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 an 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.
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INTEREST RATES FOR 2019-2020
Federal Direct Loans for Students
- Interest rate for Subsidized and Unsubsidized Direct Loans is a variable fixed 4.529% undergraduates
- Interest rate for Unsubsidized Direct Loans is a variable fixed 6.079% for graduate and professional students
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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 7.079%
- 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
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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 7.079%
- 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
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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.
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Student Loan Acceptance and Processing Tips
- All students must accept their loans before the loan process can begin and cannot be applied to your account
- The easiest way to accept your loan is online at UM-Dearborn Connect
- Need help accepting your loan online?
First Time Borrowers
The Direct Loan Program requires students to 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.