Download US Loans Scheme

UNIVERSITY OF CENTRAL LANCASHIRE
INTERNATIONAL OFFICE
Information on Direct Loans for US students
What support is available?
If you are an American National or have permanent resident in the US you can apply for a Direct Loan if you
have accepted an offer of a place at University of Central Lancashire (UCLan) UK. UCLan is an eligible
Federal Loan institution and our Federal School Code is G35153 and out OPIED Code is 03515300.
Direct loans.
The Direct loan – This loan has replaced the Stafford Loan and is supported by the US government and is
available to all students. There are two types of Direct loans which are;
-
-
The subsidized loan is assessed on “need” and as such the interest accrued on this portion of the
loan is paid by the US government whilst students are in study. These costs will revert to the
student’s responsibility after completion of the course.
The unsubsidized loan will accrue interest during the period of study and these costs will be the
student's responsibility.
Direct Parent Plus loan – These loans are available to Parents of dependent undergraduate students. The
parent would take a loan out on behalf of the child to cover any additional educational costs.
Direct GRAD Plus Loan – These loans are available to Graduate students and taken out in their own name
under similar conditions to the Parent Plus loan. The student will need to complete the application form so that
they are the student as well as the borrower. Students with low or little credit may require a co-signer.
Interest rates and charges
The interest rate on subsidised Direct loans for undergraduate students that are first disbursed between 1st
July 2012 and 30th June 2013 will be fixed at 6.8%.
For all other Direct unsubsidised and graduate loans first disbursed between 1st July 2012 and 30th June
2013 the interest rate will be fixed at 6.8%.
In addition there will be an origination fee for Direct loans first disbursed between 1st July 2012 and 30th June
2013 of 1%(net), which is deducted at source prior to the disbursement of the loans. The origination fee for
Parent PLUS and Graduate PLUS loans first disbursed between 1st July 2012 and 30th June 2013 will be
4%(net).
Please be aware that private loans will incur a commercial interest rate. Look at interest rates and charges
with different lenders. A lender may require someone else with a good credit rating as a guarantor or as a coborrower.
Borrow what you need, but remember you have to repay it back.
How much can I borrow?
The table below shows the amounts of Direct Loan a student can borrow depending on the course and year
they will attend.
Year of course
Subsidised loan
Additional Unsub loan
Total loan
Dependent Undergraduate 1st year
$3500
$2000
$5500
$4500
$2000
$6500
$5500
$2000
$7500
$3500
$6000
$9500
2 year
$4500
$6000
$10500
3rd year
$5500
$7000
$12500
Graduate/professional
Nil (as of 1st July
2012)
$20500
$20500
2nd year
rd
3 year
Independent Undergrad
1st year
nd
Any Parent Plus loan (available to UG dependent students only), Grad Plus or Private loan is intended to
cover any remaining costs of attendance the student has, without any set annual maximums.
The cost of Attendance includes Tuition fees and living costs and is set by the institution. Below is a guide to
the cost of attendance you can expect for our institution.
Tuition Fees
Living
Expenses
Transportation
(including UK
travel)
Miscellaneous
expenses
Varies
depending on
course
£800 per month
£1,500
£1,500
If your cost of attendance exceeds the above you would need to put in writing to jmaudsley@uclan.ac.uk a
breakdown of any extra funding that is required and what it is for.
When should I apply?
Student’s will need to apply for these loans on an annual basis and would be recommended to start the
application process anytime from the 1st March each year, although the FAFSA applications can be submitted
anytime from Jan 1st. PLUS and Private loan applications should be applied for no earlier than 6 months prior
to the start of the course.
Any application being received within a month of the course start date cannot be guaranteed to be processed
in time for the start of the course or to provide the required documentation for any Visa.
How can I apply?
All students should apply for the Direct Loan before any other funds as it is the most beneficial loan available
to students. You would need to complete this process on an annual basis, should you require further funding.

Students would need to complete a financial aid form through the FAFSA website (www.fafsa.ed.gov).

You then need to fill out the Direct Loan form and email it back to Jackie Maudsley, Financial Aid
Officer

Once you have done this you can go to http://studentloans.gov/myDirectLoan/index.action and apply
for your Direct Loan and Plus Loan (if required). You must also complete entrance counselling and a
Master Promissory note before your loan can be originated by UClan. If your parents are taking out a
PARENT Plus Loan they must also complete a promissory note. A Promissory note is also required
for the GRAD Plus loan..

Once you have done the above the University of Central Lancashire will then work out your cost of
attendance and originate your loan and send you a confirmation letter confirming the amount you will
receive and the dates you will receive it.
When will the funds be disbursed? The Institution will request the Direct and Plus Loans after students
have completed enrolment and it will be disbursed in 2 installments, in accordance with US laws. The first
disbursement of any Direct or PLUS loans will be requested to be available at the start of your first semester at
University the subsequent installment of loans would be available at the start of the subsequent semester. Once
UCLan has requested the funds students must allow up to 10 working days to reach there bank account.
Loan funds will be disbursed in the form of US Dollars into UCLan’s bank account and then will be given to the
student in pound sterling at the exchange rate received on the date of receiving your funds.
All disbursements are subject to the following conditions;




