New Loan Rates Could Help
Stafford Loans reduced their rates from 5.6% to 4.5%. This is positive news for the incoming students at the University of Missouri. Loans will be cheaper for students and will never change after the loan is approved.
The change won't affect private loans, which are still regulated by places like banks or credit unions. Their rates are seperate from Federal student loans.
Jim Brooks, the director of Student Financial Aid at MU, said there is more good news for students who live in Missouri and attend the University of Missouri.
Brooks said, "The University is obviously trying to help with costs, which is why for Missouri residents who are attending MU, they will not see a tuition increase."
For one family though, the new Stafford Loan isn't enough. Cheryl Baugh, a parent of an incoming freshman, said the family had to resort to private loans. The Stafford Loan is only providing the Baughs $5,000 and the rest will be paid by a private loan through their bank.
The number of incoming freshmen at MU is expected to increase which means competition for aid will also increase. That leaves families like the Baughs having to resort to private loans.
Brooks advised, "I would say to anybody who is thinking about private loans, is you need to be sure you've maximized any federal aid."
To apply for a Stafford Loan, students must first apply for FAFSA, which is Federal Student Aid.