An education loan is a form of financial assistance that allows you to spread the cost of your education over time. A loan must be repaid with interest. Eligibility may be based on your Cost of Attendance and financial need for the loan. You are not required to accept the loan portion of your financial aid package.
Each loan type has different eligibility requirements and terms that must be met. Federal loans require acceptance into a degree seeking program or certificate program. Federal loans require a FAFSA (Free Application for Federal Student Aid) to be filed. Please be aware there are student loan limits to the amount of Direct Loans that can be borrowed while seeking your degree, determined by the student's grade level and financial need. Federal law sets the maximum interest rates and fees that may be charged for federal loans. The interest rate is set on July 1st each year. For more information about the Direct Loan Program, please visit the Direct Loans page on our website or studentaid.gov from the US Department of Education.
We urge all first-time borrowers to spend some extra time learning about the loan process so that they can make informed choices throughout their education.
Loan Adjustments
Federal Subsidized, Unsubsidized and Plus
Per FSA guidelines, you have the right to cancel or reduce your student loan(s).
If you wish to cancel or reduce your student loan(s),and there is no credit balance on your account, you will need to send UMSL the funds to be used to reduce the loan. You can either:
- Send or bring to Student Financial Services a check payable to UMSL for the amount you wish to return, along with a written and signed statement explaining that you wish to use the funds to reduce the loan. If you are using a refund check to reduce your loan, please endorse the back of the check and include it with the written request.
- Make an online payment in TouchNet of the amount you wish to return, and send an email at that time requesting that the loan be reduced. Emails should be sent to financialaid@umsl.edu. Emails from students should be sent from the UMSL email account, and parent borrower emails should be sent from the email account specified on the PLUS borrower’s application. A delay in sending the email after a payment is made could result in the funds being returned in the form of a refund.
The written request, regardless of the method of submission, should include the following:
- Student Name and Student ID number
- The semester(s) and amount you want returned
- The loan(s) being reduced; we recommend that students reduce their Direct Unsubsidized Loans before reducing the Direct Subsidized Loan since the latter is interest-free to the student during periods of half-time enrollment, the grace period, and periods of deferment.
The latest a request will be accepted is 120 days of disbursement of your funds. If you wish to return the funds after the 120-day deadline, please contact your loan service to make payment arrangements.
Loan Resources
HPSL Student Loan
(our school code is AC6B)
Direct Loans
Nurse Faculty Loan (NFLP)
(our school code is AC6B)Other Loan Resource
- Federal Student Aid Ombudsman
- National Student Loan Data Systems (NSLDS) - The National Student Loan Data System (NSLDS) is the U.S. Department of Education's central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.
- National Student Loan Clearinghouse
- Direct Loan Program Maximums
Loan Repayment
It's important for students to understand the loan repayment process prior to taking on loans. Learn about payment plans, loan consolidation, getting out of default and more at the Federal Student Aid website.
Sample Loan Repayment Schedule
| Loan | Amount Borrowed | Interest Rate |
Standard Repayment | Interest | Total Paid |
|---|---|---|---|---|---|
| Direct Subsidized Loan (Undergraduate) | $5,500 | 4.5% | 120 months ($57/month) | $1,340.13 | $6,840.13 |
| Direct Unsubsidized Loan | $5,500 | 6.8% | 120 months ($63.29/month) | $2,095.30 | $7,595.30 |
| Direct Plus Loan | $10,000 | 7.9% | 120 months ($120.80/month) | $4,495.98 | $14,495.98 |
Loan Data
In 2021-22, the percent of students with debt is 40% for federal loans and 42% with federal, state, and or private loans. Our 2019 cohort default rate (CDR) for federal student loans is 1.3%, below the national average CDR rate of 2.3%. This is updated soon after 1 October of each year.
*Data provided by the National Center for Education Statistics