RESPONSIBLE BORROWING

Understanding Your Full Cost of Education

Responsible borrowing starts with knowing exactly what you’re financing. Your total cost of education is made up of two types of costs:

Direct costs are expenses billed directly by The Colleges of Law. This may include things like tuition and program fees. These are predictable and consistent from term to term.

Indirect costs are the everyday expenses you will incur while you are in school that are not billed by the institution. This includes things like housing, food, transportation, books, and course materials, and personal expenses. These vary from student to student but are estimated as part of your official Cost of Attendance.

Understanding both categories, not just your tuition bill, gives you a realistic picture of what you need to borrow. Borrowing only what you need, rather than the maximum available to you, is one of the single most impactful financial decisions you can make as a student.

Think About Your Financial Goals

Before deciding how much to borrow, it helps to zoom out and think about where you want to be financially, not just today, but in the years ahead. Your student loans will follow you after graduation and understanding how they fit into your broader financial picture makes it easier to borrow wisely now.

Thinking About Return on Investment

Before borrowing, it is worth thinking about the relationship between your total debt and your expected salary after graduation. Law graduates go into many different fields, such as public interest, private practice, government, and business — and starting salaries vary widely. A general rule of thumb: your total student loan debt at graduation should not exceed your expected first-year salary. The Financial Aid Office can help you model projected balances and run repayment scenarios.

Try organizing your goals into three timeframes:

Short-term (within one year) Day-to-day financial stability — covering monthly expenses, building a small emergency fund, managing your budget while in school.

Mid-term (one to five years) Finishing your degree, securing your first post-graduate position, beginning to repay your loans, establishing savings, and planning your living situation after graduation.

Long-term (five or more years) Purchasing a home, starting a family, building retirement savings, starting a business, or achieving full loan repayment. These goals feel distant right now, but the borrowing decisions you make today directly affect how quickly you can reach them. Writing your goals down, even informally, can help clarify how much financial flexibility you actually need versus how much you’re tempted to borrow for comfort.

Build a Budget That Works for You

A budget doesn’t have to be complicated. It just needs to be honest. Here is a simple approach to get started:

Step 1: Know your monthly income For most students, income is a combination of financial aid disbursements, scholarships, earned income, and other assistance. Add it all up so you know exactly what you are working with each month.

Step 2: Track your actual expenses For at least one month, keep a record of everything you spend. Use a notebook, a spreadsheet, or a free budgeting app, whatever you will actually stick with. You may be surprised by what you find.

Step 3: Compare income to expenses Subtract your total monthly expenses from your monthly income. If the number is positive, you’re in good shape. If it’s negative, you will need to make adjustments. The earlier you make them, the less you’ll need to rely on borrowing to fill the gap.

Step 4: Sort your expenses honestly Go through your expenses and label each one as a “need” or a “want.” Needs are non-negotiable, such as housing, food, transportation to school, and required course materials. Wants are the rest. If a want isn’t comfortably covered by your income, it’s worth reconsidering, at least for now.

Federal Student Aid also offers a free Loan Simulator Tool that lets you use your actual loan information to model different repayment scenarios and understand what your monthly payments might look like after graduation.

Practical Tips for Reducing Expenses

Small decisions add up over time. Here are some practical ways to keep your expenses manageable while you are in school. Every dollar you do not spend is a dollar you do not need to borrow:

Transportation Consider public transit, ridesharing, biking, or walking instead of owning a car. You’ll eliminate costs for parking, gas, insurance, and repairs, which can add up to thousands of dollars per year.

Housing Sharing living expenses with a roommate is one of the most effective ways to reduce your largest monthly cost. If you’re considering moving, remember that most new leases require first and last month’s rent plus a security deposit. Factor those upfront costs into your decision before committing.

Credit cards Use them sparingly and try to charge only what you can pay off in full each month. Carrying a balance means paying interest on top of everything else, this adds to your total debt load in ways that can be easy to underestimate.

Books and course materials Buy used whenever possible. Borrow from classmates or your library. Many required texts are available at significantly lower cost through online marketplaces or in digital format.

Food and daily spending Create a shopping list before you go to the store and stick to it. Meal planning, even loosely, can significantly reduce food costs compared to buying on impulse or eating out frequently.

Entertainment Take advantage of the free and low-cost resources available to you as a student. Things like campus events, fitness facilities, museum passes, and community programs. Many of these benefits are already included in your fees and go unused.

Student discounts You would be surprised how many businesses offer them. Always ask before you pay full price on things like software, transportation, streaming services, clothing, and more.

A Final Note on Borrowing

Loans are a legitimate and sometimes necessary tool for financing your education. But they work best when they’re used intentionally. Borrowing the minimum you need, building a realistic budget, and keeping your long-term goals in mind are habits that will serve you well not just while you’re a student, but for years after you graduate.

Federal Loans First

If you need to borrow, always exhaust your federal loan options before turning to private loans. Federal loans offer fixed interest rates, income-driven repayment plans, and borrower protections — including potential forgiveness programs — that private loans do not provide. This is especially important for students considering public interest law careers where PSLF may be available.

Building Good Financial Habits Now

• Track your cumulative loan balance each semester
• Keep your contact information current with your loan servicer
• Set a reminder to complete your FAFSA each October
• Complete exit counseling before you graduate — it is required and genuinely useful

Our financial aid team is here to help you think through your borrowing decisions, not just to process paperwork, but to make sure you feel genuinely prepared for what comes next.