The Federal Pell Grant Program is a high need grant program for undergraduate students. The amount varies based on the student’s EFC (expected family contribution) and academic status (full time, three-quarter time, half-time or less than half-time). A student must file the Free Application for Federal Student Aid (FAFSA) to determine eligibility.
Supplemental Educational Opportunity Grant is supplemental funding for full-time Pell Grant recipients with remaining need. Funded by the federal government and requiring a match from the University, this is a small program and funds are committed very early in the funding process. Early completion of the financial aid paperwork is essential in receiving funds from this program.
The Federal TEACH Grant Program is for students who plan on being a full-time teacher in a high need field at a school serving low income students for at least four years within eight years of graduation. Recipients must have entrance counseling prior to the beginning of classes as well as a service agreement. Renewal criteria require a 3.25 institutional cumulative GPA.
High need fields are currently defined as 1.) Bilingual education and English language acquisition; 2.) foreign languages; 3.) mathematics; 4.) reading specialist; 5.) science; 6.) special education.
To determine if a school is designated “low income”, refer to the Department of Education’s annual Teacher Shortage Area Nationwide Listing.
Should a recipient fail to meet the requirements as a full time teacher, the grant reverts to an unsubsidized loan with interest accrual calculated from the day of disbursement.
The Access Missouri Grant
is a need-based State grant. Eligibility is determined by the FAFSA which must be on file with the Federal Processor by April 1 each year. The amount on an award for 2011 reflects the State Roster’s current award. If this amount should change, the University will send a revised Award Notice as soon as the MO Department of Higher Education confirms the new amount. Students must maintain a 2.5 grade point average for renewal. This program is available to full-time, undergraduate students for up to 10 semesters of undergraduate coursework.
The Marguerite Ross Barnett Award
is for students taking between six and 11 credit hours each semester who also work a minimum of 20 hours each week. The amount of the award varies based on the number of credit hours the recipient is taking. The University does not receive the roster of recipients or amounts until after the semester begins. At that point, the student receives a revised award letter which must be signed and returned along with Employment Verification.
eligibility is determined by the results of the ACT test. Residents of Missouri who attend a school within Missouri and have a comprehensive ACT score in the top 3% for the State are eligible for this scholarship. For 2008/2009, the minimum score is 31. The student must be a full-time, accepted undergraduate.
is a one-time award for full-time freshmen or sophomores accepted into the School of Education who intend to teach in Missouri upon graduation for a minimum of five years. The University matches the amount provided by the state dollar for dollar. The application is available at http://www.dese.mo.gov/.
Federal Perkins Loan Program
is a federal student loan for full-time, undergraduate students. The loan funds are borrowed through the University and repayment is made to the University. The Perkins loan requires a student demonstrate financial need which is determined each year by filing the Free Application for Federal Student Aid (FAFSA).
The maximum annual loan amount is $4,000 a year for undergraduate students, with a total loan limit of $20,000. The Financial Aid Office determines the amount of funding for each student based on financial need, other financial aid and the availability of Perkins funds when eligibility is determined.
The Perkins loan has a fixed interest rate of 5% which does not begin accrual until repayment begins nine months after the borrower (student) graduates or drops below half-time student status. Depending on the amount borrowed, repayment is over a 10-year period, although there is no penalty for paying the loan ahead of schedule.
Students may access a loan repayment calculator at: http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html to estimate monthly repayment.
It is important to submit FAFSA by March to ensure maximum eligibility for Perkins loan funds. First time recipients are required to participate in entrance counseling, where the rights and responsibilities governing the loan program are explained, and sign a Promissory Note which is the document promising to repay the loan. Both of these functions are arranged through the Loan Office which is part of the University’s Business Office on the first floor of Gander Hall in the East Wing.
Subsidized and Unsubsidized Stafford Student Loans
The following loans are available through the William D. Ford Federal Direct Loan Program. Loan funds are borrowed directly from the Department of Education and repayment of loan funds is to the Department of Education. To be eligible, the student borrower must be enrolled at least half-time (six credit hours).
- Federal Subsidized Direct Loan is available for undergraduate students with financial need, determined after the student completes the Free Application for Federal Student Aid (FAFSA) form. The subsidy in this program occurs when the government pays the interest that accrues while the student maintains academic progress toward a degree at a minimum of half-time student status.
- Federal UnsubsidizedDirect Loan is available for undergraduate and graduate students who have not established financial need when completing the FAFSA. The accrued interest while in school is not paid by the federal government. If the student does not make arrangements to pay, it is capitalized into the principle, thus increasing the amount the student borrows by the amount of interest that accrues. Interest statements are sent to the borrower semi-annually, at which time the borrower is given the option to pay the interest.
