Loans
Please Note: The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, through the budget reconciliation process. This legislation contains provisions that reshape student financial aid, including significant changes to the federal student loan programs, most of which become effective for periods of enrollment beginning on or after July 1, 2026.
The information provided by Delaware Law School’s Financial Aid Office represents the best information available at this time. It is based on our current understanding of the changing federal loan regulations and should not be considered official guidance. Please refer to federal government sources for all official rules and regulations. See studentaid.gov for more information. Updated 2/25/26
Students seeking tuition assistance have a number of available loan options. Educational Loans may be borrowed to assist in paying for tuition, books and/or living expenses. A student may borrow up to the cost of attendance minus any other financial aid (scholarships/grants) they received during the academic year. The federal government offers both subsidized (for undergraduates) and unsubsidized loans through the William D. Ford Federal Direct Loan Programs. If you meet the criteria below, you should be eligible to borrow a Federal Direct Subsidized/Unsubsidized Loan.
ELIGIBILITY CRITERIA
In order to borrow through the Federal Direct Loan Programs a student must file a FAFSA (Free Application for Federal Student Aid) at https://studentaid.gov and be:
- U.S. Citizen or Eligible Non-Citizen
- Enrolled at least half-time in an eligible approved program
- not be in default on a federal student loan;
- attain satisfactory academic progress by the end of each academic year
In addition, a student may not have previously borrowed over the maximum aggregate loan limit as an undergraduate or graduate student. Students who do not meet this criterion, or who need additional funding may want to consider borrowing from a lender that offers private educational loans.
If you are/were enrolled in a graduate/professional program (JD, LLM, or MJ) during the 2025-2026 academic year and borrowed a Federal Direct Unsubsidized Loan and require additional funding after receiving other aid for 2026-2027, you may have eligibility to borrow a GradPLUS Loan as a Legacy*student borrower.
*Legacy students are those that borrowed a Federal Direct loan in the same degree program prior to July 1, 2026.
Please use the accordion containers below to explore more information about the different available loan options.
The Federal Direct Subsidized/Unsubsidized Loan Program was created to make long-term, low-interest loans available to assist students in financing their education. This is an entitlement program. All students who otherwise meet the eligibility requirements may borrow direct subsidized/unsubsidized federal loans.
The William D. Ford Direct Loan Programs are administered by the Department of Education and funded by the US Department of Treasury.
Important Facts
Annual and maximum aggregate loan limits are based on your program’s credential level, when you began your program of study and your enrollment status.
Incoming JD students (beginning their program after July 1, 2026) through a Federal Direct Unsubsidized loan may borrow up to $50,000 per academic year as a full-time student and have an aggregate limit of 200,000.
Returning/Legacy* JD students and graduate students may borrow up to $20,500 per academic year through a Federal Direct Unsubsidized Loan as a full-time student. Maximum annual and aggregate loans available to a student depend on the loan program and a student’s start date. Total aggregate borrowing in the federal loan program cannot exceed $138,500 for a Legacy* law or graduate student; this amount includes any undergraduate borrowing. Total aggregate borrowing for new graduate students is capped at 100,000 for graduate program loans.
*Legacy students are those that borrowed a Federal Direct loan in the same degree program prior to July 1, 2026.
Undergraduate students’ loan amounts depend on grade level, enrollment status, dependency status, and previous borrowing. Interest on a portion of the loan may be subsidized by the federal government dependent upon demonstration of sufficient financial need by the borrower. Amounts in excess of the student's computed financial need are unsubsidized. The maximum aggregate loan amount available to an independent undergraduate student is $57,500. The maximum aggregate loan amount available to a dependent undergraduate student is $31,000.00.
Federal Loan Limits Chart (pdf)
Interest Rate and Fees
The Federal Direct Loan Program sets interest rates on an annual basis with the rate assigned at disbursement fixed for the life of the loan. Interest rates are fixed by the Department of Education based on a rate formula that uses the “high yield of the 10-year Treasury bill rate sold at the prior to June 1plus factor (add-ins) points.” Rates are capped and cannot exceed the cap regardless of the formula’s results. Interest rates are set in June for loans disbursed on or after July 1. The chart below shows the rate formulas and caps.
| Loan Type | Rate Formula | Cap |
| Undergraduate Subsidized/Unsubsidized Loans | T-bill + 2.05% | 8.25% |
| Graduate Unsubsidized Loans | T-bill +3.60% | 9.50% |
| PLUS Loans (Graduate and Parent) | T-bill + 4.60% | 10.50% |
Origination fees and interest rate formulas may change due to congressional action. For more information on the Federal Direct Loan programs interest rates and fee structure: https://studentaid.gov/sa/types/loans/interest-rates
Application Process
- To borrow federal loan funds, all incoming students and new borrowers must complete a Federal Direct Subsidized/Unsubsidized Loan Master Promissory Note (MPN) at: https://studentaid.gov/mpn/
- Delaware Law code on https://studentaid.gov: E01803 - Widener University - Delaware Campus
Processing Loan Requests
Delaware Law’s Office of Financial Aid electronically certifies student requests for Federal Direct Subsidized/Unsubsidized loans. If you have not completed your Stafford Direct Loan MPN at the time we certify your eligibility, you will be contacted to complete the process. If you have a concern or want to notify us that you have completed the application, please feel free to contact us via email: [email protected].
