1. Pay the account in full.
2. Apply for a Federal Consolidation Loan.
3. Request a hearing if you feel that the administrative wage garnishment is not warranted.

1. Contact the MDHE to establish satisfactory repayment arrangements.
2. Request a hearing or exemption by the deadline.
3. Nothing and the MDHE will contact your employer. If a payment is not received by the time your employer is contacted, the administrative wage garnishment may not be stopped until the account is paid in full.

1. Pay the account in full to American Student Assistance or the collection agency.
2. Establish monthly payment arrangements with the entity assigned to the account.

   If you want to return to school, you must make six consecutive monthly payments and write a letter to the MDHE requesting a financial aid eligibility letter to be sent to you. This is called reinstatement.

   Upon making at least 12 consecutive monthly payments, you may be eligible for the Missouri Loan Rehabilitation Program.

   Upon making three consecutive monthly payments, the MDHE will release accounts for consolidation. Borrowers must continue to make payments until the consolidation is complete. Also, the MDHE assesses 18.5 percent in collection costs on defaulted loans released for consolidation, FFEL Program or Direct.

3. Choose not to make payments and face possible tax offset, wage garnishment, assignment to a collection agency, assignment to the U.S. Department of Education, and up to a 25 percent assessment in collection costs.

When a payment is not made by the due date, the account is delinquent. When the delinquency reaches 270 days, the account is in default status and the lender may file a default claim with your guaranty agency - the MDHE. If the MDHE pays the default claim to the lender they begin collection activities.

Note: To receive email reminders about steps to take to prepare for college, sign-up here.

1. Does it offer a program in the area of study that you want to pursue?
2. Do you want to go to school close to home or away?
3. What type of financial aid package is available from the school?
4. Plan a visit to the school to get a tour and see if you like it. Remember to ask questions!

• 24-years-old by December 31 of the award year
• Orphan or ward of the court
• Veteran of the Armed Forces
• Legal dependents other than a spouse
• Graduate or professional student
• Married student

NOTE: U.S. Department of Education policy on dependency overrides has become significantly more stringent. It is no longer permissible to classify an otherwise dependent student independent based solely on the fact that the student supports him or herself.

Bright Flight - Yes. The student must receive the scholarship award as a full time student at an approved Missouri institution at least one semester per academic year to maintain eligibility. If a student goes out-of-state to school for one year or discontinues full time enrollment at a Missouri institution for reasons other than deferments, the eligibility is lost. The scholarship is renewable for up to 10 semesters or until the student has obtained their first undergraduate degree. The award is $1,000 per semester.

Marguerite Ross Barnett - Yes. The student must reapply each year by submitting a completed application by April 1. Renewal students will receive a renewal application.

Public Service Officer Survivor Grant - Yes. The student must reapply each year.

Vietnam Veteran's Survivor Grant - Yes. The student must reapply each year.

Missouri Higher Education Academic "Bright Flight" Scholarship Program
For high school seniors who achieve a score in the top 3 percent on the ACT or SAT. Students must achieve this score by the June assessment date of their senior year in high school and enroll as a first-time student in college. There is no paper application to complete. Assessment records for Missouri residents are transmitted to the MDHE after each National Assessment Test date. Students are sent an approval letter. High schools and higher education institutions are also notified of approved students.

Marguerite Ross Barnett Memorial Scholarship Program
For part-time college students attending at least half time but less than full time and working (and compensated for) at least 20 hours a week. Students must also have financial need to receive the award. Applications can be obtained from college financial aid offices or the MDHE. The application deadline is April 1. Applicants must also complete the FAFSA form by the April 1 deadline.

Public Service Officer or Employee's Child Survivor Grant Program
For dependent children and spouses of public safety officers or employees of the Missouri Department of Transportation who were killed or permanently disabled in the line of duty. Applications are available from the MDHE.

Vietnam Veteran's Survivor Grant Program
For children and spouses of Vietnam veterans whose death were attributed or caused by exposure to toxic chemicals during the Vietnam conflict. Applications are available from the MDHE.

