According to a recent release, thirty Missouri colleges and universities will receive grants for the 2016-2017 academic year to promote financial literacy and help prevent students from defaulting on their student loans.
The Missouri Department of Higher Education recently awarded default prevention grants totaling more than $745,000 through its Default Prevention Grant Program. This is the 16th year funds have been provided to higher education institutions for programs that aim to help students make smart financial decisions and understand how student loans can impact their future.
Schools also reach out to students who have left their campuses to offer information about paying back their loans.
“College and university staffs provide assistance and important information about student loan repayment to current and former students,” said Marilyn Landrum, a student assistance officer at the department. “Borrowers who are finding it difficult to make their student loan payments often can choose a different repayment plan or look at other options that can help prevent them from defaulting on their loans.”
Many of the default prevention programs caution students about the potential short- and long-term impact of defaulting on their loans, including collection costs, wage garnishment, loss of eligibility for additional federal financial aid and a negative impact on their credit score for up to seven years.
In addition to the default prevention grants, the department offers financial literacy training to all Missouri higher education institutions.
Objectives of the default program include increasing the awareness of financing options for postsecondary education, reducing debt among postsecondary students and parents, increasing enrollment retention, reducing loan defaults, and generally increasing students’ knowledge about their personal finances.
The following higher education institutions will receive a default prevention grant for the 2016-2017 academic year:
- Avila University
- Cape Girardeau Career & Technology Center
- Columbia College
- Cox College
- Drury University
- East Central College
- Fontbonne University
- Harris-Stowe State University
- Jefferson College
- Lincoln University
- Mineral Area College
- Missouri Southern State University
- Missouri State University
- Missouri University of Science and Technology
- Missouri Valley College
- Missouri Western State University
- Moberly Area Community College
- North Central Missouri College
- Ozarks Technical Community College
- Saline County Career Center
- Charles Community College
- Louis College of Health Careers
- Louis Community College
- State Fair Community College
- State Technical College of Missouri
- Stephens College
- Truman State University
- University of Missouri-Columbia
- Webster University
- Wentworth Military Academy & College
For more information on the default program, click here.