U.S. Federal Loans for U.S. Citizens and Eligible Noncitizens
The University of Salford deals with U.S. federal loan (Title IV) funds. Rules and Regulations are different for foreign/non-US schools.
NOTE: The US Loans Administrator will not receive any electronic notification that you have applied for financial aid, so please notify us of your application by emailing firstname.lastname@example.org. You will need to notify us each academic year. Your application will not be automatically processed for subsequent years of study.
Applications for 2020/21
Please ensure that you have read all the guidance before beginning your application.
Only full and complete applications will be considered from 1 June 2020. We will be in touch as soon as your application has been processed to let you know of the outcome.
We cannot process your loan until all information is complete. Please refer to the flowchart attached to assist you in completing your application before submission. If you send an incomplete application, it will be rejected.
Applications for 2020/21
What is a Federal Staffed Loan?
These are now Federal Direct Loans that are provided by the US Government and are available to US citizens and eligible non-citizens who have firmly accepted an unconditional offer to study at the University of Salford. Federal Direct Loans consist of Subsidised and Unsubsidised Loans.
PLUS loans are federal loans that graduate students and parents of dependant undergraduate students can use in addition to Subsidised and Unsubsidised Loans.
If you apply for a private study loan, you must email email@example.com to confirm the amount of loan that you require by completing the 2020/21 Cost of Attendance (COA) and choosing private loan from the drop down menu on the Cost of Attendance tab on the COA.
Loans can only be disbursed after you have enrolled on an eligible course at the University of Salford. Visit The GEMS Smart Option Loan by Sallie Mae for more information about.
Sallie Mae loans are paid by cheque in a single disbursement after the start of your course. You will need to come into the university to sign the cheque before we can present it to our bank for payment, so we will contact you once it has arrived. After the cheque has cleared, we allocate the loan to pay off the full balance of your fees and refund any excess funds to your UK bank account.
Am I eligible?
For basic eligibility criteria please follow the link
You must be enrolled at least half time on an eligible degree course at the University of Salford in order to receive the Federal loan. For further guidance with regards to non-eligible courses and non-eligible modes of study please see attached form.
If any part of your course is delivered online (for example distance learning courses) or if you will be studying in the USA for any part of your course you will not be able to take any Federal loans, though you may apply for a private study loan. Students at the University of Salford often apply for the Sallie Mae Smart Option Student Loan. Please follow the link for more information
How much can I borrow?
The maximum amount you can borrow will be calculated as the University's Cost of Attendance (COA) less any Expected Financial Aid (EFA) which includes bursaries, scholarships, grants and awards. Veterans Affairs (VA) Benefits are not included as aid. You will complete this as part of your application.
The application process
It is essential that you print out the Application Loan Flowchart before proceeding as it contains the full instructions and you will need to read it carefully and refer to it at each step. You must follow these steps in the correct order. If you fail to provide all the requested documents then your loan application can’t be processed.
There are 6 steps to your application:
The application process
Step 1: Complete your FAFSA
You must first complete the Free Application for Federal Student Aid (FAFSA). FAFSA applications can be completed online via the US Department of Education’s FAFSA .
- Salford’s School Code is G09006
- Please do not proceed to the next steps until you have firmly accepted an unconditional offer
- Applications cannot be submitted to Salford before 1 June
- You should not follow the next steps until you can actually submit your application as your credit check is only valid for a limited time
Step 2: Apply for your loan
If you have firmly accepted an unconditional offer then you can complete your Federal Direct Loan and PLUS loan applications by e-signing your Master Promissory Note (MPN) at the US Department of Education’s Student Loans
- You must e-sign a new MPN for each loan you take at a foreign/non-US school as the multiple loan feature of the MPN only applies to loans received whilst studying at US schools
- Save your MPN(s) – you will need to send them to us
The PLUS loan requires a credit check, so a screen shot showing acceptance is also required or a PDF of the credit acceptance letter. If credit is declined, then you will need an endorser to take a Credit Check (remember to include a screenshot of their acceptance or credit acceptance letter) and you must also include Endorser’s Addendum.
As the credit check is only valid for 90 days, please do not complete it until just before you are ready to submit your application to The University of Salford. The opening date is 1 June.
Step 3: Federal Direct Loan Entrance Counselling
It is a Federal requirement that any US student who receives a Federal Loan should first complete the Entrance Counselling at the US Department of Education’s Student Loans.
You are required to take a screen shot or attach the completion certificate to your email application.
We require that you complete the counselling each academic year even if you have had a Federal Loan previously.
Step 4: Select loan amount using the Coast of Attendance (COA)
- Follow the link to complete a Cost of Attendance form.
Your Cost of Attendance (COA) will be determined by adding an amount for living and study costs to your tuition fees. The maximum amount you can borrow will be your COA minus any Expected Financial Aid (EFA), or Scholarships.
- Please complete ONLY the “Cost of Attendance” tab and save the file
- You will have to email your COA to us as part of your application
- There is a checklist tab included within the COA form to help you ensure that you have completed steps 1-4 fully before attempting to submit your application.
Step 5: Email your application to us
Email all your documents as attachments to firstname.lastname@example.org with subject header “US Loan Application Documents” followed by your name, along with details of the course you will be studying. The Checklist in the Cost of Attendance spreadsheet has the full list of documents to attach.
