November 11, 2008

Dear Student:

I’m writing to let you know about how the current economic situation has affected the loan programs typically available to students, particularly with respect to Bar Study Loans that you may be considering for the future.

In the past, once students have applied for graduation, many of them have applied for Bar Study Loans to help pay for bar exam fees and bar study course expenses as well as living expenses that accrue while studying for the bar exam. Bar Study Loans are credit-based private/alternative educational loans offered by a small number of student loan lenders. Due to the credit crisis, numerous student loan lenders have stopped offering private education loans—including Bar Study Loans—over the past 6 months, or they’ve significantly altered the credit criteria needed to obtain a private loan. If this trend continues, it’s possible that there may not be any lenders offering Bar Study Loans by the time you graduate.

We are aware that this is distressing news to students who have limited resources to cover these expenses. Although we wish we could offer more specific information at this time, the only option we can suggest is that all students not graduating within the next year begin to make arrangements to ensure their bar exam expenses will be covered once graduation approaches. We understand that most students have very limited funds already, but, with more than a year to plan, we are hoping that you’ll be able to find ways to save as much money as possible from your refund checks and any summer jobs you obtain.

We will certainly update you with any developments about changes in loan options in the future, and the Office of Financial Aid’s website will continue to post a listing of current private loan providers.

If you have received this email and plan to graduate within the next year, please let our office know so that we can inform you of your immediate options.

Sincerely,

Ada Chin
Director, Office of Financial Aid