A student loan is money that you borrow to pay for college with the condition that it be paid back over a certain period of time with interest. Students often use student loans when family contributions, scholarships and grants do not cover the total cost of attendance.

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 U.S. Department of Education’s Federal Student Aid website and log in using your FSA ID and password.

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 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 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 Parent Plus Loans are credit-based loans for parents (biological or adoptive) of dependent undergraduate students.
• Federal Direct Grad Plus Loans are credit-based loans for graduate students.

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.

If you choose to borrow from a lender, you might consider using ELM Select. This tool helps students compare different loan programs and help determine the best private education loan for you.

Lenders that may offer international student private loans without a U.S. co-signer include MPower Financing, Ascent  and Prodigy Finance Student Loan.