Guide to applying for loans at Drury University

Stafford Loan First Time Borrowers:

1) File a FAFSA each academic year. The Department of Education requires a completed FAFSA before a student is eligible for a Stafford Loan.

2) Complete the Drury University Loan Application. Please click on this link to apply for Summer 2009, Fall 2009, Fall/Spring 2009-10.

3) Complete Entrance Counseling. First time Stafford Loan borrowers must complete entrance loan counseling before the loan can be disbursed.

4) Complete a Master Promissory Note (MPN) for your chosen lender.

Stafford Loan Returning Borrowers:

1) File a FAFSA each academic year. The Department of Education requires a completed FAFSA before a student is eligible for a Stafford Loan.

2) Complete the Drury University Loan Application. Please click on this link to apply for Summer 2009, Fall 2009, Fall/Spring 2009-10.

Note: If you will be using the same lender as before, you do not need to sign a new Master Promissory Note.

Parent Loan:

Important Information about Parent PLUS Loans:

The parent PLUS loan auction that was mandated by the College Cost Reduction and Access Act of 2007 has been cancelled by the U.S. Department of Education due to lack of bids. During the 2009-10 and 2010-11 award years, parent PLUS loans under the Federal Family Education Loan Program may be made by any eligible lender to parents of students attending eligible educational institutions in any state. You may now proceed with your parent PLUS loan application with your choice of lender.

Parents may apply for a Parent Loan for their undergraduate student. To apply for a Parent Loan please go to: www.collegelenderlist.com.

Grad PLUS Loan:
Graduate students that are enrolled at least half-time status may apply for the Grad PLUS Loan. Be sure to utilize your Stafford loan eligibility before applying for this loan. To apply for the Grad PLUS loan, please go to: www.collegelenderlist.com.

Alternative Loan Borrowers:
For information on alternative loans and a complete list of lenders, please go to: www.collegelenderlist.com. Choose the lender you would like to work with and click on the apply now link..

Important Information about Student Loans

Drury University participates in the Federal Family Education 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 Stafford Student Loan. The federal government offers both Subsidized and Unsubsidized Federal Stafford 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; CGCS students should call 417 873-6908 or -7312.

The Subsidized Federal Stafford Loan is based on financial need determined by a federal formula. A loan is "subsidized" when the government pays the interest for you during the following periods: while you are enrolled in school at least half-time; during the six month grace period after you stop attending school at least half-time; during periods of authorized deferment.

The Unsubsidized Federal Stafford Loan is not based on financial need and is available to all students regardless of income. Because this loan is not subsidized by the government, the student is responsible for all interest which accrues during in-school, grace and deferment periods. You may choose to make interest payments while in school or you may defer (and accumulate) the interest until repayment.

The Parent Plus Loan is a loan borrowed by the parent of an undergraduate, dependent student. The parent is responsible for repayment, which begins 60 days after the funds are fully disbursed, unless a deferment is requested and granted by the lender. For information on PLUS deferment, contact your lender. Maximum amount eligibility is based on the cost of attendance minus other financial aid. Contact the financial aid office for specific amounts. You may also visit Mapping Your Future's web site for additional information regarding PLUS Loans.

Alternative Loans may also be available. Contact the financial aid office for more information.

Perkins Loans are awarded as part of the financial aid package. These funds are very limited; the application is the FAFSA. If a student is eligible, the award and the amount will appear on the award letter.

Common terms used in Student Loan Programs

Repayment: The repayment on Stafford subsidized and unsubsidized loans begins automatically six months after you drop below half-time attendance. Repayment on Parent Plus loans begins 60 days after the funds are fully disbursed.

Interest Rate: Federal Stafford Loans have a current rate of 6.8%. Loans disbursed prior to July 1st, 2006 have a variable rate based on the 91-day Treasury bills established at the final auction held prior to June 1, not to exceed 8.25%.

Master Promissory Note (MPN): The MPN is mandated by federal regulations. You will have to complete an online promissory note only one time (in most cases). After you complete the new MPN, it will then be in effect for future loans requested at Drury University.

Eligibility Criteria: Students who are admitted to an eligible school as at least half-time students. Citizens, permanent residents of the U.S., or a permanent resident of an eligible trust territory. Students not currently in default, or who do not owe a refund on any Title IV Program: Federal Pell, SEOG, CWS, Subsidized Stafford, Unsubsidized Stafford, SLS, PLUS, or Consolidation Loan. Students who are maintaining satisfactory academic progress. Students who have satisfied all Selective Service Act requirements.

2008-09 Stafford Loan Program Annual Maximums (include both sub and unsub loans):

Aggregate Limits:

*Includes Dependent Students whose parents are denied a loan under the Parent PLUS program.
** Effective as of Fall/Spring 2008-09.

Disbursements: Loan funds are disbursed after the drop/add period. Please note the items listed below that may affect the delivery of funds to your student account and any credit balance refund.

Verification: The Federal Processing Center selects and flags a certain number of FAFSAs for verification. If you are selected, you will be required to complete and submit additional forms to the Financial Aid Office before funds can be released to your Drury student account.

Entrance Counseling: All first-time borrowers at Drury University are required to participate in entrance interview counseling prior to loan disbursement. The website is http://www.mappingyourfuture.org.

Book vouchers: Vouchers are issued by the Financial Services Office (Business Office) only when guaranteed loans and other aid are greater than student charges.

Credit Balance Refund Checks: Release of aid does not occur until after the drop/add period ends, approximately the fourth week in the semester (fall or spring); then Financial Services issues refund checks within two weeks after a credit balance occurs. Therefore, the earliest possible date funds are available for living expenses is approximately the end of the fifth week of the semester if all the above steps were completed on a timely basis. Later in the semester, if a credit balance occurs when funds are released (Monday - Friday), refund checks will be available Thursday of the following week after 2:00 p.m.

Previous Borrowers: You may obtain information regarding your student loans via the internet at http://nslds.ed.gov. You must have a federal PIN (used on FAFSA) to access your loan data. To get a PIN, visit the website at http://pin.ed.gov. For assistance, call (800) 4-FED-AID (800 433-3243). A student cannot get a PIN over the phone.

Related Links:
Mapping Your Future
National Student Loan Data System
Student Financial Aid