GradPLUS Loan for Returning/Legacy* Students
*Legacy students are those that borrowed a Federal Direct loan in the same degree program prior to July 1, 2026.
Returning/Legacy* students may apply for a Federal Direct Graduate PLUS Loan after May 1, 2026. As part of the application process, you will authorize a credit check. This loan is credit-based. It is based on credit history, not credit score or debt to income. Note: The credit check may expire and funds may not be disbursed without an additional credit check if the application is completed prior to May 1.
The GradPLUS loan application and MPN can be found at https://studentaid.gov/. You will need your FSA User ID and password to e-sign the note.
Interest Rate and Fees
The interest rate assigned at the disbursement of funds is set by the Federal Direct Loan Program on an annual basis and is fixed for the life of the loan.
Interest rates are set in June for loans disbursed on or after July 1. The rates are fixed by the Department of Education based on a rate formula that uses the high yield of the 10-year US Treasury bill rate sold at the “prior to June 1 plus factor (add-ins) points.” Regardless of the formula results, interest rates are capped and cannot exceed the cap. The chart below shows the rate formula and cap.
| Loan Type | Rate Formula | Cap |
| PLUS Loans (Graduate and Parent) | T-bill + 4.60% | 10.50% |
GradPLUS loans have a fixed interest rate of 7.94% for loans disbursed between July 1, 2025 and June 30, 2026. An origination fee of 4.228% will be charged by the Department of Education at disbursement. Origination fees and interest rates may change due to congressional action.
Application Process
Go to https://studentaid.gov, Select "Loans and Grants" , then “PLUS Loans: GradPLUS and PLUS. You will need your FSA User ID and password to login.
If you need to complete a Master Promissory Note, (on the same menu)Select “Master Promissory Note”. Under "Complete a Master Promissory Note" , select "GradPLUS MPN." Choose “I’m a Graduate/Professional Student”, and select "GradPLUS MPN."
For each academic year, an application must be completed for a Federal Direct GradPLUS loan. New Students and those who have not previously borrowed must complete an MPN for the GradPLUS loan. Students who have previously borrowed on their own credit in the graduate program at Delaware Law should not need to complete another MPN.
Tuition is based on a per credit rate: requesting the maximum loan allowed by Delaware Law’s cost of attendance schedule may result in a loan too large for your needs. Please refer to the Tuition and Fees page. The more you borrow now, the higher your loan repayment upon graduation.
Requested Loan Amount
Please be aware that the application provides only the following three options when requesting a loan:
- Maximum amount allowed by Delaware Law and your personal cost of attendance
- Student requested amount
- Unknown amount (Students indicating this status are contacted by the Financial Aid Office prior to certifying a loan amount.)
If you request a loan and intend it to be a one-semester-only loan, you should indicate one-term loan period on your application. If you need to adjust your loan period or loan amount, please contact the Enrollment Services Office (Bursar/Financial Aid) at [email protected] or 302-477-2272.
Some students may need to access additional funding to pay for tuition, books and /or living expenses after scholarships and federal loans have been applied for. Private Educational Loans differ from federal loans in several ways.
- Private educational lenders will approve students to borrow through their programs based on variety of factors but having a very good credit is key to being approved to borrow.
- Typically, students (with or without good credit) have a better chance of being approved with a credit-worthy co-signer.
- Students should pay careful attention to the loan terms, including interest rates, repayment options and pre-payment penalties.
- Students may not borrow a private educational loan for more than the cost of attendance.
- Private loans are not monitored by the Department of Education but are monitored by the CFPB (Consumer Financial Protection Bureau) to ensure compliance with the “Truth in Lending Act”.
Widener University Delaware Law School does not endorse or recommend private educational loan lenders. A student may choose to borrow from any private loan lender. The Financial Aid Office will be happy to certify a loan from any lender a student selects.
To assist you with your research, AccessLex Institute®, a non-profit organization that provides financial literacy resources to law students, offers the AccessLex Private Loan Exchange, a nonprofit-curated resource designed to support law schools and students when private education borrowing becomes necessary.
In addition to this resource, you may find this AccessLex publication useful – The Guide to Private Student Loans.
Bar loans assist students with costs associated with the bar exam, including bar exam prep courses and living expenses while studying for the bar exam. The amount a student borrows depends on minimum and maximum amounts allowed by the lender and what amount the student determines necessary.
Bar loans typically carry higher interest rates and have less appealing repayment options than federal loans. Before applying for a bar loan, students are encouraged to borrow federal loans for up to their maximum federal cost of attendance.
Bar loan programs can have strict credit criteria and students may want to apply with a co-signer. Delaware Law will certify the student’s graduation date and the loan funds will be directly disbursed to the student.
Currently, Delaware Law is aware of two bar loan programs. As lenders re-enter the credit market they will be added to our list. Please use the following links to lenders:
To recognize outstanding law school achievement for the first year of study students may be offered the opportunity to borrow through the Widener Scholars Loan Program. This institutional loan accrues no interest while in school and during the six month grace period. Interest accrues at 5% upon entering repayment and the repayment term is ten years. This is a private loan and subject to the provisions in the Higher Education Act of 1965, as amended (HEA) and Truth in Lending Act. Students will be eligible to continue to borrow in subsequent years as long as they maintain the required cumulative grade point average.