2024-2025 Financial Aid Student Handbook

Introduction

Each year the Financial Aid Handbook is published to provide students with information concerning the policies and guidelines of our financial aid program. We hope the Handbook will also be of great use as an aid in helping you plan the financing of your legal education.

The Law School has always maintained its commitment to providing financial assistance to students who would otherwise be unable to pursue a legal education. All aid is based on demonstrated financial need and any student with financial concerns about paying for his or her legal education is encouraged to apply for financial assistance whether it is in the form of grants or loans. The Law School will do its utmost to ensure that students receive the financial assistance they need to complete the required three years of study.

As you are well aware, the cost of a legal education continues to rise. What has naturally followed is a larger reliance on the use of loans to finance these escalating costs. While we are confident that many of our graduates who received financial assistance and who are faced with considerable educational debts are able to support these debts due to current salaries available within the legal profession, we do realize that those graduates pursuing careers in government or public service require assistance with their loan debt. In response to this concern, the Law School established the Miles and Nancy Rubin Loan Repayment Assistance Program (LRAP) and the Anonymous Public Service Loan Repayment Assistance Program in 1985. This program manifests the Law School’s commitment to guaranteeing career choices for its graduates and making public interest law options a more attractive and financially sustainable choice and, in essence, extends the financial aid program for these participants beyond the three years spent at the Law School.

Every financial aid case is unique, but all are governed by policies designed for the benefit of all. It is our hope that you will find this handbook helpful as you plan ahead. Do keep in mind that the handbook is an adjunct to financial aid counseling and that you are encouraged to ask further questions and seek out additional information by calling the Office of Financial Aid directly at (650) 723-9247, emailing us at financial.aid@law.stanford.edu, or stopping by Room 107.

Faye Deal, Associate Dean for Admissions and Financial Aid
Berenice Hernandez, Associate Director of Financial Aid
Edward Johnson II, Financial Aid Advisor

Applying for Financial Aid

In order to receive financial aid, you must apply for it every year. Applying for aid is not a commitment to accept the offer. You may decline a fellowship or loan after either is offered. If you do not apply for aid for your first year you may still do so for your second or third years. To apply for financial aid, the following materials must be filed:

Free Application for Federal Student Aid (FAFSA)

All students who are applying for federal funds and who are U.S. citizens or permanent residents must file a FAFSA every year to determine eligibility for federal student loans. You can complete the FAFSA online at the Department of Education’s website (https://studentaid.gov/h/apply-for-aid/fafsa). Our Title IV school code is E00341.

CSS Profile Application

All students who are applying for a tuition fellowship must complete the 2024-2025 CSS Profile application. As you are completing the application, please keep in mind that you must provide parental information if you are under the age of 29 as of September 1st, 2024. This online application is available at the CSS website (https://cssprofile.collegeboard.org). The CSS Profile code is 7832. February 14th, 2025 is the last day to complete the CSS Profile Application for the 2024-2025 academic year.

Federal Tax Returns

All students receiving tuition fellowship must submit signed photocopies of their own 2022 federal income tax return. Students under the age of 29 as of 09/01/2024 that are receiving tuition fellowship are also required to submit their parents’ 2022 tax return. Please be advised that no tuition fellowship will be credited to a student’s account without copies of these tax returns in our office.

Financial Aid Guidelines for 2024-2025

We require that financial resource information from your parents be submitted unless you are 29 years of age or older as of September 1, 2024.

Please note that these guidelines are used for tuition fellowship purposes only. All graduate students are considered independent for loan purposes. Returning students must also complete a Financial Aid Information Supplement. This form is used to collect information on projected summer earnings, summer addresses, and on- or off-campus residency for the coming academic year. Forms are available on the financial aid website after May 1st and must be completed prior to your departure for the summer.

Types of Aid

I. Need-Based Aid

The Financial Aid Office offers several types of aid depending on individual need.

1. Tuition Fellowships

At the Law School, tuition fellowships are more properly called grants-in-aid. They provide the neediest students with a direct grant covering up to one hundred percent of their annual tuition. Students are eligible for fellowship aid for no more than 9 quarters. The grant appears as a credit on your tuition bill with one-third of the total grant being applied each quarter. The grant is tax-free and is automatically accepted on your behalf.

