Loans

Federal Loans

Federal loans are a form of aid that will require repayment. Federal student loans allow students to borrow at special fixed interest rates and with flexible repayment plans. Students must complete the Free Application for Student Aid and be eligible students to qualify for federal student loans. While there are private or alternative loans available, it is important to pursue federal student loans first.

Students or parents of students who accept Title IV loan funding from Subsidized, Unsubsidized, Parent PLUS, or Graduate PLUS loan programs will have their loan information submitted to the National Student Loan Data System as required by federal regulation. Please be aware that authorized agencies, lenders, and institutions will have access to this information. Student and parent borrowers are also able to access their loan information through their account at studentaid.gov

On May 8, 2024, the Treasury Department held a 10-year Treasury note auction that resulted in a high yield of 4.483%. The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2024 and before June 30, 2025.

Interest Rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans
First Disbursed on or after July 1, 2024, and before June 30, 2025

Direct Loan Type	Fixed Interest Rate
Undergraduate Students: Direct Subsidized Loan and Direct Unsubsidized Loan	6.53%
Graduate and Professional Students: Direct Unsubsidized Loan	8.08%
Direct PLUS Loans (Parent PLUS and Graduate PLUS) For parents of dependent undergraduate students and Graduate & Professional Students	9.08%

For more information on Federal Direct loan interest rates, including those from previous years’, please visit Federal Interest Rates and Fees.

Private Loans

The Office of Financial Aid encourages eligible students to apply for financial aid by completing the FAFSA before applying for private loans. By completing the FAFSA, eligible students will be considered for federal student loans and other aid, including grants. Federal student loans can have terms and conditions that are more beneficial to the student, and our office recommends exhausting federal aid eligibility before considering a private loan.

Searching for Private Lenders

Students should compare loans from several private lenders in order to choose the best option for their situation. The ELM Select tool provides information on the most frequently used lenders at the University of Michigan-Flint over the past three years. The tool compares lender terms, rates, and repayment options and the list of lenders included is updated annually. Please note that students are not limited to the lenders included with this tool, and have the right to borrow from any lender they choose. The student should be aware of the eligibility requirements of the loan they are applying for (satisfactory academic progress, half-time enrollment, past due balances, etc.) to prevent the loan from being rejected.

Students should be aware of possible scams. Students should avoid any lender that does not require certification from the University of Michigan-Flint and be cautious of unsolicited loan offers.

For more information regarding private loans, please view this information sheet.

Application and Certification Process

Apply for the loan directly through the lender of your choosing (often online).
Once approved, the lender will request that University of Michigan-Flint certify the loan.
After certification, lenders will send funds electronically directly to the school. Funds will then be applied to your student account, and any credit will be issued to the student.

Lender Requirements

Under provisions of the Truth in Lending Act, private education loan lenders are required to provide loan disclosures to borrowers, have a waiting period between the time of final loan disclosure and disbursement, and collect a Private Education Loan Applicant Self-Certification Form. This form is submitted to the lender, not the Office of Financial Aid. To complete the form, you will need to know your cost of attendance and estimated financial assistance. Click here to learn how to find this information.

The University of Michigan-Flint adheres to a code of conduct for student loans that prohibits incentives by private lenders.

Emergency Loans

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

Students must have a 2.0 cumulative GPA and be in good Satisfactory Academic Progress.
Students must be enrolled in the semester for which the loan is to be paid.
Repayment is expected within 30 days.
A maximum of three 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 that 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.