Comparing Loan Types

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:
Supplemental loans may be of interest if you:
When students and parents are looking for a supplemental loan, we encourage them to compare Direct PLUS Loan interest rates, credit check conditions, terms, and repayment plans with those of private loan options. Direct PLUS Loans offer a number of distinct advantages, including:
The table below compares the terms of the Direct PLUS Loan program with terms typically offered by private lenders. Included are some questions to ask when you are considering loan options.
Federal Direct PLUS Loans | Private Education Loans |
Program Sponsor:
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Program Sponsor:
Questions to Ask:
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Eligible Borrower:
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Eligible Borrower:
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Loan Amount:
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Loan Amount: Loan amounts often are Cost of Attendance minus financial aid offered. Sometimes set by school. Often include a yearly and/or cumulative cap (can be as high as $250,000 for undergraduates). |
Interest Rates and Fees:
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Interest Rates and Fees:
Questions to Ask:
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Repayment Terms:
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Repayment Terms:
Questions to Ask:
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Other Information:
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Other Information:
Questions to Ask:
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To find out how much you may be eligible to borrow with the Direct PLUS Loan program or a private lender, select Financial Planning Calculators from within Wolverine Access.
Remember, borrow only what you absolutely need: What you borrow today must be paid back later (with interest). You determine how much or how little to borrow (up to the maximum allowed). For more information on repaying your loans (including a loan repayment chart), see Repaying Your Student Loans or contact the Office of Financial Aid.
By special arrangement with the U-M Tech Shop, students enrolled in the Performing Arts Technology program in the School of Music, Theatre & Dance may have the cost of their required computer and/or software purchase added to their student account balance for the fall semester. After you place your order with the Tech Shop, the Tech Shop will notify the Office of Financial Aid of the amount of your purchase and this will be added to your financial aid cost of attendance (budget) and to your student account balance for fall semester. Taking this step will enable you to cover the cost of the purchase using one of the loan options described on this page.
Please note: If you plan to use one of these loans to cover only the amount of your Tech Shop purchase, you must specify that your loan period is fall term only.