Federal Student Loans and Work Study
Federal Direct Unsubsidized Stafford Loan
Graduate level students may borrow Unsubsidized Stafford loans while they complete their program of study. Unsubsidized loans have a fixed interest rate of 6% with a 1.068% origination fee. Interest begins accruing on Unsubsidized Stafford loans as soon as the loan is disbursed. We strongly recommend that the student try to make interest payments on these loans while in school to avoid having the interest added to the principle of the loan after leaving school. Repayment begins when the student graduates or stops attending school at least half-time (6 credits). Although Federal Direct Unsubsidized Stafford Loans are processed through the Office of Financial Aid, the money is borrowed directly from and repaid to the U.S. Department of Education.
- The student will then need to sign the Master Promissory Note (MPN) for the Direct Stafford Loan at www.studentloans.gov (if the student has not previously borrowed a Direct Loan and signed an MPN).
- First time borrowers must also complete Loan Entrance Counseling before the loan funds can be disbursed to their accounts. This requirement can also be satisfied online at www.studentloans.gov.
Graduate PLUS Loan
Graduate and Professional students are eligible to borrow under the Direct PLUS Loan Program up to their Cost of Attendance (COA) minus other estimated financial aid. The FAFSA must be filed prior to applying for this loan. These loans are not guaranteed and are subject to credit approval. Students must exhaust their Federal Stafford loan eligibility before applying for a Direct PLUS. The fixed interest rate on the Direct PLUS loan is 7% with a 4.272%origination fee.
Payment on the Direct PLUS can be deferred until 6 months after the student graduates or falls below half-time enrollment (6 credits).
Federal Work-Study
Federal Work-Study (FWS) is a program that allows graduate students to earn money for education expenses by working part-time. FWS eligibility is offered based on financial need and available funding. Students are paid hourly, and are usually employed by Pace Law School – they must be paid at least the current federal minimum wage. A student works with their college to determine where they will work and base a student’s hours on financial need, class schedule, and academic progress. Typically, students work on campus. If a student works off-campus, it is usually at a private, non-profit, or public organization whose work is in the public interest. Eligibility for Federal work-study is determined by FAFSA on a first-come, first-served basis.
You may obtain a list of eligible law school/University on-campus work-study opportunities from the Human Resources department. Off-campus work-study opportunities are available through the Public Interest Law Center and individual department heads at Pace Law School. Funding for work-study comes from a combination of federal and employer contributions. Students are typically paid $10 an hour, and may work no more than 20 hours per week during the academic school year or to a maximum award amount of $4,000.
HOW DOES FEDERAL WORK STUDY WORK?
Federal Work Study awards included on a Financial Aid Award notice represents the student's eligibility to earn towards those funds. These funds will not be available at the start of the academic year to pay the Fall semester bill.
HOW ARE WORK STUDY STUDENTS PAID?
Federal Work Study paychecks are issued twice each month based on the number of hours worked and the hourly wage rate. Paychecks are issued on a half-month delay which means that students will be paid on September 30th for hours worked from September 1st through 15th. Employment under the program will normally average 10–15 hours per week while classes are in session. During vacation periods, students may work up to 40 hours per week. Total earnings under Federal Work Study are limited to the award amount authorized by the Financial Aid Office.