You are making satisfactory academic progress
You are enrolled at least half time or more
You are not in the USA
You have not violated any federal compliance regulations (such as repayment default, fraud and drug
offences)
Other Private Loans
SMART OPTION STUDENT LOAN - A private,credit-based loan for undergraduate and graduate students. This
loan helps fund education expenses not already covered by federal student loans. Designed to reduce the overall
loan costs and help shorten the amount of time it takes to pay off the loan, the Smart Option Student Loan features
interest-only payments while in school and repayment terms based upon the cumulative outstanding Sallie Maeserviced private student loan balances and the borrower’s academic grade level. Students can borrow the full cost
of attendance any other loans and scholarships will be deducted before loan is certified.
Financial proof for obtaining a Tier 4 visa
Once your loan has been approved you will receive a confirmation letter confirming the amount of loan that has
been approved and the disbursement dates. This letter can be used of proof of funds in order to apply for your Tier
4 visa. This letter will only be produced up to 3 months prior to the start of your course.
Distance Learning Courses
Please note that any students undertaking distance learning courses are NOT eligible to receive US Government
funded.
Students undertaking distance learning courses provided by the University of Central Lancashire can apply for
Private loans to help cover costs of tuition.
Satisfactory Academic Progress
All students applying for or receiving US Federal Aid (subsidized, unsubsidized and PLUS) must progress
satisfactorily towards completion of a chosen academic program in order to remain eligible to receive US loan
support.
The guidelines below have been established to encourage students to successfully complete the academic
program they attend and continue to receive financial aid.
A student:
 Should not exceed 150% the published time frame for the course and should remain at least half time
 Should pass the course/modules with a minimum of grade C to confirm they are making satisfactory
progression.
The Satisfactory progression to retain Financial Aid is entirely separate from the academic requirements to remain
on the course and does not guarantee the outcome of the student’s course. Satisfactory Academic progress will be
checked before any loan funds are released to a student.
Financial Aid Probation and/or suspension
Should a student not meet the above mentioned procedures for Satisfactory Academic Progression, the university
has agreed to place students on probation for the following term, until more credit marks become available or the
failed module can be re-sat. The International Office would confirm any probation or suspension period in writing
with the individual student should this situation arise.
If the student does not achieve satisfactory progress within the allotted timeframe, the student may lose their
entitlement to the Direct Loan and any Plus loan taken out.
Tuition Refund Policy
The University of Central Lancashire’s tuition fee policy can be found at:
http://www.uclan.ac.uk/study/fees_and_finance/tuition_fee_policy.php
The following is an addendum for students who are utilising US Federal student aid funds.
If a student who receives financial aid withdraws from the institution, the university will recalculate your Financial
Aid eligibility based on the period of attendance. As a result you may be required to pay back money to the US
federal Government from the Direct Loan subsidized and unsubsidized or PLUS loans you may have received. The
institution may also have to repay any funds received for tuition to the US Federal government. As such you may
be requested to make an additional fee payment to the school to replace these funds.
Pro-rata refund calculations apply for any student who withdraws within 60% of the payment period. If a student
withdraws prior to completing 60% of each payment period, the university will calculate the amount of funds to be
returned based on your period of attendance for that specific term. The last date of attendance will be the date
confirmed by the program office and the calculations undertaken are those that are set by the Department of
Education in the US and cannot be altered.
Consumer Disclosures
The University of Central Lancashire is required by the William D Ford Federal Direct Loan Program to provide the
following consumer information;
The
University’s
prospectuses
can
be
found
by
http://www.uclan.ac.uk/information/courses/prospectus.php
clicking
onto
the
following
link
The accrediting agencies and governmental bodies that approve, accredit or license UCLan are the Quality
Assurance Agency for UK Higher Education http://www.qaa.ac.uk/Pages/default.aspx and the Department for
Employment and Learning http://www.qaa.ac.uk/Pages/default.aspx and the Department for Employment and
Learning http://www.delni.gov.uk/.
Information regarding retention rates of all certificate and degree seeking, first time, full time undergraduates
entering
a
HEI
are
available
via
the
Higher
Education
Statistics
Agency
(HESA).
http://www.hesa.ac.uk/index.php?option=com_content&task=view&id=2064&Itemid=141
Placement and types of employment obtained by graduates (undergraduate and graduate) of the school’s
programmes are available via the Higher Education Statistics Agency.
http://www.hesa.ac.uk/index.php?option=com_content&task=view&id=2071&Itemid=141
Information of transfer of credit from previous institution (accreditation of prior learning APL) can be found at the
following link http://www.uclan.ac.uk/information/services/sss/accreditation/index.php
The University’s data protection policy can be found at;
http://www.uclan.ac.uk/information/services/sss/accreditation/index.php
Information regarding vaccinations and the University’s medical centre can be
http://www.uclan.ac.uk/information/services/sss/student_services/health_centre/health.php
Services
and
facilities
provided
for
student
with
disabilities
can
be
http://www.uclan.ac.uk/information/services/sss/disability_information_for_students.php
found
at;
provided
at;
Rules and regulations regarding plagiarism and misconduct can be found on the following
http://www.uclan.ac.uk/information/services/sas/the_i/rules_and_regulations/rules_regulations.php
link;
The Universities drugs and alcohol abuse prevention is covered under the universities regulations for the
conduct of students;
At the end of your studies
At
the
end
of
your
course
you
must
complete
entrance
counselling
by
going
to
https://studentloans.gov/myDirectLoan/index.action.. An email will be sent to you after you have completed your
studies at UCLan to remind you to do this.