Commercial loans are borrowed for educational expenses not covered by other sources of financial aid. These credit-based loans are not guaranteed by the federal government and have different application procedures. Repayment and forbearance options are different from the Federal Stafford Loan Program and loan programs terms vary among lenders.

 

Eligibility for a Commercial Loan

Most commercial loans require students to be enrolled at least half-time in a degree programs (6 credits for J.D. students and 4 credits for LL.M. students). In addition, students must typically be a U.S. Citizen or permanent resident or have a U.S. citizen or permanent resident cosigner.

 

Borrowing Limits and Lender Options

A student may borrow a commercial loan amount equal to the total cost of attendance minus any other financial aid. Additionally, most commercial loan programs also have aggregate education debt limits up to $180,000. If your total education debt exceeds these limits you will not be able to borrow from certain programs. For further information about these loans, please refer to the GULC Lender Comparison Chart.

 

Credit Concerns

Be sure your credit will allow you to qualify before you apply for a commercial loan. Most lenders use a credit score and an applicant with a score of 640 or higher is likely to be approved. You can order a credit report including your score from the three national credit bureaus: www.experian.com , www.tuc.com , and www.equifax.com. Depending on your state of residence, a fee may be charged for requesting a copy your credit report. There is no charge for the report if you have been denied credit within the last 30 days.

 

Application Process

To apply for Commercial Loans in addition to the Federal Subsidized/Unsubsidized Stafford loans, applicants are required to:

• Complete the GULC Student Aid Information Sheet. Green Sheet for all LL.M. and continuing J.D. applicants, Blue Sheet for incoming J.D. students.
• Select a lender from the GULC Lender Comparison Chart and complete the loan application according to the lender's instruction.

 

Arrival of Funds

Depending on your lender selection, commercial loan funds may arrive via Electronic Funds Transfer (EFT) or via paper check format.

• Proceeds for Access Group and T.H.E. loans arrive via EFT and are posted to the student's account.
• Other lenders send paper checks usually made payable to the student that can be claimed at the GULC Student Accounts Office.
• If account balance is paid in full, paper loan checks made payable to the student may be released directly to the student.
• If the student owes the Law Center, funds will be applied first to the outstanding account balance and the excess will be refunded though the Student Accounts Office.

 

Revised Jan. 26, 2006