How to Make a College Financial Plan

Planning your educational and living expenses early helps you make informed financial decisions and reduce stress. Complete this process between April and June every year.

Read all emails from the Cashiers Office and Student Financial Aid and follow their instructions. If you have questions, don’t wait to ask for help.

How to Make a College Financial Plan

Follow these steps annually to estimate your funding gap and borrowing needs. You can use the OFS Budget Workbook – MU Bill or Refund Estimate tool to complete steps 1-4.

Step 1: Estimate your MU bill for the upcoming semester.

Gather accurate information about your estimated MU bill. The university provides online resources to help you plan for:

Two alternate sources to estimate billed costs are the Net Price Calculator and your estimated Cost of Attendance. These estimates use average costs and may be a less accurate approximation of your actual costs.

Step 2: Calculate your funding gap.

Subtract your scholarships and grants from your estimated bill.

  • Find your financial aid details in your financial aid offer on myZou. Aid is listed as an annual total and by semester. Use semester totals for this calculation.

Step 3: Assess your ability to manage your estimated bill without student loans.

Your semester bill can be paid in full or in four monthly installments:

  • Fall: September-December
  • Spring: February-May

If your total balance is too high, divide it by four to estimate monthly payments. If this amount is still unmanageable, proceed to Step 4.

Step 4: Plan for borrowing.

Learn about student loan options: Student Financial Aid Loans. Federal subsidized and unsubsidized loans have annual limits, so some students may need to use Parent PLUS or private loans to meet their funding gap.

Accepted loans are first applied to your student bill. Any excess funds will be refunded to you and can be used for expenses like rent and food. If student loans are needed to cover living expenses, make every effort to minimize these costs.

Federal Student Loans

Features of federal student loans include:

  • Low, fixed, interest rates and more borrower protections.
  • Borrower protections include flexible repayment plans, income-based repayment, loan forgiveness, and the ability to pause payments during financial hardship.

Federal subsidized and unsubsidized student loans appear in your financial aid package but are not automatically accepted or applied to your bill.

  • Accept none, some, or all in myZou. Any unused amount remains available.
  • First-time borrowers are required to complete Entrance Counseling and sign a Master Promissory Note on the Federal Student Aid website before these loans will be processed.

Federal Parent PLUS loans are not automatically included in the financial aid package. They require a separate PLUS loan application.

  • Parents with limited or adverse credit history may want to consider applying for a Parent PLUS Loan. If the application is denied, the student will automatically be offered additional federal unsubsidized student loans, unless the parent chooses to appeal the denial through Federal Student Aid. When to consider this step:
    • The funding gap can’t be managed with income or savings.
    • Parents have limited or adverse credit history
    • The student has limited or adverse credit history
    • The student does not have additional cosigner options

Private Student Loans

Most students will need a cosigner and good credit to access private loans. Students should build and maintain good credit as early as possible. Learn more at myFICO Credit Education or by scheduling a one-on-one consultation with OFS.

Compare options using the ELM Select private loan comparison tool on the Student Financial Aid website. Review loan terms for the following:

  • In-school deferment
  • Flexible repayment options
  • Financial hardship clauses
  • Interest rate discounts for auto-pay
  • Cosigner release options
  • Fixed vs. variable interest rates (fixed rates are recommended)

Step 5: Finalize your funding plan as soon as your billing statement is available.

Once charges and financial aid are posted in TouchNet, revisit steps 3 and 4 to assess and plan for any remaining funding gap. Finalize your funding plan at least one week before the semester begins to allow any student loan applications to process before the first bill is due.

  • Charges and anticipated financial aid are posted in TouchNet in mid-to-late July (fall semester) and early January (spring semester).
  • The first financial aid disbursements are applied to your account about a week before the semester begins.