Student loans are borrowed money that must be repaid, with interest. There are four types of student loans available, Federal, State, Institutional (from the college you are attending) and Private.
Federal loans are awarded to students who complete the Free Application for Federal Student Aid (FAFSA) and who have been admitted to UMKC.
The most common student loans are:
Perkins Loan
Maximum Academic Year Amount
Qualifications
- Requires Financial need
- Fixed 5% interest rate
- No interest accrues during school (as long as student enrolls at least part-time)
- Repayment begins 9 months following termination of at least half-time enrollment
Application
- File the Free Application for Federal Student Aid.
Stafford Subsidized Loan
Maximum Academic Year Amount
Qualifications
- Requires financial need
- Interest rate determined by student’s level; ranges between 5.6%-6.8%
- No interest accrues during school (as long as student enrolls at least part-time)
- Aggregate undergraduate limit is $23,000; Aggregate graduate/professional limit, including undergraduate loans, is $65,500
- Repayment begins 6 months following termination of at least half-time enrollment
Application
- File the Free Application for Federal Student Aid.
Stafford Unsubsidized Loan
Maximum Academic Year Amount
Qualifications
- Does not require financial need
- Fixed 6.8% interest rate
- Interest accrues, but does not have to be repaid, during at least half-time enrollment in school
- Aggregate undergraduate limit for Dependent students, including subsidized loans, is $31,000
- Aggregate undergraduate limit for Independent students, including subsidized loans, is $57,500
- Aggregate graduate and law limit, including undergraduate and subsidized loans, is $138,500
- Aggregate health professional limit, including undergraduate and subsidized loans, is $224,000
- Repayment begins 6 months following termination of at least half-time enrollment
Application
- File the Free Application for Federal Student Aid.
Parent PLUS Loan
Maximum Academic Year Amount
- Cost of education minus other financial assistance
Qualifications
- Does not require financial need
- Fixed 8.5% interest rate
- Must pass a basic credit check
- Available to parents of dependent undergraduate students enrolled at least half-time
- Repayment begins 60 days after disbursement unless the parent requests an in-school deferment
Application
- A parent will need to complete a form with the Financial Aid Office
- Complete an application/credit check with a loan provider
Graduate PLUS Loan
Maximum Academic Year Amount
- Cost of education minus other financial assistance
Qualifications
- Does not require financial need
- Fixed 8.5% interest rate
- Borrower must pass a basic credit check
- Available to graduate/professional students enrolled at least half-time
- Repayment will be postponed until 60 days after student ceases to be enrolled at least part-time
Application
- Complete an application/credit check with a lender
Federal Loans are available to undergraduate, graduate and professional students. There are limits on the amounts
that students can borrow in Stafford and Perkins loans that vary based on the student's grade level, program of
study and on the student's need as determined by the FAFSA.
The U.S. Department of Education's publication, Your Federal Student Loans is a great resource for reading more about federal loans.
First time borrowers or students who have changed their lenders are required to complete entrance counseling and sign a Master Promissory Note before any loan funds will disburse to the school.
Federal Loans do not need to be repaid until the student has graduated or stopped attending college at least part-time.
The State of Missouri currently has loans available for Health Professional students. Students in Health Professional degree programs (Dentistry, Medicine, Nursing and Pharmacy) should visit the Missouri Division of Health and Senior Services (DHSS) website to find additional details: www.dhss.mo.gov.
If you are not from Missouri, you should check with your state's Higher Education Authority to find out if special student loans are available to you as a resident of that state.
UMKC offers Institutional loans to help students meet their Cost of Attendance. The majority are awarded automatically based on completion of the FAFSA by March 1.
To find out more about these institutional loans, contact us.
UMKC also offers Short Term Loans for students enrolled at UMKC. These are available for emergency or unexpected circumstances and must be paid off by the end of the semester in which it was borrowed. See the Short Term Loan Policy to see eligibility requirements and restrictions.
