Federal student loans for college or career school are an investment in your future.

When a student borrows a federal student loan (Subsidized or Unsubsidized Direct Loan), it is different than nearly all loans:

  • No credit check
  • No co-signer

You are eligible if you are an eligible student who is accepted in an eligible program and enrolled at least half-time (6 credits for undergraduates, 4 credits for graduate students) at at eligible university. If you are offered a federal student loan in your award offer by the Office of Financial Aid & Scholarships, you will meet these requirements.  You won't need to worry about a credit check or finding a co-signer.

UM-Dearborn Code of Conduct for Student Loans

The University adheres to a code of conduct regarding relationships with providers of educational loans which can be viewed from the above link.

All students are required to be enrolled at least half-time to be eligible for all federal student loans.

  • Minimum half-time enrollment for undergraduates is six (6) credits
  • Minimum half-time enrollment for graduate students is four (4) credits


Federal Direct Loans for Students

  • Interest rate for Subsidized and Unsubsidized Direct Loans is a variable fixed 5.045% for 2018-2019 for undergraduates
  • Interest rate for Unsubsidized Direct Loans is a variable fixed 7.595% for 2018-2019 for graduate and professional students

What is the difference between a subsidized and an unsubsidized loan?

Subsidized Loans are no longer available to graduate and professional students.

Federal Direct Parent Loans (PLUS)

Parents are able to borrow on behalf of their dependent student through a credit-based loan from the Direct Loan Program.

  • Interest rate is a variable fixed rate of 7.595% for 2018-2019
  • FAFSA must be completed by parent and student
  • Student must be half-time and making academic progress
  • PLUS Loans cannot be accepted online and must begin the process by completing the Direct Loan Parent PLUS application
  • Parents borrowing on behalf a their student must complete a Master Promissory Note after approval at studentloans.gov
  • Parents who are declined may seek an endorser or their student may borrow additional unsubsidized loan funds up to his/her grade level limit

Federal Direct Graduate PLUS

Graduate and professional students who need additional funds beyond the graduate loan limitations are able to borrow a credit-based loan through the Direct Loan Graduate PLUS Program

  • Interest rate is a variable fixed rate of 7.595% for 2018-2019
  • Student is required to complete the FAFSA
  • Student must be half-time and making academic progress
  • Begin the process by completing the Graduate PLUS Application Form
  • Students borrowing for the first time in the Graduate PLUS Loan Program must complete a Master Promissory Note (MPN) at studentloans.gov

Federal Perkins Loan Program

The Federal Perkins Loan Program was closed during the 2017-2018 academic year.  Funding for this program was not reauthorization by Congress.  

Federal Perkins Loan borrowers can obtain additional information on their borrowing status from ECSI Heartland or call 888-549-3274 to speak to a Customer Service Advocate.

Student Loan Acceptance and Processing Tips

First time borrowers in the Direct Loan Program must complete Entrance Loan Counseling (allow 40 minutes) and a Master Promissory Note (MPN) at studentloans.gov using your FSA ID to enter the secured area.

Alternative or Private Loans

Alternative or private loans can be used to supplement federal student loans or when a student is ineligible for federal student loans.  These loans require credit-worthiness and cannot be consolidated with federal student loans.

How do I consolidate my loans?

Office of Financial Aid & Scholarships

University Center (UC)
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