US Federal Loans

Students may borrow up to the COA set by the University.

The maximum loans you can receive cannot exceed the yearly cost of attendance, less any financial aid you may be receiving.

What do you need to do to apply?

Complete your FAFSA:

This is your application to the US direct of Education for a Direct Loan. Please see the GOV website for more information.

Complete your Entrance Counselling:

The US Government requires you to complete Entrance Counselling to confirm understanding of your responsibilities and obligations. Please see the GOV website for more information about how to complete Entrance Counselling. 

Complete your Master Promissory Note(s) (MPNs):

The MPNs are your Loan agreements. You will need to complete one for each type of loan you are applying for.

If you are applying for Parent Plus Loan then it is your parent that must complete the MPN. You can find information about completing MPNs on the GOV website.

What will the University do?

We are currently processing applications for the 2022/23 academic year. Please contact stufunds@soton.ac.uk once you have submitted your FAFSA.

Complete your COA:

The University will complete the COA on behalf of the student.

Confirm your eligibility:

We will check your COA against the Direct Loans published guidelines. If we have any concerns, we will contact you to discuss.

Once all completed, the University will originate your loan.

Issue a visa funding letter (if appropriate):

If you are applying for a Tier 4 Visa (a student visa), you will need to be able to show you have sufficient funding in place.

Once your loan has been agreed and processed we will produce a letter confirming your Federal Aid funding for the year ahead; this will be emailed to you but you can also request a hard copy to be sent to your home address.

You can download a PDF process document to help you, which can be found in the Useful Links tab.

Our disbursement timetable for 2022/23 is as follows:

Undergraduate:

 

	Disbursement Date	Payment Period
		From	To
Disbursement 1	3 October 2022	3 October 2022	29 January 2023
Disbursement 2	30 January 2023	30 January 2023	17 June 2023

Postgraduates (Taught):

 

		From	To
Disbursement 1	3 October 2022	3 October 2022	29 January 2023
Disbursement 2	30 January 2023	30 January 2023	17 June 2023
Disbursement 3	22 June 2023	18 June 2023	27 September 2023

 

Postgraduates (Research):

 

		From	To
Disbursement 1	3 October 2022	3 October 2022	9 April 2023
Disbursement 2	13 April 2023	10 April 2023	27 September 2023

 

We disburse your funds to you through Convera, formally known as Western Union. In this way we can ensure you receive them quickly and efficiently.

Once we have set up your loan you will be contacted by Convera for your UK bank details so they can pay your funds directly into your account. If you choose not to give your bank details over to them, they will instead disburse the funds to you by cheque, although you need to be aware that you will have to await the cheque clearing in your account before you can access the funds.

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)

 

Entrance Counselling

The US Government requires you to complete Entrance Counselling to confirm understanding of your responsibilities and obligations. Please see the GOV website for more information about how to complete Entrance Counselling. Once completed email us a screenshot to confirm completion together with your COA.

 

Exit Counselling

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

Students must complete NSLDS Exit Counselling, this is completed 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.

 

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. However, for 2022/23 we will be using the exchange rate of 1.34 to put together the COA.

 

The National Student Loans Data System (NSLDS)

The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED'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, however if you find a private lender you are interested in borrowing with, please contact stufunds@soton.ac.uk to arrange this.

 

 

Veteran’s Affairs

The University of Southampton is recognised to administer Educational funds from the US Department of Veteran’s Affairs (VA) to eligible students. This process is subject to individual course eligibility approval by the VA which can take time so we advise you inform us of your intent to access this funding as soon as possible by contacting stufunds@soton.ac.uk 

Please note: there is currently a substantial delay with the VA in approving new courses. If you are applying to receive VA benefits, we cannot guarantee that you will be able to receive funding during your course with us. Therefore, enrolling without funding in place is at your own risk and you will be liable for fees should the VA be unable to approve your course.

 

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 Form