1. Federal Loans
2. Private Educational Loans

Federal Loans 

When you apply for financial aid, you will be considered for federal loans. Your financial need, program of study, and grade level determine the types and amounts of loans you receive.  All of the federal loans are need-based except the Direct Stafford Unsubsidized Loan, the Direct PLUS Loan, and the Direct Grad PLUS Loan.  For more information on federal loans, including a chart of program terms, eligibility criteria, and borrowing amounts, see our Federal Loans page. 

Please note: Because U-M participates in the Direct Loan program, we do NOT process Subsidized or Unsubsidized Stafford Loans, PLUS Loans, or Grad PLUS Loans through private lenders.

• Federal Perkins Loan need-based
• Nursing Loan need-based
• Health Professions (Pharmacy and Dental) Loan need-based
• Federal Direct Stafford Subsidized Loan need-based
• Federal Direct Stafford Unsubsidized Loan non-need-based
  
  Note:  The difference between the Subsidized and Unsubsidized Direct Loan is that students borrowing the Subsidized Loan do not pay interest on the loan while they are enrolled at least half-time; conversely, students borrowing the Unsubsidized Loan must pay interest while they are enrolled in school.  The Unsubsidized Loan does allow you to defer the interest payments until you graduate; however, this will result in a higher loan payment over the life of the loan.

• Federal Direct PLUS Loan (for parents of undergraduates) non-need-based
• Federal Direct Grad PLUS Loan (for graduate students)
  non-need-based

The only federal loans that are not awarded when you apply for financial aid are the Federal Direct PLUS Loan and the Federal Direct Grad PLUS Loan.  The PLUS loan is only available to the PARENTS of dependent undergraduate students (parents borrow on behalf of their students), while the Grad PLUS is only available to graduate students.  To apply for these loans, see the respective webpages:

• Direct PLUS Loan (for parents of undergraduate students)
• Direct Grad PLUS Loan (for graduate students)
  

Private Educational Loans  

There are also many sources for private loans, which are non-need-based loans borrowed through private sources.  Students must apply separately for these loans (they are not awarded when a student applies for aid).  These loans, as well as the non-need-based federal loans (the Federal Direct Unsubsidized Loan, the Federal Direct PLUS Loan, and the Grad PLUS Loan), may be of interest to students who:

1. have little or no eligibility for need-based financial aid programs and need additional assistance to pay for college costs,
2. have remaining financial need after other forms of financial aid have been awarded,
3. are classified as nonresident students and need additional resources to fill in the gap between need-based financial aid and college costs, or
4. have unusual circumstances (e.g., a medical condition) leading to costs above the standard cost of attendance budgets used by the Office of Financial Aid,

In some cases, the variable interest rates available through federal programs (such as the Direct Unsubsidized Loan, the PLUS Loan, and the Grad PLUS Loan) are lower than the rates for private loan programs--students should compare the terms and interest rates of these loan programs carefully.

To find out how much PLUS or private loan you can borrow, go to Wolverine Access > Student Business > login > Financial Planning Calculators > login > Calculate Alternative/PLUS Loan Eligibility.