Loans for US students at Aberystwyth University

Introduction

The purpose of this site is to guide US students to access sufficient funds for their studies at our University. Loans have become an essential element for most students, whether they are from the UK, the US or any country for that matter. There are differences in the way that loan programs work in each country and most will be geared to students studying in their home countries. Please read the relevant sections below that should identify the differences in securing both Federal and private loans to study in the UK.

Please note that all loans must be repaid. It is the responsibility of the borrower to repay the loan.

N.B. Since 1st July 2010, all Schools switched to the Direct Loan programme. Students receive loans under the same terms as the previous FFELP programme except that the lender will be the US Federal Government rather than participating lenders/banks.

• Direct Loans (DL)

  Aberystwyth University is recognised as a Foreign School by the US Department of Education and holds a Title IV Agreement. Our School Code is G08452 whilst our OPEID is 00845200. Prior to 1st September 2007, our University was officially the "University of Wales, Aberystwyth". As this name change is recent, most lists will refer to us as the University of Wales, Aberystwyth. However, the name of our University can sometimes appear as "University of Wales - Univ Coll of..", so sometimes it is easier to check the School Code rather than the name. Please note that although we are in the United Kingdom, our University is in Wales rather than England. This is reflected in the U.S. Department of Education's School Code list.

  Ensure that you have been offered a place on a full-time degree course (Bachelor, Master or Doctoral) before starting your loan application.

  Applications for Master's degree courses and Doctoral programs should be submitted directly to the Postgraduate Admissions Office. Please see www.aber.ac.uk/en/postgrad/howtoapply/ 

  Applications for Bachelor's degree courses should be submitted via the UK's central admissions system for undergraduate courses - UCAS [ www.ucas.ac.uk  ]. Please contact our Undergraduate Admissions Office [ug-admissions@aber.ac.uk] and visit /www.aber.ac.uk/en/undergrad/ for further information.

  We will be able to advise on the estimated cost of attendance. You can borrow up to the value of your cost of attendance (COA) with a combination of Stafford Loan, Grad Plus or Parent Plus and private loan.

  As from July 2006, students on distance-learning courses, which are sometimes referred to as on-line programs, are no longer eligible for Federal aid. They must opt for private loans.

  Rule changes in 2010 have meant that any student receiving U.S. Federal Aid through a Foreign School must not study in the U.S. (i.e. part-time PhD students cannot receive aid if they are studying in the US and Masters students cannot return to the US over the summer months to complete their dissertation). The extension of U.S. Federal Direct Loan Program was to allow students to study outside of the U.S.  The calculation of the actual amount of Federal Aid  is based on the student pursuing their entire course at the specified Foreign School.

• Your FAFSA

  The first step in applying for a Federal loan is to complete your FAFSA on-line to establish your eligibility. Visit www.fafsa.ed.gov . Further advice is available at https://studentloans.gov . Once completed, this will generate a Student Aid Report (SAR).  You may receive a 2-page SAR receipt electronically but this is not sufficient in itself.  You can however e-mail a scanned copy of your 2-page SAR summary to me so that we can access your ISIR on-line.

  If you do not list your e-mail when completing your FAFSA on-line, the 8-page SAR will be mailed to you. However, if you do list your e-mail when completing your FAFSA on-line, you can request your 8-page SAR by telephoning +1-800-4FEDAID or +1-800-433-3243. You could e-mail a scanned copy of this to the Postgraduate Admissions Office although for us, a 2-page SAR would be sufficient as the main item that we have to verify is the on-line ISIR

• The US Government as a Lender: differences between the FFEL program and the Direct Loans program

  The main difference between the FFEL program and the Direct Loan program is that the US Government becomes the Lender.  The student takes out a loan directly with the US Government. This is a far more secure and reliable source for loans and a more efficient way of financing and administering the whole Federal loan provision. Foreign Schools, such as ourselves, can now originate the loans electronically on the US Government's systems. The types of loans (i.e. the products) will remain the same.

  On each disbursement date, the US Government transfers all of the requested loan funds to the School who will then disburse the funds to the students. The first disbursement will be made shortly after registration and all subsequent payments made during the course of the year. Schools report student attendance and progress to directly to the US Government on their NLSDS system on a regular basis (every 2 months) and also on an ad-hoc basis as soon as any changes to the student's registration occurs.

  Banks or lenders and guarantee agencies will no longer be involved. Some private companies who were involved in servicing loans under the FFEL program will now be contracted by the US Government to service the loans made under the Direct Loan program.

