As a borrower you do have rights in dealing with your loan and loan holder. You also have clear responsibilities as well.
You have the right to
- written information on my loan obligations and information on my rights and responsibilities as
a borrower; - a copy of my MPN either before or at the time my loan is disbursed;
- a grace period and an explanation of what this means;
- notification, if the Department transfers my loan to another servicer without my consent;
- a disclosure statement, received before I begin to repay my loan, that includes information about
interest rates, fees, the balance I owe, and a loan repayment schedule; - deferment or forbearance of repayment for certain defined periods, if I qualify and if I request it;
prepay my loan in whole or in part anytime without an early repayment penalty; and - documentation when my loan is paid in full.
I am responsible for
- completing exit counseling before I leave school or drop below half-time enrollment;
- repaying my loan according to my repayment schedule even if I do not complete my academic program, I am dissatisfied with the education I received, or I am unable to find employment after I graduate;
- notifying my lender or loan servicer if I move or change my address, change my telephone number, change my name, change my Social Security number, or change employers or my employer’s address or telephone number changes;
- making monthly payments on my loan after my grace period ends, unless I have a deferment or
forbearance; and - notifying my lender or loan servicer of anything that might alter my eligibility for an existing
deferment or forbearance.
The Ombudsman Group is dedicated to helping resolve disputes related to the federal student aid programs, including Direct Loans, Federal Family Education Loan Program loans, Perkins Loans, and grant programs. If you’ve completed the steps to resolve your dispute and you believe the answer you received is wrong or incomplete, you may need to contact the Federal Student Aid (FSA) Ombudsman Group of the U.S. Department of Education (ED).
Mail:
FSA Ombudsman Group
P.O. Box 1843
Monticello, KY 42633
Phone: 877-557-2575
Fax: 606-396-4821
Online: https://studentaid.gov/help-center/answers/article/how-to-contact-ombudsman-group
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. Federal regulations also require proration of student loan funds for those who will be graduating in December of the aid year. In addition, associate degree seeking students may only borrow up to the sophomore grade level.
|
Grade Level |
Credit Hours Earned |
Base Loan Amount |
Additional |
Additional Unsubsidized Indep Students or Dep Students w/PLUS Denial |
|
Freshman |
0 – 29 | $3,500 | $2,000 | $4,000 |
|
Sophomore |
30 – 59 | $4,500 | $2,000 | $4,000 |
|
Junior |
60 – 89 | $5,500 | $2,000 | $5,000 |
|
Senior |
90 + | $5,500 | $2,000 | $5,000 |
|
Graduate |
NA | $8,500 | $12,000 | NA |
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.
| Undergrad Dependent Student Borrowers | Undergrad Independent Student Borrowers | Graduate Level Student Borrowers |
| $31,000 | $57,500 | $138,500 |
Subsidized Direct 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. The federal government “subsidizes” the interest during this period.
Subsidized Loan Calculation
Cost of Attendance (COA)
– Expected Family Contribution (EFC)
– Estimated Financial Aid (EFA)
= Subsidized Eligibility
Unsubsidized Direct 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 Direct loan interest rates are determined each year on July 1st. The 2022-23 interest rate for undergraduate student loans is 4.99% for both subsidized and unsubsidized loans. The interest rate for graduate student loans is 6.54%.
The U.S. Department of Education holds out an origination fee for every subsidized and unsubsidized loan. This fee helps offset the cost of funding these low interest loans. The origination fees 1.057% of the total borrowed.
Master Promissory Note (MPN) Requirement
You must complete a Federal Direct Master Promissory Note (MPN) online at studentaid.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 studentaid.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. (Five credit hours for graduate students.)
Satisfactory Academic Progress Requirement
You must maintain Satisfactory Academic Progress as defined in the University catalog to remain eligible for student loan funds. For more information see Satisfactory Academic Progress (SAP).
Exit Loan Counseling Requirement
If you graduate, withdraw, or drop below 6 credit hours, you are required to complete Exit Loan Counseling online at studentaid.gov. A hold will be placed on your academic records until this requirement has been satisfied.
