designed for borrowers who expect their income levels to increase over time. Your monthly payment will never be less than the amount of interest that accrues between payments. Although your monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment.

Income Based Repayment (IBR) – IBR became available July 1, 2009. Under IBR, the monthly payment is capped at an amount that is intended to be affordable based on income and family size. You are eligible for IBR if the monthly repayment amount under IBR is less than the monthly amount calculated under the 10-year Standard Repayment plan. If you repay under IBR for 25 years, you may be eligible to have any outstanding loan balance cancelled. Additionally, if you work in public service and you have reduced loan payments through IBR, the remaining balance after 10 years in a public service job could be cancelled.

Income Contingent Repayment (ICR) – ICR is available for Direct loans only. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse’s income if you are married), family size, and total amount of your Direct loans. Under ICR you pay each month the lesser of:

1. The amount you would pay if you repaid your loans in 12 years multiplied by an income percentage factor that varies with your annual income, or
2. Twenty percent (20%) of your monthly discretionary income.

The maximum repayment term under ICR is 25 years. If you haven’t fully repaid your loans after 25 years (not including time spent in deferment or forbearance) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.

Income Sensitive Repayment (ISR) – This plan is available for FFEL loans only. With an income-sensitive plan, your monthly loan payment is based on your annual income. As your income increases or decreases, so do your payments. The maximum repayment term is 10 years.

Deferment – Deferment is a temporary suspension of loan payments for specific situations such as reenrollment in school, unemployment or economic hardship. During deferment, interest does not accrue on subsidized loans, but will accrue on unsubsidized loans. You must apply for deferment through your loan servicer, and you must continue to make payments until you have been notified that your deferment has been granted. Otherwise, you could become delinquent or go into default. Deferments are usually granted in 6-month intervals, for a total of 2 or 3 years.

Forbearance – Forbearance is a temporary postponement or reduction of payments for a period of time because you are experiencing financial difficulty. You can receive forbearance if you’re not eligible for a deferment. Unlike deferment, interest accrues on both your subsidized and unsubsidized loans. Your loan holder can grant forbearance in intervals of up to 12 months at a time for up to three years. You have to apply to your loan servicer for forbearance, and you must continue to make payments on your loans until you have been notified that forbearance has been granted.

For more information and assistance with understanding your loans and repayment options, please contact Assistant Dean for Admissions & Financial Aid, Rebecca Scheller. The Law School Admissions & Financial Aid Office is located in Room 4314, and you may call directly at (608) 262-5914.