• Loan programs
Web tools offer families college planning help
The U.S. Department of Education offers tools to help families as they plan for college:
• The Financial Awareness Counseling Tool is interactive loan counseling with topics ranging from managing a budget to avoiding loan default (under Complete Counseling link).
• The Repayment Estimator allows borrowers to compare estimated monthly payments.
Sign in at StudentLoans.gov, using a federal PIN, date of birth and Social Security number to access these tools.
The federal government sponsors several low-interest loan programs to help students pay for college and the Office of Financial Aid administers these programs for U-M students.
Most federal loans are awarded to students who have completed a Free Application for Federal Student Aid (FAFSA) and who qualify based on financial need. Students who do not qualify or who need additional resources to cover educational costs may apply for supplemental federal and private loan programs.
Compare the terms of supplemental loans and to borrow only what you need for school. You can minimize the amount you borrow by reducing miscellaneous spending or by working a few hours a week. Some families can avoid additional borrowing by participating in the University of Michigan’s interest-free payment plan.
Remember: Be smart about borrowing!
Following is information about various federal loan programs:
Federal Loans awarded based on FAFSA
Supplemental loans requiring separate application
*Some undergraduates are required to complete additional steps to obtain an Unsubsidized Direct Loan.
Following is a "How to be Credit Savvy" video from the CashCourse. Visit here for more information about the CashCourse website: www.finaid.umich.edu/Planning#cashcourse