It is the consensus of MDHE that, for Social Security Number, name, and date-of-birth changes on MDHE-guaranteed loans, the MDHE will not require documentation from the school or lender in all cases before making the change on our system. ASA and MDHE staff will not routinely refuse a school or lender?s identification change request until we are in receipt of documentation that supports the change. MDHE requires schools and lenders to obtain and retain that documentation, and make it available to the MDHE or ASA upon request, as needed, and on a case-by-case basis.

The MODEL system is a profile-driven system that allows clients to choose how their loans will be processed and which reports or products they would like to receive. The MODEL system maintains information in one databse, thus improving the accuracy and organization of borrower information.

Support for the MODEL system is provided by ASA at (800) 824-4893.

Training in the use of the MODEL system is provided by MDHE client service representatives. Your client service representative can be contacted through the MDHE at (800) 473-6757 or by calling your representative directly. If you do not know who your MDHE client representative is, click here.

The MDHE can make many changes to client profiles without the need to update or change software.

The MODEL system is compliant with financial aid industry standards, such as CAM and CommonLine.

In order to qualify, the student must have been in attendance within 90 days of the school's closure and must not have been able to transfer to another school or complete the program of study. Lack of job placement or subsequent training is not reason for discharge.

This figure cannot be more than the base Stafford grade level maximum for an undergraduate student, or for a graduate student, cannot be more than $8500.

Unsubsidized
Remaining financial need = cost of attendance - expected financial assistance (including subsidized)

Subsidized/unsubsidized combined annual maximum* is:

Independent undergraduate students:

Base subsidized/unsubsidized combined annual maximum* is:

Additional unsubsidized:

*For undergraduate students attending a final period of study that is less than an academic year in length, or for students attending a program that is less than an academic year in length, a lower, prorated maximum loan limit may apply.

Graduate students (all graduate students are independent):

NOTE: Certain health professions students may qualify for increased annual loan limits. These students should contact their financial aid office to determine if the program in which they are enrolled qualifies.

If you are an unsubsidized Stafford Loan borrower, the U.S. Department of Education does not pay interest that accrues while you are in school. If you want to pay the interest as it accrues, you should note on the federal Master Promissory Note. Otherwise, the lender will capitalize the unpaid accrued interest. For more information about the maximum frequency with which a lender may capitalize, you should contact your lender.

• are not satisfied with the quality of your education,
• do not complete your program of study, or
• are not able to obtain employment after you graduate.

NOTE: This is a little different from wiring funds because wires are received instantly and EFT is received within 24 hours.

Unsubsidized Stafford Loans are not need-based. The interest payment is always the borrower's responsibility. A borrower can choose to pay interest that accrues while the borrower is in school, in grace, in deferment or other times when payments are not otherwise expected can be paid, or the unpaid accrued interest will be capitalized, i.e., added to the outstanding principal amount of the loan.

After the school determines the borrower?s eligibility and certifies the loan, the school may submit to the lender by paper or submit the application electronically to the MDHE for guarantee.

Source: Federal Student Aid Handbook, Institutional Eligibility and Participation, p. 2-278

The only exception is for Federal Pell Grant awards. If six months or more of the Federal Pell Grant award period falls in one award year, the school must use the data from that award year's ISIR.

Source: 34 CFR 682.401(b)(5)(i) and Section 432(m)(1)(B)(ii) of the Higher Education Act (HEA) of 1965, as amended.

A contractual agreement is between schools (one that is eligible to award federal financial aid to its students and one that is not), permitting a student to take a limited number of courses at the ineligible school and have those courses count toward a degree or certificate awarded by the eligible "home" school.

Source: Federal Student Aid Handbook, Volume 2-School Eligibility and Operations, Chapter 7.

Source: 34 CFR 668.41(a).

Source: 34 CFR 668.46(a); Federal Student Aid Handbook, Volume 2-School Eligibility and Operations, p. 2-123.

