Students may be eligible for two types of federal government loans:
Federal Direct Unsubsidized Loan
| Eligibility Criteria |
loan terms |
Additional Information/Requirements |
| Non-need-based |
Maximum borrowing amount $10,250 per term. |
Borrower can choose to have the accrued interest capitalized (added to principal balance) or make periodic payments. No penalty for early pay off. |
| Student must be enrolled at least half-time in a degree program |
4.3% fixed interest rate for graduate students (Effective July 1, 2020. Rates changes each 1st of July) |
Typical repayment period is 10 years (other repayment options available). |
| Borrower must be a U.S. citizen or eligible noncitizen |
1.057% for loans originated before October 1, 2020. (Effective Oct 1, 2019. Fee changes each 1st of October) |
More information is available from the U.S. Department of Education |
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Interest accrues immediately; paid periodically or capitalized |
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Principal repayment deferred while enrolled at least half-time |
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To apply for your federal Direct Unsubsidized Loan complete the Free Application for Federal Student Aid (FAFSA) using U-M's federal code 002325. This can be completed online at studentaid.ed.gov or by downloading the mobile app myStudentAid.
The FAFSA is available on Oct. 1, at no cost to students. Although we recommend you complete this by March 31, you can continue to apply after this date.
Federal Direct Grad PLUS Loan
| Eligibility Criteria |
loan terms |
Additional Information/Requirements |
| Credit check approval process |
Students may borrow up to the cost of attendance minus other financial assistance. |
Borrower must complete the Free Application for Federal Student Aid (FAFSA) |
| Non-need-based |
5.3% variable-fixed interest rate (Effective July 1, 2020. Rates changes each 1st of July) |
Borrower can choose to have the accrued interest capitalized (added to principal balance) or make periodic payments. No penalty for early pay off. |
| The graduate student is the borrower |
4.248% origination fee for loans originated before October 1, 2020. (Effective Oct 1, 2019. Fee changes each 1st of October) |
Typical repayment period is 10 years (other repayment options available). |
| Student must be enrolled at least half-time in a graduate-level program |
Interest accrues immediately; paid periodically or capitalized |
More information is available from the
U.S. Department of Education |
| Borrower must be a U.S. citizen or eligible noncitizen |
Loan is deferred while you are enrolled at least half-time and for an additional six months after you are no longer enrolled at least half-time. Interest accrues during deferment; you may pay accrued interests or allow it to capitalize when deferment ends. Details at the U.S.Dept. of Education |
Can be consolidated with other federal loans |
Students apply separately for the Grad PLUS Loan in addition to completing a FAFSA if additional funds are needed to cover remaining tuition and/or other cost of attendance items. Students may borrow up to the amount of their cost of attendance, minus any other financial assistance a student receives. Note that it takes an average of four weeks to process loans through our office.
Private Loans
Private student loans are offered through a variety of banks and other lenders. Students seeking private loans must apply separately from their financial aid application through an individual lender. The best rates on these loans are generally offered to borrowers with good credit and/or who have a cosigner with good credit.
When shopping for a private loan, look for a loan you can live with in both the short term and long term. You may be repaying it for multiple years after graduation. Many loan providers will lend up to the student’s cost of attendance minus any financial aid received. Often there is a yearly and/or cumulative cap on the amount the student may borrow; sometimes this cap is set by the student’s school. Note that it takes an average of four weeks to process loans through our office.
If you are considering borrowing through a private lender, we encourage you to:
- Exhaust all other possible sources of financial aid first, including federal loans and Work-Study.
- Reduce your expenses and borrow only what you need.
- Ask questions and compare rates and terms offered by different lenders.
If you pursue a private loan, apply directly through the lender you select. Choose any lender and the university will certify your application.
Beware of suspicious or unsolicited loan offers.
U-M students should avoid lenders that don't require U-M to certify their loan application and should be suspicious of unsolicited loan offers. The Michigan Student Financial Aid Association cautions students that "loan debt can accumulate quickly and result in a lifetime burden of high payments and credit denials for automobile purchases, credit cards, and home mortgages. Private loans also can reduce eligibility for more desirable federal, state, and college aid programs. To avoid these problems, read and understand the terms and conditions of all loans.
To browse a selection of approved lenders, please visit:
University of Michigan's FASTChoice
To browse a selection of approved lenders for International Students: FASTChoice Private Education Loans–International Students
The university adheres to a Code of Conduct for Student Loans that prohibits inducements or incentives by private lenders.
Short-term Tuition Reimbursement Loans
The Ross School of Business provides short-term loans to Executive MBA, Evening MBA, Online MBA, and Weekend MBA students whose employers provide tuition reimbursement only after a term is completed. The Ross Short Term Tuition Reimbursement Loan has a 3% interest rate, and a 0% loan origination fee.
Short-Term Loan information and application
