The University of Southampton participates in the William D Ford Federal Direct Loan (Direct Loan) Programme.

At the University this programme is administered by the Financial Support Team within the Widening Participation & Social Mobility department.

There are three types of loan available to students through the Direct Loan program:

• Subsidized
• Unsubsidized
• Plus Loans (If you are a graduate/ professional degree student, you can apply for a Plus Loan in your own right. For undergraduate students, your parents can apply for a Plus Loan on your behalf. Plus Loans are credit based)

Please note that students studying at a UK Institution are ineligible to receive Pell Grants.

The amount you can borrow will be determined by the Cost of Attendance (COA) and no more:

• The COA is set by the University, but may be adjusted to meet specific individual needs keeping within the parameters set by the University
• Your COA will include Tuition Fees, accommodation fees, general living expenses, travel, and miscellaneous costs
• We will complete the COA on behalf of the student
• Loans will depend on your level of study (undergraduate or postgraduate) and your dependency status (dependent or independent) as indicated on your FAFSA Submission Summary (FSS)
• The University of Southampton code is G08399

There are some programmes at the University which are ineligible to receive funding through Direct Loans:

• Students studying with the Faculty of Medicine or the Faculty of Health Sciences are not eligible. Audiology students are also ineligible for funding
• Study via Distance Learning or at partner institutions is not eligible
• In respect of postgraduate research, students are not normally permitted to return to the US for the purpose of study or research

Our disbursement timetable for 2025/26 is as follows:

Undergraduate:

Postgraduates (Taught):

Postgraduates (Research):

For 2025/26, we will be using Flywire to make Direct Loan payments. These can either be to a UK or US bank account.

In accordance with the US Government guidelines, the University will deduct tuition payments from the disbursement. If you are living in University accommodation, the University may also deduct accommodation payments from the disbursement. Remaining funds will be paid directly to you.

All disbursements are subject to the following:

·        Satisfactory academic progress (SAP) is being made

·        Student is enrolled at least part time (Half Time)

·        Student is not in the USA

·        Student has not violated any federal compliance regulations (repayment default, fraud, drugs)

Exit Counselling

US Government regulations require students who withdraw, graduate, or drop below half time attendance to complete exit counselling.

Students must complete Exit Counselling online. Once completed send a scanned pdf of the final page to stufunds@soton.ac.uk

Satisfactory Academic Progress (SAP)

US Government regulations require the University to ensure all students receiving Federal Direct Loans are making satisfactory progress.

Please be aware that failure of any academic year can have a major effect on your eligibility to receive funding so please contact us at stufunds@soton.ac.uk to discuss your situation in this instance. 

Exchange Rates

The COA is calculated in US Dollars and the loan is borrowed in US dollars. It is exchanged into GBP at the time the disbursement takes place. Due to exchange rate fluctuations throughout the year, the University is unable to accurately fix the rate in advance so that the student gets exactly what they need. The exchange rate for all COAs in the 2025/26 academic year is 1.39.

The National Student Loans Data System (NSLDS)

The National Student Loan Data System (NSLDS) is the US Department of Education's central database for student aid. It receives data from a number of sources, including the participating schools.

The University of Southampton keeps NSLDS updated with changes to enrolment status of all its US Loan recipients.

NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.

University of Southampton's Code of Conduct for Education Loans

In order to prohibit a conflict of interest of an agent with respect to private education loans, all employees of the University of Southampton with responsibility for US Loans are prohibited from the following:

• Revenue-sharing arrangements with any lender
• Receiving gifts from a lender, a guarantor, or a loan servicer
• Contacting arrangements providing financial benefit from any lender or affiliate of a lender
• Directing borrowers to particular lenders, or refusing or delaying loan certifications
• Offers of funds for private loans
• Call centre or financial aid office staffing assistance
• Advisory board compensation
• All employees covered by this Code of Conduct are reminded at least annually of the code.

Commercial Loans

The University of Southampton does not recommend any private lender, but is currently only able to disburse Sallie Mae loans.

Veteran’s Affairs

The University of Southampton has withdrawn from the Veteran's Affairs GI Bill benefits programme from 24th June 2024. This action was rendered by VA under the authority conferred in 38 C.F.R. § 21.4152(b)(5). We are therefore unable to certify any funding requests, and your benefits cannot be used to pay for tuition fees at the university. Please contact stufunds@soton.ac.uk should you have any further questions.

Key points about US Direct Loans as well as information on the application process can be found below.

• Application Process
• SAP Policy
• COA Guidance
• US Loan Declaration Form
• Return of Funds Policy
• Key Points
• Leave of Absence Policy
• Leave of Absence Form
• Key Responsibilities