• Applying for your loan and the Master Promissory Note (MPN)

  The main difference between the FFEL program and the Direct Loan program is that the US Government becomes the Lender.  The student takes out a loan directly with the US Government. This is a far more secure and reliable source for loans and a more efficient way of financing and administering the whole Federal loan provision. Foreign Schools, such as ourselves, can now originate the loans electronically on the US Government's systems. The types of loans (i.e. the products) will remain the same.

  On each disbursement date, the US Government transfers all of the requested loan funds to the School who will then disburse the funds to the students. The first disbursement will be made shortly after registration and all subsequent payments made during the course of the year. Schools report student attendance and progress to directly to the US Government on their NLSDS system on a regular basis (every 2 months) and also on an ad-hoc basis as soon as any changes to the student's registration occurs.

  Banks or lenders and guarantee agencies will no longer be involved. Some private companies who were involved in servicing loans under the FFEL program will now be contracted by the US Government to service the loans made under the Direct Loan program.

• Applying for your loan and the Master Promissory Note (MPN)

  You will have to apply for each type of loan (Stafford and where applicable a Grad Plus loan) yourself for each academic year. For dependent undergraduate students, it is their parents who will have to take out a PLUS loan (i.e. a Parental Loan for Undergraduate Students). A separate MPN will be required for each loan. These may be paper or electronic MPN, although eMPNs are by far the preferred option. Please do not forget to complete a MPN for each loan you are applying for (i.e. an MPN for your Stafford loan and a separate MPN for a PLUS or Grad Plus loan if you are also taking out one of these). Please ensure that your MPN has been completed for the academic year that you'll be studying in.

  For further information, please see the new Direct Loan website for students: studentloans.gov

  Our University's policy of verifying the source of finances for all students ensures that students have adequate funds for their studies and that their payment plans may be integrated with the receipt of their funds. This is particularly important for non-EEA students who require visas. We will be able to use the information for your Stafford, PLUS, Grad Plus or private loans as evidence of your finances. We will make additional copies of relevant documention for this internal procedure for your admission onto your chosen degree course. This makes this part of our admissions process much easier.  You will probably require this as evidence of available funds when applying for your student visa to enter the UK.

  The loan amounts will be noted on your School Confirmation form. These will be determined by the type of student, cost of attendance (COA) and Expected Family Contribution (EFC). This EFC is calculated for a 9-month academic year. Thus for postgraduate students studying over a 12-months period, his EFC will have to be pro-rated (i.e. x 12/9) to calculate the appropriate EFC for the relevant Loan Period. The Loan Period and disbursement dates will be noted as shown below.

  The Cost of Attendance (COA) is calculated on the sum of your tuition fees and your estimated living costs but may be adjusted to account for any dependents and travel from your home to Aberystwyth. The estimated living costs are shown in GB Pound Sterling (£) but may be converted to US Dollars ($) using an on-line currency converter (e.g. oanda.com/convert/classic). Please note however that currency exchange rates can fluctuate.

  The currency exchange rate that will be used for calculating COA for 2011-2012 will be £1.00 (GBP) = $1.72 (USD). This is in-line with the rate that other UK universities who participate in the Federal DL Program will use. Loans may have to be adjusted at a later date (e.g. April 2012) should the exchange rate deviate significantly from the above estimated exchange rate. A decision on what exchange rate to use for 2012-2013 will be made at the end of May/beginning of June 2012. For this reason, no loans will be originated until June 2012 at the earliest. This still leaves sufficient time to apply for a student visa.

  Your Estimated Family Contribution (EFC) will be noted on the top right hand corner of the first page of your SAR/ISIR.

  If you have completed the above steps, you will receive a calculation of your COA by e-mail (from May 2011 onwards). You will then have to return the declaration/reply slip to specify which loans you want to take out and the exact amount of each loan, subject to regulatory limits. You will have 14 calendar days in which to cancel any loan.

   

• Entrance Counselling & Exit Counselling

  If this is your first loan, you must undertake Entrance Counseling. Please see the on-line Entrance Counseling option under Manage by Direct Loan on studentloans.gov . Even if you have obtained loans in the past, it is still advisable that you undertake Entrance Counseling. Avoiding Entrance Counseling on-line could result in your loan not being disbursed as it is an in-built feature of the relevant U.S. Department of Education's database. Entrance Counseling is thus strongly advised for all students, not only is it beneficial in the long term but it could avoid delays to your disbursements.

  All students must undertake Exit Counseling towards the end of their course. See Exit Counseling under Tools and Resources on studentloans.gov. You should do this before receiving your final disbursement. Not doing so could lead to that final disbursement being cancelled.