A school may choose to monitor a student's enrollment and adjust the cost of attendance and FFEL Program funds accordingly. A school that chooses this option should document this practice in its policies and apply the policy consistently.

Source: Dear Colleague Letter (DCL) GEN-90-33, dated September 1990, Q/A #73.

Source: Federal Student Aid Handbook, Application and Verification Guide, p. AVG-4.

Average cumulative federal loan amount borrowed in 1999-2000 by undergraduate students:

• Four-Year Public Institutions: $16,708
• Four-Year Private Institutions: $20,151
• Two-Year Public Institutions: $7,914
• Two-Year Private Institutions: $10,146
• Private for-profit (proprietary): $24,400

Average cumulative federal loan amount borrowed in 1999-2000 by graduate students:

• Master's Degree Public Institutions: $16,951
• Master's Degree Private Institutions: $24,406
• Doctoral Degree Public Institutions: $26,909
• Doctoral Degree Private Institutions: $42,889
• First Professional Degree Public Institutions: $49,845
• First Professional Degree Private Institutions: $65,294

Like the MDHE, Mapping Your Future recommends that schools provide students with average indebtedness information for Federal Stafford Loan borrowers at that particular school, or the average indebtedness for borrowers who have completed the student's program of study at the school. This information provides borrowers with a more realistic picture of what their actual, future indebtedness may be.

For a student who withdraws without notice or fails to attend a scheduled exit counseling session, when does the 30-day time frame for providing exit counseling materials begin?

The 30-day time frame for providing exit counseling materials to a student who withdraws without notice or fails to attend a scheduled exit counseling session begins on the day that a) the financial aid office is notified by the admissions, business, or registrar's office that the student failed to register, withdrew without notice, or dropped to less than half time enrollment, or b) the financial aid office learns that the student missed his or her scheduled exit counseling session.

• in writing,
• disseminated to students,
• clear in defining consequences for failure to complete the required entrance counseling, and
• specific about any exceptions to consequences for failure to complete the required entrance counseling.

Source: USDE private guidance.

• The school must obtain confirmation that the student has completed online loan counseling. A notice simply referring a student to a counseling website is not sufficient.
• The school must mail exit counseling material to the borrower at his or her last known address.
• In all cases when a school chooses to use online loan counseling, the school must take reasonable steps to ensure that the student participates in and completes the counseling. Regardless of the method employed to facilitate entrance or exit counseling, schools also must maintain records showing compliance for each student borrower.

Source: Federal Student Aid Handbook, Volume 8-Direct Loan and FFEL Programs, p. 8-54; 34 CFR 682.604(g)(3) and (4).

Source: Federal Student Aid Handbook, Volume 2-School Eligibility and Operations, p. 2-164.

If a school cannot locate a student to whom an FSA credit balance must be paid (i.e., the school has exhausted all possible avenues to find the student), the school must return the credit balance to the USDE, or in the case of a FFEL Program loan, to the loan's holder. In this case, the school will have to determine which FSA funds created the credit balance before it can return funds to the FSA programs. The USDE does not specify how a school must determine which funds create an FSA credit balance. However, when possible, the USDE encourages schools to return FSA funds to loan programs first to reduce the likelihood of default.

Source: Federal Student Aid Handbook, Volume 3-Pell Grants, p. 3-75 & 3-76, and Volume 2-Institutional Eligibility and Participation, p. 2-98.

Source: Federal Student Aid Handbook, Volume 2-Institutional Eligibility and Participation, p. 2-97; USDE private guidance.

Source: 34 CFR 668.165(b)(1)(iii) and (b)(2)(i).

Source: Federal Student Aid Handbook, Volume 2-Institutional Eligibility and Participation, p. 2-96.

Note: If a student or parent borrower cancels his or her authorization for the school to hold an FSA credit balance, the school must pay the remaining funds directly to the student or parent borrower as soon as possible but no later than 14 days after the school receives the cancellation notice.

