Repayment
Borrowers are responsible to repay their loan(s) according to schedule even if they do not complete a degree or are dissatisfied with their academic experience.
Statements are provided by the University of Michigan's billing service, Educational Computer Systems Incorporated, (ECSI), approximately 7 to 10 days prior to the due date. Failure to receive a statement does not exempt a borrower from payment. In the event that a borrower does not receive a statement, remittances can be made directly to The University of Michigan. Payments should be made payable to the University of Michigan and display the borrower's full name, the last four digits of the borrower's social security number, or the borrower's UMID.
Prepayment of Loans
A borrower may prepay all or any portion of the principal plus accrued interest at any time without penalty. Payments are applied to outstanding collection costs, late fees, and interest charges before being applied to the principal. The balance of the loan is not reduced by the total payment amount; it is reduced only by the amount applied to principal. If no other charges are due, the entire payment is applied to principal.
Amounts paid during the academic year in which the loan was made will be used to reduce the amount of the loan. These amounts are not considered prepayments. All other payments made in excess of the amount due will be used to reduce principal, unless the borrower clearly designates in writing that excess amounts are payments toward future installments. These payments should be sent directly to the Student Loan Collections Office.