Stafford Loans
Stafford Loans have fixed interest rates and are for both undergraduate and graduate students. The loans will be either subsidized or unsubsidized. Refer to the Department of Education's Student Guide for annual limits and other information.
- Annual Loan Limits
Subsidized – This loan is awarded on the basis of financial need. The student does not make any payments nor pay interest while enrolled at least half time; the federal government "subsidizes" the interest during this period of enrollment. Interest charges and repayment of principal begin six months after the student leaves school or drops below half-time enrollment. If the first disbursement of your Subsidized Loan is between July 1, 2011 and June 30, 2012, the interest rate is fixed at 3.4%. Direct Subsidized Loan interest rates for graduate borrowers is a fixed 6.8%.
Unsubsidized - This loan is not based on financial need. The student is responsible for the interest from the date of disbursement. Interest payments may be made in installments or allowed to accrue and be added to the principal (capitalized). Repayment begins six months after the student leaves school or drops below half-time enrollment. The interest rate is fixed at 6.8% for all borrowers (undergraduate and graduate).
PLUS Loans for Parents
This loan is available to parents with good credit history. The interest is fixed at 7.9%. Interest is charged from the first disbursement date and repayment on both interest and principal begins 60 days after the final loan disbursement for the academic year.
PLUS Loans for Graduate Students
This loan is for graduate and professional degree students. The borrower is responsible for all the interest and must not have negative credit history. The student must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Programs before applying foa a Graduate/Professional PLUS loan. The maximum amount a student can borrow is based on the cost of attendance minus any other financial aid the student receives. Direct PLUS Loans have a fixed interest rate of 7.9%. This interest rate will not change throughout the life of your loan.
Perkins Loans
The federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with financial need. Your school is the lender. The loan is made with government funds, and your school contributes a share. You must repay this loan to your school.
- Apply for Missouri State Perkins by March 31st.
Alternative Loans
These are private loans designed primarily to help students with educational expenses that exceed other available assistance (such as scholarships, grants, PLUS Loans, and federal Stafford Loans). Alternative Loans should be used only after all Federal Loan Programs eligibility has been exhausted. Eligibility is based on credit approval.
- Apply for Alternative Loan