Loans based
on need:
Federal 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. Repayment does not begin until six months after graduation or withdrawal from college. Effective July 1, 2009, the interest rate for new undergraduate borrowers is 5.6%. Students wanting to be considered for this loan must submit a FAFSA. There are two types of federal subsidized loan programs. Below are details about each. NOTE: Not all students may borrow through the Federal Family Education Subsidized Loan Program.
Ford Federal Direct Subsidized Loan — is available to undergraduate, graduate and professional students. The amount you can be awarded is based on need, dependency status and your grade level. The typical needy dependent undergraduate student can borrow up to $3500 for the freshman year, $4500 for the sophomore year and $5500 each subsequent year up to a total of $23,000. Needy graduate and professional students can borrow up to $8500 per year. There is a 1.5% origination fee charged by the federal government. For more information on this loan program, check out the Ford Federal Direct Loan Web site. In general, the Ford Federal Direct Subsidized Loan is offered to eligible students as part of their financial aid package.
Federal Family Education Subsidized Loan — is only available to Pre-Engineering and Engineering first-time college freshmen that borrow through a MOHELA lending partner. MOHELA offers a Prospective Engineering Student Loan Forgiveness Award to eligible applicants. To learn more about the award, go to https://www.mohela.com/common/brochures/EngineeringCoupon.pdf. A 1.0% origination fee is charged by the lender. The award amount available is $3500 for first-time college Pre-Engineering and Engineering students only. If you choose to borrow through this program, apply on-line at http://www.mohela.com/webconnect/?SchoolID=00251600. NOTE: You may not borrow both a Ford Federal Direct Subsidized Loan and Federal Family Education Subsidized Loan. If you wish to borrow the Ford Federal Direct Subsidized Loan, call the MU Financial Aid Office at (573) 882-7506 (1-800-225-6075 MO, IL, KS) or email your financial aid advisor at finaidinfo@missouri.edu and indicate you want to borrow a Direct Loan and the amount you wish to borrow.
Federal Perkins Loan — this is a
loan with no interest accruing while you are in school
at least
halftime. Because
of limited funding and federal guidelines, this loan must
go to undergraduate or graduate/professional students with
exceptional financial need. Repayment begins nine months
after graduation or withdrawal from college. The interest
rate is 5%. Students wanting to be considered for this
loan must meet the March 1 priority deadline for filing
the FAFSA.
Nursing Student Loan — this is
a federal loan available to undergraduate nursing students
demonstrating
financial
need. No interest accrues while the recipient is in school
at least halftime. Repayment begins nine months after graduation
or withdrawal from the nursing program. The interest rate
is 5%. The maximum award is determined according to the
borrower's grade level. Nursing students wanting to be
considered for this loan must meet the March 1 priority
deadline for filing the FAFSA.
The Missouri Professional and Practical Nursing
Student Loan Program was established to provide educational loans
to professional nursing students (RN or higher) and practical
nursing students (LPN) in exchange for service in an
area of designated need in Missouri. The maximum amount
of loans per academic year is $5,000 for students pursuing
a degree in professional nursing education and $2,500
for those pursuing a degree in practical nursing education.
Loans begin accruing interest at the rate of 9.5% from
the date the check is issued.
Loans will be repaid through service in public or non-profit
agencies or institutions in areas of defined need (forgiveness).
Forgiveness of the total amount loaned and accrued interest
will occur at 25% per year for qualifying employment
in an area of defined need (and may be pro-rated for
part-time employment). An area of defined need is a geographic
area or a nursing specialty that is experiencing a shortage
of nurses.
For more details such as eligibility
criteria or to obtain an application, please see the
Department of Health
and Senior Service web site at www.dhss.mo.gov or
contact Rural Health and Primary Care at P.O. Box 570,
Jefferson City, MO 65102-0570 or call 800-891-7415.
Loans NOT
based on need:
Federal Unsubsidized Loan — this is a loan that is available to students who do not qualify for the full federal 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 6.8%. The amount for which you are eligible depends upon grade level and the amount for which you are eligible in "subsidized" (see Federal Subsidized Loan above). Repayment begins 6 months after graduation or withdrawal. Students wanting to be considered for this loan must file a FASFA. There are two types of federal unsubsidized loan programs. Below are details about each. NOTE: Not all students may borrow through the Federal Family Education Subsidized Loan Program.
Ford Federal Direct Unsubsidized Loan — is available to undergraduate, graduate and professional students. There is a 1.5% origination fee charged by the federal government. For more information on this loan program, check out the Ford Federal Direct Loan Web site. In general, the Ford Federal Direct Unsubsidized Loan is offered to eligible students as part of their financial aid package.
Federal Family Education Unsubsidized Loan — is only available to Pre-Engineering and Engineering first-time college freshmen that borrow through a MOHELA lending partner. MOHELA offers a Prospective Engineering Student Loan Forgiveness Award to eligible applicants. To learn more about the award, go to https://www.mohela.com/common/brochures/EngineeringCoupon.pdf. A 1.0% origination fee is charged by the lender. The award amount available is $3500 less the subsidized amount awarded for first-time college Pre-Engineering and Engineering students only. If you choose to borrow through this program, you may apply on-line at http://www.mohela.com/webconnect/?SchoolID=00251600.
NOTE: You may not borrow both a Ford Federal Direct Unsubsidized Loan and Federal Family Education Unsubsidized Loan. If you wish to borrow the Ford Federal Direct Unsubsidized Loan, call the MU Financial Aid Office at (573) 882-7506 (1-800-225-6075 MO, IL, KS) or email your financial aid advisor at finaidinfo@missouri.edu and indicate you want to borrow a Direct Loan and the amount you wish to borrow.
Federal PLUS (Parent Loan for Undergraduate Students) Loan — this loan is available to a dependent
student's parent(s) and is limited to the cost of education
minus
any financial aid awarded to the student. It is "unsubsidized"
which means there is interest accruing. The interest
is at a fixed rate of 7.9%. Repayment may be deferred while the student remains enrolled at least ½ time or you will begin making payments 60 days after the loan is disbursed.
For
more information on this loan, check out our informational
page for PLUS loans. While the submission of the
FAFSA is not required for the certification of this
loan, it is recommended since the student may qualify
for other aid.
Private Alternative 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 including our preferred
lender list.
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