Direct Subsidized and Unsubsidized Loans (also called Stafford Loans) are part of the Federal Direct Loan Program, which is offered through the U.S. Department of Education. Loans are aid that will need to be repaid, with interest, after you graduate or leave college. Most student loans are Direct Loans.

You are considered for these when when applying for financial aid and completing the Free Application for Federal Student Aid (FASFA). You will be required to complete Direct Loan Program requirements in order to receive any Direct Loan funds.

If you are an eligible undergraduate awarded a Subsidized Direct Loan or a graduate or professional student awarded an Unsubsidized Direct Loan, it will appear on your financial aid notice. Some undergraduate students may not receive Unsubsidized Direct Loans in their initial financial aid package. See our Smart Borrowing page for more information.

If you are not eligible for Direct Loans or need additional resources to cover college costs, you may want to apply separately for a supplemental loan through the federal government or a private lender. Alternatively, the U-M Payment Plan may help you and your family avoid borrowing supplemental funds.