A student loan is money you borrow to pay for college with the condition that it be paid back with interest over a certain period of time. Students often use student loans when family contributions, scholarships, and grants do not cover the total cost of attendance. 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.
Federal Direct Loans
Federal student loans are low-interest loans issued directly by the federal government. They often have interest rates significantly lower than private loans, making them a more affordable choice for borrowing money. You are automatically considered for federal student loans when you file your FAFSA.
- Federal Direct Subsidized Loans are available to undergraduate students with financial need
- Federal Direct Unsubsidized Loans are available to undergraduate and graduate students, there is no requirement to demonstrate financial need
- Federal Direct Parent PLUS Loans are credit-based loans for parents (biological or adoptive) of dependent undergraduate students (application required)
- Federal Direct Graduate PLUS Loans are credit-based loans for graduate students (application required)
Please be aware, significant changes to federal loans have been signed into law that will affect both the Parent PLUS and Graduate PLUS Loan programs and require loan proration if enrollment is below full-time.
Visit our page on 2026–27 Changes to Federal Loans to learn more.
Private Loans
Private loans are offered through a variety of banks and other lenders. The best rates on these types of loans are generally offered to borrowers with good credit and/or who have a cosigner with good credit.
Students who choose to borrow a private education loan may find ELM Select helpful for comparing loan programs and understanding available options. ELM Select is an online tool that allows students to compare private loan programs and identify options that best meet their individual needs.
While students are free to borrow from any lender of their choice, including those not found on ELM Select, Mizzou Student Financial Aid annually reviews our preferred list of lenders based on factors we believe serve students’ best interests, including, but not limited to, preferable interest rates, borrower-friendly repayment terms, and other loan eligibility requirements. This review process is conducted in accordance with Mizzou’s Student Financial Aid Code of Conduct and applicable institutional policies.
Lenders that may offer international student private loans without a U.S. co-signer include MPower Financing and Ascent.
How Much Should I Borrow?
We recommend borrowing only the amount you need. College is an investment in yourself, and the responsible use of loans can be an important part of helping you attain a college education.
You are not obligated to borrow the maximum loan amount that you are offered. If you would like help with budgeting and to estimate your individual college cost, visit Mizzou’s Office for Financial Success.
Keep track of how much you are borrowing. As you continue to borrow additional student loans each year you are in school, keep track of your total student loan debt. Visit the Federal Student Aid website and login using your FSA ID and password.