Southeast Missouri State University

To view detailed information on a specific topic, click on the appropriate title listed below.

Federal Direct Loans (Students)

The Loan Department encourages students to borrow only what is needed. The Cost Calculator may be used to estimate total expenses.

There are two types of Federal Direct Loans for students:

  1. Direct Subsidized Loans are offered to students on the basis of financial need as determined by the FAFSA. The federal government does not charge interest on these loans while borrowers are enrolled at least half-time (6 credit hours) and during periods of deferment. The interest rate offered for undergraduate level borrowers is 3.86%.

  2. Direct Unsubsidized Loans are not need-based loans and interest is charged throughout the life of the loan. Students can choose to make monthly interest payments or allow interest to capitalize. If interest is capitalized, it is added to the principal balance of the loan and the Department of Education will charge interest on the new principal amount. This option will increase the total amount repaid over the life of the loan. Direct Unsubsidized Loans offer a fixed 3.86% interest rate for undergraduate borrowers. The interest rate for graduate level borrowers is 5.41%.

In accordance with federal loan regulations and Southeast Missouri State University's disbursement schedule, the loan will be applied to the student account once all requirements are met. Loan funds (less the fees) are evenly disbursed at the beginning of each semester, unless the loan is for a single term. If the loan disbursement exceeds the school charges, we will refund the remaining balance.

If a student wants to receive additional amounts after the loans were initially accepted, a 2nd Request Loan Data Sheet must be completed.

2nd Request 2013-2014
(Adobe PDF)

For a complete guide to borrowing, please review the U.S. Department of Education's Loan Guide.

Federal Parent Plus Loans (Parents)

The Federal Parent PLUS Loan is a federally sponsored loan program that allows parents to borrow to meet educational expenses for dependent undergraduate students. The total amount of a PLUS loan may not exceed the cost of attendance minus all other financial aid. The fixed interest rate for PLUS loans is 6.41%. Interest accrues as soon as the first disbursement is made.

The applicant must be the student's biological or adoptive parent or the student's stepparent. The student must have submitted a 2013-2014 FAFSA, be enrolled at least half-time (six hours) and considered a dependent student. The student must also meet the requirements for Satisfactory Academic Progress.

Parents must complete a Loan Application & Credit Authorization Form in order to apply for the Parent PLUS Loan. Once an authorization form is received, a request will be sent to the Department of Education for a credit check. In addition, the parent must complete a new Master Promissory Note, if he/she has not previously borrowed through the Direct Loan Program for this student. The Master Promissory Note must be signed by the same parent that is applying for the loan.

If the PLUS application is denied due to credit, notification will be sent to the parent from the Department of Education. The applicant may then choose from ONE of the following options:

  1. The student may be able to borrow additional Unsubsidized Loans. Southeast Missouri State University's Loan Department will notify the student of their increased eligibility due to a PLUS denial, via their Southeast e-mail account. Student will need to complete a 2nd Request Data Sheet to apply for the additional loan amounts.
  2. The parent may try to have a credit status override completed by the servicer. Please contact the Direct Loan Services at 1-800-557-7394 and Equifax (their credit bureau) at 1-800-685-5000.
  3. The parent may provide documentation to the Direct Loan Servicer if there are extenuating circumstances. The request for a Federal Parent PLUS loan will be reviewed again by the servicer.
  4. The parent may have a third party endorser co-sign the PLUS loan application with the original applicant.

The Loan Department of Student Financial Services must be contacted if the applicant pursues items 2-4 listed above. Please contact us at (573) 651-2253.

In accordance with federal loan regulations and Southeast Missouri State University's disbursement schedule, the loan will be applied to the student's account once all requirements are met. Loan funds (less the fees) are evenly disbursed at the beginning of each semester, unless the loan is for a single term. If the loan disbursement exceeds the school charges, we will refund the remaining balance.


Repayment Options

Repayment begins right after the last disbursement of the loan. There is no grace period for the Parent PLUS Loan. The borrower will be notified by the servicer of the loan when the date of the first payment is due. To find out who services the Parent PLUS loan, please visit the National Student Loan Data System.

Parents can request a deferment while their student is enrolled at least half-time (minimum of six hours), and for six months after he/she graduates or drops below half-time enrollment. Parents can request a deferment form through the servicer of their Parent PLUS loan. The National Student Loan Data System will provide a listing of lenders and servicers and their contact information.

How Do I Apply?

