Graduate Student Loans

Filmstrip-Jesse Hall, SFA Reception Desk, The Columns on Francis Quadrangle, SFA Reception Desk

Loans (money you have to pay back)
Based on need, NOT based on need

Loans based on need:
Ford Federal Direct Subsidized Loan — this is a loan with no interest accruing while you are in school at least halftime. It is "subsidized" by the federal government. It is available to graduate and professional students. The amount you can be awarded is based on need. Graduate and professional students can borrow up to $8500 per year, not to exceed $65,500. There is a 1.5% origination fee charged by the federal government. Repayment does not begin until six months after graduation or withdrawal from college. The interest rate for new borrowers is at a fixed rate of 6.8%. For more information on this loan, check out the Ford Federal Direct Loan Web site. Students wanting to be considered for this loan must submit a FAFSA.

Loans NOT based on need:
Ford Federal Direct Unsubsidized Loan -- this is a loan that is available to students who do not qualify for the full Ford Federal Direct "Subsidized" Loan or other need-based aid and have unmet cost of education. It is " unsubsidized" which means the interest accrues and eventually has to be paid by the borrower. The interest rate for new borrowers is at a fixed rate of 6.8%. The yearly maximum is $20,500 less any subsidized loan you received not to exceed the cost of attendance. The aggregate total for both loan programs is $138,500. There is a 1.5% origination fee charged by the federal government. Repayment begins 6 months after graduation or withdrawal. For more information on this loan, check out the Ford Federal Direct Loan Web site. Students wanting to be considered for this loan must file a FAFSA to determine eligibility for the subsidized Ford Federal Direct Loan before MU can process an unsubsidized loan.

Ford Federal Direct Grad PLUS Loan -- Ford Federal Direct Grad PLUS (Grad PLUS) are loans from the U.S. Department of Education (ED) which provide additional funds for educational expenses not met by other types of aid. They enable a graduate/professional student to borrow up to the cost of education minus other aid.

To be eligible to receive a Grad PLUS loan the borrower must:

     1. be accepted for enrollment in a degree-seeking program,
     2. be registered at least half-time, according to their degree program, in courses           counting toward a graduate/professional degree,
     3. file a Free Application for Federal Aid (FAFSA),
     4. not be in default on any type of student loan,
     5. not owe a repayment on a student grant, and
    6. pass a credit check by the U.S. Department of Education (ED).

Graduate/professional students borrowing their first Grad PLUS will be required to sign a Master Promissory Note (MPN) and complete the Loan Entrance Counseling. Subsequent loans will not require a new MPN or Loan Entrance Counseling. After federal approval, the borrower may complete an MPN online using their federal PIN at www.dlenote.ed.gov and the Loan Entrance Counseling at the US Department of Education Website. If preferred, a paper MPN will be mailed to the borrower to sign. The borrower must request a paper MPN by calling the Student Financial Aid Office at 1-573-882-7506 or if in MO, IL or KS 1-800-225-6075.

After the borrower has satisfied all eligibility requirements, loan money will normally be paid to the borrower’s University account in two installments. For specific anticipated payment dates the borrower should refer to the Disclosure Statement they will receive from ED. At disbursement ED calculates a 4% processing fee but only deducts 2.5% from the disbursement amount. If the borrower does not remain current during repayment, the other 1.5% will be charged back to the loan balance.

The interest rate on the Grad PLUS is 7.9%. Repayment begins within 60 days of the final loan disbursement. Principal and interest payments may be deferred if the borrower meets deferment requirements. In-school deferments are available for borrowers enrolled at least half-time in a degree seeking program. To learn more about available deferments and how to apply for deferment status, please contact ED’s servicer at (800)848-0979.

09-10 Ford Federal Direct Grad PLUS Application

Private Alternative Loans & Bar Exam Loans -- Private alternative loans are an additional option you may want to consider for financing your education. Alternative loans are not one of the federal financial aid programs. Because of the higher interest rates associated with private alternative loans, we recommend that you apply for all types of federal aid before pursuing an alternative loan. For more information on alternative loans, check out our Alternative Loans information page.