Why should I use a preferred lender?

Improved Service

A new electronic loan process put in place this year at Columbia College of Missouri gives you access to a computer-generated application. This means you will not have to come to our office to turn in paperwork or ask questions.   The preferred lenders will transfer money electronically, which means you receive your loan funds within a few days of disbursement. It also means you will not have to go to the Cashier's Office to endorse a paper check.

Single Contact for the Life of Your Loan

The preferred lenders use Sallie Mae for processing and servicing loans. This arrangement gives you a single source of service for all your loan needs. From the time you apply for your loan until you pay it off, you can check on your loan's status and obtain updates by contacting one company - Sallie Mae. To determine your loan's status and whether funds have been disbursed, you can visit Sallie Mae's Web site at http://www.salliemae.com or call 888-2-SALLIE (888-272-5543).

Savings During Repayment

When you begin to repay your loan, you will be eligible to be considered for USA Group's borrower benefits program. You can save 0.25 percent in interest if you repay your loan by using an automatic withdrawal service from you bank account. You will also qualify for a 2 percent interest-rate reduction if you make the first 48 payments on time and continue making payments on time.

Preferred Lenders

• Bank of America
• Student Loan Funding
• U.S. Bank

Electronic Funds Transfer

The preferred lenders transfer loan funds electronically, a processes call Electronic Funds Transfer or EFT. This means you usually receive your money within a few days after the lender disburses the funds to Columbia College of Missouri, rather than two to three weeks. In addition, you don't have to go to the Cashier’s Office to endorse your check.

Rights and Responsibilities

It is important that you understand your rights and responsibilities before borrowing a loan. By doing so, you will greatly diminish delays or problems you may otherwise encounter. Your rights and responsibilities include the following:

• You must pay back your loan(s) with accrued interest and any deducted fees.
• You are required to repay education loans even if you don't complete your education, if you are dissatisfied with your education, or if you are unable to get a job after you complete your education.
• You must repay your loan(s) within 10 years, unless your loans are consolidated.
• You may prepay all or part of your loan(s) without penalty.
• Your minimum monthly payment for a loan is $50, but may be more depending on the amount borrowed.
• Your repayment will begin as follows:
  • Subsidized Stafford Loan - following a six-month grace period. Unsubsidized Stafford Loan - following a six-month grace period, even though interest accrues while you're school and can be paid or postponed until graduation.
  • PLUS Loan - within 60 days of the last disbursement, unless a deferment has been approved.
• You are responsible for notifying your school and lender if you have received student loans from more than one lender.
• You must use money received from student loans for education-related expenses only. You can't use loan funds to buy a car.
• You will be notified, in writing, if any of my loans are transferred to a servicer or secondary market. You will direct all future correspondence to that organization.
• You must notify your lender in writing of:
  • Name or address change.
  • Failure to enroll at least half-time.
  • Failure to enroll for the loan period certified.
  • Failure to enroll at Columbia College of Missouri.
  • Withdrawal from school or reduction of attendance to less than half-time.
  • Transfer from one school to another.
  • Graduation.
• If you do not qualify for a deferment and are unable to make payments on a loan, you may request forbearance from the holder of your loan(s). Forbearance is a special arrangement made for borrowers experiencing financial hardship.
• You cannot have your student loan(s) discharged through bankruptcy.
• Your Stafford loan(s) will be disbursed and made payable to Columbia College and yourself. 
• If you meet the eligibility requirements, you have a right to repayment deferments which suspend principal and interest payments for a specified period of time. Deferments can be requested for a number of reasons, including returning to school on at least a half time basis.
• You have a right to consider the loan repayment alternative for which you qualify as you enter the repayment process. This includes loan consolidation alternatives.
• If you fail to repay your loan(s), you may be considered in default and the following may result:
  • Your status may be reported to a national credit bureau resulting in a negative effect on your credit rating for seven years after the loan(s) are paid in full.
  • The entire unpaid amount of your loan(s), including interest, may become due and payable immediately.
  • Your federal and state income tax refunds may be withheld from you.
  • Your wages may be garnished.
  • You may be ineligible to receive any future federal or state financial aid funds.
  • In addition to the amount borrowed, you will be responsible for the collection costs incurred if your loan should default.

  Repaying Your Loan

  You are required to begin repaying your Federal Stafford loan six months after you graduate, leave school or drop below half-time attendance. Your parents are required to begin repaying PLUS loans 60 days after the loans are fully disbursed. In both cases, borrowers generally have 10 years to repay these loans. Under a level repayment plan your monthly payment would be at least $50. For example, the monthly payment on a $6,000 Stafford loan with an interest rate of 8.25 percent would be $73.59 under a 10-year level repayment plan.

  There are other repayment options:

  • Many lenders, including the ones listed in this document, offer flexible repayment options that allow you to gradually increase your payments over time or tie the size of your monthly payment to your income. You can learn more about these options by asking your lender or using some of the repayment calculators available to you at http://www.usagroup.com.
  • You can investigate consolidating all of your education loans so you have one monthly payment. This program also generally allows you to extend the repayment period beyond 10 years.
  • If you experience economic hardship or other circumstances that limit your ability to repay your loan, you might qualify for a deferment or forbearance: Deferment allows you to postpone repayments for certain approved reasons for as long as you are enrolled at least half-time in a postsecondary school, graduate fellowship or rehabilitation program (if you have disabilities). Deferments of up to three years are also available if you are unemployed. If you don't qualify for a government approved deferment, you can request forbearance from your lender. Forbearance can delay or reduce your monthly payments. Usually, however, you must still pay the interest on your loan during the forbearance period.

  Please note: If you fail to repay your loan, you will be considered in default. If this occurs, your credit rating will be damaged and you may not be able to borrow in the future to pay for a car or home or even to continue your education. Your wages may be garnished and your federal and state income taxes may be withheld; your loan may be sent to a collection agency and you will be liable for collection fees.