Loan programs

Federal Direct Unsubsidized loan

Federal Direct Unsubsidized loans are the most common forms of education funding as well as being one of the lowest in cost.

• Interest rate is fixed.
• Available to students attending at least half time.
• Loan fee deducted prior to disbursement.
• Repayment delayed while in school.

The interest rate for a loan, once established, will apply for the life of the loan.

• Loans first disbursed 7/1/2023 - 6/30/2024 will have a fixed interest rate of 7.05%.
• Loans first disbursed 7/1/2024 - 6/30/2025 will have a fixed interest rate of 8.083%.
• The loan fee for loans first disbursed on or after 10/1/2020 and before 10/1/2024 is 1.057%.

First-time Federal Direct loan borrowers must complete the following requirements:

• Entrance loan counseling
• Master promissory note

Entrance loan counseling and the master promissory note are located online at studentaid.gov. Select "Wayne State University" as your school and not Wayne State University School of Medicine.

The annual Federal Direct Unsubsidized Loan maximum is based on the length of the academic year.

The aggregate loan limit, including all undergraduate and graduate loans, is $224,000.

Federal Direct Grad PLUS loan

The WSU Office of Student Financial Aid includes federal Unsubsidized Loans in financial aid award offers but does not automatically include Grad PLUS Loans. A graduate student may apply for a Federal PLUS loan to assist with educational expenses.

• You must have a FAFSA on file with Wayne State University.
• You must be enrolled at least half-time at the time of disbursement and meet the federal student eligibility requirements for financial aid.

A credit check will be performed by the U.S. Department of Education is part of your application process. You must not have an adverse credit history. If you have an adverse credit history, you may still be able to receive a PLUS loan if you meet additional requirements.

Interest rate and loan fee

• Loans first disbursed 7/1/2023 - 6/30/2024 will have a fixed interest rate of 8.05%.
• Loans first disbursed 7/1/2024 - 6/30/2025 will have a fixed interest rate of 9.083%.
• The loan fee for loans first disbursed on or after 10/1/2020 and before 10/1/2024 is 4.228%.

How to apply for a PLUS loan

You need to complete the Graduate PLUS Loan application every time you want to borrow:

• Login at studentaid.gov with your FSA ID to start the online application.
• Select "Wayne State University" as your school

Only new borrowers also need to complete the following:

Direct Graduate PLUS Entrance Loan Counseling
Direct Graduate PLUS Loan Master Promissory Note (MPN)

Loan limits: You may borrow up to your full Cost of Attendance, minus all other financial aid (including Federal Direct Unsubsidized Loans, Federal Work-Study awards, and grants and scholarships.) If additional financial aid is awarded after your loan amounts are calculated, your loan amounts will be reviewed, and if necessary, they will be decreased.

Loan revisions

• To increase or decrease an existing Direct Unsubsidized Loan award: Loan Revision Form
• To decrease an existing Direct Grad PLUS Loan: Loan Revision Form
• To increase a Grad PLUS Loan, complete a new application on studentaid.gov.

Loans for Disadvantaged Students Program (LDS)

The federal government offers a long-term, low interest loan to students who are enrolled full-time in the MD program and come from a disadvantaged background as defined by the U.S. Department of Health and Human Services.

The U.S. Department of Health and Human Services' defines a disadvantaged background as coming from a family with an annual income below a level of income threshold according to family size published by the U.S. Bureau of Census, adjusted annually for changes in the Consumer Price Index, and adjusted by the Secretary, HHS, for use in health professions programs.

The Office of Student Financial Aid (OSFA) will consider all students who meet the eligibility criteria and who have provided parental information on the FAFSA. Amount and number of awards are based on availability of funds. The loan interest rate is five percent (5%). Loan interest begins to accrue at the time repayment begins. Loan repayment begins one year after the borrower is no longer enrolled full-time in the MD program. Repayment may be deferred until completion of residency training.

H-18 LDS Disclosure Form

Alternative (Private) loan

Alternative loans are credit-based loans borrowed through private lenders. Generally, borrowers with better credit histories receive better loan terms. You may borrow up to the cost of attendance, less other aid.

Alternative loans generally have higher interest rates and fewer repayment options than federal loans. To apply for federal grants and loans, complete the FAFSA.

Learn more about the advantages of federal loans.

Lender options

Lenders that offer alternative/private student loans  have varying interest rates and terms available.

Be aware that there are two possible scenarios: 

• Some lenders will require payment while you are in school 
• Other lenders will let you defer payment, with interest accruing and being added to your balance 

Compare lenders

ELM Select Loan Comparison Tool

You have the right to borrow from any lender; Wayne State University has no financial interest in a student's choice of lender. You should compare alternative loan lenders to determine which lender best meets your needs. You may use the ELM Select Loan Comparison Tool to compare lender terms, rates and repayment options.

The ELM Select Loan Comparison Tool includes lenders who provided 10 or more loans to Wayne State University students for the 2022 calendar year. This list does not imply endorsement, is reviewed periodically and can be changed at any time.

Residency/Relocation Loans are private loans that are intended to cover expenses associated with residency interviewing and/or relocation above the standard allowance in the M4 Cost of Attendance. They may have a fixed interest rate or a variable interest rate and require credit approval. The interest rate will be based on your credit history and other factors including your cosigner's (if any) credit history. The borrower initiates the application process with the lender; the lender disburses funds directly to the borrower.

Federal Loan Consolidation

Federal consolidation loans allow you to combine existing federal student loans into one new loan with a weighted-average interest rate. Loan consolidation reduces the number of monthly payments to individual lenders/servicers and may also lower monthly payment amounts. More information about online: Federal Direct Loan Consolidation.

Canadian Student Loan Programs

Canadian students do not qualify for U.S. Department of Education federal student assistance programs, but can apply for federal and provincial loans through the Government of Canada. Those with a U.S. co-borrower may also apply for private/alternative loans with participating U.S. lenders.