What are loans?
Loans are a type of financial aid that requires repayment after graduation or discontinuing one’s education. Most loan programs offer low interest rates and long-term repayment plans. Some loan program base their funding on financial need while others are determined regardless of financial need.
How to apply:
Important Information About Student Loans
Drury University participates in the William D. Ford Direct Loan Program.
Based upon the completion of the Free Application for Federal Student Aid (FAFSA)
and a Drury University loan application, students may qualify for a Federal
Direct Loan. The federal government offers both Subsidized and Unsubsidized
Federal Direct loans. The Financial Aid Office will calculate your loan eligibility
for each loan type. For more detailed information on individual loan eligibility
and applications, traditional students should call 417 873-6806 or -7312; CCPS
students should call 417 873-6908 or -7312.
- Direct Subsidized Student Loans
- Date of First Disbursement: 7/1/11 - 6/30/13
- Fixed Interest Rate: 3.40%
- Direct Unsubsidized Student Loans
- Date of First Disbursement: on or after 7/1/2006 Â
- Fixed Interest Rate: 6.80%
- Direct PLUS Loans (Parents)
- Date of First Disbursement: on or after 7/1/06
- Fixed Interest Rate: 7.90%
Subsidized Federal Direct Stafford Loan
The subsidized loan is based on financial need determined by a federal formula. A loan is “subsidized” when the government pays the interest for a student when: they are enrolled in school at least half-time as a degree seeking student; during the six month grace period after the student is no longer attending at least half-time; during periods of authorized deferment. There is a limit on this type of loan.Â See Â Loan Limits. As of July 1, 2012, subsidized loans will be based on a 3.4% interest rate and have a 1% fee.Â
Federal Direct Unsubsidized Stafford Loan
The unsubsidized loan is not based on financial need and is available to all qualifying students regardless of income. The student is responsible for all interest, which accrues during in-school, grace and deferment periods. A student may choose to make interest payments while in school. While you are not required to make interest payments, it is encouraged because the interest capitalizes so that you will be paying interest on interest while in repayment. See Loan Limits for aggregate totals. As of July 1, 2012, unsubsidized loans begin accruing interest at a rate of 6.8% and have a 1% fee.
Parent Plus Loan
The Parent Plus loan is borrowed by the parent of an undergraduate, dependent student. The parent is responsible for repayment, which begins 60 days after funds are fully disbursed OR a deferment can be requested by the parent by contacting the Department of Education.Â Maximum amount eligibility is based on the cost of attendance minus other financial aid. Drury University policy states that any refund that is a result of the Parent Plus Loan will be disbursed directly to the student. Parent Plus Loans accrue interest at a rate of 7.9% and have a 4% fee.
Perkins loans are awarded as part of a student’s financial aid package. These funds are limited and are reserved for traditional day school students. The application for consideration is the filed FAFSA, and if a student is eligible, the award amount will be on their award package.
Grad Plus Loan
Graduate students that are enrolled at least half time may apply for the Grad Plus loan, which is credit-based. Be sure to utilize Direct Loan eligibility before applying for this loan, as the interest rate is higher on the Grad Plus. The interest will accrue at a rate of 7.9% and has a 4% fee.
Alternative (private loans) may be available to all students to meet educational expenses not covered by other financial aid. These loans are credit based, and students should exhaust Federal Student Loan eligibility before applying for additional private loans. They cannot be consolidated with Federal Student Loans and the interest rates are based on credit and lender policy.
Drury’s ELM Resources webpage is a tool for you to compare the benefits and services of lenders that have provided alternative loans to our students in the past. Drury University does not endorse or promote any lenders that offer private alternative loans. This neutral, historical list of alternative lenders should not be considered a preferred lender arrangement, as Drury University does not have agreements or relationships with any lenders. Drury does not receive any benefits from the use of private alternative loans by our students.
Deferment of Past Student Loans
A returning student or a transfer student should be able to keep their past loans in deferment with their lender(s) and/or servicer(s). The student needs to contact the servicer(s) of their loan to check on deferment. If a form is necessary for the servicer, contact Drury’s Registrar’s Office to complete and submit any necessary forms to the servicer. The Registrar’s Office can also submit a Proof of Enrollment Letter to a servicer, and are the only ones authorized to submit this information.