Federal Loans

Federal loans are a form of aid that will require repayment. Federal student loans allow students to borrow at special fixed interest rates and with flexible repayment plans. Students must complete the FAFSA and be an eligible student to qualify for federal student loans. While there are private or alternative loans available, it is important to pursue federal student loans first. Click each heading below for more information on a particular loan.  

 

Perkins Loan

What is it?

The Federal Perkins Loan is a type of federally funded loan that is supplemented by University funds. It has a fixed interest rate of 5%, although interest does not accrue and repayment is deferred while the student is enrolled at least half-time[?]. Interest does not accrue and repayment is deferred during a nine month grace period after the student finishes attending as well. The minimum monthly payment is $40.

Am I eligible?

The Perkins Loan is need-based[?] and requires that the student be a U.S. Citizen or eligible non-citizen[?]. Students must be enrolled at least half-time[?] in a degree or certificate program. Graduate students are not eligible for the Perkins Loan.

How do I apply?

Students may apply for the Federal Perkins Loan by filling out a Free Application for Student Aid (FAFSA)[?]

Subsidized Loan

What is it?

The Federal Subsidized Stafford Loan is a type of federally funded loan. It has an interest rate that is adjusted annually on July 1 and is capped at 8.25%, although interest does not accrue and repayment is deferred while the student is enrolled at least half-time[?]. Interest does not accrue and repayment is deferred during a six month grace period after the student finishes attending as well. This interest subsidy during the 6 month grace period will be temporarily eliminated for any new loans first disbursed on/after July 1, 2012, and before July 1, 2014. This means interest will now accrue during these 6 months. The Subsidized Loan has limited deferment/cancellation provisions and a 1.072% origination fee.

Click here for more information on interest rates. 

Direct Subsidized Loan Time Limitation

Effective July 1, 2013, first-time and new Federal Direct Subsidized Loan borrowers are limited in the amount of time they qualify for an interest subsidy.  Students who have exceeded 150 percent of the published length of their current educational program will be:

  • Ineligible for additional Federal Direct Subsidized Loans (though you may borrow a Federal Direct Unsubsidized Loan)
  • Responsible for interest on all loans accruing after exceeding the 150 percent limit.

New borrowers are defined as students with no outstanding federal loan principal balance when they take out a new loan after July 1, 2013. Transferring between programs does not reset loan eligibility.  Interest not paid will be capitalized, effectively increasing your loan principal upon repayment.

Combined Borrowing Maximums for Subsidized and Unsubsidized Direct Loans

Undergraduate Students

 

Dependent Undergraduates

Additional Unsubsidized Loan for Dependent Undergraduates

Additional Unsubsidized Loan for Independent Undergraduates

First Year (0-24 credits)

$3,500

$2,000 ($5,500 total)

$6,000 ($9,500 total)

Second Year (25—54 credits)

$4,500

$2,000 ($6,500 total)

$6,000 ($10,500 total)

Third Year + (55+ credits)

$5,500

$2,000 ($7,500 total)

$7,000 ($12,500 total)

Preparatory Coursework
(for a graduate program)

$5,500  

$7,000 ($12,500 total)

Teacher Certification

$5,00  

$7,000 ($12,500 total)

Total Loan Debit Limit:

 

$31,000 (only $23,000 can be Subsidized Loan)

$57,500 (only $23,000 can be Subsidized Loan

Combined Borrowing Maximums for Unsubsidized Direct Loans

 Graduate Students

 

$20,500* each academic year
As of July 1, 2012 graduate students are no longer eligible for Subsidized Loan.

Total Loan Debit Limit:

$138,500 (only $65,500 can be Subsidized Loan); limit includes Direct Loans received as an undergraduate.

Am I eligible?

The Federal Subsidized Stafford Loan is need-based[?] and requires that the student be a U.S. Citizen or eligible non-citizen[?]. Students must be enrolled at least half-time[?] in a degree or certificate program and, after July 1, 2012, graduate students are no longer eligible for subsidized loans. 

How do I apply?

Students may apply for the Federal Subsidized Loan by filling out a Free Application for Student Aid (FAFSA)[?]

Unsubsidized Loan

What is it?

The Federal Unsubsidized Stafford Loan is a type of federally funded loan. It has an interest rate that is adjusted annually on July 1 and is capped at 8.25%, and interest accrues immediately. Repayment is deferred during a six month grace period after the student finishes attending. The Unsubsidized Loan has limited deferment/cancellation provisions and a 1.072% origination fee.

Click here for more information on interest rates.

Combined Borrowing Maximums for Subsidized and Unsubsidized Direct Loans

 

 

Dependent Undergraduates

Additional Unsubsidized Loan for Dependent Undergraduates

Additional Unsubsidized Loan for Independent Undergraduates

First Year (0-24 credits)

$3,500

$2,000 ($5,500 total)

$6,000 ($9,500 total)

Second Year (25—54 credits)

$4,500

$2,000 ($6,500 total)

$6,000 ($10,500 total)

Third Year + (55+ credits)

$5,500

$2,000 ($7,500 total)

$7,000 ($12,500 total)

Preparatory Coursework
(for a graduate program)

$5,500

 

$7,000 ($12,500 total)

Teacher Certification

$5,500

 

$7,000 ($12,500 total)

Total Loan Debit Limit:

 

$31,000 (only $23,000 can be Subsidized Loan)

$57,500 (only $23,000 can be Subsidized Loan)

Am I eligible?

