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 programs base their funding on financial need while others are determined regardless of financial need.

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), 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, students should call the Financial Aid Office at (417) 873-7312.

Interest Rates

For the current interest rates, please visit:

Federal Direct Subsidized 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. See Loan Limits for aggregate totals. There is an origination fee that is deducted from each disbursement. To see the origination fee for this year, please visit

Federal Direct Unsubsidized 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. There is an origination fee that is deducted from each disbursement. To see the origination fee for this year, please visit   

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), if they will be enrolled at least half time. 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.

The following three types of loans are CREDIT-BASED:

Alternative Loans

Alternative (private loans) may be available to students/parents/other borrowers 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. Drury University does not endorse or promote any lenders that offer private alternative loans. A list of lenders is provided based on product, performance and customer service. Drury University does not have any agreements with these lenders, nor do we receive any benefits from the use of their private loans by our students. The lenders names are provided in random rotating order. If you wish to use an alternative loan lender that is not on this list, you have the right to do so.

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. A deferment can be requested by the parent by contacting the Department of Education.  The 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. There is an origination fee that is deducted from each disbursement. To see the origination fee and interest rates for this year, go to To apply for this loan, the parent should visit and log in with the FSA ID you used to sign your student's FAFSA.

Graduate PLUS Loan

Graduate students who are enrolled at least half time (minimum of 3 degree-required hours) 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. There is an origination fee that is deducted from each disbursement. To see the origination fee and interest rates for this year, go to