Smart Borrowing

Official financial aid offers for some undergraduates will not include all Federal Loan eligibility. Increases in these loans, or new loans, are available to eligible students through a special process we call Smart Borrowing.

This process includes an online tutorial, calculating cumulative student debt and considering what it will cost to take out an additional loan. If you are an undergraduate registering for Spring/Summer terms and wish to borrow a Federal Loan, you will go through the Smart Borrowing process and also meet with an aid officer.

This approach affords the U-M Office of Financial Aid staff to give you additional counseling on matters relating to education and living costs. Graduate and professional-level students will continue to be awarded all of their Federal Loan eligibility in financial aid packages.

FOLLOW THE SMART PATH WHEN CONSIDERING STUDENT LOANS

We’re asking all students to Be Smart About Borrowing. Consider options to reduce the need to for loans and borrow only what is necessary to achieve the goal of a U-M college education:

  • Review your lifestyle. Trim costs and consider needs vs. wants
  • Consider part-time employment to stretch your dollars without borrowing
  • Stretch your dollars: Check out the U-M Payment Plan for Fall-Winter semesters
  • Use personal or family assets when possible before considering a loan
  • Considering summer school? Take classes closer to home and incur less cost or consider a roommate

These online resources may also help:

STILL NEED A LOAN?

Complete a Smart Borrowing form if you are an undergraduate who wants to be considered for additional or new Federal Loans for Fall/Winter:

Complete a Smart Borrowing form if you are an undergraduate registering for Spring/Summer terms and wish to borrow a Federal Loan. You will also meet with an aid officer:

Graduate and professional-level students will continue to be awarded all of their Federal Loan eligibility in financial aid packages.

Visit this page for Federal loan borrowing limits