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Federal Loan Programs
for American applicants
Federal Loan Programs for American Applicants
The University of West London participates in the William D. Ford Federal Direct Loan (Direct Loan) Program for students coming to study with us from the United States.
Federal Direct Loans are low-interest loans to help undergraduate and postgraduate students pay for their education. Direct Loans are provided by the US government and are available to US citizens, US permanent residents and eligible non-citizens. These loans are provided to those students who have firmly accepted an unconditional offer to study at the University of West London.
Frequently asked questions
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What loans are available?
UWL can administer Federal Direct Student Loans, Federal Direct Parent PLUS Loans and Federal Direct Graduate PLUS Loans. Please note that UWL is unable to participate in many of the need-based programs, such as Pell Grants, SEOG Grants and Perkins Loans or the Federal Work Study Program as these are not applicable at a foreign school.
You may be eligible for the following loans:
Federal Direct Student Loans
Federal Direct Student Loans are Subsidized and Unsubsidized, low-interest student loans that are provided directly to the student. Federal Direct Subsidized Loans are based on financial need; Federal Direct Unsubsidized Loans are not based on financial need.
Please note that postgraduate students are only able to receive Federal Direct Unsubsidized Loans.
Federal Direct Parent PLUS loans
These are a low-interest loans for parent borrowers to assist their dependent students throughout their studies. This loan is not based on financial need but on credit-worthiness. The parent borrower must also be a US Citizen, US Permanent Resident or Eligible Non-Citizen.
Please note that Federal Direct Parent PLUS Loans can only be administered to students classified as Dependent Students. If the student borrower is considered an Independent Student, they are ineligible to receive parental support from a Federal Direct Parent PLUS Loan. However, these students may apply for a private loan - please see below.
Federal Direct Graduate PLUS Loans
The Federal Direct Graduate PLUS Loan provides postgraduate and professional students with additional funds for their education as these students are ineligible for Federal Direct Subsidized Loans.
Federal Direct Graduate PLUS Loans are not based on financial need, but on credit-worthiness.
Private loans
If you are applying for a private US student loan, the University will work with whichever private lender you choose to use, provided they are willing to work with UWL’s Financial Aid and Finance Teams.
Please note: the Financial Aid Team has identified only one lender currently offering private student loans to students at foreign schools. This lender Sallie Mae. Sallie Mae is not a preferred lender and this does not represent a preferred lender arrangement.
The only private loan currently available to students at foreign schools offered by Sallie Mae is the Smart Loan from Sallie Mae.
Prospective and current students are advised to review the Federal Aid Direct Lending programme before they progress with a private loan as this may be a more favourable option.
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What are the eligibility requirements?
To be eligible for the Federal Direct Loans program you must:
- Be a US Citizen, US Permanent Resident or an Eligible Non-Citizen
- A citizen of the Freely Associated States: the Federated States of Micronesia and the Republics of Palau and the Marshall Islands. These students can only receive aid from some of the financial aid programs
- Have a valid US social security number
- Be accepted as a full-time or part-time student
- Have made satisfactory academic progress
- Be living outside the US during the course of studies, be enrolled with the University of West London and not undertaking any studies within the United States of America
- Have not borrowed over the federal loan limits or be still in default on repaying previous loans
- Have signed up for selective service or have been officially exempted from selective service if the student is male and aged 18 or older
- Not have any outstanding convictions for drug-related offences
- Be registered for an eligible course. Ineligible courses include (but may not be restricted to) those listed below:
- Undergraduate degree courses that include a 'year abroad' option to institutions that are not Title IV Eligible.
- Standalone Foundation Degrees, Diplomas, or pre-Masters courses.
- Nursing courses
- Any programme that has a compulsory online element or distance learning element. Such programmes are ineligible for any US Federal Loan funds (US Higher Education Reconciliation Act (HERA), July 1, 2006).
A full list of eligibility criteria can be found on the Federal Student Aid website.
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How much can I borrow?
The amount you can borrow through Direct Loans is determined by the estimated cost of attendance (COA) established by UWL’s Financial Aid Team and the borrowing limits set by the US Department of Education.
Cost of Attendance (COA) is an estimation of how much it will cost to study at UWL for one academic year. The cost of attendance (COA) is the estimated total amount it will cost to go to university each year. The COA includes tuition and fees; on-campus room and board (or a housing and food allowance for off-campus students); and allowances for books, supplies, transportation, loan fees, and, if applicable, dependent care. It can also include other expenses like an allowance for the rental or purchase of a personal computer, costs related to a disability, or costs for eligible study-abroad programs.
Note: The COA for postgraduate and professional programs is usually higher than for undergraduate programs.
