Private Lender Loans

Private Lender Loans

private lender Loans

Up until recently, most lenders were private entities that received federal guarantees, but a small segment of the law student loan business was done by the federal government. In 2010, the federal government ended that approach. Today, the bulk of lending is done through Direct Federal Unsubsidized loans and Federal GradPlus loans.

Law schools do not control eligibility requirements. The schools serve only as processing entities. Schools help students process the loans and help the federal government distribute the loans and receive no compensation for their services. They are subject to tight controls on their handling of the student loan funds. Schools are audited annually. In addition, law schools do not receive interest payments or principal repayments made by students. For loans made since 2010, loan repayment principal and all interest is paid to the federal government, at interest rates established by the federal government. Schools are not involved in the repayment process, which takes place after the loan recipients leave a school. 

Nor do law schools have control over loan forgiveness. A law school cannot forgive an obligation of a recipient to either a private lender or the federal government.

Default rates are calculated and reported by the federal government. No schools calculate their own default rates, which are calculated by the government and are publicly available. The default rates for law school graduates, and those who attended law school but did not graduate, are far below the federal requirement established by the Department of Education.


WMU-Cooley Law School
300 South Capitol Avenue
Lansing, Michigan 48933 
(517) 371-5140

Click here for a full sitemap

Click here for Consumer Information
(ABA-Required Disclosures)

Get Adobe Acrobat Reader
Get Adobe Acrobat Reader

Western Michigan University Thomas M. Cooley Law School is an independent, private, non-profit educational institution affiliated with Western Michigan University. The affiliation between WMU and WMU-Cooley, which are legally and financially independent institutions, will end on or before November 5, 2023. As an independent institution, the Law School is solely responsible for its academic program. Accredited by the American Bar Association and the Higher Learning Commission. 

Read non-discrimination policy

If you encounter accessibility barriers while on our website, please notify our Accessibility Office using the Inaccessible Content Notification Form.

WMU Cooley Logo
In corde hominum est anima legis.

© 2021 WMU Cooley Law School