Missouri Student Loan Options
Search for the Right Federal & Private Programs
The Missouri Department of Higher Education is the State of Missouri student loan guarantor. But it is the agency sanctioned Missouri Student Loan Group that acts as direct lender for the Federal Family Education Loan Program (FFELP) for Missouri college students and parents. The FFELP loans include:
- Subsidized Stafford Loan
- Unsubsidized Stafford Loan
- PLUS Loan
- Grad PLUS Loan
- Federal Consolidation Loan
Alternative Loans for Missouri Students
The state of Missouri does not directly lend any alternative or private student loans, but plenty of lenders do so. When would you need an alternative loan? When you’ve exhausted other forms of aid, including maximum amounts of federal loans, college, state and private scholarships and grants. For many students once these other monies have been accounted for there may remain an outstanding balance on the actual cost of attendance. In this situation you may finally consider the value of a private student loan.
Shop carefully and compare lenders alternative loans. These will no doubt be credit-based. If you have no credit or bad credit be prepared to apply for a loan with a credit-worthy co-borrower. Make sure your lender offers a co-signor release, so you can begin building your own credit. Only borrow what you need to meet the remaining costs of your education. Spendy add-ons like expenses for computers, books and even transportation can add thousands of dollars to your debt.
MDHE’s Federal Loans
Does any student actually escape without one of the federal student loans, such as the Stafford Loan or Perkins Loan? It is not uncommon for college students to carry multiple federal loans as well as multiple private or alternative loans. When you have the option to fund your federal loan through a range of lenders why not choose one that can offer you a lower interest rate for good behavior?
FFELP loans include a couple of fees, including a low origination fee and default fee. Certain lenders will actually absorb these fees if you shop carefully enough. This can save you a few bucks a year.
Loan Repayment
Unfortunately student loans must be repaid and with interest added. The lower your interest rate, though, the closer you are to the initial amount you borrowed. In some cases students are not able to swing the whole repayment thing. Multiple loans add up and unless you’ve used your 6-month grace period wisely, you may still not have that high-paying job you expected. If you are unable to make the payments required on your loans contact your lender immediately. Options for challenged payback include:
- Extended loan repayment
- Consolidation loans
Many lenders have scaled back consolidation loans, but added an extended repayment option to their terms. Most important, don’t let loan payments languish. At the first sign of financial difficulty with your loans, contact your lender to discuss options. Default is not a choice.