Tuition fellowship recipients are expected to borrow, or earn, the first increment of their need. For 2024-2025, this figure (referred to as self-help) is $54,500 for all students. Self-help is based upon the demand for and availability of tuition fellowship funds in a given year. It is important to note that the self-help figure is subject to annual adjustment of at least $3,000. The self-help portion of a student’s need is financed with loan funds.

Effective 2022, we will cover all the tuition costs for JD students with family income below 200% of the poverty guideline and whose assets are below $150,000. This funding will also cover the University’s health services fee (not the health insurance, however) and the law school’s student services fee. This funding is intended to help those with very substantial need. All of our need-based funding is assessed annually and this new fund will be awarded on an annual basis as well. To be considered for this funding, you must file all of the required documents needed for an aid review including the submission of tax returns. If you are considered independent based on our policy and wish to be considered for this funding, you must submit all required documents so that we may properly assess your parents’ financial information. If you are married, your spouse’s income and assets will be reviewed as part of the process. The Office of Financial Aid will review your documents at the same time all other aid packages are made. If you feel there are extenuating circumstances that may warrant consideration for this funding, please reach out to our office. Because this is still considered a part of our overall need-based financial aid program, all aid policies and practices apply to recipients.

Tuition fellowship assistance is provided only when you are enrolled as a student here at the law school. On rare occasions, a student may be given permission to visit at another law school for an academic term based on extenuating personal circumstances. In this situation, a student will not be eligible for fellowship assistance and must instead rely on loan funding only.

Students who have the benefit of tuition fellowship assistance are asked to acknowledge a moral obligation to help future students who will need tuition fellowship aid. This obligation is not legally binding and, as a moral obligation, it is tempered by recognition of the realities of financial capacity. Thus, graduates who pursue relatively low-paying public service employment would usually not be able to contribute as generously as others. The aim of the moral obligation acknowledgment is to assure that financial need will not be a barrier to an education at Stanford Law School.

There are two principal sources of tuition fellowship funds. The first is the Law School’s tuition fellowship endowment which consists of nearly one hundred and fifty separate funds that have been acquired through legacies and gifts. The remainder of the tuition fellowship budget is funded by current gifts to the Law School from individuals and organizations, including a number of law firms. The School’s vehicle for annual giving, the Stanford Law Fund, accounts for a substantial portion of these gifts. Each fall, the Office of Financial Aid provides tuition fellowship recipients with the names of their particular donors.

2. Long-Term Loans

Most students are eligible to borrow from a range of programs to finance their education covering both tuition and living expenses. If you are experiencing financial difficulties, you are encouraged to apply for a loan keeping in mind that your loan amount cannot exceed the cost of attendance less any resources or other aid. The Financial Aid Office packages the loans in the following order: (1) Federal Direct Unsubsidized Stafford Loan, (2) Federal Direct PLUS loan for Graduate Students and/or Private Alternative loan, referred to as “Graduate Loan” on your Financial Aid Notification.

Students are eligible for a Federal Direct Unsubsidized Stafford Loan, up to the annual maximum amount of $20,500. Interest accrues on the Federal Direct Unsubsidized Stafford Loan upon disbursement. The 24-25 interest rate on Federal Direct Unsubsidized loans is fixed at 8.08%. A 1.057% origination fee is deducted by the Department of Education prior to funds disbursing to Stanford Law School.

Students are also eligible for a Federal Direct Graduate PLUS loan. The yearly limit on a Federal Graduate Direct PLUS loan is equal to your cost of attendance minus any other financial aid. Interest accrues upon disbursement of the loan and the 24-25 interest rate was fixed at 9.08%. A 4.228% origination fee is deducted by the Department of Education prior to funds disbursing to Stanford Law School.

Interest rates and origination fees are published by the U.S. Department of Education by July 1st of each year.

Students may also elect to borrow private alternative loans. The yearly limit is equal to your cost of attendance minus any other financial aid. Interest accrues upon disbursement of the loan and the interest rate is variable. Origination fees are usually not charged on private alternative loans; however, repayment terms vary by lender.

