How to Pay for the University of Michigan: Aid and Student Loan Options

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The University of Michigan is a top-ranked research institution. Becoming a Wolverine is an accomplishment, but it won’t be easy on your bank account. The cost of attendance at the university was estimated at $47,476 for nonresident freshmen and sophomores for the 2017-18 school year.

Finding the money to attend the University of Michigan may seem impossible, but it’s not. There are many options available to help you afford the cost. For example, the university estimates that 2 out of 3 undergraduate students receive financial aid.

If you’re serious about attending the University of Michigan, here are some options to help you pay for it.

Fill out the Free Application for Federal Student Aid (FAFSA)

Before you do anything related to paying for college, fill out the FAFSA. This form compiles your financial information and sends it to the schools you designate. Each school’s financial aid office will then use that information to determine the aid you qualify for.

The FAFSA is critical in determining what your federal financial aid package will look like. Here are some options you might see in your financial aid package after you fill out the FAFSA.

Federal grants

Depending on certain factors, you could qualify for federal grants. Like scholarships, grants are free money you don’t need to repay.

Pell Grants, for example, typically are awarded to undergraduate students who demonstrate financial need. The maximum award for the 2018-19 school year is $6,095.

Federal student loans

There are two federal student loan programs:

  • The William D. Ford Federal Direct Loan Program: Under this program, your lender is the U.S. Department of Education. Direct Loans can be subsidized or unsubsidized.
  • The Federal Perkins Loan Program: Under this program, your lender is your school.

Depending on certain factors, undergraduate students can borrow up to $5,500 per year in Perkins Loans and between $5,500 and $12,500 per year in Direct Loans. Graduate students can borrow up to $8,000 per year in Perkins Loans and up to $20,500 a year in Direct Unsubsidized Loans, also depending on certain factors.

Federal Work-Study

In some cases, you might be able to participate in the Federal Work-Study Program. Through this program, you can get a part-time job to help you offset the cost of your education.

Parent PLUS Loans

Your parents may be able to take out federal Parent PLUS Loans to help you afford college. They can apply online. The interest rate for the 2018-19 school year is 7.60%.

Scholarships from the University of Michigan

Your application for admission to the University of Michigan also will be your application for a variety of scholarships at the school, including those issued by individual departments. However, you also should complete the CSS Profile if you want to be considered for need-based aid from the school.

Some scholarships at the school require additional information. The university suggests you complete the My Scholarship Profile in the Wolverine Access student portal.

Outside grants and scholarships

Don’t limit yourself to scholarships from the University of Michigan. There are many other local and national scholarships and grants you can apply for to help cover the cost of your education.

Finding them might require some research, but it’s worth the effort.

First, take a look at our ultimate guide to state grants to see if you qualify for any of the Michigan grants listed. Then, set aside some time to find scholarships through sites such as Scholly and Scholarships.com. Make sure to look for aid from community sources too.

Private student loans

If you don’t have enough money to attend the University of Michigan after exhausting your federal financial aid and other funding options, the next step is to consider private student loans.

When you apply for a private student loan, you must meet your lender’s credit and income requirements. If you have bad or unestablished credit, you might not qualify for a private student loan. Look for lenders that allow cosigners so your parents can help you get approved.

As you evaluate your private student loan options, compare interest rates, terms, and fees. Some lenders charge prepayment penalties or origination fees, for example.

Before you borrow money, it could be helpful to estimate your monthly payments with our student loan payment calculator.

Paying for the University of Michigan

It might be frustrating to piece together the funds you need to attend the University of Michigan, but if you plan properly, the financial picture will come together.

One helpful step is to estimate your cost of attendance using the University of Michigan’s net price calculator. It will give you a rough estimate of how much you can expect to pay for your education. Afterward, you can create a to-do list and start finding funding. For example, you can schedule time to fill out the FAFSA and research scholarships.

Figuring out how to pay for school can be difficult. But by knowing your funding options and taking the time to apply for scholarships and grants, you may be able to reduce the cost.

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.