Alternative Loans

Direct Loan Model Disclosure

It is the policy of the Office of Financial Aid and Scholarships to encourage eligible students to complete the FAFSA (Free Application for Federal Student Aid) before applying for an alternative or private loan. Keep in mind the terms and conditions of federal loans may be more favorable than the provisions of the private education loans and our office would recommend considering utilizing full federal loan eligibility prior to considering the use of a private education loan to finance their education. By completing the FAFSA, eligible students are able to be considered for Federal Direct Student Loans and can also be considered for grants.

Choosing a Private Lender

When choosing a private education loan, you should compare the loan terms offered by several programs in order to choose the best fit for your situation. You can learn about and compare private loan terms from multiple lenders side-by-side using the ELM Select online tool, While you may do business with the lender of your choice, our ELM Select tool provides information for the loan programs most frequently used by University of Michigan-Dearborn students over the past three years.

Please note that you are not limited to lenders listed in the ELM Select tool; you can borrow from any lender. Most private loan programs offer online applications. Here are several points you should research when considering a private loan.

Most private loan programs require our office to certify your eligibility before approving your loan. If you receive financial aid, you must notify our office of any private loans you borrow as it may affect your aid eligibility.

Certification Process

  • After researching and selecting your lender, apply for a loan. 
  • Once approved, the lender will request certification from our office.
  • After final processing, most lenders will send the funds to be applied directly to your student account. Any credit balance remaining will be refunded to you.

Lender Requirements

Under provisions of the Truth in Lending Act, private education loan lenders must:

  • Provide three separate loan disclosures to borrowers: one at the point of application, one when the loan is approved, and one before the loan is disbursed.
  • Have a waiting period of three to seven business days between the time the borrower receives the final loan disclosure and the time the loan is disbursed.
  • Receive a signed Self-Certification Form from the student before disbursing the loan. This form should be submitted to the lender, not the Financial Aid office. 

Office of Financial Aid and Scholarships

Outside 1600 - Social Sciences Building
4901 Evergreen Road
Dearborn, MI 48128
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