3. Federal Work-Study

The Federal Work-Study program provides support for returning students who work in public interest jobs during the summer. Students will be considered eligible for Work-Study grants if they qualify for at least $16,500 in need-based federal loan eligibility (or have a SAI of no more than $100,010 as determined by FAFSA). Work-Study recipients are paid a salary and must work for at least 10 weeks in a full-time law-related public interest position during the summer. This includes jobs with tax-exempt 501(c) organizations and government entities. Please contact the Levin Center for Public Service and Public Interest Law for further information.

II. Alternative Resources

There are several types of aid which are not based on financial need. Eligibility criteria may vary. Please see the Office of Financial Aid if you wish to be considered for any.

1. Assistantships

Two forms of academic assistantships are available: legal and teaching. Legal assistants help faculty members on individual projects. Teaching assistants help prepare materials and offer discussion sections. All are generally quarter-long appointments. Students are paid a stipend and tuition remission depending on the number of hours worked. SLS guidelines prohibit students from working more than 20 hours per week.

These assistantships are limited in number and appointment decisions are made by individual faculty members, often after interviews with a number of students. Although faculty members are urged to give preference to students with demonstrated financial need, they are not required to do so. Appointments are generally made at the beginning of each term.

The compensation which assistants receive does not reduce tuition fellowship eligibility unless the combination of tuition fellowship, outside awards, and tuition allowance exceeds the cost of attendance. However, be advised that the tuition remission you receive will reduce the amount of money you are eligible to borrow. Most typically, your graduate loans will be impacted and, most typically, we will adjust your loans in the quarter you received the tuition allowance. However, in some cases where your appointment exceeds what you may have initially borrowed, our only option is to ask for repayment of those funds already disbursed. If earnings are $1,296 per quarter or less, financial aid eligibility for loans will not be affected.

2. Cash Advances

Students may apply for a cash advance through the Student Services Center via Axess to temporarily help meet basic needs. You may request an advance in the amount of $1,000, $2,000, or $3,000 per term via Axess. The funds will arrive in your bank account generally within 1-2 business days (you must be signed up for direct deposit). Once requested, a Cash Advance charge will be posted to your University bill. No interest or fees will be charged. Note that a cash advance increases your term charges and funding will credit against this charge along with all tuition, university, and housing fees (if applicable).

3. Outside Jobs

A number of law firms, as well as some government agencies in the Bay Area, employ students to conduct research, assist in the preparation of litigation, or perform other law related tasks. Pay rates vary. The Office of Career Services receives notices from potential employers and maintains a listing of current job opportunities. However, students are expected to make their own arrangements. All financial aid recipients are required to report outside earnings to the Office of Financial Aid. These positions will not affect tuition fellowship eligibility during the current academic year. SLS guidelines prohibit students from working more than 20 hours per week.

Determining Financial Need

Before need-based aid can be awarded, a need analysis calculation must take place. Need is determined by subtracting your resources from your expenses. Any shortfall is your need. The various components of expenses and resources are detailed below.

I. Expenses and Student Budget

Rather than scrutinize the exact amount each student spends on rent, utilities, books, and the like, Stanford University, like other schools, uses an estimated budget which it applies to all students. The budget allows for a modest, but not unreasonable, standard of living.

Car expenses, such as automobile payments, insurance, and maintenance and personal debt such as credit cards are not considered a part of the student budget. Students are encouraged to use personal assets or other personal resources to pay off these debts before they enroll at the Law School.

To determine loan eligibility, the Office of Financial Aid uses the following standard single student budget:

Standard Single Student Budget
Tuition Standard Single Student Budget$74,475
Housing Standard Single Student Budget20,976
Food Standard Single Student Budget7,215
Personal Expenses Standard Single Student Budget8,655
Books and Supplies Standard Single Student Budget1,530
Student Services Fee Standard Single Student Budget1,350
Health Services Fee Standard Single Student Budget783
Local Transportation Standard Single Student Budget1,830
Medical Insurance Standard Single Student Budget7,620
TOTAL Standard Single Student Budget$124,434

This budget applies to the majority of Law School students. The exceptions are married students with or without children, students in non-standard academic programs (such as visiting students or joint-degree candidates), and students living off-campus. An incremental allowance towards housing, food, and personal expenses will be added to this standard budget to cover expenses that 1Ls will incur due to an earlier start date during the Autumn 2024 quarter.

