Home » News » News Item

July 20, 2017

Grants focus on reducing student loan debt and default in Missouri
Colleges use funds to promote smart financial decisions

Eighteen Missouri colleges and universities will receive grants for the 2017-2018 academic year to promote financial literacy and help prevent students from defaulting on their student loans.

The Missouri Department of Higher Education awarded grants totaling more than $489,000 through its Default Prevention Grant Program. This is the seventeenth year grants have been provided to higher education institutions for programs that focus on strengthening students’ money management skills.

“The default prevention grants provide schools with funding for staff and resources to help students understand how choices they make during college can seriously impact their financial future,” said Marilyn Landrum, a student assistance officer at the department. “Our goal is to assist colleges in educating students about effectively managing their student loans to avoid long-term negative consequences.”

Many of the programs funded by the grants caution students about the potential short- and long-term impact of defaulting on their student 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. Schools also reach out to students who have left their campuses to provide information about paying back their loans.

Missouri’s student loan default rate has declined in recent years. The state’s current default rate is 11.5 percent, compared to 13.1 percent in 2014.

For more information about Missouri’s Default Prevention Program, visit dhe.mo.gov/ppc/defaultprevention.php.

The following higher education institutions will receive a default prevention grant for the 2017-2018 academic year:

  • Bryan University

  • Columbia College

  • Cottey College

  • Harris-Stowe State University

  • Jefferson College

  • Lincoln University

  • Mineral Area College

  • Missouri Southern State University

  • Missouri University of Science and Technology

  • Moberly Area Community College

  • North Central Missouri College

  • St. Louis College of Health Careers

  • State Fair Community College

  • State Technical College of Missouri

  • Stephens College

  • University of Missouri-Columbia

  • University of Missouri-St. Louis

  • Webster University