How Financial Aid Is Awarded

The University of Michigan has made a commitment to meeting the demonstrated financial need of Michigan resident undergraduates. Need-based scholarships and grants, loans, and Work-Study funds are awarded to eligible in-state students whose cost of attendance exceeds their family’s financial resources. Non-resident students and resident students who do not qualify for need-based aid may wish to apply for departmental or private scholarships and supplemental loans to cover the cost of attendance.

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The Office of Financial Aid distributes need-based grant, scholarship, loan, and Work-Study funds equitably among the population of all eligible applicants who apply by established deadline dates. Award amounts are determined by a combination of demonstrated financial need, federal award maximums, available funding, and other factors.

Your demonstrated need (eligibility) for need-based financial aid is your total cost of attendance at the University of Michigan for one academic year minus your expected family contribution (EFC) and other financial resources.

In order to meet students’ need, OFA awards financial aid funds in the following order to eligible students:

  Federal and state need-based grants and scholarships (e.g., Pell Grants, Academic Competitiveness Grants, SMART grants, and Michigan Competitive Scholarships)

  Federal Direct Subsidized and Unsubsidized (Stafford) Loans

  Perkins Loans, Health Professions Loans, Nursing Loans, and Work-Study funds (Note that federal regulations require that funds from these programs to be awarded to students with the greatest need. Because Federal Supplemental Educational Opportunity Grant (FSEOG) funds are limited, they too are awarded only to applicants with the most need.)

  University need-based aid (If, after federal and state grants, scholarships, loans, and Work-Study are applied, a gap remains between the cost of attendance and the student’s resources and aid, awards are made from need-based university grant sources such as the University of Michigan Grant.)

Students who need additional funds to cover their expenses and those who are not eligible for need-based aid may wish to consider supplemental loans such as the federal Direct PLUS Loan and/or private educational loans.

A Note about University Grants and Scholarships: In an effort to ensure that students with comparable circumstances are treated equitably, the university may limit the amount of grant and scholarships it awards from university sources to individual students. If you receive grants and/or scholarships that exceed your total cost of attendance and they include awards from any university source, your university grants/scholarships may be adjusted so that your total awards equal the cost of attendance.



Non-Michigan residents may need additional resources to cover their costs of attendance. We encourage students to pursue private scholarships and to inquire in their home states about whether state grant funding is available to students attending out-of-state schools. Some students may also be eligible for scholarships from the U-M school or college in which they are enrolled. Other options often used by nonresident families are the Federal Direct PLUS Loan (available to the parents of undergraduate students), the Grad PLUS Loan (for graduate students), and private educational loans

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Office of Financial Aid * 2500 Student Activities Building, 515 E. Jefferson, Ann Arbor, MI 48109-1316 * Tel 734-763-6600 * Fax 734-647-3081 *