  N.B. Your final disbursement may be withheld if you have not completed Exit Counseling on-line. Please print a .pdf of the confirmation that you have undertaken Exit Counseling and send it to Rhys Williams at the Postgraduate Admissions Office at the appropriate time. See below. 

  Please note that if you are on a 3-year programme and thus have to take out a loan for each of the 3 academic years, you only have to undertake the Entrance Counseling once, before you start the course, and the Exit Counseling once, towards the end of your course. The following timeline will apply:

  • Bachelors students: undertake Exit Counseling in the April of their final (i.e. 3rd) year
  • Masters students: undertake Exit Counseling in the May of their 1-year course.  (N.B. Applicable to taught Masters and MPhil students)
  • PhD students: undertake Exit Counseling in the May of their 3rd year.
• Federal Stafford Loan Program

  Stafford Loans are available to both undergraduate and postgraduate students. For undergraduate students, these are partly subsidised by the US Government (although this means that the US Government is paying interest on this part of the loan to itself, at least it's kept by the Government and doesn't go to the banks). These loans have a fixed interest rate that's currently set between 3.4% and 6.8%. There is a 1% Origination fee. The maximum loan amounts differ for dependent undergraduates, independent graduates and graduate/professional students.  There are also aggregate lifetime maximum loan limits. Repayments are deferred whilst you are on the course but typically begin 6 months after the student ceases to be enrolled at least "half-time".

• Federal Grad Plus Loan Program (postgraduates only)

  If you have taken out the maximum value of Stafford Loan, you can apply for a Grad Plus Loan to top-up your finances. These loans have a fixed interest rate that is currently set at 7.9%. There is a 4% Origination fee. You do not need a parent to co-sign your Grad Plus application forms. Repayments are deferred whilst you are on the course but can be extended to 6 months after the student's enrolment drops to "less than half-time".  

• Federal Parent PLUS Loan Program (parents of undergraduates only)

  Parents of dependent undergraduates students can take-out a Parent Plus loan to supplement the Stafford Loan, subject to cost of attendance and credit rating. These loans have a fixed interest rate that is currently set at 7.9%. There is a 4% Origination fee. Repayments start 60 days after the final disbursement (unless extended).

• Private Loans

  These may be used to supplement your Federal loans but only up to your cost of attendance and will be subject to credit rating. You will probably be required to have a co-signer. These private loans are offered at commercial rates. 

• Loan Disbursement

  All loan funds will be sent to the designated US Dollar account that we hold with Travelex on the designated disbursement dates. We then receive the funds and allocate the appropriate amount to each student. We wil subtract the relevant tuition fees and if applicable accommodation fees from each disbursement before disbursing the remainder to you. Please note that the first disbursement will be by cheque whilst latter payments can be made directly to your UK bank accounts.

  Since July 2006, loan disbursements must be split into equal disbursements. We specify disbursements for our students on a termly basis (i.e. 3 terms for undergraduate and 4 term for postgraduate (the 4th term being the summer period June-September)). We will specify the following:

   

• 2012-2013 dates

  Postgraduates: 1st October 2012, 7th January 2013, 15th April 2013 and 3rd June 2013. [N.B. 12 month loan period] 
  Undergraduates: 1st October 2012*, 7th January 2013 and 15th April 2013. [N.B. 9 month loan period]

   

• 2013-2014 (probable dates)

  Postgraduates: 1st October 2013, 6th January 2014, 5th May 2014 and 1st July 2014. [N.B. 12 month loan period] 
  Undergraduates: 1st October 2013*, 6th January 2014 and 5th May 2014. [N.B. 9 month loan period]

• Bank Account

  To open UK bank accounts in Aberystwyth, either the Undergraduate or Postgraduate Admissions Offices (as appropriate) will be able to provide the letter of introduction to UK banking facilities that you'll require for this purpose. Please come to the (ground floor) reception of the Student Welcome Centre on Penglais Campus to complete the appropriate form. We'll aim to have the bank letter ready for you that afternoon or the following morning.   

  If your loans are greater than your tuition fees, your first disbursement will be by cheque. You can collect it from the Fees Office.  Subsequent disbursements will be paid directly into your UK bank accounts if you provide the Fees Office with your bank details (sort code and account number). We'll aim to make payments into your new UK accounts within 10 working days of the disbursement dates noted above. Please ensure that you have sufficient funds (e.g. cash, credit card, traveller's cheques) to cover your livings costs for both your journey to Aberystwyth and a further 2 weeks after your arrival.