II. Resources

As the Law School uses a standard budget to calculate expenses, it must determine individual need by assessing individual resources. For tuition fellowship eligibility, these include parents’ contribution, student’s contribution, personal assets, and spouse’s contribution. For loan eligibility, these include student’s contribution, spouse’s contribution, personal assets, academic year earnings, and outside awards.

Your budget less your available resources constitutes your need.

1. Parents’ Contribution

Tuition fellowships and loans have different criteria for determining a student’s financial independence from his/her/their parents. In determining loan eligibility, all graduate students are considered independent and no parental contribution is imputed. In determining fellowship eligibility, we use the student’s age to determine independence. The following dependence rules are in place:

If you are 25 or younger as of September 1, we will take into consideration the full extent of your calculated parental contribution when determining your eligibility for our need-based scholarship assistance.

If you are 26 as of September 1, we will protect 25% of your calculated parental contribution and use only 75% of that contribution when determining your eligibility for our need-based scholarship assistance.

If you are 27 as of September 1, we will protect 50% of your calculated parental contribution and use only 50% of that contribution when determining your eligibility for our need-based scholarship assistance.

If you are 28 as of September 1, we will protect 75% of your calculated parental contribution and use only 25% of that contribution when determining your eligibility for our need-based scholarship assistance.

If you are 29 or older as of September 1, no parental resources are considered when determining your eligibility for our need-based scholarship assistance. Therefore, you need not submit any parental financial information to the CSS Profile.

2. Student’s Contribution from Summer Income

In determining tuition fellowship eligibility for all students, any summer earnings over $8,500 will require 57% of the amount over this figure to be considered as a resource.

If you opt not to work during the summer, we will still expect a minimum contribution of $2,000. If you are volunteering for the summer and your organization can document your employment, the minimum contribution from summer earnings may be waived.

For returning students, total summer earnings are determined by taking gross weekly earnings and multiplying by a minimum of ten weeks or up to a maximum of twelve weeks.

A student receiving our poverty-level funding will be impacted in the following way:

  • $25,000 or less: No impact to Need-Based Fellowship
  • $25,001- $30,000: Protection of $8,500 and 5% of remaining amount
  • $30,001- $39,999: Protection of $8,500 and 10% of remaining amount
  • $40,000 and above: Protection of $8,500 and 15% of remaining amount

3. Student’s Contribution from Assets

In determining tuition fellowship eligibility, a student’s initial assets upon entrance are pro-rated over three years of study. We then divide this adjusted value by three to determine your annual contribution from assets. If assets increase by $5,000 or more during the second year or third year, the higher amount will be used and prorated for the number of years remaining.

Any cash gifts to support your education will be considered a resource. The amount will only reduce your ability to borrow loans.

4. Spouse’s Contribution

If the student is married, or plans to marry during the school year, the earnings of the spouse or spouse-to-be are expected to be available to help meet Law School and living expenses. There are two exceptions: if the spouse is a full-time student, or if the spouse does not work outside the home and the family has a dependent pre-school age child.

In calculating the spouse’s contribution from summer income, any earnings over $8,500 will require 57% of the amount over this figure to be considered a resource. In calculating the nine-month spousal contribution, the Law School assumes that the earnings of a spouse are at least $7,500. This amount is input as a resource whether or not it is actually earned. If a spouse earns over $7,500 during the year, his or her contribution towards the couple’s expenses will be the after-tax earnings less a $24,120 living allowance.

If a student initially provides only estimates of the spouse’s income, the actual amount must be provided once the spouse’s employment has been finalized.

5. Earnings During the Academic Year

In determining loan eligibility, a student’s earnings from assistantships and other part-time work are considered available resources and will reduce the amount of need-based borrowing to cover educational expenses.

6. Outside Awards

The Law School encourages students to obtain outside scholarships. Accordingly, the school’s policy provides students with an incentive to apply for such awards. These awards will not impact tuition fellowship eligibility unless the combination of tuition fellowship, tuition remission, and outside awards exceeds the Cost of Attendance.

In determining loan eligibility, the full amount of an outside award is considered a student resource and must be reported to the Office of Financial Aid. Outside scholarships will reduce loan eligibility if the scholarship results in total funding exceeding the cost of attendance.

III. Adjustments

Generally, law students are eligible to borrow the difference between their initial need and any fellowship granted. However, the Office of Financial Aid will adjust packages as necessary. For example, the amount in tuition remission that a legal assistant or teaching assistant receives is subtracted after calculating fellowship eligibility. The result, (initial need less any fellowship granted and after adjustments) is your net loan eligibility or the amount you are eligible to borrow from the various loan programs.

