MD Program Loans & Eligibility
At the University of Michigan Medical School, students have access to many institutional and federal loan programs. Loans available to medical school students vary in maximum amounts allowed, interest rates and repayment terms.
Private loans are also an option for students, though these are not administered through the Financial Aid Office.
Types of Loans
Federal
- Non-need-based
- Requires at least half-time enrollment
- Master Promissory Note & Loan Entrance Counseling required before first disbursement
- Exit Counseling is required when students graduate or drop below half-time
- Loan is unsubsidized which means the loan accrues interest while the student is in school and during deferments and grace periods
- Federal Direct Loans have origination fees which are deducted from the total amount you borrow
- For current interest rates, loan origination fees and repayment plan options, please visit the Federal Student Aid website
Starting July 1, 2026, UMMS medical students are eligible to borrow from the Federal Direct Loan Program at the following amounts:
Students matriculating Fall 2026 or later:
$50,000 per year with an aggregate limit of $200,000
Lifetime limit of $257,500
Aggregate limit includes graduate/professional loans only.
Lifetime limit of $257,500 includes undergraduate, graduate and professional loans.
Students who have matriculated prior to Fall 2026 are eligible for the limited exception rule which includes borrowing at the following limits:
M2 and M3 students: $47,167/year
M4 students: $40,500/year
Grad PLUS loan eligibility up to COA
Aggregate limit for Federal Direct Unsubsidized Loans is $224,000
No limit on Graduate PLUS loans; loans are capped at COA each year.
*Students who have taken an LOA or have otherwise ceased enrollment prior to July 1, 2026 may be considered a “new” borrower and no longer qualify for the limited exception. In this case, prior borrowing counts toward the lifetime limit of $257,500 in effect for new borrowers. Please contact the financial aid office if you have questions about your specific eligibility.
As of July 1, 2026, Grad PLUS loans are only available to current students that qualify for the limited exception. To determine if you qualify for the limited exception rule, please visit studentaid.gov or check with the Financial Aid Office.
- Long-term 5% federal loan that is offered to students from disadvantaged backgrounds, as defined by the U.S. Department of Health and Human Services
- Eligibility is based on student and parent financial information
- Repayment begins one year after student is no longer enrolled full-time
Payments can be deferred during residency training
The LDS loan is managed by the university and our loan servicing partner ECSI
Other Loans
- Need-based, long-term institutional loan offered on a case-by-case basis
- 5% interest rate
- Interest does not accrue until repayment begins
- Payments can be deferred during residency
- U-M Institutional loans are managed by the university and our loan servicing partner, ECSI
- Please contact the UMMS Financial Aid Office for eligibility requirements
Depending on your circumstances, you may be interested in borrowing a private or alternative student loan from a bank or other lending institution. Terms and conditions of private loans vary per lender, so it’s important to research the best option for you based on your specific financial situation.
Private student loans are applied for directly through the bank or lending institution of your choice. Applications are certified by the university’s Financial Aid Office once the application is received from the lender.
To browse a selection of lenders, please visit the UMMS Fast Choice website. Students are welcome to use any lender of their choice.
The university adheres to a Code of Conduct for Student Loans that prohibits inducements or incentives by private lenders.
Get more information about private loans.
Our graduates' average medical school debt load is more than $30,000 below the mean when compared with debt load for all medical school graduates.
Eligibility
Special requirements for aid consideration will vary depending on the program. Most programs, however, will want documentation of the following basic information across the board. We’re here to help you prepare or find resources to fulfill any of these items, so just let us know!
In order to be eligible to receive financial aid of any type, you will likely be asked to demonstrate the following:
- Financial need (with exceptions for some loans and some scholarship programs)
- Admission or enrollment at least halftime as a student working toward a degree or a certificate. Note: You may apply for aid even if you have not yet been accepted or enrolled in order to meet application deadlines.
- U.S. citizenship, permanent resident or eligible non-U.S. citizen status. Federal regulations and University policy severely limit the types of financial assistance available to non-U.S. citizens.
- Valid Social Security Number
- Understanding that federal student aid is for educational purposes only
- That you don’t owe a refund on a federal grant, and you’re not in default on any federal educational loan
- Satisfactory academic progress (continuing students only)
Eligibility for need-based assistance is determined by the Federal Methodology formula:
Budget – Family Contribution (student + parent) = Eligibility for Assistance.
Need-based aid includes grants, some scholarships and some loans.
The Admissions Committee assesses merit-based aid, and this is awarded based on a student’s outstanding achievements and potential. Roughly one-third of entering students receive some type of scholarship support.