Direct loans may be reduced or cancelled 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.
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 on the Policies page under Treatment of Federal Aid When a Student Withdraws or Stops Attending.
Missouri Western will automatically package your Direct Loan eligibility based on the information provided on your FAFSA and include this information on your award notification.
If you elect to accept Direct 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 eligible University expenses. Remaining funds will be released to you.
By Federal regulation, student loan funds MUST be used for educational related expenses.
The Department of Education releases official three-year cohort default rates (CDR) in September each year.
| 2017 Cohort | # of Schools | Borrower Default Rate% | # of Borrowers Defaulted | # of Borrowers Entered Repayment |
| All Schools | 6060 | 9.7% | 417,429 | 4,276,724 |
| Public 4 Year | 715 | 7.1% | 121,110 | 1,707,737 |
| Public 2-3 Year | 784 | 15.2% | 97,795 | 644,831 |
| Missouri Western | 1 | 11.1% | 140 | 1258 |
All disbursed Federal Title IV, HEA Loan funds will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, services, and other institutions determined to be authorized users of the data system.
Missouri Western State University has discontinued participation in the Perkins Loan Program. As a result, all accounts have been assigned to the Department of Education.
What does this mean to me? All communication, payments, account status and granted provisions, set forth in your promissory note(s), have been transferred to the Department of Ed/ECSI Federal Perkins Servicer.
Managing Your Perkins Loan Online
https://efpls.com/ – Federal Perkins Student Loan Managing online site for account review, address changes, benefits, deferments qualification, forms plus other Perkins information. Information you will need to provide to ECSI:
- School Code for MWSU: 00249000
- Your Social Security Number
- PIN assigned to you by ECSI. If you do not have this, contact ECSI at (866) 313-3797.
Service Cancellations
Upon making a properly documented written request to MWSU, you will be entitled to have up to 100 percent of the original principal loan amount canceled if you perform qualifying service in the following areas: Teaching, Early Intervention Services, Law Enforcement or Corrections Officer, Nurse or Medical Technician, Child or Family Service Agency or Head Start; or 50 percent of the principal amount of this loan canceled if you are a member of the Armed Forces of the United States in an area of hostilities that qualifies for special pay under section 310 of Title 36 of the United States Code; or 70 percent of the original principal loan amount canceled if you perform qualified services as a volunteer under the Peace Corps Act or Domestic Volunteer Service Act of 1973.
Questions?
Contact the Department of ED/ECSI Federal Perkins Servicer at (866) 313-3797.
The Federal PLUS Loan Program allows parents, with good credit histories, to borrow money to pay the educational expenses of dependent, undergraduate students enrolled at least half-time.
Interest Rate
The PLUS interest rate is 7.54% percent for loans borrowed after July 1, 2022 and prior to June 30, 2023.
Origination Fee
The origination fee for PLUS loans is 4.228%.
Annual Limit
The annual limit on a PLUS loan is the student’s Cost of Attendance budget minus any other financial assistance received (including student loan funds).
Cost of Attendance (COA)
-Estimated Financial Aid (EFA)
PLUS Loan Eligibility
To apply for a PLUS Loan:
- The student must complete the Free Application for Federal Student Aid (FAFSA).
- The parent must complete the PLUS Request Process online at studentaid.gov.
NOTE: You, the parent, will need your Department of Education FSA ID to apply.
- If you, the parent, are approved to borrow a PLUS loan, you must complete Missouri Western’s PLUS Loan Acceptance Form.
- If your PLUS request is denied, your student may be eligible to borrow additional loan funds under the Federal Direct Student Loan program.
Once processed, PLUS funds will be sent to Missouri Western in two equal disbursements to be applied to your student’s charges for tuition, fees, room and board, and other eligible University expenses. Any remaining funds will be issued to you (the parent). Remaining funds must be used for educational expenses.
Repayment
Repayment on the PLUS Loan begins on the date the loan is fully disbursed (there is no grace period).
