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Students are required to be enrolled at least half-time to be eligible for federal student loans. - Minimum half-time enrollment for undergraduates is six (6) credits
- Minimum half-time enrollment for graduate students is four (4) credits
Interest rate for Subsidized Direct Loans is a fixed 5.6% for 2009-10 for undergraduates.
Interest rate for Unsubsidized Direct Loans is a fixed 6.8% for 2009-10 undergraduates and graduate students.
Interest rate for Subsidized Direct Loans is a fixed 6.8% for 2009-10 for graduate students.
Loan Acceptance and Processing Tips: - All students must accept their loans before the loan can be applied to your account.
- The easiest way to accept your loan is online at the UM-Dearborn Connect (you can use the drop down menu on the Quick Links
- Enter the Secure Area
- Enter your 8-digit UMID and PIN (your 6-digit birthdate-if you haven't changed it)
- Select Financial Aid
- Select Financial Aid Status
- Select the Aid Year 2009-10
- Select Awarded
- Select the tab to view the information you would like to review "Award Overview", "Resources/Additional Information", "Accept Award Offer"
- If you wish to accept all awards offered in their full amounts, select "Accept Full Amount Awards"
- After you have made your decision, click on "Submit Decision"
- One semester loans cannot be accepted online--use a Student Decision Form
First time borrowers in the Direct Loan Program must complete loan counseling online and a Master Promissory Note (MPN)
You can complete the loan counseling even before accepting the loan.
You complete Entrance/Exit Counseling online using your FAFSA PIN.
http://www.dlssonline.com/exitcounseling/ecec-main.asp
You must wait at least three business days after accepting your loan online to complete your Master Promissory Note online to allow an adequate amount of time for your loan record to be created. You will complete your MPN by using your FAFSA PIN.
Complete Direct Loan Master Promissory Note online
https://dlenote.ed.gov/empn/index.jsp
Subsidized Loan versus Unsubsidized Loan
Similarities - Must complete the FAFSA
- Repayment of principal and interest begins after graduation, less than half-time enrollment or withdrawal from school
- Following separation from school, a one-time six month grace period without payment follows separation from school
- No credit check or cosigner required
- No prepayment penalty
Differences - Unsubsidized loans have interest that accrues while the student is in school. While payment is not required when the student is in school or in a grace period, the OFA encourages students to pay part or all of the quarterly charge. When a student does not elect to pay quarterly interest, it capitalizes (is added to loan principal.)
- Subsidized loans do not accrue interest while the student is in school or in a grace period. If a student elected to pay the entire amount borrowed while in school, he would only pay loan principal.
- Subsidized loans require that a student demonstrate need for the amount borrowed.
- Unsubsidized loans are more flexible: loans, gift aid and resources must be equal to or less than the cost of attendance.
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