Every application email should have the following attached:
- Cost of Attendance spreadsheet
- Screenshot of Entrance Counselling
- Federal Direct Loan MPN
- If taking a PLUS Loan also include:
- PLUS MPN
- PLUS credit check acceptance (screenshot or PDF of letter)
- Register with the Selective Service, if required
You cannot apply for your visa more than three months before the start of term. Provided you have met the conditions of your offer, you are welcome to send in your completed loan applications from 1 June.
We start processing applications from 1 July, which is the earliest date that we can originate loans for 2020-21. We aim to process your completed application within two weeks of receipt. Ideally, we should receive your completed application by the end of July.
- We will notify you of your loan in an email that will include a letter providing specific information about any loan that we plan to disburse under your MPN, and the expected disbursement dates and amounts
- You should evaluate the aid offer carefully. In the case of loans, keep in mind that whatever amount you borrow must be paid back with interest. If your living expenses are not as high as the standard allowance projected by us, you may not have to borrow as much as the amount in the award notification email
- You have the right to decline the loan or to request a lower loan amount
- You will be emailed confirmation that your loan has been originated and your letter showing the amount and dates for disbursement
- Incomplete applications cannot be processed, so please ensure you have completed each step correctly and provided all requested documents to avoid delays
Step 6: Receiving your money
All Federal Loans will be disbursed directly to The University of Salford in three equal instalments for all students on:
- 30 September 2020
- 13 January 2021
- 14 April 2021
Receiving your funds
- We will deduct your fee costs from the amount that we receive. Please ensure that you have sufficient funds to cover your expenditure until you receive the refunded portion of your loan for study and living expenses after fees have been deducted, if relevant
- If you do not have enough loans to cover the full cost of your fees, it is your responsibility to ensure all your fees are paid by the due date
- If your loan disbursement is more than we need for fees, then we will refund any excess funds back to your UK bank account*
- So we can process a refund, you will need to send the 8- digit account number and 6-digit sort code of your UK account to email@example.com.
*Please open your UK bank account immediately after enrolment so you can provide us with your bank account details in order to receive your loan funds after fees have been deducted, if relevant.
- Each loan instalment is in USD
- As the exchange rate will be different on each disbursement date, each loan instalment will be a different amount after it has been converted from USD to GBP
Distributing your loan funds
- Your tuition fee will be taken in three instalments once we have received your disbursement. The University of Salford accepts no responsibility for any variation in currency exchange rates.
- You will only get one third of your loans each term, this is a USDE regulation, there are deductions taken from that value.
- Before we make your second and third disbursement we will require certain information from you: we need to check that you are enrolled at least 50% of the time, as well as have proof that you are making satisfactory academic progress (SAP), as specified in University Policy
- The government deducts an 'Origination Fee' from each disbursement. The spreadsheet you completed at application showed how much you can borrow and how much you receive after the government deducts an 'Origination Fee' from each loan disbursement. The value you are going to receive is shown on the letter sent to you by the University of Salford when we originated your loan
- The money is transferred to the UK and converted into Pounds Sterling. The school is not allowed to charge any fee or receive any commission for processing your loan, so the money received by you is exactly what the school received
This applies to US Federal Direct Loans and variations between the points of a calculated Cost of Attendance, loan origination, and between the first, second, and third disbursements. As per US Federal Regulation 34 CFR 668.164, the University of Salford is bound to supplying this statement (and if appropriate issuing any remaining funds) no later than 14 calendar days after it initially disburses the originated funds.
This also applies to US Private loans which may be subject to exchange rate variations between certifications and the negotiation of cheques received from lenders/sponsors for US Private Loans.
Satisfactory Academic Progress (SAP)
- Your eligibility for Direct Loans is dependent upon your continued attendance and participation in the relevant degree programme
- If there is any change to your circumstances (for example temporary or permanent withdrawal, extensions, etc.) you must inform us and the US Department of Education immediately.
- You will be required to provide the US Loans Administrator with the name and contact details (including email address) of your supervisor/tutor within the first two weeks of the start of the academic year
- We are required to contact them and confirm your satisfactory academic progress. Please read the full SAP Policy for further information. Without this progress confirmation we are unable to process any of your Direct Loan disbursements
Please note that you will be put on probation for three months if your SAP report is not satisfactory. Failure to improve academic results during this period will affect future disbursements.
Satisfactory Academic Progress (SAP) Policy: Appeal Against Cancellation of US Federal Loan
An appeal must be submitted to the US Loans Administrator within ten working days of receipt of the Notice of Suspension of financial aid. Please use this form to appeal.
Interruption of withdrawal from studies
Unless this is a short-term period of authorised absence (leave of absence), any period of time out will affect payment of further awards. You should notify firstname.lastname@example.org immediately of any intention to either take time out or withdraw from your studies.
Information on suspending your studies or withdrawing can be found here.
Enrolment status and other changes
It is important to keep your loan servicer and the US Loans Administrator (email@example.com) informed of any changes in your status until you graduate or leave school, so that your loan information is up-to-date. This is your responsibility.
You must notify the loan servicer and the US Loans Administrator if you:
- Change your local address, permanent address or telephone number
- Change your name (for example, maiden name to married name)
- Do not enrol at least half-time for the loan period certified by the school
- Do not enrol at the school that certified your loan
- Stop attending school or drop below half-time enrolment
- Transfer from one school to another school
Find more information
- The US Department of Education or email firstname.lastname@example.org
- More information on Federal Loans: Financial Aid Resource Publications from the U.S. Department of Education
- The University of Salford Consumer Disclosures for US Federal Loans