Visit the Financial Aid and Scholarships Office in person to apply for a Short Term Loan.
There are additional loans available to students in Health Professional degree programs at UMKC, in addition to Federal and Institutional Loans. There are several Institutional Loans for Health Professional students that will be awarded based on filing a FAFSA and meeting eligibility criteria. Other loans available to Health Professional students include:
Health Professional Loan (HPL)
Maximum Academic Year Amount
Qualifications
- Fixed 5% interest rate, no interest accrues during school
- Students must be full-time in DDS or PharmD program (not Provisional)
- Student must demonstrate financial need according to rules set forth by U.S. Department of Health and Human Services
- Dependent and Independent students must provide parental income data and signature on the FAFSA
- Repayment begins 12 months following termination of at least half-time enrollment; payments will be made to UMKC
Application
- File the Free Application for Federal Student Aid with parental information; additionally turn in HPL Verification Worksheet and tax forms to the Financial Aid & Scholarships Office
Primary Care Loan (PCL)
Maximum Academic Year Amount
Qualifications
- Fixed 5% interest rate, no interest accrues during school
- Students must be full-time in BA/MD program
- Student must demonstrate financial need according to rules set forth by U.S. Department of Health and Human Services
- Dependent and Independent students must provide parental income data and signature on the FAFSA
- Students will need to commit to working in primary care fields to avoid high interest rate penalties
- Repayment begins 12 months following termination of at least half-time enrollment; payments will be made to UMKC
Application
- File the Free Application for Federal Student Aid with parental information; additionally turn in HPL Verification Worksheet and tax forms to the Financial Aid & Scholarships Office
Loans for Disadvantaged Students (LDS)
Maximum Academic Year Amount
Qualifications
- Fixed 5% interest rate, no interest accrues during school
- Students must be full-time in DDS, PharmD or BA/MD program
- Student must demonstrate financial need according to rules set forth by U.S. Department of Health and Human Services
- Dependent and Independent students must provide parental income data and signature on the FAFSA
- Repayment begins 12 months following termination of at least half-time enrollment; payments will be made to UMKC
Application
- File the Free Application for Federal Student Aid with parental information; additionally turn in HPL Verification Worksheet and tax forms to the Financial Aid & Scholarships Office
Nurse Faculty Loan Program (NFLP)
Maximum Academic Year Amount
- Up to Cost of Tuition and Books
Qualifications
- Graduate Nursing students in MSN, DNP or PhD Program
- Recipient must work full-time as an instructor in a school of nursing for 4 consecutive years upon graduation
- Complete an educator course (6.0 hours)
- Up to 80% of the loan can be forgiven by fulfilling service commitment
Application
Primary Care Resource Initiative for Missouri (PRIMO)
Maximum Academic Year Amount
Qualifications
- Full-time students in DDS, Dental Hygiene and BA/MD programs
- Missouri Resident
- Willingness to work in primary care fields in high need areas of Missouri
- Loans can be forgiven through service commitment
Application
Health Professional Nursing Student Loans
Maximum Academic Year Amount
Qualifications
- Full-time students in Nursing (BSN or MSN)
- Missouri Resident
- Willingness to work in primary care fields in high need areas of Missouri
- Loans can be forgiven through service commitment
Application
UMKC's Financial Aid and Scholarships Office encourages students to take advantage of all sources of federal aid
before turning to private loans. Please be sure to look over the information about federal aid available on our
website before pursuing a private loan:
UMKC sent a public Request for Information to student loan lenders in the Spring of 2009. Of those lenders which
responded, five matched some basic criteria our office was looking for in lenders, including,
- Availability of private loans for Missouri students
- Student eligibility to defer loan repayment while in school
- An established loan program or lender reputation
The Financial Aid and Scholarships Office chose to provide this list of lenders as a service to students, but does not
require that students borrow with these lenders only. Students have the right to borrow a private loan through any lender
they choose. Those listed here responded to our request for information and had qualities we felt matched our student's
needs.
