U-M Institutional Loan

You have been directed to this website page by Office of Financial Aid staff for more information about the U-M Institutional Loan Program. This loan program is a special, low-interest loan program designed to assist undergraduates whose need is not met with traditional financial aid programs offered at U-M.

You are not automatically considered for this loan when applying for financial aid.  To be eligible for this loan, you must be recommended for the program by an Office of Financial Aid staff member who will counsel you about the obligations of this loan and then ask you to complete an application for it.  This is a U-M loan program and not affiliated with any federal loan program.

Students are encouraged to seek alternate forms of aid, including federal PLUS Loans and private lending before being considered for this program. If a student is unable to obtain alternative loans, they may apply for this loan up to the level of unmet need, but not to exceed $5,500, whichever is less. You may borrow a minimum of $200. Your referring financial aid administrator will provide the application form.

Special notes about your loan

  • If you are awarded a U-M Institutional Loan, it will not appear on your Student Billing Statement as "pending aid" but will be applied to the balance on your bill as funding is disbursed.
  • This loan is separate from your federal loans and will require a separate repayment schedule directly through the University of Michigan after you leave college. These loans cannot be consolidated with your federal loans.
  • The university will allow you to consolidate any U-M Institutional Loans you have borrowed into one, consolidated payment when you leave college.


Eligibility Criteria

• Need-based: Considered based on Expected Family Contribution (EFC). Allowable EFC is determined by institutional funding levels. Student must meet eligibility requirements.

• Program is limited to undergraduate students only. Not available if student has a bachelor's degree and pursuing subsequent bachelor's degrees

• Must be enrolled at least half-time in a degree program

• Student must meet financial aid priority application deadline (March 31) to be considered for any aid. This includes completing all financial aid applications and submitting requested materials.

Loan Terms

• 0% fixed interest rate while student is enrolled at least half-time; 5% in repayment

• U-M funded

• Award amounts vary depending on the student's demonstrated need. Maximum loan will not exceed $5,500 (minimum is $200)

• Repayment is deferred, no interest while enrolled at least half-time

• Six-month grace period before repayment begins

• Loan cancellation is possible, with U-M approval, due to disability, bankruptcy (Chapters 7, 11 and 13), death or if you have a  disabled veteran's status. Deferments also available, subject to U-M approval, for: pending bankruptcies (Chapters 7, 11 and 13, no limit), forbearance (no bill or bill interest for 36 months), fellowship/graduate (no limit), economic hardship (36 months), student deferment (both here and at other universities, no limit), unemployment (36 months), disability (36 months), military service (no limit), rehabilitation (no limit), post-active duty student deferment (13 months), post-deferment grade (no limit), and Military Demobilization (6 months.

Additional Information/Requirements

Students must complete a U-M Institutional Loan Promissory Note each time they apply for a new loan. By signing the Promissory Note, you agree to the rights and responsibilities as noted.


Once you have applied for your U-M Institutional Loan and it is processed, your financial aid Award Notice will show the amount you may borrow for the current award period.  If you have already received a University of Michigan uniqname and password, you can view your financial aid awards on Wolverine Access (select Financial Aid > Awards). Wolverine Access also allows you to see the cumulative amount you have borrowed to date through all loan programs (select Loans > View Student Loan Summary).

You can also use Wolverine Access to determine what your loan payments will be for all loan programs (Direct, Health Professions, Nursing, private, Long-Term University and U-M Institutional loans) once you graduate or drop below half-time enrollment. See our Repaying Loans page for more information.

Once you have signed your loan documents, you will receive an email directing you to sign your promissory note in the Office of Financial Aid. You will receive the appropriate disclosure notifications and a copy of your Loan Promissory Note at that time.


As a U-M Institutional Loan borrower, you will be required to sign a  Promissory Note each time you borrow and complete Exit Counseling when you graduate, drop below half-time, or transfer to a different school.

A Promissory Note is your written promise to repay the money you are borrowing and authorizes the university to credit the loan funds to your U-M student account.  You must complete/sign your note in person at our office: 2500 Student Activities Building, 515 E. Jefferson St. You will be advised by email when your note is ready to sign and may visit our office during regular business hours to complete this. You will not receive your funds until your Promissory Note is signed.

If you are borrowing from more than one loan program for your U-M education, you might be required to sign more than one promissory note. For example, if you have a Direct Loan (Subsidized and/or Unsubsidized), you will need to sign Master Promissory Notes for those loans also. You will receive separate notification regarding a note for the Direct Loan.


You must have signed all of your loan documents and be enrolled at least half-time to receive your loan funds. There is a required waiting period of three, full business days before loan funds can be disbursed and applied to the student's billing account (the day of signature does not count for this process). See Disbursement of Aid for information about how your loan will be paid to you. Each time you borrow through the U-M Institutional Loan program, you complete an application and sign the appropriate promissory note.

When you sign the promissory note you indicate your understanding of the rights and responsibilities as detailed in your loan note.