The federal government regulates the amount of funding a student is allowed to borrow each academic year. This is based on the student’s dependency status, student loan funds borrowed previously and academic level. Dependency status is determined by the FAFSA and academic level is determined by total number of credit hours earned in the student’s program of study.
|First Year (freshman)||$3,500||$9,500 (maximum $3,500 subsidized)|
|Second Year (sophomore)||$4,500||$10,500 (maximum $4,500 subsidized)|
|Third Year (junior)and beyond||$5,500||$12,500 (maximum $5,500 subsidized)|
|Graduate and Professional||N/A||$20,500 (unsubsidized)|
The federal government also regulates the total amount a student can borrow. This is referred to as the aggregate limit. Aggregate limits are regulated by dependency status and degree.
|Undergraduate||$23,000||$57,500 (maximum $23,000 subsidized)|
|Graduate or Professional||N/A||138,500 (includes loans borrowed as undergraduate)|
Federal Subsidized Direct Loans borrowed for undergraduate work and disbursed before July 1, 2013 have a fixed interest rate of 3.86%. Subsidized Direct loans borrowed for undergraduate work that are disbursed after July 1, 2014 have a fixed interest rate of 4.66%. Unsubsidized loans for undergraduate and graduate work will have a fixed interest rate of 4.66%.
The student loan program charges a loan fee on each loan disbursement. This fee is currently 1.072% of the gross loan amount but will increase to 1.073% on October 1, 2014. A master promissory note (MPN) and entrance counseling are required for students borrowing for the first time at Maryville University. These steps can be completed online at http://www.studentloans.gov.
Repayment of the federal student loan program begins six months after graduation or six months after dropping below half-time enrollment. This time period, beginning with your last date of half-time attendance, is called the “grace” period and upon it’s completion, monthly repayment begins. During this time, information will be sent regarding repayment of student loan funds directly to the borrower.
The federal government offers several different types of repayment options:
- The standard repayment plan allows repayment of loan funds over a maximum of 10 years. A minimum loan payment of $50 is required each month. Of all repayment options, this is the most beneficial to the borrower because the time taken to repay the loan is shortest.
- The extended repayment plan allows the borrower to extend loan repayment up to 25 years. To be eligible for this repayment option, the borrower must have more than $30,000 in outstanding student Direct Loan debt.
- The graduated repayment plan allows the borrower to slowly increase the monthly loan repayment. Monthly repayment will increase every two years over a 10-year period.
- The income contingent repayment plan allows the borrower to submit documentation of number in household and adjusted gross income to determine monthly repayment. As the adjusted gross income changes, so does the monthly repayment. Any unpaid loan balance after 25 years will be forgiven, but you may have to pay income tax on this amount.
If a repayment plan is not chosen, the standard repayment plan will be used. However, the borrower may change repayment plans after repayment begins.
Students may access a loan repayment calculator to estimate monthly loan repayment: https://studentaid.ed.gov/repay-loans/understand/plans/
Two borrower benefits are available in the Federal Direct Loan Program:
- Deferment allows a borrower to temporarily postpone loan payments while enrolled in at least six credit hours. Subsidized loans do not accrue interest while in deferment, but unsubsidized loans do accrue interest.
- Forbearance allows a borrower to temporarily postpone or reduce loan payments when in economic hardship. Both subsidized and unsubsidized loans accrue interest in forbearance.
Federal student loans become delinquent when the account is not paid for 270 days or nine months. After 270 days, the loan account is considered in default. Defaulted loans have serious consequences, such as the following:
- The entire unpaid loan balance becomes due.
- Loan default will be reported to national credit bureaus, negatively impacting the borrower’s credit history.
- Wages can be garnished.
- Borrower loses eligibility to use all other federal student aid programs.
- Borrower will no longer be eligible for deferment or forbearance options.
- If the Department of Education cannot collect payment, the loan will be turned over a debt collection agency. A debt collection agency will charge collection fees that will have to be paid by the borrower.
If there are ever concerns about making loan payments, contact your loan servicer. You can get information about your federal loan servicer online at http://www.nslds.ed.gov.
Graduate (PLUS) Loan
The William D. Ford Federal Direct Loan Program offers a Graduate PLUS Loan for students participating in a graduate program at least half-time. The loan is based on credit-worthiness of the graduate student. Loan funds are borrowed directly from the Department of Education and repayment of loan funds is to the Department of Education.
To apply for the Graduate PLUS Loan, the student must be registered in at least six credit hours and contact the Financial Aid Office to request that the loan be added to the Notice of Financial Aid Award. This award letter must be signed and returned to the Financial Aid Office.
A graduate student may borrow funds to cover balances not paid by the student’s other financial aid. This can include both direct costs (tuition, fees, on-campus housing) and/or indirect costs (transportation, books, supplies).
The William D. Ford Graduate PLUS Loan has a fixed interest rate of 7.21%.