If you are a parent borrower, you may contact your loan servicer to request a deferment while you or your child are enrolled at least half-time and for an additional six months after your child ceases to be enrolled at least half-time.
If your loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due.
More Information about PLUS Loans may be found online at studentaid.gov.
The Federal PLUS Loan Program allows graduate students, with good credit histories, to borrow money to pay educational expenses. To be eligible you must be a graduate or professional student enrolled at least half-time at in a program leading to a graduate or professional degree or certificate.
Interest Rate
The PLUS interest rate is 7.54% percent for loans borrowed after July 1, 2022 and prior to June 30, 2023.
Origination Fee
The origination fee for PLUS loans is 4.228%.
Annual Limit
The annual limit on a PLUS loan is your Cost of Attendance minus any other financial assistance received (including Direct loan funds).
Cost of Attendance (COA)
-Estimated Financial Aid (EFA)
PLUS Loan Eligibility
To apply for a PLUS Loan, you must:
- Complete the Free Application for Federal Student Aid (FAFSA)
- Complete the PLUS Request Process online at studentaid.gov.
NOTE: You will need your Department of Education FSA ID to apply.
Once processed, PLUS funds will be sent to Missouri Western in two equal disbursements to be applied to your charges for tuition, fees, room and board, and other eligible University expenses. Any remaining funds will be issued to you. Remaining funds must be used for educational expenses.
Repayment
If you receive a Direct PLUS Loan as a graduate or professional student, you don’t have to make any payments while you’re enrolled in school at least half-time, and for an additional six months after you graduate, leave school, or drop below half-time enrollment.
More Information about PLUS Loans may be found online at studentaid.gov.
The Missouri Scholarship & Loan Foundation (MSLF) and the Higher Education Loan Authority of the State of Missouri (MOHELA) are pleased to offer the Missouri Family Education Loan Program (MOFELP). MOFELP is a private student loan program designed to provide borrowing options for Missouri students who have financial need but may not meet the traditional credit requirements for private loans.
The funds for MOFELP are limited for each academic year and are available on a first come, first served basis. These funds, while available, will be used to make interest free MOFELP loans to students attending Participating Schools who meet the eligibility, underwriting and other requirements.
Eligibility Requirements
- Be enrolled on a full-time basis as an undergraduate student (excluding summer and your final semester).
- Be making satisfactory academic progress as determined by your Participating School.
- Have an Expected Family Contribution (EFC) of $20,000 or less for the current academic year.
- Be at least 17 years of age.
- Be a United States citizen and a permanent Missouri resident with your primary domicile located in Missouri.
- Not have a bachelor’s degree.
- Have a composite score of at least 21 on ACT or SAT equivalent; or have an Grade Point Average (GPA) of 2.5 or higher at high school, participating school, or another institution.
- Receive the maximum loan amounts for which the student is eligible for the Direct Subsidized Loans and Unsubsidized Loans.
- Not have a conviction for fraud.
- Have Certified Financial Need.
- Have a two year credit history (or have a cosigner with a two year credit history).
- Not at any time have been more than 60 days delinquent on any MOFELP loan payment.
- Meet the applicable credit underwriting criteria (or have a cosigner that meets the criteria).
Alternative Loans are private loans designed to help students with educational expenses that exceed other available assistance. You are strongly encouraged to exhaust Federal loan eligibility before considering private loans.
Various lenders provide different types of loans as well as broad terms and interest rates. For this reason, we advise all borrowers considering alternative loans to research the market and choose the loan program that is right for their specific circumstances.
These loans are credit based and as such are not guaranteed to all borrowers. Additionally, they cannot be consolidated with Federal Student Loans and the interest rates are based on credit and lender policy.
The lenders included in Missouri Western’s preferred list, were selected based on product, performance and customer service. Missouri Western does not have any agreements with these lenders, nor do we receive any benefits when a student selects a specific lender. The lenders names are provided in random rotating order. If you wish to use an alternative lender that is not on this list, you are encouraged to do so.