Loans are a form of financial aid that must be repaid, whether the student completes their program, is happy with their program, or is able to find employment upon the completion of their program. So it is best to borrow as little as possible to keep repayment manageable.
Funding for Federal Direct Loans is provided by the federal government with repayment being made to a federal loan servicer.
Funding for Federal Perkins Loans has also been provided by the federal government but repayment is made to UM.
UM has a few institutional loans with funding provided by private donors and foundations. Repayment on these loans is made to UM.
Private student loans are an alternative loan with funding provided by lending institutions in the community. Repayment is made to the respective lender.