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Federal Loans for US Citizens and Permanent Resident Students

You must be a U.S. citizen or permanent resident in order to apply for federal loans.  
[International students: Please see our International Students page.]

All BBA federal and University aid is processed by the University of Michigan Office of Financial Aid.

The University of Michigan participates in the Federal Direct Lending Program. The federal government is the lender for all federal loans offered through the University of Michigan. The Free Application for Federal Student Aid (FAFSA) is the application for the Federal Direct Unsubsidized Loan and Federal Work Study aid.

     NOTE:  The FAFSA can be completed throughout the academic year.  

  • Although we recommend you submit your FAFSA by April 30 each academic year, you can apply after this date.
  • Students who complete the FAFSA will automatically be offered the Federal Unsubsidized Loan. 
  • No additional application is necessary to receive this loan.
  • A Master Promissory Note (MPN) must be completed before the loan will pay to your account.
  • You must be enrolled at least half-time (in a degree program) to receive loans.
  • Work study: based on the FAFSA but not automatically offered to students who qualify to receive it.  You must contact Ross Financial Aid to request work study funds.
     

Steps to Apply for Federal Financial Aid

1. Complete the Free Application for Federal Student Aid (FAFSA) online.
    You must complete a FAFSA each academic year to receive federal aid.

  • Use the University of Michigan Title IV School Code 002325 to apply for aid at the Ross School of Business.
  • Upon completion of the FAFSA, all students are eligible for $20,500 per academic year ($10,250 per term) in Federal Direct Unsubsidized (Stafford) Loans.  See details below.
  • All students requesting federal loans must apply for the FAFSA each academic year.  An academic year includes the Fall, Winter, Spring, Summer or Combined Spring/Summer terms.
  • How often and when you complete the FAFSA is based on your academic program.  See additional details here.
     

2. Submit additional documentation, if required. 

  • The Office of Financial Aid will send an email notification if additional documentation is needed.
  • Students may sign in to Wolverine Access for a list of requested documents.  For steps on how to use Wolverine Access, click here.
  • Please note that the award processing may take up to two weeks from receipt of the FAFSA and any required documents.
     

3. Receive your Financial Aid Award Notice via email.

  • Accept or decline financial aid offered to you per the instructions in the award notice.
     

4. Complete the Entrance Counseling and sign your Direct Loan Master Promissory  Note (MPN) online. This is required to release your loan.

Select the address below in the Master Promissory Note process:

University of Michigan - Ann Arbor
503 Thompson Street
Ann Arbor, MI  48109-1340 - G02325
 

5. Submit an alternative loan application if you plan to borrow additional funds up to the full cost of attendance.

Applications must be submitted each academic year if you wish to borrow these loans.

  • Alternative loans include the Federal GRAD PLUS (see details below) or Private Loan Programs.  Information on these alternative loans is detailed below.  Please note that the loans require a credit check.  Processing time is estimated at three to four weeks, but could be longer depending upon individual circumstances.
  • Tuition decisions for the next academic year are decided at the end of June.  Apply for the Federal GRAD PLUS or private loans after July 1.
     

6. Sign up for Direct Deposit in Wolverine Access.

  • Funds in excess of tuition and fees refunded to you by Electronic Funds Transfer (EFT).
  • Without Direct Deposit, the refund check is mailed to the current address in Wolverine Access.

To set up Direct Deposit: Log into Wolverine Access > Students Tab > Student Business > Payroll and Compensation > Direct Deposit.  You may set up direct deposit at any time during the year.  

Please note: Once Direct Deposit is initiated, it remains in effect until you cancel it.  To cancel, complete a Direct Deposit Authorization Form and submit it to the Payroll Office.
 

Types of Federal Loans

Note: Federal loan interest rates and origination fees may be adjusted in July of each year.

Federal Direct (Stafford) Loan - Unsubsidized (Terms)

  • This loan is offered based on the FAFSA. No additional application is necessary.
  • Maximum is $20,500 per academic year ($10,250 per term).  Eligibility is non-need-based (determined by FAFSA).
  • You must be enrolled at least half-time (in a degree program) to receive this loan.
  • Interest begins accruing immediately upon disbursement.
  • The loan origination fee is 1.062% deducted prior to disbursement.
  • Fixed interest rate is 6.60%.  
  • Borrower can choose to have the accrued interest capitalized (added to principal balance) or make periodic payments.
  • Repayment is deferred until 6 months after you graduate or cease to be enrolled at least half-time in a degree program.
  • Typical repayment period is 10 years (other repayment options may be available).
     

Federal Direct Loan - Graduate PLUS (Terms and Application)

  • This loan requires an additional application (see below).
  • Maximum is Cost of Attendance less aid received.  Eligibility is non-need based (determined by FAFSA).
  • You must be enrolled at least half-time (in a degree program) to receive this loan.
  • Interest begins accruing immediately upon disbursement.
  • The loan origination fee is 4.248% deducted prior to disbursement.
  • Fixed interest rate is 7.60%.  
  •  Borrower can choose to have the accrued interest capitalized (added to principal balance) or make periodic payments.
  • Repayment is deferred until 6 months after you graduate or cease to be enrolled at least half-time in a degree program.
  • Typical repayment period is 10 years (other repayment options may be available).
  • Borrower must first accept all Federal Direct Unsubsidized loans before borrowing from GRAD PLUS.
     

TO APPLY FOR A GRAD PLUS LOAN

  • Complete Free Application for Federal Student Aid (FAFSA).
  • Go to studentloans.gov to complete the Grad PLUS application.  First-time borrowers must also complete a GRAD PLUS Promissory Note and Entrance Counseling.
  • Go to the bottom of the web page to the section entitled "$$ Obtain Aid."
  • Select "Apply for PLUS Loans."
  • Follow steps to complete Grad PLUS application and credit check.  (Federal School Code 002325)
  • Credit check results immediately available. Follow instructions to complete Grad PLUS Master Promissory Note, if you have not completed one. If not approved, select from the available options.
  • First-time borrowers must complete Direct Loan Entrance Counseling at studentloans.gov.
  • If you prefer a paper version of the Graduate PLUS loan application, you may contact Ross Financial Aid at rossfinaid@umich.edu. Processing time is significantly longer for paper application. Credit check results will not be known until the paper application has been processed.

Federal College Work Study (Terms)

  •  Financial need must be demonstrated to be eligible for this program (determined by FAFSA).
  •  Awards are earned as wages by working for eligible employers on and off campus.
  •  For more information, please visit the Student Employment Office. 
  •  Please contact Ross Financial Aid if you are interested in this program at 734-764-5139, or email rossfinaid@umich.edu.

Federal loan borrowers are assigned a federal loan servicer to assist during borrowing and repayment.  Go to the National Student Loan Data System for servicer information.  Ross short-term loans are managed by the University of Michigan Student Loan Collections.

The Ross School of Business Office of Financial Aid is a satellite office of the University of Michigan Office of Financial Aid.  Disclaimer.