Loans

Loans can be a valuable tool to helping a student and family bridge the gap of college costs while allowing the cost to be spread out over an extended repayment period. However, deciding how much to borrow should be carefully done while thinking about how much money you need to pay your tuition charges, on-campus residence hall or apartment living expenses, food expenses, and then other discretionary expenses that may vary for each student.

Loans are financial aid that needs to be repaid, with interest, after you graduate or leave college.

To help you decide how much to borrow, here’s what we recommend:

  • Utilize Mizzou’s Office for Financial Success or Federal Student Aid’s budgeting advice to help you estimate your individual college costs.
  • Plan out your estimated college costs and decide how you plan to pay for them each year.
  • Explore campus jobs through our student Career Center.
  • Only borrow what you need, not necessarily the total amount of loans offered to you.

Types of Loans

You may need to make use of multiple loan programs to help you cover your college costs, so it’s important to know and explore all your options. Below, learn more about the different types of loans that are available to assist you with your educational costs.

  • Federal Direct Educational Loans (Students)
  • Direct PLUS Loans (for Parents and Graduate Students)
  • Private Education Loans

Expand each section below to learn about these options.

There are several types of Federal Direct Loans available as outlined below that can be used to help students pay educational expenses.

  • The U.S. Department of Education is the lender and will assign the student their loan servicer.
  • Visit studentaid.gov for complete information on interest rates, origination fees and maximum loan amounts students can borrow per year and over the course of their lifetime.
  • Federal loan programs offer lower interest rates and more flexible repayment plans than most private loans.

Federal Direct Subsidized Loan for Undergraduate Students

  • This type of loan is for undergraduate, degree-seeking students who demonstrate financial need based upon their FAFSA information and other financial aid received.
  • The U.S. Department of Education pays the interest on these loans while borrowers are enrolled at least half time and during periods of deferment.

Federal Direct Unsubsidized Loan for Undergraduate and Graduate Students

  • The Unsubsidized loan is a low-interest loan that is not based on financial need.
  • Interest is charged throughout the life of the loan.

How to Apply

All steps below must be completed for the loans to be applied to the student bill. Students should be sure to complete these steps several weeks in advance of their billing due date to ensure on- time payment. Mizzou is not responsible for late fees or finance charges if this process is not completed in time.

  1. File the FAFSA.
  2. Once your financial aid eligibility is determined, the student will receive a financial aid offer notification to their Mizzou email for continuing students, and personal emails for incoming students until August or January before they start classes at Mizzou.
  3. Visit your myZou student services center to accept/decline your Federal loans.
  4. Complete Entrance Counseling.
  5. Complete a Master Promissory Note.

Federal Parent PLUS Loan

  • This loan is a credit-based Federal Direct Loan for biological parents that can be used to help pay for the college education of a dependent undergraduate child.
  • This loan is not based on need, but instead contingent on a credit check.
  • The maximum permissible loan amount is limited to the Cost of Attendance (COA) minus any other financial aid or resources the student has received.
  • Learn how to apply at studentaid.gov.

How to Apply

All steps below must be completed for the loans to be applied to the student bill. Borrowers should be sure to complete these steps several weeks in advance of their billing due date to ensure on- time payment. Mizzou is not responsible for late fees or finance charges if this process is not completed in time.

  1. File the FAFSA.
  2. Once your financial aid eligibility is determined, the student will receive a financial aid offer notification to their Mizzou email for continuing students, and personal emails for incoming students until August or January before they start classes at Mizzou.
  3. Complete a Federal Parent PLUS Loan application. A credit check will be completed by the Department of Education.
  4. If the loan is approved:
    • The borrower needs to complete a Master Promissory Note if they have not previously borrowed through the Direct PLUS program for this student. The MPN must be signed by the same parent that applied for the loan.
  5. If the loan is denied:
    • The borrower may choose from ONE of the following options:
      • The parent may appeal the credit decision if there are extenuating circumstances. To choose this option the parent must complete counseling.
      • The parent may have a third-party endorser co-sign the PLUS loan application with the original applicant. To choose this option, the parent must complete counseling.
      • The student may be able to borrow additional Unsubsidized Loans.

Federal Graduate PLUS Loan

  • This loan is for graduate and professional students with good credit (or a co-signer with good credit)
  • This loan is not based on need, but instead contingent on a credit check.
  • The maximum permissible loan amount is limited to the Cost of Attendance (COA) minus any other financial aid or resources the student has received.
  • Learn how to apply at studentaid.gov.

How to Apply

All steps below must be completed for the loans to be applied to the student bill. Borrowers should be sure to complete these steps several weeks in advance of their billing due date to ensure on- time payment. Mizzou is not responsible for late fees or finance charges if this process is not completed in time.

  1. File the FAFSA.
  2. Once your financial aid eligibility is determined, the student will receive a financial aid offer notification to their Mizzou email for continuing students, and personal emails for incoming students until August or January before they start classes at Mizzou.
  3. Complete a Graduate PLUS loan application. A credit check will be completed by the Department of Education.
  4. If the loan is approved:
  5. If the loan is denied:
    • The borrower may choose from ONE of the following options:
      • The borrower may appeal the credit decision with the U.S. Department of Education if there are extenuating circumstances and email mizzousfa@missouri.edu that you plan to appeal the decision.
      • The borrower can apply with an endorser. To do this option the borrower must complete counseling. Mizzou will only receive endorser applications done electronically. If you complete a paper endorser application you MUST email mizzousfa@missouri.edu with your student ID, loan application number and any reference number given to your case by the Direct Loan servicer.

A private loan can be the difference for a student or family to fill the gap of remaining costs to attend Mizzou that are not met by other forms of financial aid or personal financial resources. We encourage students to borrow private loans as a last resort after they have exhausted their federal, state and university aid programs.

Private Loan Comparison Tool

FASTChoice is a private loan comparison tool that Mizzou students can use to find a private loan that best meets their needs. Mizzou students borrow from a variety of private lenders, and the Student Financial Aid office does not endorse or recommend any particular lender.

  • The maximum permissible loan amount is limited to the Cost of Attendance (COA) minus any other financial aid or resources the student has received.
  • We recommend researching federal loans vs. private loans to be sure you are borrowing the most favorable loan option.
  • Borrowers must meet the lender’s borrowing criteria and may require a cosigner.

Plan ahead and apply early!

Allow 3 to 4 weeks for loan processing, certification and receipt of funds. Mizzou is not responsible for late fees or finance charges if this process is not completed in time.

Your private loan amount will be reduced by Mizzou based upon maximum permissible limits.

You’ll need to apply for a loan each semester if you don’t stay enrolled for consecutive semesters (for example, if you take a leave of absence during the fall term of your sophomore year, you’ll need to apply for loans for the spring term).

Once your loan has been processed, requests for reductions and cancelations can be made by emailing mizzousfa@missouri.edu.

Helpful tips:

Consider these criteria when selecting a lender:

  • Interest rates: Are interest rates fixed or variable during loan repayment?
  • Fees: What percentage of fees, if any, are charged to borrow the private loan?
  • Amount: Only borrow what is needed to keep your loan debt at a minimum.
  • Co-Signer Release: What is the length of time a co-signer can be released from repayment responsibilities on the loan?
  • Repayment: Options will differ per lender and are separate from federal student loans.

Important Dates

For the 2024-2025 academic year

Dec. 1, 2023 - Scholarship deadline for first-time college students

Feb. 1, 2024 - Scholarship deadline for current & transfer students

March. 1, 2024 - MU's recommended FAFSA submission date

Apr. 1, 2024 - FAFSA submission deadline

More dates