  * N.B. Under Federal regulations, undergraduate students (normally 1st year students) who are new to the University will have to wait until 23th October 2012 for their first payment (i.e after they have completed 30 days of the course). Please budget accordingly.

  N.B. Different dates will apply to PhD and MPhil students who start at other times of the year. The loans are intended for study outside of the US.

  N.B. Masters students who return home to the US for Part 2 of their programme (June to September) will not be able to receive their final fourth and final disbursement of their loans. In such cases, the loan amount will be reduced accordingly.

  Please note that these are the dates that the US Government will send funds to the University. These funds can take up to 3 working days to clear. 

  Mrs Meretta Griffiths [mrg@aber.ac.uk] in our Student Fees Office, which is located in the Old College, will deal with both your loan disbursements and the payment of your loan. A portion of the tuition fees will be taken to pay for tuition fees and the remainder disbursed to you, the student. This is not only more convenient for our students, it also conforms to Federal audit regulations. Please note that she only deals with the disbursement of funds not the origination of loans. You can only receive disbursements after you have registered.

• Loan Limits

  i) Annual Stafford Loan Limits for 2010-2011 and for 2011-2012

  	Subsidised	Unsusbidised	Total
  Postgraduates/Professionals *	$0 *	$20,500 *	$20,500
  Dependent 1st year Undergraduates	$3,500	$2,000	$5,500
  Dependent 2nd year Undergraduates	$4,500	$2,000	$6,500
  Dependent 3rd year Undergraduates	$5,500	$2,000	$7,500
  Independent 1st year Undergraduates	$3,500	$6,000	$9,500
  Independent 2nd year Undergraduates	$4,500	$6,000	$10,500
  Independent 3rd year Undergraduates	$5,500	$7,000	$12,500

  * N.B. Recent information suggests that postgraduate/professional students will no longer be eligible for the subsidised Stafford loan. Instead, they will be able to borrow the full amount of $20,500 as an unsubsidised loan. 

   

  ii) Maximum Aggregate Federal Loan Limits for 2010-2011 and for 2011-2012

  	Maximum Aggregate Subsidised Stafford Loans	Maximum Aggregate Total Federal Loans
  Postgraduates/Professionals	$65,500	$138,500
  Dependent Undergraduates	$23,000	$31,000
  Independent Undergraduates	$23,000	$57,500

  Your Loan and Your Student Visa

  Discussions in June 2010 between the US Department of Education and the UK Border Agency resolved certain inconsitencies between the processes and requirements of both Governments. The required proof of your funds will be issued to you by Aberystwyth University after your loan has been approved and originated.  You will be able to use this together with the letter of acceptance from the University, the CAS number issued by the University, our University's Sponsor's Licence Number, and proof of your qualifications to apply for your (adult) student visa under Tier 4 of the UK Border Agency's Points Based System.  

  N.B. From spring 2011 onwards, the dates specified for your CAS will be as follows:

  • Bachelors students: 3 academic years to 30th June (final year)
  • Masters students: 1 calendar year to 30th September (N.B. Applicable to taught Masters and MPhil students)
  • PhD students: 4 calendar years from date of commencement (the UK Border Agency would be informed of early completion)

  N.B. Universities can only issue a CAS within a 6 month period before the proposed start date. Students  can only submit their visa applications using their CAS within a 90-day period before their proposed start date.

• Your Loan and Your Student Visa

  Discussions in June 2010 between the US Department of Education and the UK Border Agency resolved certain inconsistencies between the processes and requirements of both Governments. The required proof of your funds will be issued to you by Aberystwyth University after your loan has been approved and originated.  You will be able to use this together with the letter of acceptance from the University, the CAS number issued by the University, our University's Sponsor's Licence Number, and proof of your qualifications to apply for your (adult) student visa under Tier 4 of the UK Border Agency's Points Based System.  

  N.B. From spring 2011 onwards, the dates specified for your CAS will be as follows:

  • Bachelors students: 3 academic years to 30th June (final year)
  • Masters students: 1 calendar year to 30th September (N.B. Applicable to taught Masters and MPhil students)
  • PhD students: 4 calendar years from date of commencement (the UK Border Agency would be informed of early completion)

  N.B. Universities can only issue CAS within a 6 month period before the proposed start date. Students  can only submit their visa applications using their CAS within a 90-day period before their proposed start date.

