University of Michigan-Flint

• Federally funded, supplemented by University Funds
• 5% fixed interest
• Must be U.S. Citizen or eligible non-citizen
• Need based
• Requires separate promissory note and questionnaire
• Enrolled at least half-time in a degree or certificate program
• Repayment is deferred and there is no interest while enrolled at least half-time
• Nine month grace period
• Minimum monthly payment $40
• Traditionally awarded to new freshman undergraduate students, 1st Bachelor's Degree

Federal Stafford Loan, Subsidized

• Federally funded
• Interest rate, adjusted annually on July 1, capped at 8.25%
• Must be U.S. Citizen or eligible non-citizen
• Need based
• Undergraduate students (After July 1, 2012, graduate students are no longer eligible for subsidized loans.)
• Enrolled at least half-time in a degree or certificate program.
• Repayment is deferred and there is no interest while enrolled at least half-time
• Six month grace period (after the borrower graduates, disenrolls, or drops below half-time)
• Limited deferment/cancellation provisions
• 1.0% origination fee with an up front 0.5% rebate (After July 1, 2012, the 0.5% rebate is eliminated.)
• Interest subsidy during the 6 month grace period will be temporarily eliminated for any new loans first disbursed on/after July 1, 2012, and before July 1, 2014.  This means interest will now accrue during these 6 months.

Federal Stafford Loan, Unsubsidized

• Federally funded
• Interest rate, adjusted annually on July 1, capped at 8.25%
• Must be U.S. Citizen or eligible non-citizen
• Non-need based
• Graduate and Undergraduate students
• Enrolled at least half-time in a degree or certificate program.
• Interest begins accruing immediately; may be paid periodically or capitalized.
• Repayment of principal deferred while enrolled at least half-time
• Six month grace period (after the borrower graduates, disenrolls, or drops below half-time)
• Limited deferment/cancellation provisions
• 1.0% origination fee with an up front 0.5% rebate (After July 1, 2012, the 0.5% rebate is eliminated.)

* Students who register for a combination of undergraduate and graduate classes, must be enrolled at least half-time in graduate classes that count towards their degree to receive graduate level loans.  Loans will be reduced to undergraduate loan limits for students who do not meet that requirement.

Subsidized Federal Stafford Loan vs. Unsubsidized Federal Stafford Loan
The Subsidized Federal Stafford Loan is a need based loan, while the Federal Stafford Unsubsidized Loan is not. 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, so you will pay more in the long run.

Federal Stafford PLUS Loan
(for Parents of dependent, undergraduate students)
(application)

• Federally funded.
• Interest rate, adjusted annually on July 1, capped at 9%
• Non-need based (cost of education less other aid)
• Enrolled at least half-time in a degree or certificate program
• Parent borrows on behalf of their dependent undergraduate student
• Parent must meet credit-worthiness standards (credit check required)
  • If parent is denied the loan based on the credit check the student is eligible to borrow additional unsubsidized loan at the independent student level in their name.
• U.S. citizen or eligible non-citizen
• This loan will be listed on your award notice only if a separate application is submitted and approved
• Repayment of principal and interest begins 60 days after loan disbursement
• Parent  is eligible for deferment if student is attending classes at least half-time
• 4% origination fee, with a 1.5% rebate if first 12 monthly payments are made on time (After July 1, 2012 the 1.5% rebate is eliminated.)
• Requires supplemental application

Federal Stafford PLUS Loan
(for Graduate Students)
(application -- more information -- FAQs)

• Federally funded.
• Interest rate, adjusted annually on July 1, capped at 9%
• Non-need based (cost of education less other aid)
• Enrolled at least half-time in a degree seeking program
• Must meet credit-worthiness standards (credit check required) 
• U.S. citizen or eligible non-citizen
• This loan will be listed on your award notice only if a separate application is submitted and approved
• Repayment of principal and interest begins 60 days after loan disbursement
• Student is eligible for deferment if attending classes at least half-time
• 4% origination fee, with a  1.5% rebate if first 12 monthly payments are made on time (After July 1, 2012 the 1.5% rebate is eliminated.)
• Requires supplemental application

Alternative or Private Students loans are available to students via lenders outside of the guaranteed student loans available from the federal government.  It is recommended that any student access their yearly federal loan borrowing limit before considering an alternative loan.

It is the responsiblility of the student to select a borrower, complete the application process and credit check, and to make sure that the approved loan funds reach the school in order to pay for any outstanding balance.

The Office of Financial Aid cannot provide any guidance in selecting a lender.  We recommend that you review many alternative loan lenders and research their policies and loan terms to decide which lender is best for you. We will process an alternative loan with the lender of your choice.

Emergency loans are made available to currently enrolled students with temporary financial problems.
(guidelines)

• Students must have a 2.0 cum GPA and be in good Satisfactory Academic Progress(SAP).
• Student must be enrolled in the semester for which the loan is to be paid.
• Repayment is expected within 30 days.
• A maximum of three (3) emergency loans will be granted while attending UM-Flint.
• The maximum amount a student may borrow in any semester is $500. The minimum request is $25
• Emergency Loans which meet the following criteria should be accompanied by adequate documentation of the circumstances and applicants must show resources sufficient to repay the amount of the loan requested.
• Loans intended to pay a debt to a particular company (or individual); the check will be made payable to the company.
• Recipients must demonstrate financial need. Types of emergency situations for which these loans may be granted are:
  • housing evictions
  • utility shut-offs
  • transportation repairs
  • child care
  • medical/dental emergencies
• Approval of these loans is at the discretion of the Emergency Loan Committee.

Updated: 10/19/12