Academic Programs Catalog

Undergraduate Education

Student Loans


University Short-Term Loan Program

The Short–Term Loan Program at Michigan State University is designed to help students meet emergency situations and should not be regarded as a means of financing a college education.

 


Federal Subsidized Stafford (Direct) Loan

The Federal Subsidized Stafford (Direct) Loan is based on demonstrated need. While the student is enrolled at least half time, payment on the principle is deferred and the federal government pays interest.  Interest will begin to accrue when a borrower enters repayment. Interest rates vary annually. The rate for 2018-19 is 5.045%.

Completion of the Free Application for Federal Student Aid (FAFSA) is required for participation in the Federal Subsidized Stafford (Direct) Loan Program.

Annual maximums for subsidized Federal Stafford (Direct) Loans are:

Freshman $3,500
Sophomore $4,500
Junior/Senior $5,500
 


Federal Unsubsidized Stafford (Direct) Loan

The Federal Unsubsidized Stafford (Direct) Loan is not based on need. Payment on the principal is deferred while the student borrower is enrolled at least half time. Interest is paid by the student borrower through quarterly payments, or if a student desires it can be added daily to the principal, to be repaid when the student ceases to be enrolled. Interest rates vary annually. The rate for 2018-19 is 5.045%.

Completion of the FAFSA is required for participation in the Federal Unsubsidized Stafford (Direct) Loan program.

Annual maximums for the Unsubsidized Stafford (Direct) Loans are:

Dependent Freshman $5,500
Dependent Sophomore $6,500
Dependent Junior/Senior $7,500
Independent Freshman $9,500
Independent Sophomore $10,500
Independent Junior/Senior  $12,500

Note that the maximums include both subsidized and unsubsidized
loans. For example, an independent freshman who receives a $3,500
subsidized loan can borrow no more than $6,000 in unsubsidized loan.

Lifetime loan limits for all Stafford Subsidized and Unsubsidized (Direct) Loans are:

Dependent undergraduate $31,000
Independent undergraduate $57,500


Federal Direct PLUS Loan

The Federal Direct PLUS Loan Program is for parents of dependent undergraduate students. A credit check is required and will be conducted by the loan servicer. The maximum amount that can be borrowed is the lesser of the cost of education or the difference between the cost of education and any outside resources and/or financial aid received. Interest rates vary annually. The rate for 2018-19 is 7.595%. Repayment begins 60 days after the loan is fully disbursed. Completion of the FAFSA is required for participation in the Direct PLUS Program.