Commercial loans are borrowed for educational expenses not covered by other sources of financial aid, and are generally considered as an alternative to Grad PLUS loans. These credit-based loans are not guaranteed by the federal government. Repayment and forbearance options are more limited than for federal loans and loan programs terms vary among lenders.  As a reminder, commercial loans are NOT advised for students who may pursue a career in government or public interest work.  Commercial loans are not eligible for Georgetown LRAP benefits for students entering Georgetown Law in the 2009-2010 academic year or later.

 

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 co-signer.

 

Borrowing Limits and Lender Options

A student may borrow a commercial loan amount equal to the total student budget minus any other financial aid. Additionally, most commercial loan programs also have aggregate education debt limits (typically up to $180,000). If your total education debt exceeds these limits you will not be able to borrow from certain programs.

 

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 680 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. You may obtain a free copy of each credit report (but not your score) once per year at www.annualcreditreport.com.

 

Application Process

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

• Select a lender and complete the loan application according to the lender's instructions.
• Complete the GULC Student Aid Information Sheet (Green Form for all LL.M. and continuing J.D. applicants, Blue Form for incoming J.D. students) and notify the Financial Aid Office (via email at finaid@law.georgetown.edu) of your lender selection.

 

Arrival of Funds

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

• Funds that arrive via EFT are posted to the student's account.
• Paper checks 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.