Non-UK Student Finance

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the US Department of Education, though the entity you deal with (your loan servicer) can be a private business.

With Direct Loans, you:

• borrow directly from the federal government
• have a single contact – your loan servicer – for everything related to repayment, even if you receive Direct Loans at different schools
• have online access to your Direct Loan account information via your servicer's website
• can choose from several repayment plans designed to meet the needs of almost any borrower
• can switch repayment plans if your needs change.

Details of your loan will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and schools who are authorised to use the data system. The National Student Loan Data System is the Department’s central database for student aid. NSLDS contains information about all of the student loans and other financial aid you have received through the Department’s federal student aid programs. You can access this information online using your Department of Education PIN.

Eligibility

US students attending an overseas university are able to apply for Direct and PLUS loans. To be eligible to take out US Direct Loans, you need to:

1. be a US citizen or an eligible non-citizen
2. have a valid US social security number
3. be accepted on to a programme of full-time or at least part-time study with Newcastle University
4. have been assessed to have made satisfactory academic progress to continue your studies if you're an existing student at Newcastle University
5. have not borrowed over your federal loan limits or defaulted on repaying previous loans.
6. have signed up for selective service or have been officially exempted from selective service if you are a male under the age of 26
7. not have any outstanding convictions for drug-related offences.

The following programmes are not currently eligible for federal loan funding. If you intend to study these degrees, please fully consider how you will fund your studies without Direct Loans:

• all medical programmes
• foundation year programmes
• courses that are less than half-time
• courses that are not degree-bearing
• postgraduate certificate and diplomas
• distance learning programmes
• programmes with a compulsory study abroad element
• programmes with placements where the student undertaking the placement is not monitored by the University and the degree programme is not accredited

For more information, read the rights and responsibilities of students receiving Title IV assistance (Word: 41KB).

Study Abroad students

If you are a student at Newcastle University on a Study Abroad programme and you are registered at a US university, you are not eligible to apply for financial aid through Newcastle University. You should instead apply to your 'home' university.

Eligible US students wishing to borrow loans should start the loans process by completing the Free Application for Federal Student Aid.

Free Application for Federal Student Aid (FAFSA)

Complete the FAFSA which can be done on line at Federal Student Aid. You will need an FSA user ID which gives you access to Federal Student Aid’s online systems and can serve as your legal signature.

Include Newcastle University’s school code (G08460) in the appropriate place on your FAFSA to be considered for aid to study at the University.

Once your FAFSA is completed and processed, you need to contact us at us-loans@ncl.ac.uk. We will then determine your eligibility for a loan as stipulated by the US Department of Education, and provide you with your cost of attendance.

E-sign your Master Promissory Notes (MPN)

The Master Promissory Note is a legal document you sign when you enter into an agreement with the US Department of Education for your student loan. By signing the MPN, you agree to the terms and conditions of your loan(s). The MPN includes:

• information about the grace period, deferment or cancellation provisions
• the borrower's rights and responsibilities with respect to the loan

Complete and sign the MPN at studentloans.gov using your Federal student Aid ID.

After you sign in, choose Complete MPN and then select Subsidized/Unsubsidized. Follow the four-step process listed on the studentloans.gov website to sign your MPN. If you intend to apply for the Grad Plus Loans, you will need to complete a separate MPN and credit check for the Grad Plus Loan on studentloans.gov.

Entrance counselling

It is a US legal requirement that all first time Stafford borrowers complete loan counselling, which advises them on the different loans available and repayment methods. You must do this at studenloans.gov before your first disbursement is released.

Credit check: PLUS loan borrowers only

To qualify for a Direct PLUS Loan, you must not have an adverse credit history, as defined in the Department’s regulations.

If you have an adverse credit history, you may still be eligible for the loan:

• by obtaining an endorser who does not have an adverse credit history and agrees to repay the loan if you do not, or
• by documenting extenuating circumstances that meet the Department’s requirements

To complete a Direct PLUS Request electronically, you must have a Federal Student Aid ID. This is the same ID used to complete the FAFSA.

