Loans

Loans

Paying for college is a big investment in your future. And with the tenth-highest starting salaries among public universities in the country, our students understand the value of a Michigan Tech education. When it comes to financing your education, there are many different options.

Loans are borrowed money which must be repaid. They are available to most US citizens and permanent residents. Each loan program has certain maximum limits for borrowing; however, students may not borrow more than the cost of attendance.

Accepted students are automatically considered for loans if their FAFSA results are released to Michigan Tech and they have indicated on the FAFSA an interest in receiving loans. Students must apply for loan renewal each year by re-filing the FAFSA and making progress in obtaining their degree according to the satisfactory progress policy.

Federal Direct Loans

There are two types of Federal Direct Loans. Students may have eligibility for both subsidized and unsubsidized Direct Loans.

  • The subsidized loan is based on financial need, and the federal government pays the interest on the loan while the student is enrolled at least half time, during the six-month grace period, and during periods of deferment.
  • The unsubsidized loan is not need-based, and the student must pay the interest during periods of enrollment and/or deferment. However, the student may choose to allow the interest to capitalize.

Criteria: enrolled at least half time; meeting the Satisfactory Progress Policy requirements.

Amount: a dependent student may borrow up to $5,500 per academic year as a freshman, $6,500 per academic year as a sophomore, and $7,500 per academic year as a junior or senior; the cumulative maximum is $31,000. An independent student may borrow up to $9,500 per academic year as a freshman, $10,500 per academic year as a sophomore, and $12,500 per academic year as a junior or senior; the cumulative maximum is $57,500.

Interest: varies annually

Repayment: of principal begins six months after the student graduates, leaves school, or drops below half-time enrollment.

Other: More information about Direct Loan Entrance and Exit Counseling.

Federal Perkins Loans

Criteria: exceptional financial need; enrolled at least half time; meeting the Satisfactory Progress Policy requirements.

Amount: up to $4,000 for each year of undergraduate study; the cumulative maximum is $20,000.

Interest: 5 percent; does not accumulate until repayment period begins. Nine-month grace period; up to ten years to repay. No interest on repayment as long as the borrower is enrolled in at least half-time study. Deferment or repayment is permitted for certain kinds of federal or volunteer service.

Other: for additional information on Perkins loans please visit Accounting Services.

TECHAID Student Loans

Criteria: financial need; enrolled at least half time.

Amount: variable.

Interest: 5 percent; does not accumulate until repayment period begins. Six-month grace period; up to five years to repay.

Other: for additional information on TechAid loans please visit Accounting Services.

Federal Direct PLUS (Parent) Loans

Criteria: available to parents with good credit histories to pay the educational costs of their dependent students enrolled at least half time and meeting the Satisfactory Progress Policy requirements.

Amount: variable up to cost of attendance.

Interest: fixed at 7.9 percent.

Repayment: varies depending on plan. See the Federal Direct PLUS (Parent) Loans page for more details.

Other: obtain application from the Financial Aid Office or print one from the above link.

Alternative Student Loans Criteria

Available to parents and students through private lending agencies. Requirements and criteria vary greatly.

Amount: variable up to cost of attendance.

Interest: variable.

Repayment: varies.

Other: see the Financial Aid page for a list of vendors and more information.