IV. Revisions

Students are required to report changes or new information concerning their or their parents’ financial situation to the Office of Financial Aid in a timely manner. Depending on the circumstances, such information may revise the amount of gift aid. Revisions will only take place when changes affect fellowship eligibility by $1,000 or more. See Reporting Responsibilities and Sanctions section for more information.

Miles and Nancy Rubin Loan Repayment Assistance Program (LRAP) and the Anonymous Public Service Loan Repayment Assistance Program

The Miles and Nancy Rubin Loan Repayment Assistance Program and the Anonymous Public Service Loan Repayment Assistance Program was established in recognition of the following facts: acquiring a legal education is costly; many students graduate with sizeable educational debt; and the financial pressures of that debt deter some students from pursuing relatively low-paying public interest jobs and careers. Initial support was given by the Cummins Engine Foundation, and continued through gifts from Ken and Harle Montgomery and Miles and Nancy Rubin.

Under the program, Stanford Law School lends money to help graduates who have taken a lower-paying public-interest or government job and who has need-based educational debt. These LRAP loans, which may be renewed annually, are used by graduates to make payments on student loans. The LRAP loans are forgiven on an annual basis once employment and income have been verified. If a graduate remains in public interest for a period of ten years, up to 100% of the graduate’s student loans may be forgiven.

Questions about the program should be addressed to the Office of Financial Aid staff at (650) 723-9247 or to Anna Wang, Associate Dean for Public Service and Public Interest Law, at (650) 723-2519.

Reporting Responsibilities and Sanctions

Students must keep current the financial information about themselves, parents, and spouses, and promptly report any change in status to the Office of Financial Aid. It is best to report any changes in writing. Such information includes:

  • a change in marital status
  • a move from on-campus to off-campus housing
  • a change in outside awards, loans, or earnings
  • an increase in financial resources, including any increase of more than $1,000 in the student’s (and spouse’s) (or aggregate) gross income or assets, and any increase of more than $1,000 in the parents’ gross income or assets
  • a change in enrollment status (full-time vs. part-time)

The Office of Financial Aid normally revises the student’s financial aid award to what it would have been had all the facts been known at the time the award was originally made.

Students should continue to keep the Office of Financial Aid abreast of any changes in their financial situation. Any questions about the revisions resulting from these changes should be discussed with the Associate Director of Financial Aid.

If the Office of Financial Aid discovers any substantial inaccuracy or any failure to correct these inaccuracies promptly, it may recommend disciplinary action. Failure to meet the requirements for reporting changes could result in total loss of assistance, a revision of past awards, and/or notification of relevant bar officials.

The Appeal Process

If you have any questions about the calculation of your financial need or the effects of any revisions on that need, you should contact Office of Financial Aid staff. If the appeal is more complex and unresolved concerns remain, a formal appeal in writing may be filed with the Associate Dean for Admissions and Financial Aid. Appeals should consist of a letter outlining the details and the reason for the appeal.

Refund Policy

A student who withdraws from the Law School on or before the second day of classes may have his or her registration annulled. The refund will be the tuition in full. A student who withdraws prior to the sixth week of the quarter may request a leave of absence. There may be a partial tuition refund based on the number of weeks elapsed since the first day of instruction.

For a student with current loans, the portion of educational loans which were not used for the cost of attendance prior to the leave of absence or withdrawal must be refunded by the student to the lender(s). The principal outstanding is then decreased accordingly.

Variables to Consider Before Borrowing

  • The maximum amount that may be borrowed per academic year, as well as the maximum aggregate (lifetime) amount
  • The interest rate, and
    • whether the interest is deferred until after graduation
    • whether the interest, if not deferred, may be capitalized or is payable monthly, quarterly, or annually
    • whether the interest is capitalized quarterly, annually or only one-time at repayment
  • The grace period (period before any payment is expected)
  • The amount of the origination, guarantee, or insurance fee (the amount deducted from the loan at the time of the disbursement)
  • The supplemental fee (the amount added to principal immediately prior to repayment), which applies to private alternative loans only
  • The number of years allowed for repayment
  • The monthly repayment obligation
  • The deferment and forbearance terms available
  • The repayment incentives available

Entrance and Exit Interviews

Federal regulations require that all new Federal Direct Unsubsidized and Federal Direct Grad Plus loan borrowers receive loan counseling prior to any disbursement of funds. More information on the entrance counseling session will be available at a later date. All graduating students or students who take a leave of absence from the Law School must complete an online exit interview. Exit interviews for graduating students are completed online in the spring. Entrance and exit interviews cover such topics as loan repayment and debt management.