After you complete your Direct PLUS Request, the Department will conduct the credit check and notify you and us of the results. Complete the credit check at studentloans.gov. It is valid for 180 days.

Additional PLUS counselling

The regulations added a requirement that PLUS Counselling must be completed by Direct PLUS Loan applicants (by parents of dependent undergraduate students as well as graduate/professional students) with an adverse credit history who qualify for a Direct PLUS Loan by obtaining an endorser who does not have an adverse credit history, or who document to the satisfaction of the Department that there are extenuating circumstances related to the adverse credit information.

Confirmation of Direct Loan Letter

After your student loans have been set up, the University will issue you with a Notification of Student Loans letter. This letter has already been approved by the UK Border Agency and will be accepted to obtain a UK entry visa. The letter will provide you with information about the loan funds available to you and the disbursement dates.

Each academic year, the Student Financial Support Team establishes standard student budgets that use cost of attendance (COA) estimates for awarding financial aid funds. You may borrow up to the cost of attendance and no more.

The full-time COA in 2022/23 entry is:

• for undergraduate students (usually calculated for 9 months) - £12,700 plus tuition fees
• for postgraduate students (usually calculated for 12 months) - £14,600 plus tuition fees

These amounts include accommodation, food, books and supplies, house-hold, personal, utilities, mobile phone, insurance, sports and leisure and local travel.

We will certify extra costs for items such as dependent care, a maximum of two return flights to the US, compulsory fieldwork costs, immigration health surcharge, and visa application fees.

The amount in Direct Loan funds that you can borrow each academic year is limited by:

• your grade level
• whether you are a dependent or an independent student
• your financial need
• your cost of attendance

Direct Loans

Subsidised

The US Department of Education pays the interest on a Direct Subsidized Loan:

• while you’re in school at least half-time
• for the first six months after you leave school (referred to as a grace period)
• during a period of deferment (a postponement of loan payments)

If you received a Direct Subsidized Loan that was first disbursed between 1 July 2012 and 1 July 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

Unsubsidised

Available to students who do not qualify for subsidised loans or to those that qualify but require additional funds. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

	Subsidised	Total*
Dependent undergraduate
First year	$3,500	$5,500
Second year	$4,500	$6,500
Third year and beyond	$5,500	$7,500
Independent undergraduate
First year	$3,500	$9,500
Second year	$4,500	$10,500
Third year	$5,500	$12,500
Graduate and professional students
All years of study	$0	$20,500 (unsubsidised only)

*Subsidised and unsubsidised

Effective for loans first disbursed on or after 1 July 2012, the up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered on any Direct Loan Program loan with a first disbursement date on or after 1 July 2012. Direct loan borrowers currently receive an up-front 0.5 percent interest rebate and Direct PLUS borrowers receive a 1.5 percent interest rebate, which they retain if they make their first monthly payments on time.

Parent PLUS

Parents of dependant undergraduate students can take out loans in their names to help with their children's education. The loans are credit-based and the amount you are able to borrow is the cost of attendance minus any Direct Loan or other assistance related to your enrolment, such as bursaries, scholarships, grants and awards.

Direct PLUS

Graduate students are able to take out PLUS loans. They are able to borrow the cost of attendance minus any Direct loans already taken out and other assistance related to the student's enrolment, such as bursaries, scholarships, grants and awards.

Direct Loan funds are disbursed at the start of each term during an academic year. Disbursements can only be made to students who are fully enrolled on their programme of study and making satisfactory academic progress.

Read more about the procedure on Satisfactory Academic Progress for Financial Aid Recipients (Word: 37KB).

If you're a new student, you will not be able to receive any funds until you have completed the University's registration process at the start of the academic year.

Once we receive your loan funds from the US Department of Education, we pay off your tuition fees for the term. If there are any funds remaining from the disbursement, they will be paid to you by the University's Finance Office.