Students must first complete the FAFSA to be considered for any type of federal loan. Once the FAFSA has been received and all other necessary requirements have been satisfied, the student will be awarded a financial aid award package. The student will receive an e-mail notification, through their Southeast e-mail account, once the award package is available. Please visit the Southeast Portal to access the online award letter, as instructed. You may accept all or a portion of your loans. All terms and conditions of the loans should be read before accepting the awarded loan amounts.

Eligibility Requirements and Loan Limits

Students must be seeking a degree and making satisfactory academic progress in order to borrow loans. To view Southeast Missouri State University's full Satisfactory Academic Progress policy, click here.

Students must be enrolled in at least six hours of coursework that corresponds to the degree level reflected by the Registrar's Office (i.e. a graduate student must be enrolled in at least six hours of graduate level coursework).

The length of a student's program of study affects the maximum amount a student may borrow (i.e. a student enrolled in a two-year program may not borrow beyond the sophomore annual loan limit).

Students with a Bachelor's degrees may be eligible to borrow for coursework required for teacher certification. Students with Bachelor's degrees, who return for a second degree, must be pursuing a second, separate degree. Students pursuing a second major are not eligible for federal loans.

Contact the Loan Department in Student Financial Services if any of the following apply:

Students seeking to complete preparatory work for admission to an eligible undergraduate or graduate program may be eligible to borrow. Documentation must be provided.

Study Abroad

Study Abroad costs may be included when calculating federal loan eligibility provided the coursework is considered part of the student's program of study at a U.S. school. Students must provide documentation of the additional expenses and that the study abroad coursework applies to the student's course of study (major).

Federal Direct Loan Annual Limits
Student Status Annual Loan Limit
Subsidized & Unsubsidized Additional Unsubsidized Total Annual Limit
Dependent Freshman (0-29 hours) $3,500 $2,000 $5,500
Sophomore (30-59 hours) $4,500 $2,000 $6,500
Junior/Senior (60+ hours) $5,500 $2,000 $7,500
Independent Freshman (0-29 hours) $3,500 $6,000 $9,500
Sophomore (30-59 hours) $4,500 $6,000 $10,500
Junior/Senior (60+ hours) $5,500 $7,000 $12,500
Graduate $20,500 unsubsidized loan only   $20,500
Federal Direct Loan Total Limits
Student Status Total Loan Limit
Maximum Subsidized Total Limit
Undergraduate Dependent $23,000 $31,000
Independent $23,000 $57,500
Graduate $65,500 $138,500

Direct loan eligibility depends on several factors that include enrollment (minimum of six hours), grade level, prior borrowing, and cost of attendance minus other estimated aid and the expected family contribution, if applicable. The annual loan limit per grade level applies to the scheduled academic year (fall/spring). Students may have Direct Loan eligibility for summer enrollment (minimum of six hours) if the annual limit is not borrowed during the fall/spring semesters.

Obtaining a PIN

In order to complete Direct Loan Entrance Counseling and e-sign the Master Promissory Note for Direct Loans or Parent PLUS Loans, all borrowers are required to use the Department of Education-issued PIN. This is the same PIN used to sign the FAFSA. If you do not currently have a PIN, access the Federal Student Aid PIN Web Site. If you have forgotten your PIN, you can also use this site to "Request a Duplicate PIN".

Direct Loan Entrance Counseling

All first-time borrowers at Southeast Missouri State University are required to complete entrance loan counseling online. Online counseling ensures our student borrowers understand the terms and conditions of the loans they are receiving. Failure to complete loan counseling will prevent disbursement of loan funds and make you responsible for payment of all charges originally deferred by the loan.

Completing a Master Promissory Note

All new student borrowers at Southeast Missouri State University must complete a new Master Promissory Note with the Department of Education, if the student has not previously borrowed through the Direct Loan Program. The MPN is a legal document in which the borrower agrees to repay the loan(s) and is valid for up to 10 years. Failure to complete the Master Promissory Note will prevent distribution of loan funds and make you responsible for payment of all charges originally deferred by the loan. If you experience technical problems signing the MPN, contact the US. Department of Education Customer Service Line at 1-800-557-7394. If you would like to complete a paper MPN, please e-mail

Cancellation or Reduction of a Direct Loan

If additional financial aid is received by the student which results in aid that is in excess of the student's cost of attendance, Student Financial Services will automatically reduce the appropriate loan fund.