• Satisfactory Academic Progress (SAP)

  Your eligibility of both Federal and private loans is dependent upon your continued attendance and participation on the relevant degree programme and registration with Aberystwyth University.  If there is any change to your circumstances, e.g. temporary or permanent withdrawal, extensions, ...etc.) you must inform both the Academic Office at our University and Rhys Williams at the Postgraduate Admissions Office. If you leave the programme of study, even temporarily, you will have to repay part or all of your loan.US Federal regulations specify that the student must complete their programme within 150% of the published length of that programme.

  For undergraduate students, U.S. Federal regulations state that borrowers must average "C" grades or above. In the UK system, this equates to a minimum of at least 45%, which is slightly above the pass mark for an undergraduate student.

  The pass mark for taught Masters students to progress to their Masters dissertations is 50%. See also the relevant Code of Practice for Taught Postgraduate Students.

  The progress of research students is monitored both at departmental and faculty level. See the Code of Practice for Research Postgraduates.

  In all of the above cases, the student must demonstrate satisfactory academic progress. If not, they may be placed on probation for financial aid. If progress is still not made, financial aid may be withdrawn from them. It should also be stressed that poor attendance could mean that the University may have to report this to the UK Border Agency, resulting in the student's visa being revoked.

  Any appeals against a decision to suspend financial aid, have to be made in writing to Dr. Rhys Williams (Postgraduate Admissions Manager) within 14 calendar days of notice. This will then be considered by a designated panel and a final response made within another 14 calendar days.

  Financial aid may only be approved for periods within the minimum registration period, as specified in the formal offer letter issued by the AU Recruitment & Admissions and the registration form issued by AU Academic Office. These documents will also note the maximum period of registration and/or submission deadlines for the academic programme. As tuition fees will not be levied by the University outside of the minimum registration period, aid may not be awarded outside of this period. Masters students and PhD students who will be in abeyance (i.e. in the writing up period), and therefore outside of the minimum registration period, will not be deemed eligible for any form of financial aid.

  Both the AU Academic Office and Rhys Williams (Recruitment & Admissions (PG Admissions Office)) should be notified of any change to the study details (e.g. academic progress, course, mode of study, temporary withdrawal, permanent withdrawal) as soon as possible in order to assess the impact on Satisfactory Academic Progress and the calculation for the Return of Title IV Funds (i.e. repayment of the portion of the loan that has not been earned to the Lender/Federal Government).

  The length of courses/programmes for loan purposes, with implications for repayments, are as follows:

  • Bachelors: 3 academic years "Full-time" (e.g. September 2011 to June 2014). Thereafter "Graduated" (i.e. completed course).
  • Masters: 1 calendar year "Full-time" (e.g.  September 2011 to September 2012). If not "Graduated" (i.e. completed course), then "Half-time" for an additional year and then "Less than half-time" thereafter.(N.B. Applicable to taught Masters and MPhil students)
  • PhD: 3 calendar years "Full-time" (e.g.  September 2011 to September 2014). If not "Graduated" (i.e. completed course), then "Half-time" for an additional year and then "Less than half-time" thereafter.
• Payment of University Tuition Fees and Accommodation Fees

  Any fees due to the University will be subtracted from your loan funds within 3-working days of receipt from the US Government. We will disburse the remaining funds to you within another 10 working days.

• The University's Refund Policy

  The generic policy on the refunds due to early withdrawal from a programme of study is available on-line:www.aber.ac.uk/en/student-finance/undergraduate-uk/tuition-fees/early-withdrawal/  However, fees for research students would be calculated pro-rate (on a monthly basis). Reference to "Student Loans" in this policy refers to the UK Student Loan system. These can only be held by UK students on undergraduate courses and PGCE courses. This could cause confusion if you are a postgraduate and/or an international student. This should not be confused with the Return of Title IV Funds (i.e. paying back loan funds that have not been earned).  

• Procedure for the Return of Title IV Funds

  This is calculated on a different basis to the generic refund of fees due to a student. The difference for US Direct Loan students is that the funds are received by the University first and relevant tuition fees and accommodation fees subtracted before disbursing the remaining fees (if applicable) to the student. Calculations are based on a standard set of equations as determined by the US Department of Education. The amounts that the University has to repay for subsidised Stafford, unsubsidised Stafford and PLUS/GradPlus loans is determined and refunded to the US Treasury within 45 days. The amount that the student has to repay is also calculated.

  As loan disbursements are made on a termly basis, the proportion of days that a student has attended within that term will determine how much federal aid he/she has earned. If this is greater than 60% of the term, the return of Title IV funds will not be required. If it is less than or equal to 60%, then the appropriate calculation and refund must be performed.

  For further advice on any of the above topics, please contact Dr. Rhys Williams at the Postgraduate Admissions Office