Loans are aid that needs to be repaid, with interest, after you graduate or leave college. Most student loans are Direct Loans offered through the U.S. Department of Education. If you do not qualify for Direct Loans, you can apply for supplemental loans through the federal government or a private lender.
You are automatically considered for Direct Loans offered through the U.S. Department of Education when you apply for financial aid by completing the FAFSA (Free Application for Federal Student Aid).
The federal government sponsors two low-interest loan programs for students with financial need in field-specific studies — the Health Professions Student Loan and the Nursing Student Loan.
Private student loans are offered through a variety of banks and other lenders. Students and families interested in using private loans must apply separately for them through an individual lender.
The U-M Institutional Loan Program is a special, low-interest loan program designed to assist undergraduates whose need is not met with traditional financial aid programs. To qualify for this loan, you must be referred by an Office of Financial Aid staff member.
A family emergency, loss of employment, or other issues can unexpectedly and quickly change your financial circumstances. U-M provides up to $500 in short-term (90-day) interest-free emergency loans to help enrolled students facing these types of situations.
When considering the use of loans to help fund your education, we encourage you and your family to evaluate your options (interest rates, repayment plans, deferment options, etc.) closely so you can choose the best program for your situation.