Like many students and families, you may find that supplemental loans are an important resource for financing college. Federal Direct PLUS Loans and private education loans are two available options for families who need additional funds.

These loans are not included in the U-M financial aid package; you must apply for them separately:

  • Direct PLUS Loans are part of the federal Direct Loan Program and are for graduate students and parents of dependent undergraduates. The loans have favorable loan terms and are backed by the federal government, which has a record of good service. Several types of repayment plans are offered.
  • Private student loans are offered through a variety of banks and other lenders and are available to all students who qualify. The best rates are offered to borrowers who have good credit and/or who have a cosigner with good credit. Note that the majority of lenders require a minimum of half-time enrollment at the point of disbursement of the loan.

Supplemental loans may be of interest if you:

  • have little or no eligibility for need-based financial aid programs
  • need additional resources beyond your financial aid in order to pay college costs
  • are classified as a nonresident and need additional resources to fill the gap between need-based financial aid and college costs
  • have circumstances (such as a medical condition) leading to unusual costs above the standard cost of attendance