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 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).
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.
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.
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 StudentAid.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.
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.
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.
UMKC Institutional Loans
UMKC offers Institutional loans to help students meet their Cost of Attendance. The majority are awarded automatically based on the 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.
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 upfront 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.
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.
- Health Profession Loans
- Primary Care Loans
- Loans for Disadvantaged Students
- Nurse Faculty Loan Program
- Primary Care Resource Initiative for Missouri (PRIMO)
- Health Profession Nursing Student Loans
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.
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 StudentAid.gov.
Perkins Loan and Institutional Loan borrowers will receive an email with instructions for completing counseling from Heartland ECSI.
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
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.
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.
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.