Loans

Using Loans to Fund Your Education

Loans are a form of financial aid that must be repaid, so it is best to borrow as little as possible to keep repayment manageable. Students who take out loans must repay them whether (or not) the student completes their program, is happy with their program or is able to find employment upon the completion of their program. 

Types of Loans

Common Questions About Student Loans

  • You apply for student loans the same way you apply for all other federal financial aid: through your FAFSA (for questions on the FAFSA see our FAFSA page). Once you fill out and submit your FAFSA, the U.S. Department of Education and the 91次元 will assess your circumstances and make an aid offer. The aid you are offered is just that: an offer! There is no obligation to take everything offered to you.

    Once your financial aid award is determined, you will receive your Financial Aid Package in your GrizPortal account. This will contain any federal or state scholarships, grants, work-study, tuition wavers or loans you are offered.

    Before you take out a student loan, ask: Have you been offered any grants, scholarships, work-study or tuition waivers? These awards do not have to repaid. Always accept them first. 

    If you have been offered work-study, we also recommend accepting this before student loans. Work-study is earned by students through working a part-time job on campus or for certain approved off-campus employers. The  can help you find both work study and non-work study employment opportunities.

    If you still have school related expenses (tuition, fees, room and board, textbooks, essential personal expenses, school-related transportation expense, etc.) that are not covered, you may want to consider taking out a loan to cover these costs. But take the time to think about what you will be able to repay after graduation (see Accepting Student Loans below). 

  • You should  would be and compare your estimated payment to your projected income after earning your degree. Can you support a payment of that amount? Should you take out less so your payments will be smaller? These are all things to consider before accepting the loan.

    .  Use this calculator to help you estimate a manageable amount of loan debt and then use that estimate to guide your borrowing patterns.  

    Interest rates on federal student loans depend on the year in which the loan is disbursed. . You may also like to review .   

    You always have the option to decline or reduce the amount of loan money you accept. If you are offered a loan you don't want to accept or if they are offering more than you need, you are not obligated to take on that debt. Contact Student Financial Services to reduce the amount of the loan you wish to borrow.

  • The government will not offer you an endless amount of money! There are annual and aggregate (i.e. total amount) limits to the principle of the loans you will be offered and once you reach those limits, you will not receive any more. .

    Be aware that dependent undergraduates cannot borrow more than an aggregate principle amount of $31,000 in Federal Subsidized and/or Unsubsidized loans, independent undergraduates cannot exceed $57,500 and graduate/professional students cannot go over $138,500. For select health professional programs the aggregate limit will be $224,000.  

  •  

    Once you decide to accept all or part of a student loan, you will in which you promise to repay your loan(s), and any accrued interest and fees. .

    You will also need to which will give you information about your loan, how it functions, the repayment process and some personal finance guidance.  

    Once your loans are disbursed (i.e. once you receive the loan money), you can use that money to pay for your school-related expenses.  

  • As long as you are enrolled at least half-time as a student (UM students: that means you need to be taking at least six credits per semester), your loan will be in a status called "In-School Deferment." This means you will not have to make payments on your loans while taking classes. Learn how to request an In-School Loan Deferment here.

    Even while you are in In-School Deferment, interest will still be accumulating on some of your loans. If you have a Subsidized Loan, the Department of Education will pay for the interest for you while you are attending school at least half-time. Perkins loans will also not accrue interest while you are taking at least six credits per semester. If you have any other type of loan, you are responsible for the interest that accrues while you are in school. You do not have to make payments toward that interest while in school but you can choose to to do so, if you wish.  

    The contains all the information about all of your student loans all in one place. Visit this site to view the total amount you have already borrowed, look up the interest rates on your loans, see how much interest your loans have accumulated or learn how to repay your loans. You will need your in order to log in, which you created to complete the FAFSA.

  • There is no penalty for paying toward your loans while you are a student!  

    We encourage students to start paying toward their loans while they are still in school. Even $5 a month can make a difference.

    A $2,000 unsubsidized loan earns about $9 in interest a month. By putting that amount toward your loans, you can pay off your monthly interest on a loan!

  • Occasionally, students will need to obtain an Enrollment Verification Certificate in order to prove their enrollment status to their employer, landlord, loan servicer, etc. This information is housed in the National Student Clearing House, which is a verification and reporting organization that holds enrollment and degree information on more than 144 million students nationwide.  

    UM students can get an Enrollment Verification Certificate thru National Student Clearinghouse by logging into their GrizPortal account The Registrar's Office provides additional instructions on Enrollment Verification.

  • You should never have to pay money to get money. Legitimate lenders and student loan companies will NEVER ask for fees up front. If you suspect that a loan offer you have received is a scam, contant Student Financial Services for help assessing the offer.