If we have details of your UK bank account, we'll deposit the funds straight into this account. Payments are made by BACS credit transfer. This is normal for most US students. If we don't have details of your bank, we will issue you with a cheque in Pound Sterling.

It may take three to five working days after the disbursement date before amounts for living costs are available to you. You should ensure you bring enough money with you to cover your expenses for this period. We would recommend around £400 - £500.

Loans to all students will be disbursed in three equal instalments: in September, January and April. We'll send you information about the exact disbursement dates and amounts prior to each disbursement.

We are partnered with Western Union Business Solutions to facilitate the processing of your loan payment.

You will receive TWO emails from Western Union Business Solutions requesting you to register your bank details. Firstly you will receive an email with instructions and a password. Secondly you will receive the secure link and User ID to access the system. Once you are logged in you will then have the ability to securely enter your GBP bank details for your loan to be paid directly into your bank account.

Please note: To maintain application security, your login access is only valid for a one-time use. It is set to automatically expire after 72 hours or 3 days therefore please look out for these emails as it is important you register for us to be able to forward your money.

The US Department of Education requires all student loan borrowers to complete an exit counselling session:

• when they graduate, or
• if they drop below half-time enrolment status, or
• if they withdraw

All students due to complete their studies at Newcastle University must complete the Exit Counselling session on the Federal Student Aid website.

Unless you take a short term period of authorised absence (leave of absence), any period of time out will affect payment of further awards.

You must inform the Student Financial Support Team of your withdrawal. You must follow the University’s formal withdrawal process and complete the Student Withdrawal Questionnaire.

Read more about our Return of Title IV Funds Policy (Word: 54KB).

If you are enrolled in full/half-time education, you can defer repayment of outstanding student loans. Ask your lender for a deferment form, and submit it to the Newcastle University Student Financial Support Team.

When you graduate, withdraw from school, or drop below half-time enrolment status, you will have six months before your first payment is due on your subsidized and unsubsidized loans. This is called a grace period. PLUS Loans don’t have a grace period. This time can allow you to get financially settled, select your repayment plan, and work out the amount of income you need to put toward your student loan each month.

For most loans, interest will accrue during your grace period.

PLUS loans do not have a grace period. The repayment period for a PLUS loan begins on the day after the final loan disbursement is made. However, you may defer repayment of a PLUS loan while you are enrolled in school on at least a half-time basis and with a first disbursement date on or after 1 July  2008, for an additional six months after you graduate, withdraw, or drop below half-time enrolment status. Your first payment will be due within 45 days after your deferment ends.

Sample repayment plan

Non-consolidation borrowers*:

Debt when loan enters repayment	Standard repayment plan		Income contingent repayment plan **for income $25,000
			Single		Married/HOH***
	Per month	Total	Per month	Total	Per month	Total
$5,000	$58	$6,904	$37	$8,347	$36	$11,088
$10,000	$115	$13,809	$75	$16,669	$71	$22,158

*Payments are calculated using a fixed interest rate of 6.8% for Direct Subsidized and Unsubsidized Loans disbursed on or after 1 July 2006

** Assumes a 5% annual income growth (Census Bureau).

*** HOH is Head of Household. Assumes a family size of two.

Newcastle University is required by the US Department of Education to disclose the following information: Consumer Disclosure Information (Word, 49KB). If you require further information, please email the Student Financial Support Team at us-loans@ncl.ac.uk

If you would like further information on Federal Loans, contact the Student Financial Support Team:

Student Financial Support
Student Wellbeing Service
King's Gate
Newcastle University
Newcastle upon Tyne
NE1 7RU

• Tel: +44 (0) 191 208 5538/5537
• E-mail: us-loans@ncl.ac.uk

Direct Loans

More information about:

• Direct Loans
• Plus Loans

Direct Loan Servicing Online

Manage your Direct Loan online by making online payments, viewing your account balances and payment history, changing your billing options, enrolling in electronic services and much more...

