Starting Law School in January or May 2012 at Cooley Can Help Reduce the Cost of Your Legal Education

On August 2, 2011, after passing in both the U.S. House of Representatives and the U.S. Senate, President Obama signed the "Budget Control Act of 2011" into law which takes effect on July 1, 2012.  This Act eliminates the subsidized portion of the Direct Loan Program while students are enrolled in school.  This means interest on all graduate and professional loans will accrue at inception.  The Act also eliminates all Direct Loan repayment incentives for all loans disbursed on or after July 1, 2012.  This means all on-time repayment incentives have been eliminated which increases the cost of the loan.

By starting law school in January or May of 2012 students can get their first loan or loans originated before the subsidized loans and the repayment incentives are eliminated which could save a considerable amount of money by reducing interest payments.

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