Missouri Student Loans: Refinancing and Private Student Loan Options

Missouri residents know about student loan debt. More than half of Missouri graduates leave school with debt from student loans, primarily from federal student loans. As of June 2020, there were 802,300 student loan borrowers in Missouri with outstanding debt.

Having significant student loan debt can wreak havoc on your finances, delaying other life and financial goals you might have. Keep reading to learn more about student loan debt in Missouri and refinancing and private student loan options available for residents.

The state of student loan debt in Missouri

Missouri residents see their share of student loan debt. Currently, 57% of four-year college graduates in Missouri carry student loan debt. Graduates in the state average $28,740 debt from student loans.

The state average is much lower than the national average of $39,351, but still represents a significant amount of debt to pay off.

Missouri student loan debt overview:

• Average student loan debt of graduates $28,740
• Percent of students with debt 57%
• Percent of debt from private loans 17%

FoodAnother important factor to consider is the cost of living in Missouri. A cost-of-living index compares the standard expenses of the average person from each state. Expenses factored into a cost-of-living-index include:

• Housing
• Transportation
• Utilities
• Clothing
• Education
• Healthcare
• Children
• Entertainment

According to research from the Missouri Economic Research and Information Center, Missouri had the fifth-lowest cost of living in the U.S. The cost of living index for Missouri was 89.1 in 2020, far below the national average of 100.

The good news for borrowers who live in Missouri is that a low cost of living means you might have an opportunity to put more of your income toward paying off student loan debt.

What Missouri student loan borrowers need to know

Of course, how much you can put toward your loan debt depends on more than just your expenses. It also depends on your career path and how much money you make.

For some professions, like the healthcare industry, the job market is saturated. Having more healthcare job seekers than open positions leads to lower salaries, so wages aren’t as high compared to other states.

Additionally, healthcare workers leave school with higher loan balances than other career fields. Paying off large loan debts might prove to be more difficult in Missouri than in other states. But this doesn’t mean you should necessarily move to another state with higher average salaries — it’s just something to weigh as you make future life plans.

Student loan refinance in Missouri

One option for dealing with debt is to refinance your student loans. Depending on the type of rates you qualify for, you could potentially save thousands of dollars in interest charges over the life of your loan.

One online search for student loan refinancing in Missouri will pull up a laundry list of lenders within the state that are ready to help. Unfortunately, state-specific lenders and credit unions generally offer higher rates than you can qualify for with popular national lenders.

You’ve probably heard of the Missouri Higher Education Loan Authority or “MOHELA”. Although the company’s based in Missouri, it’s actually one of a handful of federal loan servicers, and doesn’t offer student loan refinancing. In fact, MOHELA might be your loan servicer now.

Even though MOHELA can’t help you refinance your student loans, the following refinancing lenders can:

• Earnest
• Laurel Road
• SoFi
• ELFI

Another option is to check interest rates through Credible, an online lending marketplace. Checking rates through Credible won’t affect your credit score and also allows you to quickly check rates with multiple lenders at one time.

If you’re holding off on refinancing because of your credit score, remember there’s no limit to how many times you can refinance your student loans. If you qualify for a lower rate now and choose to refinance, you can refinance again for an even lower rate as your credit improves.

Use our handy student loan refinance calculator to see how much money you could save by refinancing your student loans.

Missouri private student loans for current students

Current and future Missouri students have options outside of federal student loans, too. Regardless of your major or the school you choose, there’s a good chance you’ll need more than just federal aid to cover the costs of attending school.

Your first option should always be federal aid, of course — primarily grants and scholarships, and then federal loans. Federal loans are backed by the government and protect borrowers through programs like income-based repayment plans, forbearance and loan forgiveness options.

Private student loans, however, are a good option to bridge the gap when federal funds run out and there’s still a school balance to pay. Whether you’re an undergraduate or graduate student, there are private loans available to help cover the cost of your education.

Missouri private student loan credit requirements

Taking out a private student loan typically requires having good to excellent credit. Unfortunately, most undergraduate students won’t qualify on their own because they haven’t had time to establish credit. The good news is most lenders allow you to apply for private loans with the help of a cosigner, like a parent or a grandparent with strong credit.

The bottom line for Missouri student loan borrowers

Having student loan debt doesn’t have to be a burden. Missouri borrowers have plenty of access to student loan refinancing, which can help reduce debt faster.

You can also work with one of our student loan consultants to create a customized plan of attack for paying down student loan debt.