The Federal Stafford Loan Program is the government's largest form of self-help aid. The program assists students by providing low-interest loans to help cover the cost of education.

How Much Can You Afford to Borrow?  The average graduate at Missouri Western leaves with a student loan debt of $17,500. 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. Borrow Responsibly!

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.

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

Federal regulations also require proration of student loan funds for those who will be graduating in December of the aid year.

Aggregate Loan Limits

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

Note: No more than $23,000 ($65,500 for Graduate student borrowers) may be Subsidized Loan Funds.

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

Federal Stafford Loan Interest Rates for Undergraduate Students

Origination Fee

1.0% of the amount borrowed. The U.S. Department of Education holds out an origination fee for every Direct Subsidized, and Unsubsidized loan. This fee helps offset the cost of funding these low interest loans.

Your Rights and Responsibilities

Master Promissory Note (MPN) Requirement

You must complete a Federal Direct Master Promissory Note (MPN) online at www.studentloans.gov before your loan funds will be disbursed. Once your Federal Direct Loan MPN is signed and processed, you should not be required to sign another MPN for subsequent loans for ten (10) years as long as you are not in default with prior or current Federal loans and do not file bankruptcy at any point.

Entrance Loan Counseling Requirement

If you are a first-time borrower at Missouri Western, you must complete Entrance Loan Counseling online at www.studentloans.gov before you loan funds will be disbursed.

Enrollment Requirement

You must enroll in, and attend, a minimum of six (6) credit hours (excluding CED and audited courses) to remain eligible for Federal student loans.

Satisfactory Academic Progress Requirement

You must maintain Satisfactory Academic Progress as defined in the University catalog to remain eligible for student loan funds. More Information

Treatment of Loan Funds if you Withdraw or Stop Attending Class

If you withdraw or stop attending class, Federal regulations require Missouri Western to return the portion of Title IV program assistance that you did not earn.  Additional information regarding the return process in available online at. More Information

Loan Reduction/Cancellation

Stafford loans may be reduced or canceled at any time during the award year if aid received from ALL funding sources causes you to exceed your unmet need or Cost of Attendance budget as defined by Federal regulations.

Exit Loan Counseling Requirement

If you graduate, withdraw, or drop below 6 credit hours, you are required to complete Exit Loan Counseling online at www.nslds.ed.gov. A hold will be placed on your academic records until this requirement has been satisfied. 

Repayment

Repayment begins six (6) months after you withdraw, graduate, or drop below six (6) credit hours.

You have the right to decline your student loan or request a lesser amount.  If you wish to do so, please contact the Financial Aid Office.  More information about your right to cancel or reduce your loan is included in the Borrower’s Rights and Responsibilities Statement and Disclosure Statements provided with your Master Promissory Note.

Stafford Loan Request/Disbursement Process

Missouri Western will automatically package your Stafford Loan eligibility based on the information provided on your FAFSA and include this information on your award notification. If you elect to accept Stafford Loan funds, the Financial Aid Office will calculate and certify your loan eligibility and submit a request for funds.

Your loan funds will be received by Missouri Western in two equal disbursements and will first be applied to your charges for tuition, fees, room, board, and other University expenses. Remaining funds will be released to you. By Federal regulation, student loan 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.

Loan Repayment

Repayment Terms

Repayment begins six (6) months after you withdraw, graduate, or drop below six (6) credit hours.

Make Your Payments on Time

Your loan holder will provide information about repayment and will notify you of the date loan repayment begins. It is important that you make your full loan payment on time according to your repayment schedule. If you do not, you could end up in default, which has serious consequences. Student loans are real loans—just as real as car loans or mortgages and must be repaid.

You have a choice of several repayment plans that are designed to meet the different needs of individual borrowers. The amount you pay and the length of time to repay your loans will vary depending on the repayment plan you choose.  Additional information is available online at www.studentloans.gov.

If you experience difficulty repaying your student loans after you leave school, you may qualify for deferment, forbearance, or alternative repayment options. It is important that you remain in contact with your loan holder and keep your loans in good standing.

Your Personal Loan History

The U.S. Department of Education's National Student Loan Data System (NSLDS) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans. If you're not sure who your loan servicer is, you can look it up on NSLDS or call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243; TTY 1-800-730-8913). To access NSLDS, go to www.nslds.ed.gov.

How much will my monthly payments be?