Chapter 240: Financial Aids and Awards
240.030 Student Loans
Bd. Min. 1-18-58; Bd. Min. 8-21-58, p. 13,488; Amended 8-1-69; Amended Bd. Min. 6-26-81 and 6-18-82; 1-21-98; Bd. Min. 5-24-01.
- Student Loan Funds -- The University may establish long or short-term loan funds from public or privately donated funds for students.
- Any loan funds so established, and otherwise not limited by endowment, trust agreement or bequest, shall bear an interest rate determined by the University. The determination of the interest rate will be guided by prevailing money market conditions, and will be approved annually by the Vice President for Finance and Administration.
- Loan funds so established may be available to both full or part-time students and shall be operated with adequate fiscal controls to preserve the corpus of the loan funds and restrictions of the donor.
- Campuses may determine individual eligibility requirements for any loan funds so long as those restrictions do not violate University, state or federal regulations, policies, trust agreements, or laws.
- If at any time money is available in such funds and not immediately needed for loans, the same may be invested in accordance with the general investment policies of the University. Any interest earned on the investment shall become part of the funds and shall be readily available when needed for loans, except where limited by endowment, trust agreement or bequest.
- Authority to Sign -- The Vice President for Finance and Administration, or his designated representative is authorized to sign on behalf of The Curators of the University of Missouri all documents necessary for the assignment or release of assignment of security in connection with loans made to students from any student loan funds and for the discharge of such obligations.
- Student Loan Program -- The University may participate in the Stafford Student Loan Program, under the following terms:
- Loans may be made only to students who have completed the appropriate required forms and who are unable to secure such loans with their own local "hometown" lenders. Loans are to be made at the discretion of the Director, Student Financial Aid.
- Loans may be made only to students who are enrolled at the University of Missouri.
- Loans shall be made from funds provided by the University, private donations or from endowed/trust funds provided for that purpose.
- The interest charged on such federal loans shall not exceed the maximum allowable interest charge fixed by law for that program.
- The Vice President for Finance and Administration may allocate a portion of the interest and special allowance income of funds to defray the cost of the administration of the program.
- The Vice President for Finance and Administration may, as the need arises, sell any student loan note to the Federal Student Loan Marketing Association or any other secondary market authorized by federal or state regulation. Proceeds of such sales shall be returned to the originating fund or, if permitted by the terms of the originating fund and by law, reinvested in additional student loans, grants, scholarships, or student services.
- Student loans authorized under this section must be guaranteed by the federal government, an agency of the federal government.
- Other Long-Term Loans -- The Vice President for Finance and Administration, or his designated representative, may as needed, establish other long-term loan funds for needy University of Missouri students.
- Such funds may be provided from monies under the control of the University, from private donations, or from non-restricted endowed accounts.
- Regulations including eligibility for such loans, interest rates charged, and terms of repayment shall be approved by the Vice President for Finance and Administration.
Previous Rule: 240.020 Scholarships