If you are studying less than half-time, the COA includes tuition and fees and an allowance for books, supplies, transportation and dependent care expenses; but can also include room and board for up to three semesters or the equivalent at the institution, but no more than two of those semesters or the equivalent may be consecutive. Students with any unusual expenses that might affect their cost of attendance should contact UWL’s Financial Aid Team with evidence to support this increase. Please be aware, however, that the UWL Financial Aid Team cannot arbitrarily increase a student’s cost of attendance and that the US Government dictates specific criteria to increase a student’s provided cost of attendance. The maximum loans a student can receive may not exceed the yearly cost of attendance.
To calculate this, UWL combines the cost of all tuition fees and living expenses, and subtracts this total from any scholarships you may receive and your Expected Family Contribution (EFC). A set average exchange rate for the academic year is used to convert these costs into US dollars.
You may borrow up to the cost of attendance through a combination of Federal Direct Subsidized and Unsubsidized Loans and Federal Direct Parent or Graduate PLUS Loans. There are limits on the amount students can borrow through Federal Direct Subsidized and Unsubsidized Loans; the amounts students are eligible to take in Federal Direct Subsidized and Unsubsidized Loans varies dependent upon your EFC, academic year and dependency status.
How to apply
Please follow the steps below to make your loan application.
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Step 1 - complete FAFSA
In order to access US Student Federal Aid, you must first complete a 'Free Application for Federal Student Aid (FAFSA)'.
Only when you specify the University of West London as a nominated school will these loans be applicable to your studies at UWL. You will need to indicate your preference of schools on the FAFSA application by inputting the Federal School Code.
University of West London’s Federal University / School code is:
Federal School Code: 039453
OPE-ID: 03945300
When we receive your FAFSA information, the UWL Financial Aid Team will provide further application instructions once you received a valid offer to study. -
Step 2 - sign a Master Promissory Note(s)
To take out Direct Loans and Parent or Graduate PLUS loans, you must complete Master Promissory Notes (MPN). The MPN can be completed on the Student Aid website. The University of West London will only accept MPN’s that have been digitally signed using a Federal Student Aid PIN.
You will need to complete an MPN for each loan that you intend to take out. For example, if you decide to apply for the PLUS loan as well as the Direct loan, you must complete both a Direct Loan and PLUS Loan MPN. To be eligible for a PLUS loan, student and parent applicants must complete a Plus Loans application which bears a Credit Check. If the credit check is successful, the student and/or parent should either take a screen shot or include the confirmation email sent to the nominated email address to accompany the requisite documents UWL’s Financial Aid Team requires to process all student loans.
The University of West London requires new Master Promissory Notes to be completed each academic year the student intends to receive US Direct Loans.
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Step 3 - complete the Direct Loan Entrance Counselling
Loan Entrance Counselling is designed by the US Department of Education to inform student and parent borrowers of their rights and obligations.
Please note that it is a Federal requirement for all new borrowers to complete Entrance Counselling. The UWL Financial Aid Team will be unable to originate loans if students and parents do not complete entrance counselling.
To complete Entrance Counselling, please visit Student Loans.gov.
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Step 4 - submit documents to UWL
Once student and parent borrowers have completed the steps above, please email the following documents as attachments in a single email to UWL:
1. Copy of Direct Stafford Loan Master Promissory Note
2. Copy of Direct PLUS Loan Master Promissory Note (if applicable)
3. Copy of accepted credit check confirmation (Parent and Graduate PLUS Loan applicants only)
4. Copy of Direct Loan entrance counselling confirmation
Please email the documents to us.loans@uwl.ac.uk. with the subject: FAFSA (Surname, Forename).
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Step 5 - accept the UWL Award Letter
When the UWL Financial Aid Team receives a completed application, they will process it, review the applicant’s offer status and determine US Direct Loans eligibility for Federal Student Aid. If eligible and the student holds either a Conditional or Unconditional Offer of Study with the University of West London, the team will in turn provide those eligible students with an Award Letter, indicating the total maximum amounts the student is eligible to borrow for that academic year. This should be signed and returned as quickly as possible to continue with the application process. The award letter should be e-mailed directly to US.Loans@uwl.ac.uk. Should a student desire to amend award amounts, they should simply cross this out and write the desired amount in its place. The student borrower is not forced to take all loans they are eligible for and can accept, reject or decrease the amount they wish to borrow.
Once all documents are in place and the team has received the signed award letter, the team will only then originate the loans a student borrower is eligible to receive. Once the origination process has been successfully completed, students will receive a Notification of Funds letter, which can be used to demonstrate funding through the Federal Loan system to support a visa application for the UK. During peak application times (May - July), the process can take considerably longer and it is advised that students apply for student loans as early as possible.
