FINANCING YOUR EDUCATION THROUGH LOANS

Stafford Loan Eligibility Requirements & Amounts
Stafford Loan Entrance Counseling
Interest Rates & Fees
Choosing a Lender & Completing the Master Promissory Note
How Do I Apply?
Repayment Information
Stafford Loan Exit Counseling
Parent Plus Loans
Private/Alternative Loans
Smart Borrowing/Managing Your Credit
Student Loan FAQs

Stafford Loan Eligibility Requirements & Amounts:  The Subsidized Federal Stafford Loan is a loan awarded to students who demonstrate financial need as determined by the FAFSA.  Students are not required to make payment or pay interest while enrolled at least half-time (six hours) because the federal government pays the interest to the lender during this time.  Once a student graduates, withdraws, or ceases half-time attendance there is a six-month “grace period” before the first loan payment is due.  The federal government continues to pay the interest during the grace period.  The Unsubsidized Federal Stafford Loan is awarded to students who do not demonstrate financial need as determined by the FAFSA or have other aid that reduces need.  Students are responsible for all interest from the time the loan is disbursed.  Students may choose to make interest payments while in school, or allow the lender to capitalize accrued interest (add it to the loan principle) at repayment.  It is recommended to make the quarterly interest payments while you are in school.  Students are not required to make loan payments while enrolled at least half-time.  Once a student graduates, withdraws or ceases half-time attendance, there is a six-month “grace period” before the first loan payment is due.   

Students must be making Satisfactory Academic Progress in order to be eligible for Federal Stafford Loans. 

Students must be enrolled in at least six hours of coursework that corresponds to the degree level reflected by the Registrar’s Office (e.g. a graduate student must be enrolled in at least six hours of graduate level coursework).  If you are a graduate student enrolling in undergraduate coursework, contact Student Financial Services.

Students must be seeking a degree and making satisfactory progress in order to borrow.  Students with a Bachelor’s degree, who return for a second degree, must be pursuing a second, separate degree.  Students pursuing a second major are not eligible for federal loans.  Students with a Masters degree who return for a second Masters degree must be pursuing a second separate degree in order to borrow.  Contact Student Financial Services to see if you qualify for federal loans.  The length of a student’s program of study affects the maximum amount a student may borrow (i.e. a student enrolled in a two-year program may not borrow beyond the sophomore annual loan limit.

Students enrolled in graduate level courses, but coded as “Graduate Unclassified” are not in a degree seeking program and may not be eligible for federal loans.  Contact Student Financial Services to see if you qualify.

Students may be eligible to borrow to complete preparatory work for admission to an eligible undergraduate or graduate program.  Documentation must be provided.  Contact Student Financial Services to see if you qualify.

Study Abroad costs may be included when calculating federal loan eligibility provided the coursework is considered part of the student’s program of study at a US school.  Students must provide documentation that indicates the additional expenses and that the study abroad coursework applies to the student’s course of study (major).  Contact Student Financial Services for further information.

Students with a Bachelor’s degree may be eligible to borrow for coursework required for teacher certification.  Students must provide documentation showing that the courses are required by the state for teacher certification.   Contact Student Financial Services for further information. 

Amounts:  The Federal Stafford Loan maximum annual limit is subject to a student’s academic level and dependency status: 

 

Dependent	Annual Loan Limit
Freshman (0-29 Hours)	$5,500 ($3,500 between Subsidized and Unsubsidized, plus an additional $2,000 Unsubsidized)
Sophomore (30-59 Hours)	$6,500 ($4,500 between Subsidized and Unsubsidized, plus an additional $2,000 Unsubsidized)
Junior/Senior (60+ Hours)	$7,500 ($5,500 between Subsidized and Unsubsidized, plus an additional $2,000 Unsubsidized)
Independent
Freshman (0-29 Hours)	$9,500 ($3,500 between Subsidized and Unsubsidized, plus an additional $6,000 Unsubsidized)
Sophomore (30-59 Hours)	$10,500 ($4,500 between Subsidized and Unsubsidized, plus and additional $6,000 Unsubsidized)
Junior/Senior (60+ Hours)	$12,500 ($5,500 between Subsidized and Unsubsidized, plus an additional $7,000 Unsubsidized)
Graduate	$20,500 ($8,500 between Subsidized and Unsubsidized, plus an additional $12,000 Unsubsidized)
Loan Limits
Undergraduate Dependent Students	$31,000 (no more than $23,000 can be Subsidized)
Undergraduate Independent Students	$57,500 (no more than $23,000 can be Subsidized)
Graduate	$138,500 (no more than $64,000 can be Subsidized)

Stafford loan eligibility depends on several factors that include enrollment (minimum of six hours), grade level, prior borrowing, and cost of attendance minus other estimated aid and the expected family contribution, if applicable.  The annual loan limit per grade level applies to the scheduled academic year (fall/spring).   Students may have Stafford eligibility for summer enrollment (minimum of six hours) if the annual limit is not borrowed during the fall/spring semesters.

