#subsidized student loans
Direct Subsidized and Unsubsidized Loans (also called Stafford Loans) are part of the Federal Direct Loan Program, which are offered through the U.S. Department of Education. Students are considered for these when they apply for financial aid by completing the FAFSA (Free Application for Federal Student Aid). You will be required to complete Direct Loan Program requirements in order to receive any Direct Loan funds
If you are an eligible undergraduate awarded a Subsidized Direct Loan or a graduate or professional student awarded an Unsubsidized Direct Loan, it will appear on your financial aid Award Notice. (Some undergraduate students may not receive Unsubsidized Direct Loans in their initial financial aid package. See our Smart Borrowing page for information).
Families who are not eligible for Direct Loans or who need additional resources to cover college costs may want to apply separately for a supplemental loan through the federal government or a private lender. Alternatively, the U-M Payment Plan helps some families avoid borrowing supplemental funds.