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August 05, 2014

Grants aim to reduce Missouri's student loan default rates

More than 30 colleges and universities in Missouri will receive grants totaling over $820,000 to promote financial literacy and help prevent students from defaulting on their student loans.

The Missouri Department of Higher Education awarded funds to 31 schools through the Default Prevention Grant Program. Now in its 14th year, the program provides grants to higher education institutions to launch initiatives designed to help students live within their means, make smart choices about money management and create a plan for a secure financial future. The maximum grant amount is $25,000 per year.

 “This grant equips financial aid officers with extra tools to help students understand how important it is to make it through college without overextending themselves financially,” said Marilyn Landrum, a student assistance officer at the department.  “We know college is more important today than ever before, and the rising costs of higher education make the default prevention program imperative to the future.”

 Due to the efforts of participating institutions and the department, Missouri’s student loan default rate remains below the national average. The state’s default rate is 13.1 percent, compared to the national average of 14.7 percent.

 The department also provides default prevention training, which is available to all higher education institutions in Missouri.

To learn more about default prevention or to schedule a training, visit http://dhe.mo.gov/ppc/studentloans/defaultprevgrant.php, or contact Marilyn Landrum at Marilyn.Landrum@dhe.mo.gov or Sarah Schedler at Sarah.Schedler@dhe.mo.gov.

The following higher education institutions received a default prevention grant for the 2014-2015 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
  • Forest Institute of Professional Psychology
  • Franklin Technology Center
  • Harris-Stowe State University
  • Jefferson College
  • Kirksville Area Technical College
  • Lincoln University
  • Metropolitan Community College
  • 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
  • Nazarene Theological Seminary
  • North Central Missouri College
  • Southeast Missouri State University
  • State Fair Community College
  • State Technical College of Missouri
  • St. Charles Community College
  • Stephens College
  • University of Missouri-Columbia
  • Webster University