Loans

Student loans are borrowed money that must be repaid, with interest.  Borrowing responsibly now will help you have a successful financial future.

There are four types of student loans available, Federal, State, Institutional-UMKC, and Private.

Federal Loans

Federal loans are awarded to students who complete the Free Application for Federal Student Aid (FAFSA) and who have been admitted to UMKC in a degree-seeking program of study.

Know How Much You Owe!  You can keep track of your borrowing history and get important information about your loans on the National Student Loan Data System (NSLDS).

Direct Loans

Subsidized Direct Loans

Undergraduate students with demonstrated financial need are eligible for these loans. Interest is not charged while a student is in school at least half-time and during the six months after their attendance falls below half-time.  Repayment of the principal balance begins six months after the student graduates or drops below half-time enrollment.

Effective as of July 1, 2013 students with a zero student loan balance will be limited to the amount of Subsidized Loans they can receive during their Undergraduate career. Eligibility will be limited to 150% of the length of their degree program. If degree is not received by the end of the 150% time frame subsidized loans will be converted to unsubsidized loans.

Unsubsidized Direct Loans

Undergraduate, Graduate, and Professional students are eligible for these loans which do not require financial need.  Interest is charged while a student is in school, but does not need to be repaid while the student is enrolled at least half-time.  Repayment of the principal and accumulated interest begins six months after the student graduates or drops below half-time enrollment.

Entrance Counseling and Master Promissory Note

Direct Loan borrowers are required to complete Entrance Counseling AND Master Promissory Note at studentloans.gov before any loan funds will disburse to your UMKC cashier’s account.

Direct Loan Annual Limits
Undergraduate Annual Maximum Amounts for Direct Loans
Academic LevelDependent Student
Annual Maximum Amount
Additional Unsubsidized Loan for dependent student whose parent cannot borrow PLUSIndependent Student Annual Maximum Amount
Freshman
0-29 credit hours
$5,500
(up to $3,500 can be subsidized)
up to $4,000$9,500
(up to $3,500 can be subsidized)
Sophomore
30-59 credit hours
$6,500
(up to $4,500 can be subsidized)
up to $4,000$10,500
(up to $4,500 can be subsidized)
Junior
60-89 credit hours
$7,500
(up to $5,500 can be subsidized)
up to $5,000$12,500
(up to $5,500 can be subsidized)
Senior
90+ credit hours
$7,500
(up to $5,500 can be subsidized)
up to $5,000$12,500
(up to $5,500 can be subsidized)
Graduate/Professional Annual Maximum Amounts for Direct Loans
Graduate/Professional
Any Year in Program of Study
up to $20,500 in Unsubsidized Loans
Direct Loan Aggregate Lifetime Limits
Student StatusAggregate Lifetime Limit 
Undergraduate, dependent$31,000 (no more than $23,000 can be subsidized)
Undergraduate, independent$57,500 (no more than $23,000 can be subsidized)
Graduate or Professional$138,500
Medical, Dental (DDS) or Pharmacy$224,000
Direct Loan Interest Rates
Loan TypeCurrent Interest Rate Origination Fee
Direct Subsidized Loan5.05%1.066%
Direct Unsubsidized Loan5.05% for undergraduates
6.6% for graduate/professional
1.066%
Direct PLUS Loan7.6%4.264%

Grad PLUS Loans

Graduate or professional students are eligible to borrow up to their cost of attendance minus other financial aid awards.  Eligibility for this loan requires a determination that you do not have an adverse credit history.

Interest is charged while a student is in school, but does not need to be repaid while the student is enrolled at least half-time.  Repayment of the principal and accumulated interest begins six months after the student graduates or drops below half-time enrollment.

Entrance Counseling and Master Promissory Note

Grad PLUS borrowers are required to complete Entrance Counseling AND Master Promissory Note at studentloans.gov before any loan funds will disburse to your UMKC cashier’s account.