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Step 6 - apply for a UK Tier 4 (General) Student Visa
US Federal Direct Loans are recognised by the UKVI as a means to support an application for a UK student visa to study in the UK. Once UWL’s Financial Aid Team have confirmed and originated student loan(s) with the US Department of Education, a Notification of Funds letter detailing the loans the student borrower will be applying towards tuition and maintenance whilst at UWL will be issued to all eligible students. Students will be able to use this letter to demonstrate to the UK authorities their total financial aid package.
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Step 7 - access your Student Loan funds
Direct Loan funds are disbursed at the start of each term throughout the academic year. Disbursements can only be made to students who are fully enrolled on their programme of study and making satisfactory academic progress. This means that students will not be able to receive funds until they have completed the University's registration and verification process at the start of each academic year.
Once UWL receives the loan funds from the US Department of Education, these funds will be at first applied to the tuition fees and University accommodation costs students owe for the term. If any funds are remaining from the disbursement, these will be paid to the student by the University's Finance Department. Refunds can only be made to UK bank accounts and will not be issued in any other format. It is therefore imperative that all students open a GBP currency bank account while in receipt of US Direct Loans and while studying with the University of West London.
Please note that the disbursement date is the date that US Direct Loans are paid against outstanding charges on student accounts and is not the date that remaining funds are deposited into UK Bank Accounts.
Please note it can take up to three weeks to open a UK bank account. Students are advised to bring any necessary funds to cover their first month in the UK. It should also be noted that it is the student’s responsibility to pay for Visa Costs, accommodation deposits and airfare to the UK up front as UWL cannot disburse funds to students who have not yet enrolled with the University.
Deferments and repayments
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Guidance on repayment of student loans
It is important that all student and parent borrowers understand their rights and obligations as they prepare to repay US Federal Direct Loans following graduation.
Exit counselling is compulsory and is designed to inform borrowers about loan repayment and money management, and will help these individuals make the necessary arrangements before and during repayment.
Please see the 'Exit Counselling' section on the Department of Education's Student Loans website for full details.
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Deferment of loan repayment and interest rates
During the period of enrolment, all Federal Direct Loans, except for the Federal Direct Parent PLUS Loan, will be in deferment. This means that students taking out Federal Direct Loans will not be required to make payment on their student loans until after they graduate or drop below half-time. During this time, interest may accrue for which the student will be responsible. See the current interest rates for Federal Direct Loans. See the origination fees for Federal Direct Loans.
If a student has received Federal Direct Loans or Federal Grants prior to attending the University of West London, UWL’s Financial Aid Team will automatically update the student’s details with the US Department of Education once they have fully enrolled as a full- or half-time student. During this period all Federal Direct Loans will be deferred until the student graduates or drops below half-time. The information provided is shared with all US Department of Education Servicing Agents, who are responsible for administrating loan repayments.
If a student believes that their enrolment status has not been correctly registered with their servicing agent, please inform the UWL Financial Aid Team.
If a student enrolling with the UWL has US Direct Loans, but will not be taking out new student loans must notify the UWL Financial Aid Team to ensure their enrolment status is reported.
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Deferral of studies or leave of absence
If you are unable to take or complete your semester or year of study, due to circumstances that are outside your control, you may be to defer your studies for an agreed period. Examples of circumstances include:
- physical or mental ill-health
- severe financial hardship
- emotional/personal difficulties, eg bereavement
- disability, ie where student’s disability comes to light for the first time at the assessment
- unavoidable absence from the University, eg requirements of employer
- unavoidable absence from domicile, eg eviction
- loss of immigration status
- other serious unexpected circumstances
If you wish to defer your course of study, the request must first be considered by your Personal Tutor or Course Leader, who will establish whether deferral is the most appropriate option. You may defer at any time, with the following consequences:
- the result for any module – either pass or fail – for which all assessments have been completed, will be retained
- the result for any module that has not been completed, for example, if you have submitted Assessment 1 but not Assessment 2, will not be retained. You will need to re-register on that module when you return, however you will not be charged again for that module, and the assessments will not count as a retake, therefore will not be capped
- you should contact Student Services for advice on the implications of deferral on your student loan and finances - student loan funding is not usually available during periods of deferral
- where applicable: the relevant funding body or professional, statutory, regulatory or governing body or other agencies (eg UKVI), will be notified
- if you are a Tier 4 student in most cases your visa will be curtailed and you will have to return to your home country. A new visa will be needed to return to study in the UK.
You may defer up to a maximum of two calendar years, subject to the period of registration, Tier 4 sponsorship and/or any Professional, Statutory and Regulatory Body requirements.
Contact us
If you have any questions about the Federal Direct Loans Program, please get in touch with UWL Student Services - we are here to help.
- Email: us.loans@uwl.ac.uk
- Address: Student Services – US Loans team, University of West London, St. Mary's Road, Ealing, London W5 5RF