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July 31, 2015

Grants aim to reduce student loan default in Missouri

Thirty Missouri colleges and universities will receive grants for the 2015-2016 academic year to promote financial literacy and help prevent students from defaulting on their student loans.

The Department of Higher Education awarded the grants totaling more than $825,000 through its Default Prevention Grant Program. This is the 15th year funds have been awarded to higher education institutions to help launch programs that provide students with information to help them make smart financial decisions and understand how student loans can impact their future.

“Schools use the grants to better equip their students with important money management skills. The programs help students understand the importance of living within their means and the long-term consequences of borrowing too much money,” said Marilyn Landrum, a student assistance officer at the department. “Obtaining a degree is important, but we want to make sure students are graduating without setting themselves up to face financial burdens for years to come.”

Many of the college and university programs funded by the grants focus on the difficulties students could face should they default on their student loans.

Landrum said the default prevention programs have contributed to a decline in Missouri’s student loan default rate in recent years. Missouri’s default rate is 12.6 percent, compared to the national average of 13.7 percent.

In addition to the grants, the department’s default prevention program offers financial literacy training to all Missouri higher education institutions.

For more information about Missouri’s default prevention program, visit dhe.mo.gov/ppc/defaultprevention.php.

The following higher education institutions received a default prevention grant for the 2015-2016 academic year:

  • Avila University
  •  Cape Girardeau Career & Technology Center
  • Columbia College
  • Cox College
  •  Drury University
  • East Central College
  • Eden Theological Seminary
  • Elaine Steven Beauty College
  • Fontbonne University
  • Harris-Stowe State University
  • Jefferson College
  • Lincoln University
  • Mineral Area College
  • Missouri Southern State University
  • Missouri State University
  • Missouri State University, West Plains
  • Missouri University of Science & Technology
  • Missouri Valley College
  •  Missouri Western State University
  • Moberly Area Community College
  • North Central Community College
  • Ozarks Technical College
  • State Fair Community College
  • Stephens College
  • State Technical College of Missouri
  • St. Charles Community College
  • Three Rivers Community College
  • University of Missouri, Columbia
  • Webster University
  • Wentworth Military Academy