Direct Loan Interest Rates
Loan TypeCurrent Interest Rate Origination Fee
Direct Subsidized Loan5.05%1.066%
Direct Unsubsidized Loan5.05% for undergraduates
6.6% for graduate/professional
1.066%
Direct PLUS Loan7.6%4.264%

Parent PLUS Loans

Parents of dependent undergraduate students may be eligible to borrow a Direct Parent Loan for Undergraduate Students (Parent PLUS) up to a student’s cost of attendance minus other financial aid. Eligibility for this loan requires a determination that the parent does not have an adverse credit history.  Parents interested in this loan must complete an online application at www.studentloans.gov and the Direct Parent PLUS loan award must be accepted in the student’s Pathway.

If the loan is declined by the federal lender, the parent can choose to pursue an endorser (cosigner), appeal the decision, or the student can be offered additional unsubsidized Direct loan funds. The annual amounts of the additional unsubsidized Direct loan funds are $4,000 for freshman and sophomore level students, and $5,000 for junior and senior level students.

Repayment of the loan will begin 60 days after the loan is disbursed to the student’s UMKC cashier’s account. The parent may request on the application that repayment be deferred while the student is enrolled at least half-time. Interest is charged while a student is in school.

Parent PLUS Application Process

There are four steps that must be completed in order for the UMKC Financial Aid and Scholarships Office to process a Parent PLUS Loan. Review the Parent PLUS Loan Guide for detailed instructions on completing the application process. The basic steps are:

  1. The student accepts the Parent PLUS loan in their financial aid package
  2. The parent borrower completes the online Parent PLUS loan application at www.studentloans.gov
  3. The student completes online Direct Loan Entrance Counseling
  4. If approved, the parent borrower must also complete a Parent PLUS Master Promissory Note (MPN) online at www.studentloans.gov
Entrance Counseling and Master Promissory Note

Parent PLUS borrowers are required to sign a Master Promissory Note at www.studentloans.gov before any loan funds will disburse to the student’s UMKC cashier’s account. Dependent students – whose parent borrows through the Direct Parent PLUS loan program – must complete Entrance Loan Counseling at www.studentloans.gov.

PLUS Counseling is also required if the parent initially does not pass a credit check but is approved because they obtain a co-signer or they appeal the denial and submit supporting documentation. PLUS Counseling is also available at www.studentloans.gov.

Direct Loan Interest Rates
Loan TypeCurrent Interest Rate Origination Fee
Direct Subsidized Loan5.05%1.066%
Direct Unsubsidized Loan5.05% for undergraduates
6.6% for graduate/professional
1.066%
Direct PLUS Loan7.6%4.264%

Perkins Loans

The Perkins Loan Extension Act of 2015 phased out the Perkins Loan program.  No additional Perkins Loans will be offered to students on or after October 1, 2017.

If you have received a Perkins Loan at UMKC and have additional questions about repayment, please contact Heartland ECSI, UMKC’s third party servicer for Perkins Loans.

State Loans

Health Profession Loans

Health Profession Loans are available for Health Professional students.  Students in Health Professional degree programs (Dentistry, Medicine and Nursing) should visit the Missouri Division of Health and Senior Services (DHSS) website to find additional details. 

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 Institutional Loans

UMKC offers Institutional loans to help students meet their Cost of Attendance. The majority are awarded automatically based on completion of the FAFSA by February 1. To find out more about these institutional loans, contact our office 816-235-1154.

UMKC Institutional Loan borrowers are required to complete Entrance Counseling and a Master Promissory Note at Heartland ECSI before any loan funds will disburse to your UMKC cashier’s account. Heartland ECSI is UMKC’s third party servicer for institutional loans.  Students who accept an Institutional Loan will receive further instructions in their UMKC email.

Short Term Emergency Loans

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.

Private Loans

UMKC’s Financial Aid and Scholarships Office encourages students to take advantage of all sources of federal aid before turning to private loans (also called alternative loans). If you’re interested in applying for federal financial aid, please visit the FAFSA website.

Private loans are credit based loans offered through a variety of banks and other lenders and do not require students to fill out the FAFSA. Private loans must be repaid separately from federal loans and you should carefully consider each option.

Things to Consider When Selecting a Lender:

  • Interest rates
  • Are there any fees associated with the loan? Ask about both up front and backend fees
  • Approval Rate: the overall rate that applicants are approved for a loan
  • Co-Signer Release
  • Customer Service
  • Benefits to the Loan
  • Whether accruing interest is added to the principal amount of the loan while you are enrolled in school
  • Are payments required while you are in school? Some lenders require payments while you are in school and some do not. In the long-term, it’s in your best interest to make payments while you are in school but this may not fit in your budget

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.

