At the University of Michigan Medical School, students have access to many institutional and federal loan programs. Loans available to medical school students vary in maximum amounts allowed, interest rates and repayment terms.

Private loans are also an option for students, though these are not administered through the Financial Aid Office.

Find more details on financial aid eligibility.

Overview of Federal Programs

Financial information submitted on the FAFSA is used to determine eligibility for all federal loan programs.

Some important details about major federal loans:

Loans for Disadvantaged Students (LDS)

  • Long-term 5 percent federal loan that is offered to students from disadvantaged backgrounds, as defined by the U.S. Department of Health and Human Services.
  • Eligibility is based on expected family contribution (EFC).
  • Repayment begins one year after student is no longer enrolled full-time.
  • Repayment is deferrable throughout residency training.

Federal Direct Unsubsidized Loans

These are low-interest loans available from the U.S. Department of Education and administered by our office.

William D. Ford Federal Direct Unsubsidized Stafford Loan

  • Annual maximum loan amount of $47,167 per year, as determined by school.
  • Fixed interest rate of 6.54 percent for academic year 2022-2023.
  • Interest accrues continuously from the date of disbursement and is payable quarterly.
  • Approximately 1 percent origination fee is deducted before award is disbursed (fee subject to change).

Get more information on Federal Direct Stafford Loans, including repayment options.

William D. Ford Federal Direct GradPLUS Loan

  • Students may borrow up to the cost of attendance, minus any other financial aid received.
  • Borrowers must pass a basic credit check each time a PLUS loan application is processed.
  • Repayment begins 60 days after the date the loan is fully disbursed.
  • Deferment is available to students enrolled at an eligible school on at least a half-time basis.
  • Fixed interest rate at 7.54 percent for academic year 2022-2023.
  • Interest accrues continuously from the date the loan is disbursed.
  • Approximately 4 percent origination fee deducted before award is disbursed (fee subject to change).
  • Additional form required to process.

Get more information on Graduate Student PLUS Loans, including repayment options.

Master Promissory Notes

Both Direct Loan options require students to complete and sign a Master Promissory Note (MPN) before any funds are disbursed.

Get detailed directions on how to complete a Master Promissory Note.

University of Michigan Loan

  • Need-based, long-term institutional loan.
  • 5 percent interest rate.
  • Eligibility is based on expected family contribution (EFC).
  • Loan is due in full one year after graduation. A payment plan may be negotiated with Student Loan Collections.
  • Interest does not accrue until repayment begins.

Private Educational Loans

Depending on your circumstances, you may be interested in borrowing private student loans from banks and other lenders. These loans are not applied for through our office.

We encourage all students considering this option to consult with their financial aid officer, and then thoroughly research any potential lending institution.

Get more information about private loans.

Our graduates' average medical school debt load is more than $40,000 below the mean when compared with debt load for all medical school graduates.

AAMC Medical Student Education: 2021 Debt Costs and Loan Repayment Fact Card