Paying For Law School: Financing Essentials For Applicants And Parents

“A cup of coffee at Starbucks each day during your three years of law school equals $5,700+ in loans … [+] you could pay off.” Mae Estrada, Associate Dean for New York Law School. (Christina Tkacik/Baltimore Sun/Tribune News Service via Getty Images)

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Picking Up The Tab For Law School: A Financing Primer for Applicants and Parents

Thinking about heading to law school next year? Then get a coffee maker.

Though the median starting salaries for graduates of Yale Law, Harvard Law, Stanford Law and other T14 schools are close to $200,000, for the three years it takes to earn a JD the cost of each Grande Caffe Latte that you might order starts to add up.

So, if you have been working on the LAST exam and are submitting applications in the coming months, or if you are a parent who might be contributing to the cost of graduate school, whether in law, business or another discipline, don’t forget to pick up a coffee machine in the Black Friday sales after Thanksgiving.

“A cup of coffee at Starbucks each day during your three years of law school equals $5,700+ in loans you could pay off,” explained Mae Estrada, Associate Dean for New York Law School. Joined by other admissions officers at the October 2023 LSAC Forum in New York City, Estrada presented this tactical advice alongside tips to budget for and finance law school.

Below are the highlights from her talk, which kicked off the day-long event attended by representatives from many of the top schools across the country.

For Law School App Planning, Organization is a Must

Whether you plan to self-fund your law school journey or rely on parents or other family members to help cover the tab, tracking the all-in cost is a critical first step.

“All law school applicants should start a spreadsheet,” Estrada advised. “In that spreadsheet should be the things that matter most when it comes to investing in your legal education, [including] the application fee, the seat deposit, CAS Report fees, textbooks, relocation . . . all of the finances that are most important to you.”

Estrada further emphasized the importance of creating a personal budget that looks beyond big ticket items like tuition and considers other key information and costs that might fly under the radar. For example, living in New York to attend Columbia Law School results in a higher all-in law school cost than a more affordable part of the country, like Duke Law School in North Carolina.

“You need to be aware of the geographic location you are applying to and look at the average cost of living,” she advised. “Every law school’s website has a cost of attendance broken down into tuition, fees, books, living expenses, etc. Importantly, what you want to factor into your budget is the cost of law school altogether.”

What’s not included in the cost of attendance law schools quote on their website? Things like professional attire, fees for professional development or organization memberships, or your Bar Exam preparation are all “extras” that applicants not budgeting carefully might neglect to include in budget planning.

In addition to creating a thorough spreadsheet, Estrada advised tracking down fee waivers from schools who offer them. Fortuna Law school expert coaches who attended the New York LSAC Forums themselves noticed many school reps offering these waivers to attendees the day of the event, as well as in their email outreach to candidates. Joining similar events across the country can be a great cost-savings at the start of your application journey provided you live in the surrounding metro, especially if you are targeting 5 or more schools.

Law School or a Suburban House? The Capital Requirements Are Similar

Breaking that pricey Starbucks habit, embracing your inner accountant by identifying hidden attendance costs, and tracking down fee waivers and other cost-savings will still leave you with a hefty final tab to cover at the conclusion of your three-year JD journey. While in-state tuition at some state universities is significantly lower than private schools like Yale Law School, Harvard Law School, and Stanford Law School–for example, Texas Law charges $36,000 a year–the three-year JD commitment places a significant financial burden on any attendee.

Tuition and fees alone at Harvard Law School came in at over $75,000 in 2023-2024, which adds up to a three year approaching a quarter of a million dollars. Harvard adds estimated costs beyond tuition of $35,000 per year, bringing the total cost to $330,000. Living in Boston, in reality, costs more than this $35,000 estimate, so it’s safe to assume total cost drifts closer to $400,000. When the final numbers are tallied, applicants are looking at an investment in themselves that in some cases equates to the median US home price of $416,100.

If you are a parent of a child applying to law school who intends to help cover the cost, this sticker shock may come as a surprise. It’s okay to take a deep breath, find some time for a longer sit-down conversation, and assess with your law-school hopeful how much support you can provide and how much of the financial burden you’ll ask them to assume.

I recommend you not only bring a gift-wrapped Keurig to this chat, but also an open mind and a “How can I help?” mentality. The Fortuna Admissions team of expert law admissions coaches has written about how parents can help support their child’s grad school journey, which plenty of helpful advice.

Whether self-funding or getting parental support for law school, you are likely to borrow at least some portion of the total law school cost. Each year, 85-90% of law students take out some sort of federal student aid, regardless of their financial situation.

“Everyone generally receives $20,500 in Direct Federal Loans as long as you are a permanent resident or citizen of the US,” Estrada shared. “The balance of your cost of attendance is typically done through Graduate Plus Loans.” She further explained that private loans generally have lower interest rates, but the repayment times for these are typically accelerated in comparison to Federal Loans, and so not typically utilized by most law school students.

Financial Aid Timing and “Reading the Fine Print” of Merit-Based Aid

Estrada’s biggest advice on the loan front? Apply for aid as soon as possible during your decision-making process so that you have the most options at your disposal, since it can take time to navigate the bureaucratic processes associated with lining up your loans prior to matriculating.

As you move further into the application journey and secure acceptance to your target schools, it’s also important to read the fine print of any scholarship offers you receive. It is highly common for merit-based scholarships to be offered in tranches over 3 years that are contingent on your law school GPA and semester-by-semester performance. Estrada shared that she has seen applicants assume, for example, that their $150,000 scholarship is awarded as a lump-sum the first year of law school, when in reality only a third of it is released in year one. Should a student struggle due to academic performance prior to years two and three, their scholarship and the support it provides may dissolve.

Food for thought after Thankgiving

Securing your place at one of the top law schools is a great achievement – acceptance rates to Yale Law and Stanford Law are between 6 and 7%. And the rewards both financially and in terms of career opportunities will follow.

So as pumpkin pie is served this Thanksgiving, take a moment to enjoy a home-brewed cup of coffee – it will help you through law school in more ways than one.