US Loans
The University of Westminster is certified by the US Department of Education to provide both Federal Direct Loans and private student loans via Sallie Mae.
New loan program
On 1 July 2010, the US government implemented the William D. Ford Federal Direct Loan Program. As with the Federal Stafford Loan, Direct Loans are for students and parents to help pay for the cost of education while studying at least half time. However, the lender is now the US Department of Education. It is still possible to borrow the same amount as you would from the Federal Stafford Loan.
Applying for financial aid
The first stage in applying for a US Federal Loan is to complete the Free Application for Federal Student Aid (FAFSA) form online. You can do this at www.fafsa.ed.gov.
The School Code for the University of Westminster is G21951.
Please note that completing your FAFSA is not a loan application, but generates a Student Aid Report (SAR) that we use to determine your eligibility for financial aid. To apply for Federal Loans, pleasego to the studentloans.gov website and complete the loan application, Master Promissory Note (MPN) and Entrance Counselling.
If you are a Study Abroad student, we are unable to originate Federal Direct Loans for you because you can receive financial aid from your home school in the US.
Cost of Attendance (in £ sterling)
The cost of attendance comprises tuition fees and living expenses as determined by the University. The figures below are used to calculate your living expenses (not including tuition fees). In addition to these amounts, the University will add on an average cost of a return flight home, sundry costs, entertainment and start-up costs. This brings the total to £16,360 for postgraduate students taking a full year (52 weeks) and £13,580 for undergraduate students (31 weeks).
| Weekly |
52 Weeks (PG) |
31 Weeks (UG) |
|
|---|---|---|---|
| Rent |
150 |
7800 | 7800 (full yr) |
| Food |
60 |
3120 |
1860 |
| Travel |
25 |
1300 |
775 |
| Clothing |
300 |
250 |
|
| Household |
15 |
780 |
465 |
| Utilities |
15 |
780 |
465 |
| Books, Equipment |
15 |
780 |
465 |
The Cost of Attendance is a very generous amount compared to loans which UK students can apply for and you may not need or want to take out the full amount. The maintenance costs include all housing, books, travel, food, social etc. Please note that we cannot increase this amount unless you have very specific reasons such as medical costs.
If you have a scholarship, are in the process of applying for a scholarship or are awaiting a decision, you should inform us as it could affect your cost of attendance.
Federal Student Loans
Direct Loan
The Direct Loan is made up of two parts (subsidised and unsubsidised) and is available to all students. The subdisised and unsubdisised loans do not enter into repayment until six months after you have completed the course or dropped below 50 per cent attendance.
Subsidised
Assessed on financial need, as determined by Federal regulations. No interest is accrued while you are in school at least half-time, during the grace period , and during deferment periods. Afterwards, these costs will revert to being your responsibility. The interest rate on subsidised loans first disbursed to undergraduate students between July 1 2011 and June 30 2012 is 3.4 per cent and 6.8 per cent for graduates. These figures may change, so you are encouraged to check interest rates when applying for your loans.
Unsubsidized
Not based on financial need. Interest is accrued during the period of study and during the grace and deferment periods. However, no payments are required while you are at least half time in school. These costs will be your responsibility. The current interest rate is 6.8 per cent for both undergraduates and graduates. These figures may change, so you are encouraged to check interest rates when applying for your loans.
Direct Subsidized and Unsubsidized Loan amounts
The table below shows the amounts of Stafford loan a student can borrow depending on the course and year they will attend.
| Year of course |
Initial subsidised |
Additional unsubsidised |
Combined (maximum) levels |
|---|---|---|---|
| Dependent undergraduate |
|||
| Year 1 |
$3,500 |
$2,000 |
$5,500 |
| Year 2 |
$4,500 |
$2,000 |
$6,500 |
| Year 3 |
$5,500 |
$2,000 |
$7,500 |
| Independent undergraduate |
|||
| Year 1 |
$3,500 |
$6,000 |
$9,500 |
| Year 2 |
$4,500 |
$6,000 |
$10,500 |
| Year 3 |
$5,500 |
$7,000 |
$12,500 |
| Graduate professional |
$8,500 |
$12,000 |
$20,500 |
As you can see from these amounts, the Direct Subsidized and Unsubsidized Loan is not enough to pay the full cost of your tuition for undergraduate courses and some postgraduate courses. Therefore you will need to consider how you intend to pay the outstanding balance of your tuition fees and your living expenses. You can make up the diffference with your own funds, a Federal Direct PLUS Loan or a private student loan.
Direct PLUS Loan
The PLUS Loan is available to the parents of dependent undergraduate students and graduate/professional students. The PLUS Loan is to help pay the cost of education up to the cost of attendance minus all other financil aid. Inteerest is accrued during the period of study.