The Graduate PLUS Loan Program charges a loan fee on each loan disbursement. This fee is currently 4.288% of the gross loan amount. For example, if the gross loan amount is $1000, then the loan fee is $43. This means $957 will be electronically disbursed to the borrower’s student account. On October 1, 2014 this fee will increase to 4.292%
Before loan funding can be disbursed to the student account on the anticipated disbursement date, a Master Promissory Note (MPN) must be completed. This is the legal contract between the borrower and the Department of Education indicating the loan will be paid. The MPN can be completed online at http://studentloans.gov.
Repayment of the Graduate PLUS Loan Program begins 60 days after all disbursements for the loan period have been made. Repayment will begin while the student is in school. There is no grace period, but the borrower may be eligible for an in-school deferment. After deferment ends, the first payment will be due within 45 days.
To review the payment plans offered for PLUS loans, refer to the chart above. Most but not all of the plans offered for non PLUS loans are avaialbe but not all. The chart will make clear the difference.
If a repayment plan is not chosen, the standard repayment plan will be used. However, a borrower may change plans after repayment begins.
There is no penalty for early repayment or making more than the minimum monthly payment.
Students may access a loan repayment calculator to estimate monthly repayment: http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html
Two borrower benefits are available in the Federal Direct Loan Program:
- Deferment allows a borrower to temporarily postpone loan payments while enrolled in at least six credit hours.
- Forbearance allows a borrower to temporarily postpone or reduce loan payments when in economic hardship.
If there are ever concerns about making loan payments, contact your loan servicer. You can get information about your federal loan servicer online at http://www.nslds.ed.gov/.
Parent Loan for Undergraduate Students (PLUS)
The William D. Ford Federal Direct Loan Program offers a Parent Loan for Undergraduate Students (PLUS). The borrower is a credit-worthy parent of the dependent student. Loan funds are borrowed directly from the Department of Education and repayment of loan funds is to the Department of Education. The need to make the additional step of selecting a bank and going through its lending procedures is unnecessary as the process is administered through the University.
To apply for the parent loan, the student must be registered in at least six credit hours. If a PLUS loan is not included with the original student award, contact the Financial Aid Office to request a loan amount be calculated and added to the Notice of Financial Aid Award.
A parent may borrow funds to cover balances not paid by the student’s financial aid. This can include both direct (tuition, fees, on-campus housing) and indirect costs (transportation, books, supplies).You can access a PLUS Worksheet under the worksheets link to assist in calculating the amount of loan funds that will be needed. To begin the process, one parent completes the online application at www.studentloans.gov (Select: “PLUS Request Process” then select “Request a PLUS Loan”). You will be able to provide the amount of the loan that is being requested. When the application is submitted, an immediate response regarding the status of the credit check will be provided. The PLUS Loan can be divided into two loans if it is necessary for a family to have a loan for each parent; however, there cannot be joint borrowers on a PLUS loan.
The William D. Ford Federal PLUS loan has a fixed annual interest rate of 7.21%.
The parent loan program charges a loan fee on each loan disbursement deducted from the gross disbursement amount. This fee is currently 4.288% but will increase to 4.929% on October 1, 2014. Before loan funding can be disbursed to the student account on the anticipated disbursement date, a Master Promissory Note (MPN) must be completed. This is the legal contract between the borrower and the Department of Education indicating the loan will be repaid. The MPN can be completed online at www.studentloans.gov.
Repayment of the federal parent loan program begins sixty days after all disbursements for the loan period have been made. This means parents begin loan repayment while the student is still enrolled in school usually in late March or early April following the student’s first semester. Parents also have an option to request deferment of the loan while the student is enrolled at least halftime. Parent borrowers should contact their servicer to get information regarding the process to request deferment.
Repayment plans for Parent Loans for Undergraduate Students or listed above.
If a repayment plan is not chosen, the standard repayment plan will be used. However, the borrower has the opportunity to change repayment plans after repayment begins.There is no penalty for early repayment or making more than the minimum monthly payment.
Borrowers can access a loan repayment calculator to estimate monthly repayment: http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html
Three borrower benefits are available in the Parent Loan Program:
- Deferment of the loan payments can be requested while the student is enrolled at least halftime. Parent borrowers should contact their servicer to get information regarding the process to request deferment. After deferment ends, the first payment will be due within 45 days.
- If the parent borrower is enrolled as a half-time student, he or she may defer payment on the Parent Loan. Deferment allows the borrower to temporarily postpone loan payments while enrolled.
- Forbearance allows a borrower to temporarily postpone or reduce loan payments when in economic hardship.
The PLUS loan cannot be transferred to another borrower including the student or another parent. The loan will always be in the parent borrower’s name.
If there are ever concerns about making loan payments, the borrower should contact the loan servicer. Borrowers can get information about the federal loan servicer online at http://www.nslds.ed.gov/.
- Mapping Your Future
This site has information for both undergraduate and graduate students looking for information about career options and financial aid resources within their state. To help with financial strategies, students looking for loan options can find useful information about loans, including anticipated payments based on amounts borrowed and suggested ceilings based on anticipated earnings.