Wednesday, April 23, 2014
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Student Financial Aid

2012-2013 Financial Aid Award Guide

Federal Loan Programs

Perkins Loan

Students who demonstrate significant financial need and meet UM’s Priority Deadline will be considered for Federal Perkins Loans. Perkins Loan funds are limited. If you accept a Perkins Loan Award, you will need to complete the Perkins Loan Promissory Note located under the "My Documents" tab on your financial aid awards page.

The Perkins Loan is interest free while you are enrolled in school at least half-time in a degree-granting program. The interest rate during repayment is fixed at 5%. Repayment begins 9 months after you cease to be enrolled at least half-time. The maximum repayment period for this loan is 10 years.

Direct Loan Programs

Direct Loans are available to students who meet federal aid eligibility requirements, submit a FAFSA, and enroll as degree-seeking students for at least 6 credits per semester. Students who demonstrate financial need may be eligible to borrow Subsidized Direct Loans; students who do not demonstrate financial need may be eligible to borrow Unsubsidized Direct loans.

Subsidized Direct Loan Terms

For 2012-2013, the interest rate for Direct Subsidized Loans for undergraduates will be 6.8%. The government pays the interest until you enter repayment. Repayment begins 30 days after the grace period expires, which is 6 months after the borrower leaves school or drops below half-time. Graduate students are no longer eligible for subsidized loans on or after July 1, 2012.

Unsubsidized Direct Loan Terms

As of July 1, 2006, the interest rate is fixed at 6.8%. You are responsible for the interest from the date of disbursement. The interest payments can be deferred while you are in school. Repayment begins 45 days after expiration of the six month grace period. You may request to begin repayment of the interest 45 days after the last disbursement.

Direct Loan Borrowing Limits

Annual Borrowing Limits for Dependent Students (and Undergraduate Students whose parents were not denied a PLUS loan):

Grade Level Combined Base Limit for Subsidized and Unsubsidized Loans Additional Limit for Unsubsidized Loans Total Limit for Unsubsidized Loans (minus subsidized amounts)
First-Year Undergraduate (Freshman) $3,500 $2,000 $5,500
Second-Year Undergraduate (Sophomore) $4,500 $2,000 $6,500
Third-Year and Beyond Undergraduate (Junior, Senior) $5,500 $2,000 $7,500


Annual Borrowing Limits for Independent Students (and dependent students whose parents were denied a PLUS loan):

Grade Level Combined Base Limit for Subsidized and Unsubsidized Loans Additional Limit for Unsubsidized Loans Total Limit for Unsubsidized Loans (minus subsidized amounts)
First-Year Undergraduate (Freshman) $3,500 $6,000 $9,500
Second-Year Undergraduate (Sophomore) $4,500 $6,000 $10,500
Third-Year and Beyond Undergraduate (Junior, Senior) $5,500 $7,000 $12,500
Graduate or Professional $0 $20,500 $20,500


Lifetime Borrowing Limits:

Grade Level Combined Base Limit for Subsidized and Unsubsidized Loans Additional Limit for Unsubsidized Loans Total Limit for Unsubsidized Loans (minus subsidized amounts)
Dependent Undergraduate Students (whose parents were not denied a PLUS loan) $23,000 $8,000 $31,000
Independent Undergraduate Students (and dependent students whose parents were denied a PLUS loan) $23,000 $34,500 $57,500
Graduate or Professional $65,000 $57,500 $138,500

*Aggregate limits for graduate students include loans borrowed as an undergraduate student.



Direct Parent Loan for Undergraduate Students (PLUS)

Parents of dependent students who have a valid FAFSA on file and who are enrolled at least half-time may apply for the Direct PLUS loan. This loan may be used to cover your expected Family Contribution (EFC) and parents may borrow up to the full cost of education minus all other financial aid. Please note: Direct Plus loan applications are subject to a DOE credit review.

As of July 1, 2006, the interest rate is fixed at 7.9%. The borrower is responsible for the interest from ten days after the date of disbursement. Repayment begins 60 days after the full amount borrowed is disbursed. This means that the PLUS borrower will begin repayment while their student is still enrolled. For Direct PLUS loans with a first disbursement date that is on or after July 1, 2008, the borrower may request that repayment be delayed while the student is enrolled at least half-time and during the 6 month period after the student graduates or is no longer enrolled at last half-time. If the borrower would like to postpone repayment of the PLUS loan, contact the Direct Loan Servicing Center at 1-800-848-0979 (TTY 1-800-848-0983).