PLUS Loan for Parents
The parent takes out the loan on behalf of their child to cover any additional educational costs and must complete a Direct PLUS Loan Application and Master Promissory Note (MPN). The loan is offered at a fixed interest rate of 7.9 per cent and parents can opt to delay repayment until six months after the course completion date or the date attendance dropped below 50 per cent. A credit check is required for this loan.
PLUS Loan for Graduates
You complete the application form so that you are the student as well as the borrower. A credit check is required for this loan and students with low or little credit may require a co-signer. These loans are offerd on a fixed rate of 7.9 per cent and you can defer repayment until six months after the completion of the course.
You are encouraged to check interest rates when applying for your loans.
Other charges
Direct Subsidized and Unsubsidized Loan: The fee is a percentage of the amount of each loan you receive. For loans first disbursed between 1 July 2011 and 30 June 2012, the loan fee is 1.0 per cent, which is deducted proportionately from each loan disbursement. The loan fee that you are charged will be reflected in a disclosure statement that is sent to you from the US Department of Education.
Direct PLUS Loan: There is a fee of 4 per cent of the loan amount, deducted proportionally each time a loan disbursement is made.
You are encouraged to check all charges and rebates when applying for your loans.
When and how you will receive your loan
You will receive your loans once you have arrived at the University and completed enrolment. The loan is paid directly into your account and you will be expected to open a UK bank account. Government regulations mean that you can only have part of your Federal Direct Loan each term/semester. Therefore loans for undergraduates will be disbursed in two equal instalments and loans for graduates taking a full calendar year will be disbursed in at least three equal instalments.
Disbursement dates for the 2011/12 academic session are:
| Postgraduate |
||
| 1st |
Semester 1 |
12 September 2011 |
| 2nd |
Semester 2 |
3 January 2012 |
| 3rd |
Semester 3 |
23 April 2012 |
| Undergraduate |
||
| 1st |
Semester 1 |
12 September 2011 |
| 2nd |
Semester 2 |
3 January 2012 |
| January 2012 Start |
||
| 1st |
Semester 1 |
3 January 2012 |
| 2nd |
Semester 2 |
23 April 2012 |
| 3rd |
Semester 3 |
7 September 2012 |
Entrance and exit counselling
You are required to complete Entrance Counseling before we disburse the first instalment of your loan. This helps you understand your rights and responsibilities as a loan borrower. You will also have to complete Exit Counselling when you are close to the end of your course to ensure that you understand the repayment terms of your loan.
You can complete the counselling sessions online through www.studentloans.gov
Private student loans
Private loans may also be taken out either on top of, or instead of, Direct Loans or Direct PLUS Loans, subject to credit checking, and only to the value of the Cost of Attendance. Currently, Sallie Mae is the only private loan lender disbursing funds to overseas institutions. When considering a private student loan, we would advise that you take some time to compare interest rates and repayment terms with the Federal Direct Loan to see which is better for you.
For more information on the Sallie Mae Smart Option Student Loan, please go to Sallie Mae International.
Collecting private student loan cheques
Once the cheque has arrived at the Student Funding Office (see contact details below) we will contact you to come in and endorse it, so that it can be paid into your tuition fee account at the University. Your cheque will be in $US and payable to you and the University of Westminster jointly. You may only take the cheque to the bank yourself if your tuition fees have been paid in full. Any balance will be repaid to you.
In-School deferment request
You may be able to defer repayments on previous Federal loans and private student loans while you are enrolled at least half time at the University of Westminster. To do so, please contact your lender for the In-School Deferment Request form.
Repayment period
The Direct Loan Program offers loan repayment plans designed to meet the needs of borrowers and allows you to choose your repayment plan. You can find out more about repayment options before receiving a Direct Loan by going to www.direct.ed.gov or you can contact the Federal Student Ais Center on 1-800-4-FED-AID (1-800-433-3243).
These loans can be repaid within a period of 10 to 25 years depending on which repayment plan you choose. Repayments of your Direct Loans normally start six months after completion of your course, withdrawing, or dropping below 50 per cent attendance.
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 per cent 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 academic progression to retain financial aid is entirely separate from the academic requirements to remain on the course, and does not guarentee the outcome of the student's course. Satisfactory academic progress will be checked before any loan funds are released to a student. If the student does not achieve satisfactory academic progress within the allotted timeframe, the student may lose their entitlement to US Loan support.
Refund policy
If you receive financial aid and then decide to withdraw from your course, please inform the Student Funding Office as soon as possible. The University is required by Federal Law to 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 Federal Direct Subsidized and Unsubsidized or Direct 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 asked 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 per cent of the payment period. If a student withdraws prior to completing 60 per cent 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 School Registry Office and the calculations undertaken are those that are set by the Department of Education in the US and cannot be altered.
Contact us
Student Funding
University of Westminster
First Floor, Cavendish House
101 New Cavendish Street
London W1W 6XH