Click here to see some lenders offering private loans to UMKC students: Private Lender List
Whether you're interested in attending school, currently working on obtaining a degree or have graduated and begun repayment on your student loans, you may want to know what options are available when it comes to student loan debt. It is important to plan how much you can afford to borrow for school. It is also important for your personal financial health to keep your loans in good standing.
If you're having trouble making loan payments, consider contacting your loan holder to talk about the options below.
Level / Standard
Level repayment is the most common payment schedule option. Borrowers repay the loan(s) in equal installments over their repayment period. The minimum monthly payment is determined by the amount of the loan and the length of the repayment period. Generally, this option is the most economical method of repayment.
Graduated
Borrowers making graduated payments begin repaying their loans at a lower payment amount than normal. The amount increases every two years until the balance of the loan is repaid over the length of the repayment period. The amount of interest paid over the life of the loan is higher with this option than with Level repayment.
Income Sensitive
With an income sensitive repayment schedule, the monthly payment amount is adjusted annually to reflect changes in the borrower's income, based on the total monthly income and student loan debt. This option may be used for a maximum of five years, when the account will be converted to Level or Graduated repayment.
Extended
Borrowers who began borrowing on or after October 7, 1998, and have Federal Family Education Loan Program loans totaling more $30,000 are eligible for extended repayment. Extended repayment can be either a Level or Graduated schedule that is set up for a repayment term of up to 25 years instead of the 10 years. This can result in a much lower payment amount but will also increase the total amount of interest paid over the life of the loan.
Income Based (New July 1,2009)
Payments under the Income Based repayment plan are based on the borrower's income and the total amount of debt. Monthly payments are adjusted each year as the borrower's income changes. Income Based repayment is set up for a repayment term of up to 25 years. At the end of 25 years, any remaining balance on the loan will be discharged. Income-based repayment caps monthly payments at 15% of your monthly discretionary income.
Deferment
Deferments allow you to temporarily postpone the payment of your loan. Deferments are not automatic;
you must apply and be approved by your lender. The most common reasons for deferment include:
- Return to school for at least half-time attendance
- Loss of job or inability to find a job
- Economic hardship
- On active duty during war, national emergency or military operation
During periods of deferment on subsidized Stafford loans, the principal payments are postponed and interest is paid by the federal government. However, you are responsible for interest that accrues on any unsubsidized Stafford loan. Other deferment options may be available, so contact your loan holder for details and to obtain forms.
Forbearance
If you do not qualify for a deferment, you may be eligible to request forbearance from your lender.
Forbearance is the temporary postponement or reduction in your monthly payment. Often the amount of
time it takes to repay your loan is extended. Interest continues to accrue during the period,
increasing the loan balance. There are several different types of forbearance available depending on
your situation. Forbearance must be approved by your lender.
Forbearance can be applied to both past delinquency and future payments, and is applied in up to
twelve month increments. Multiple periods can be used and maximums are specific to your lender.
Forbearance can be applied verbally with your lender, or submitted in writing depending on the
delinquency of your loan.
Loan consolidation involves applying for a new loan to pay off several existing loans. Students who have
borrowed Federal loans (Stafford, Perkins, Health Professional-HPL or Graduate PLUS) can consolidate
these loans through a Federal Consolidation Loan. A Federal Consolidation Loan has a fixed interest rate
(based on a weighted average of the underlying loan interest rates) and is eligible to be placed on any
of the Repayment Plans that a borrower qualifies for. Consolidation is ideal for students who have
borrowed through multiple lenders, as it provides a single monthly payment to one lender.
Currently, the Federal Direct Consolidation Loan Center is offering
consolidation loans to the most borrowers. Contact the Information Center to find
out if Consolidation is the right choice for you.
Private student loans cannot be consolidated with federal loans. Some private loan companies will allow
you to consolidate multiple loans with them, but eligibility and availability is at the discretion of the
lender. Contact your lender to see what options are available.
DL Stafford Prom Note