If a student or parent wishes to cancel all or a portion of a loan, this must be done in writing. The borrower will need to fill out the Cancellation or Reduction Request Form and return it to Student Financial Services. If the student or parent has received a refund (either by check or direct deposit) and still wants to cancel/reduce a loan, all or a portion of the loan proceeds (equal to the amount being cancelled/reduced) MUST be returned with the form that was sent with the paper check.

2013-2014 Cancellation/Reduction Request

Interest Rates and Fees

Federal Direct Loan Interest Rates

Loan Type

Disbursed between
July 1, 2012 –
June 30, 2013

Disbursed between
July 1, 2013–
June 30, 2014







Graduate Unsubsidized







The U.S. Department of Education holds out an origination fee for every Direct Subsidized, Unsubsidized, and Parent Plus loan. This fee helps offset the cost of funding these low interest loans.

Federal Direct Loan Disbursement Fees
Direct Loan Type Disbursement Date Origination Fee

Subsidized &
July 1, 2013
November 30, 2013

December 1, 2013-June 30, 2014



Parent PLUS Loan
July 1, 2013
November 30, 2013
December 1, 2013-June 30, 2014



Regardless of educational outcome and subsequent employability, repayment is required. The National Student Loan Data System will provide a complete listing of each borrower's federal loans along with the contact information for your lender/servicer. The information submitted to NSLDS is accessible by guaranty agencies, lenders and other schools.

Students are eligible for a 6-month grace period that begins the day they either stop attending school (graduate) or drop to less than half time enrollment. Payment is not required during this grace period; however, interest will begin accruing on all subsidized loans. Students may start repayment at this time if they wish.

There are several repayment plans designed to meet the many needs of individual borrowers. Your monthly payment will vary depending on the repayment plan you choose and the length of time set forth by the plan. For a detailed description of each repayment plan, visit the Repayment Plans and Calculators page .

Deferment & Forbearance


A deferment is a period of time in which no payments are required and interest does not accrue on a subsidized loan. If the loan is unsubsidized, interest will accrue. Certain conditions must be met before a borrower can apply for deferment. A borrower must be enrolled at last half time (6 hours) in an eligible postsecondary school or full time in a graduate program, unemployed or meet the Department of Education's rules for economic hardship, or serving on active military duty.


If the borrower does not qualify for a deferment, he/she may be eligible to receive a forbearance during periods of financial hardship or illness. A forbearance allows the borrower to temporarily stop making payment on the loan, temporarily make smaller payments, or extend the time for making payments.

Contact the servicer of your loans to request a deferment or forbearance. To find out the current lender/servicer information, go to National Student Loan Data System (NSLDS) at

Direct Loan Exit Counseling

Exit counseling is required of student loan borrowers when the student drops below half-time enrollment, graduate or withdraw from the university. Exit counseling offers information and tools needed to manage student loan debt. It also helps students understand their rights, responsibilities, and obligations of paying off their debt. Click here to complete exit counseling.

Private (Alternative) Education Loans

Private loans help students bridge the gap between their federal aid eligibility and their Cost of Attendance. These loans are not federally funded and typically offer a variable interest rate tied to the Prime rate or LIBOR index. Eligibility depends on credit score information and usually requires a creditworthy cosigner. All private loan lenders are required to provide multiple loan disclosures that discuss the range of interest rates, terms and conditions, fees, and repayment inforamtion to the borrower. These loans are typically more expensive than Federal Loans. Satisfactory Academic Progress is required with some lenders. It is recommended that students exhaust all other Federal aid programs before seeking a Private Loan. A separate loan application is required for the summer semester and for each academic year. View a historical list of private loan lenders. For a more in-depth look and comparison of participants in the Private Loan program visit:


Smart Borrowing/Managing Your Credit

Student loan borrowers should know the terms and conditions of their loans. Being an informed borrower is the first step in smart borrowing. Careful consideration should be made before borrowing. Only borrow what is needed and take care in keeping student loan debt manageable. All student loan borrowers should follow a strict budget plan when borrowing student loans.

Sample considerations:

  • What would be the minimum annual salary that I would need to pay off my projected student loan debt?
  • What would my realistic salary be if I completed this degree?
  • What would my monthly minimum payment be on the amount that I borrow?
  • How will this payment fit into my budget?

There are many resources available to guide students in creating budgets, managing student loan debt and more. The Financial Literacy Project provides informative seminars, tips, and links for students' financial wellness. The Direct Loan/ Department of Education website provides information about smart borrowing.



Questions? Contact Student Financial Services at (573) 651-2253 or

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