Credit

The Federal Graduate PLUS Loan and all private alternative loans are credit-based. Your credit report is used by lenders to determine whether or not to issue you credit. If you have had any credit problems (late payments, accounts in default, or bankruptcy) you may have difficulty securing the loans necessary to pay for your education. We advise students to request a copy of their credit report in advance of applying for Federal PLUS or private loans. The three major credit bureaus are listed below:

Equifax:
888-378-4329
http://www.equifax.com

Experian (TRW):
888-397-3742
http://www.experian.com

Trans Union:
800-888-4213
https://www.transunion.com

Things to Know During Repayment

  • Address changes: Promptly report changes in address to each lender to avoid declarations of default and penalties.
  • In-school deferment: Students performing post-graduate work must annually file a deferment form with each lender.
  • Forbearance: Lenders may revise the payment schedule if your monthly income is too low to meet your repayment obligations, or if you and your spouse have excessive combined repayments. Some lenders will grant a period of forbearance that involves payment of interest only.
  • Loan consolidation: Consolidation can reduce monthly payments and give borrowers more disposable income by extending the repayment period from 10 years to 30 years. It also provides the convenience of receiving one monthly statement and making one monthly payment. The disadvantage is that the longer you take to pay off your loan, the more interest you will pay. A borrower may be able to consolidate all federal loans. There are no fees for federal loan consolidation. Contact your lender/servicer for more details on loan consolidation.
  • Default: Late notices will be sent when payments are not received. Different loans have different periods before the lender considers them delinquent and turns the account over to a collection agency. The costs of collection and penalties are then added to the loan, and in some cases the loan must be repaid in full. Stanford University regulations prohibit the release of transcripts or any other information about a graduate if a loan is in default.
  • Bankruptcy: In many states, legislation precludes a person from canceling educational loans because of bankruptcy for a period of up to seven years after repayment begins. Also, many courts are refusing to cancel educational loans at all.
  • Early repayment: A borrower may prepay all or part of a loan at any time without penalty (applies to federal loans, check for individual policies of private loan lenders).

Rules and Regulations

Verification

Verification of financial aid statements is a condition of eligibility for federal aid programs. Federally approved auditors select some financial aid applications for verification. If a student is selected for verification, additional information from the student and their parents to will be requested in order to verify or update data. The student must return all requested documents within 30 days to the Office of Financial Aid. This verification process must be completed in order to have federal loan funds disbursed.

Satisfactory Academic Progress (SAP)

A student must make satisfactory academic progress to remain eligible for federal aid programs, including the Direct Unsubsidized Stafford Loan, the Graduate PLUS Loan, and the Federal Work-Study program. Work toward the degree must be completed in no more than eleven quarters. The J.D. requirements include successful completion of the required first year courses and the accumulation of 82 additional units. For financial aid purposes, a student is making satisfactory academic progress if he/she/they is/are allowed to continue enrollment. Standards of satisfactory academic progress are described further in the Student Handbook.

The Associate Dean for Admissions and Financial Aid is responsible for monitoring the satisfactory academic progress of all loan recipients. At the end of each academic year, the Registrar provides the Associate Dean with a list of students who have failed to meet grading and advancement standards. Such students must petition for reinstatement and be approved in order to continue receiving federal funding in future terms.

Tax Status for Scholarships

Your fellowship is subject to United States tax laws. Such payments to students who are not degree candidates are fully taxable. Payments to degree candidates are tax exempt only to the extent they are used for tuition and fees required for enrollment or attendance, as well as for books, supplies, and equipment required for courses of instruction. Scholarships used for other items, such as room and board, are considered taxable income by the Internal Revenue Service (IRS) and state taxing authorities. You have the responsibility for the proper tax reporting of your scholarship or fellowship payment as well as the liability for any tax payments that may be due.