Stafford Loan Entrance Counseling:  All first-time borrowers at Southeast Missouri State University are required to complete entrance loan counseling online.  Online counseling is available at http://mappingyourfuture.org/.   Online counseling ensures that our student borrowers understand the terms and conditions of the loans they are receiving.  Failure to complete loan counseling will prevent disbursement of loan funds and make you responsible for payment of all charges originally deferred by the loan. 

Interest Rates and Fees:  Subsidized Stafford loans disbursed after July 1, 2009 have a fixed interest rate of  rate of 5.6%.  For graduate borrowers the fixed interest rate is 6.8%.  Federal Unsubsidized Stafford Loans have a fixed interest rate of 6.8%.  It is important that you understand the terms and repayment of your Federal Stafford Loans.  Stafford loans may have loan fees of up to 1.5%, which are deducted from the disbursed amount of the loan.  There are two components of this fee:  the origination fee and the default fee.  Some lenders waive the origination fees as a benefit to the student borrower.  The default fee is covered by some guarantee agencies.  Typically lenders do not cover the origination fee.  

Choosing a Lender & Completing a Master Promissory Note:  The choice of a lender is always the student’s.  It is important to research various lenders when making the choice a of a FFELP lender.  Please visit our “Guide to Selecting a Lender” as a point of reference when choosing your lender.  As a service to the student we have comprised a list of recommended lenders below.  If you are a new borrower (no prior Stafford Loan debt) or if you are changing lenders, you must complete a legal document known as a Master Promissory Note (MPN).  You can receive multiple loans for up to 10 years using your initial MPN as long as you continue to borrow through the same lender.  If you are a prior Stafford borrower transferring to Southeast, your lender may require you to complete a new MPN based on your prior school’s use of the MPN and/or your choice of lender. You may complete your MPN either electronically by going on-line or by mailing a paper MPN back to your lender.  If you choose to complete a paper MPN, one will be mailed to your permanent address by your lender.  Complete and return the paper MPN to the lender address printed in the upper right-hand corner of the form immediately upon receipt.  Failure to return the MPN to the lender will prevent disbursement of loan funds and make you responsible for payment of all charges originally deferred by the loan. 

Repayment Information: Students are eligible for a 6 month grace period that begins the day they either stop attending school (graduate) or drop to less than half time enrollment.  Payment is not required during this grace period; however students may start repayment at this time if they wish.  There are several repayment options available to borrowers.  Standard Repayment terms have a maximum payment period of 10 years with a minimum $50 per month payment.  This repayment option offers the total lowest cost of all of the repayment options.  For an in depth view of Repayment Options please visit Mapping Your Future http://mappingyourfuture.org/paying/staffordrepayment.htm 

StaffordLoan Exit Counseling:  Exit counseling is required of student loan borrowers when they drop below halftime enrollment, graduate or withdraw from the university.  Exit counseling offers information and tools needed to manage student loan debt.  Please visit Mapping Your Future http://mappingyourfuture.org/paying/staffordrepayment.htm  to complete your Stafford Loan Exit Counseling. 

Parent Plus Loans:  The Federal Parent Plus Loan is a federally sponsored loan program that allows parents to borrow to meet educational expenses for dependent undergraduate students enrolled at least half-time (six hours).  The fixed interest rate for PLUS loans is 8.5%. Please visit our “Plus Loan Guide” for eligibility requirements and a step by step guide to applying.  Parent(s) must apply through a Lender that participates in the FFELP Loan program. The parent is responsible for applying with the lender directly for credit approval or denial. If approved and all necessary paperwork is completed, the certification will then be sent to Student Financial Services for processing. If a parent is denied a Federal Parent Plus Loan through a credit denial, the student may be eligible for additional Unsubsidized Stafford Loans.