The Federal Subsidized Stafford Loan is not need-based[?]. It requires that the student be a U.S. Citizen or eligible non-citizen[?]. Students must be enrolled at least half-time[?] in a degree or certificate program. It is offered only to undergraduate students.

How do I apply?

Students may apply for the Federal Unsubsidized Loan by filling out a Free Application for Student Aid (FAFSA)[?]

Parent PLUS Loan

What is it?

The Federal Parent PLUS Loan is a type of federally funded loan that has an interest rate adjusted annually on July 1 that is capped at 9.5%. The parent borrows on behalf of their dependent student. Repayment of principal and interest begins 60 days after the loan is disbursed. The parent is eligible for deferment of these payments if the student is attending classes at least half-time[?]. The loan carries a 4.288% origination fee.

Click here for more information on interest rates.

Am I eligible?

The Federal Parent PLUS Loan is not need-based[?]. It requires that the student be a U.S. Citizen or eligible non-citizen[?]. Students must be enrolled at least half-time[?] in a degree or certificate program. It is only offered to undergraduate students and the parent of the student must meet credit-worthiness standards based on a credit check.

How do I apply?

Students must first fill out a Free Application for Student Aid (FAFSA)[?]. A supplemental application must then be completed. Click here to fill out the Parent PLUS Loan application. 

What happens if I am denied?

If a parent is denied, there are multiple options for additional loan funding

  • Seek a credit appeal by demonstrating that the credit check was incorrect or corrected. After logging into studentloans.gov, select "Document Extenuating Circumstances" to submit a credit appeal.
  • Acquire an endorser. The endorser is somebody who will pass the credit check and agrees to pay the borrower's debt if the borrower is unable to. The endorser must log into studentloans.gov and select "Endorse Direct PLUS Loan" to endorse the loan.
  • File a new application. Any other parent or step-parent is eligible to file a Parent PLUS Loan application.
  • Accept more loans. If the above options are not pursued, the student will automatically receive up to $4,000 (underclassmen) or $5,000 (upperclassmen) in unsubsidized loan funding.

What's next?

Parents who accept Parent PLUS Loan funding must also fill out a specialized Master Promissory Note by logging into studentloans.gov, selecting "Complete Master Promissory Note", and choosing the Parent PLUS option.

Graduate PLUS Loan

What is it?

The Federal Graduate PLUS Loan is a type of federally funded loan that has an interest rate adjusted annually on July 1 that is capped at 10.5%. Repayment of principal and interest begins 60 days after the loan is disbursed. The student is eligible for deferment of these payments if attending classes at least half-time[?]. The loan carries a 4.288% origination fee. Click here for more information on these loans.

Click here for more information on interest rates.

Am I eligible?

The Federal Graduate PLUS Loan is not need-based[?]. It requires that the student be a U.S. Citizen or eligible non-citizen[?]. Students must be enrolled at least half-time[?] in a degree or certificate program. It is only offered to graduate students that must meet credit-worthiness standards based on a credit check.

How do I apply?

Students must first fill out a Free Application for Student Aid (FAFSA)[?]. A supplemental application must then be completed. Click here to fill out the Graduate PLUS Loan application. 

What happens if I am denied?

If a student is denied, there are multiple options for additional loan funding

  • Seek a credit appeal by demonstrating that the credit check was incorrect or corrected. After logging into studentloans.gov, select "Document Extenuating Circumstances" to submit a credit appeal.
  • Acquire an endorser. The endorser is somebody who will pass the credit check and agrees to pay the borrower's debt if the borrower is unable to. The endorser must log into studentloans.gov and select "Endorse Direct PLUS Loan" to endorse the loan.

What's next?

Students who accept Graduate PLUS Loan funding must also fill out a specialized Master Promissory Note by logging into studentloans.gov, selecting "Complete Master Promissory Note", and choosing the Graduate PLUS option.

Alternative Loans

Alternative or Private Students loans are available to students via lenders outside of the guaranteed student loans available from the federal government. It is recommended that any student access their yearly federal loan borrowing limit before considering an alternative loan.

It is the responsibility of the student to select a borrower, complete the application process and credit check, and to make sure that the approved loan funds reach the school in order to pay for any outstanding balance.

The Office of Financial Aid cannot provide any guidance in selecting a lender. We recommend that you review many alternative loan lenders and research their policies and loan terms to decide which lender is best for you. We will process an alternative loan with the lender of your choice. 

 

Emergency Loans

Emergency loans are made available to currently enrolled students with temporary financial problems.
(guidelines)

  • Students must have a 2.0 cumulative GPA and be in good Satisfactory Academic Progress(SAP).

  • Student must be enrolled in the semester for which the loan is to be paid.

  • Repayment is expected within 30 days.

  • A maximum of three (3) emergency loans will be granted while attending UM-Flint.

  • The maximum amount a student may borrow in any semester is $500. The minimum request is $25

  • Emergency Loans which meet the following criteria should be accompanied by adequate documentation of the circumstances and applicants must show resources sufficient to repay the amount of the loan requested.

  • Loans intended to pay a debt to a particular company (or individual); the check will be made payable to the company.

  • Recipients must demonstrate financial need. Types of emergency situations for which these loans may be granted are:

    • housing evictions

    • utility shut-offs

    • transportation repairs

    • child care

    • medical/dental emergencies

  • Approval of these loans is at the discretion of the Emergency Loan Committee.