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Private Loans

Private student loans are offered through a variety of banks and other lenders. Students wanting private loan must apply separately from their financial aid application through an individual lender. The best rates on these loans are generally offered to borrowers with good credit and/or who have a cosigner with good credit.

When shopping for a private loan, look for a loan you can live with in both the short term and long term. You may be repaying it for multiple years after graduation. Many loan providers will lend up to the student’s cost of attendance minus any financial aid received. Often there is a yearly and/or cumulative cap on the amount the student may borrow; sometimes this cap is set by the student’s school. Note that it takes an average of 4 weeks to process loans through our office.

Eligibility Criteria
Loan Terms
Additional Information/Requirements
  • Non-need-based
  • Student must be enrolled at least half-time in degree program
  • Borrower must be a U.S. citizen or eligible noncitizen
  • Borrow may be required to have a cosigner 
  • Fees from 0-12%, depending on borrower's credit. Some have origination fees.
  • Loan amounts often are cost of attendance minus financial aid offered. Sometimes set by school. Often include a yearly and/or cumulative cap (as high as $250,000 for undergraduates).
  • Interest rates generally PRIME -1% to +7.75% or LIBOR +1% to +8%
  • Repayment term ranges from 0-25 years, depending upon amount of loan
  • Interest rates, fees, and loan limits depend upon borrow/cosigner credit history, loan options, and repayment schedule. Having a cosigner may reduce interest rate and loan fees
  • Students do not need to submit a FAFSA if they are not applying for other aid.
  • The federal Truth in Lending Act requires students to submit a Private Education Loan Self-Certification Form to their lender.



If you are considering borrowing through a private lender, we encourage you to:

  • Exhaust all other possible sources of financial aid first, including federal loans and Work-Study.
  • Reduce your expenses and borrow only what you need.
  • Ask questions and compare rates and terms offered by different lenders.

If you pursue a private loan, apply directly through the lender you select. Choose any lender and the University will certify your application.


 Beware of suspicious or unsolicited loan offers

U-M students should avoid lenders that don't require U-M to certify their loan application and should be suspicious of unsolicited loan offers. The Michigan Student Financial Aid Association cautions students that "loan debt can accumulate quickly and result in a lifetime burden of high payments and credit denials for automobile purchases, credit cards, and home mortgages. Private loans also can reduce eligibility for more desirable federal, state and college aid programs. To avoid these problems, read and understand the terms and conditions of all loans." 


To browse a selection of approved lenders, please visit the University of Michigan's FASTChoice Private Education Loans site.

For International Students please visit this FASTChoice Private Education Loans – For International Students web link. 

Please note that U of M has not endorsed these programs, but is making the information available to you. The university does also adhere to the Code of Conduct for Student Loans that prohibits inducements or incentives by private lenders.


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