The Federal Stafford Loan Program is the government's largest form of self-help aid. The program assists undergraduate students by providing low-interest loans to help cover the cost of education.  Repayment begins six (6) months after you graduate, withdraw, or cease to be enrolled at least half-time (6 credit hours).  It is important to note, that your loan must be repaid and cannot be forgiven through bankruptcy proceedings.  Borrow Responsibly!!

You must be enrolled in a minimum of 6 credit hours to be eligible for a Federal Stafford Loan. (CED courses are not eligible for Federal and State Financial Assistance.)

How Much Can You Afford to Borrow?

The average graduate at Western leaves with a student loan debt of $15,900. Before you accept loan funds, take a minute to think about how much you need to borrow and how much you can afford to borrow. It is better to prioritize and make sacrifices while in college than to struggle with large loan payments that limit financial resources for years after graduation.  

Maximum Annual Loan Limits

By Federal regulation, there are annual limits to the amount you can borrow in both subsidized and unsubsidized loan funds (see below).  You may be awarded less than the annual limit if you are receiving other financial assistance that causes you to exceed your Cost of Attendance budget.

*Annual limits apply to loans disbursed after 7/1/2007.

A dependent student whose parents are denied a Federal PLUS Loan may be eligible to borrow up to the amounts indicated for independent students.

By Federal regulation, associate degree seeking students may only borrow up to the sophomore level.

Aggregate Loan Limits

In addition to the annual limits, Federal regulations restrict undergraduate borrowers to the following aggregate limits in both Subsidized and Unsubsidized loan funds:

Entrance and Exit Loan Counseling Requirement

Federal regulations require first-time borrowers at Western to complete online Entrance Loan Counseling before loan funds will be disbursed.

Federal regulations also require online Exit Loan Counseling.  If you graduate, withdraw, or drop to less than half-time enrollment (6 credit hours). Missouri Western will not release your academic transcript until this requirement has been satisfied. 

The Master Promissory Note Requirement

The Department of Education has authorized the use of a Master Promissory Note MPN) allowing Western students to sign a single promissory note for all Federal Stafford Loans. If you are borrowing for the first time at Western, you must complete an MPN before loan funds will be disbursed.  

NOTE: The Master Promissory Note is a legal document requiring borrowers to repay the loan.  Read it carefully before signing.

Once an MPN is signed and processed with the lender, you will not need to sign another promissory note for subsequent loans as long as you are attending Western, retain the same lender throughout your academic career, and have not filed bankruptcy. 

Stafford Loans may be Subsidized or Unsubsidized.

Subsidized Stafford Loans are awarded based on financial need as determined by your FAFSA results.  You will not be required to pay interest while you are in school, during your grace period, or during any authorized periods of deferment. The federal government "subsidizes" the interest during these periods.

Subsidized Loan Calculation:

Cost of Attendance (COA)

- Expected Family Contribution (EFC)

- Estimated Financial Aid (EFA)

Subsidized Eligibility

Unsubsidized Stafford Loans are not based on need. You will be required to pay interest from the time the loan is disbursed until it is paid in full. You may elect to have the interest accumulate while in school, however, this will result in greater loan indebtedness.

Unsubsidized Loan Calculation:

Cost of Attendance (COA)

- Estimated Financial Aid (EFA)

-Subsidized Loan Eligibility

UnSubsidized Eligibility

Student loan funds may be reduced or canceled at any time during the semester if additional funding causes you to exceed your Cost of Attendance budget.

Stafford Loan Request/Disbursement Process

Western will automatically package your Stafford Loan eligibility based on the information you submit on your FAFSA and include this information on your Award Notification.  

If you elect to accept your Stafford Loan(s), Coordinators in the Financial Aid Office will calculate and certify your loan eligibility and submit a request for funds to your lender.

Once processed, loan funds are sent to Western in two equal disbursements to pay for your tuition, fees, room, board, and other college expenses. Any remaining funds are released to you in the form of a check.  Please refer to the Financial Aid Calendar for the first opportunity to receive credit balance checks each semester.  Remaining funds must be used for educational related expenses.

Federal Regulations prohibit the disbursement of Federal Stafford Loan proceeds to freshman, first-time borrowers until 30 days after classes begin. Students should be prepared to cover expenses, such as books, until loan funds are released to the school.

Selecting a Lender

Missouri Western participates in the Federal Family Education Loan (FFEL) Program. Under this program, funds are loaned to students from private lenders such as banks or credit unions that participate in the FFEL program. 

The lenders represented below, participate with the Missouri Department of Higher Education (MDHE) and the Missouri Higher Education Loan Authority (MOHELA) to provide industry leading borrower benefits to students.  The interest rate and loan terms are the same regardless of the lender you select.

If you would like your student loan processed through a lender not represented on this list, you may certainly do so.  Please contact the Financial Aid Office for more information.

Missouri Western's primary loan servicer is MOHELA (Missouri Higher Education Loan Authority). MOHELA is one of the top 20 holders and servicers of student loans in America.  For more information about financing your education, and services provided by MOHELA, call 800-666-4352 or online at www.mohela.com.

Eligibility for Federal Aid / Return of Title IV Funds / Satisfactory Academic Progress