Private Loan Process
  1. Decide on a lender of your choice
  2. Apply for a loan with the lender completing the application paperwork
  3. As a part of the process the lender will provide you with an Approval Disclosure, Applicant Self Certification form and Acceptance of Loan Terms form. The Applicant Self Certification and Acceptance of Loan Terms must be signed (electronically or via paper) and returned to the lender. Also note that if you choose not to file the FAFSA and only want to pursue a private loan, you must complete an Alternative Loan Request Sheet and return it to the UMKC Financial Aid and Scholarships Office.
  4. UMKC Financial Aid and Scholarships will be notified by your lender that you have completed an application. The lender requires us to verify you are eligible to receive the loan. This is called the certification process.
  5. UMKC Financial Aid and Scholarships will review your account, add the loan to your financial aid package and send the certification information to your lender.
  6. The lender sends you a Final Disclosure. After a regulatory waiting period (several days long), the lender sends the funds to the UMKC Financial Aid and Scholarships Office.
  7. UMKC Financial Aid and Scholarships disburses the funds to the Cashiers Office.

If you apply for an Alternative Loan, please note that the Applicant Self Certification Form is a federal requirement through the Truth In Lending Act (TILA) and the Higher Education Act of 1965, as amended (HEA). The lender may provide you with the self-certification form or you can also obtain the form at this link, Private Education Loan Applicant Self-Certification form. If you need help completing this form, please contact the Financial Aid and Scholarships Office at 816-235-1154.

List of Alternative Loan Lenders

List of Alternative Loan Lenders

The UMKC Financial Aid and Scholarships Office annually goes through a formal review process to assess loan products from private lenders. This is an effort to help students begin the process of searching for a private lender and to help you make informed decisions. A committee of financial aid staff annually requests information from lenders regarding loan products and evaluates them based on many factors. These include but are not limited to interest rates, loan terms and conditions, benefits, customer service, approval rate, UMKC student experience with the lender, etc. The University adheres to a Code of Conduct for Student Loans that prohibits inducements by private lenders.

The link below allows students to research and compare alternative loan options on UMKC’s Preferred Lender List using “FASTChoice”. Please note that this list is not a comprehensive list and students are free to pursue any private lender of their own choice including lenders that are not in the list.


Health Profession Loans 

There are additional loans available specifically for Health Profession students.  For further information about qualifications and the application process, select a loan below.

Repayment

When it comes to repaying your federal student loan, there’s a lot to consider. Understanding the details of repayment can save you time and money. Find out when repayment starts, how to make your payment, repayment plan options, what to do if you have trouble making payments, and more!  You can find this important information on the Federal Student Aid website.

Students generally have a six month grace period after they graduate (or stop attending at least half time) before repayment begins.  Try using a repayment calculator like the Federal Student Aid Repayment Estimator to estimate your payment amounts.

Review all of the available payment plans to find the one that best fits your needs!

Track Your Loans: National Student Loan Data System (NSLDS) for Students

The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for student aid. You can track your borrowing history for federal loans and get information about the loan servicer and status of your loans. 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 federal loans and grants.

Exit Counseling

If you are graduating, leaving UMKC, or dropping below half-time enrollment and have borrowed a student loan, you are required to complete Exit Counseling. Exit Counseling provides you information about your payment options and what to expect when you enter repayment.  Depending on the type(s) of loans you borrowed, you may be required to complete different Exit Counseling processes.

Direct Loan borrowers can complete this process by visiting studentloans.gov.

Perkins Loan and Institutional Loan borrowers will receive an email with instructions for completing counseling from Heartland ECSI.

Postponing Payment

You may want to postpone repaying your loan for various reasons.  Find out who your loan servicer is at NSLDS and contact them to determine what your options are for postponing repayment:

Learn more

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 (attendance will be verified by the lender and a Certificate of Enrollment may be required)
  • 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 Direct 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 Direct 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.

Consolidation

If you have multiple student loans, simplify the repayment process with a Direct Consolidation Loan—allowing you to combine all your federal student loans into one loan for one monthly payment.  Contact your loan servicer(s) to find out about consolidation at NSLDS.