Source: 34 CFR 668.165(b)(4)(iii) and (b)(5)(iii).

Source: Federal Student Aid Handbook, Volume 2-Institutional Eligibility and Participation, p. 2-141.

Source: Federal Student Aid Handbook, Application and Verification Guide, p. AVG-26, AVG-30, and AVG-99.

Source: Federal Student Aid Handbook, Application and Verification Guide, p. AVG-59; 34 CFR 668.55 (a)(3).

However, please note the following important points:

• The second school to certify a loan for the student must eliminate living costs from the cost of attendance, because those costs were already were accounted for in the loan certified by the first school.
• The second school to certify a loan for the student must also count the loan at the first school as estimated financial assistance.

Sources: Federal Student Aid Handbook, Volume 8-Direct Loan and FFEL Programs, p. 8-18; Integrated Common Manual, subsection 6.11.D.

Source: Federal Student Aid Handbook, Volume 8, Chapter 2, p. 8-13.

Source: Federal Student Aid Handbook, Volume 1 - Student Eligibility, p. 1-49 and 1-51; Integrated Common Manual section 5.3.

A school may choose to monitor a student's enrollment, adjust the cost of attendance, and recalculate FFEL Program loan eligibility accordingly. A school that chooses this option should document this practice in its policies and apply the policy consistently.

Source: Dear Colleague Letter GEN-90-33, dated September 1990, Q/A #73.

• Enrollment in a program that is above the baccalaureate level or leads to a first professional degree.
• Completion of the equivalent of at least three academic years of full time study at an institution of higher education.

The student cannot receive undergraduate aid as an undergraduate student for the same period of enrollment. In the five-year, combined undergraduate/graduate program described above, the student must complete the first three years of the program before reaching graduate/professional status for purposes of determining his or her appropriate maximum annual loan limit.

Source: Federal Student Aid Handbook, Volume 8, Direct Loan and FFEL Programs, p. 8-24 and 8-25.

• At least half time enrollment in coursework (either graduate or undergraduate) that can be applied to graduate program requirements.
• Admission into the graduate program.
• Completion of the equivalent of at least 3 academic years of full time study at an institution of higher education.

Source: Federal Student Aid Handbook, Volume 8-Direct Loan and FFEL Programs, p. 8-24 and 8-25

While the Higher Education Amendments of 1998 provided for the eligibility of a home schooled student to receive federal student financial assistance, Congress did not provide a parallel provision for home schooled students in the statutes that define institutional eligibility. Therefore, the USDE first announced in a private guidance letter issued to the Home School Legal Defense Association in April 2002 that it will consider a home schooled student to be beyond the age of compulsory attendance if the state where the school is located would not consider that student truant by virtue of the fact that the student completed a home schooling program. Missouri is such a state; students who attend home schooling programs in Missouri are exempt from Missouri's compulsory school attendance laws.

Source: Federal Student Aid Handbook, Volume 1-Student Eligibility, p. 1-4 and Volume 2-School Eligibility and Operations, p. 2-6; private guidance letter from USDE to Home School Legal Defense Association dated April 19, 2002.

Source: 34 CFR 668.32(e)(4)(ii).

Source: Preamble to the Federal Register dated July 16, 1999, p. 38505; Private guidance letter from the USDE to the Home School Legal Defense Association dated April 19, 2002

Source: Federal Student Aid Handbook, Volume 8-Direct Loan and FFEL Programs, p. 8-67; 34 CFR §682.610(c), 34 CFR §668.24(f)(4).

Source: 34 CFR 668.164(g)(2)(i).

Source: 34 CFR 668.167(g)(2)(ii)(A); NSLDS Enrollment Reporting Guide, p. 117.

• The student's cost of attendance, minus other financial assistance the school expects the student to receive.
• The parent borrower's requested amount.

Source: 34 CFR 682.204(h); 34 CFR 682.206(c)(2).

Source: Federal Student Aid Handbook, Volume 8-Direct Loan and FFEL Programs, p. 8-26 through 8-29.