• repaying your Direct Loan
• repaying your Direct Plus Loan

FAFSA on the web

• Apply for federal assistance with the Free Application for Federal Student Aid
  

Federal Student Aid ID Registration

The ID serves as your identifier and allows access to your personal information in various US Department of Education systems. You can use your ID to sign your FAFSA online.

• Federal Student Aid ID

Help in completing the FAFSA

• Useful guide on how to complete the FAFSA from the US Department of Education

Loan Consolidation Information

• Find out how loan consolidation can simplify and lessen the burden of loan repayment

StudentLoans.gov

Useful information from the US Department of Education. Use your ID to sign in and sign your Master Promissory Note (MPN) and complete your Entrance Counselling.

• StudentLoans.gov

Facebook

Tips, information, links, and videos:

• Federal Student Aid on Facebook

When does the loan process begin?

The loan process begins in January, when students complete the FAFSA (Free Application for Federal Student Aid). After completing the FAFSA, applicants should inform the Financial Support Team, who will send the financial aid package to students.

How long it generally takes to receive a financial aid package from the school?

You should receive the financial aid package within three weeks of completing the FAFSA.

Do I have to take out the full loan amounts?

No. Your loan amounts are based on your cost of attendance, but if you have other sources of income, you have the right to ask for your loan to be reduced.

Can I borrow more than my cost of attendance?

It may be possible to increase your cost of attendance to allow for special circumstances or include exceptional expenses, such as dependent care, disability-related expenses or costs for compulsory field trips.

Is it possible to receive an advance payment (for flights, to pay for UK visa) before arrival in Newcastle?

No, you must be registered at the University and must confirm your attendance by scanning your SmartCard on campus. The earliest funds can be disbursed is ten days before the first day of classes.

Am I able to use my student loans to pay for the deposit on student accommodation?

It is not possible to use any of your funds to pay for deposits before registration (enrolment).

Your first payment will be released five to seven days after you have registered. Collecting and using your University SmartCard on campus will confirm your registration. It is your responsibility to cover your living expenses until your first disbursement is released. We advise students to bring enough money with them when they first arrive to cover their expenses for this period. We would recommend around £400–£500.

When will I receive my visa letter?

We will send your visa letter to you after your loan has been approved and processed. Your visa letter includes your loan details and disbursement dates and amounts. It provides proof to the UK Border Agency of the loan money you are going to receive.

Can I bring dependants with me?

For a student with dependants (children), an allowance for costs expected to be incurred for dependent care is included in the student’s cost of attendance. This covers care during periods that include, but are not limited to, class time, study time, field work, and commuting time. The amount of the allowance is based on the number and age of your dependants. It does not exceed reasonable cost for the type of care provided.

Will the funds be disbursed to me or to Newcastle University?

The University will request your Direct Loan funds from the US Department of Education. We will then first disburse the funds by crediting the University account to pay your tuition fees. If the amount of aid is greater than the tuition fee charges, we will pay the balance to you for living expenses.

When will I know how much funding I will receive and when will I be able to receive the funding?

You will receive a notification in writing of the date and amount of each disbursement. This will be sent to you as an email 30 days before the disbursement. Your loan will be disbursed in three equal instalments: in September, January and April.

How much will be deducted for tuition fees from my disbursement?

The University will deduct a third of your tuition fees from each disbursement.

Will I receive my payment in pound sterling or US dollars?

Payments will be made in pound sterling.

How do I set up a repayment plan with my loan servicer?

The following website lists the different repayment plans, that you may chose: https://studentaid.ed.gov/sa/repay-loans/understand/plans

You can also contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). If you currently have a Direct Loan and would like the exact payment amount on your loan, you can find it out by contacting your loan servicer.

When do I start paying interest on my loans?

For subsidized and unsubsidized loans, the repayment period begins the day after the grace period ends. The first payment will be due within 45 days after the repayment period begins.

PLUS loans don’t have a grace period and the repayment period begins on the day after the final loan disbursement is made. However, you can defer repayment of a PLUS loan while you are enrolled on at least a half-time basis. The first payment will be due within 45 days after the deferment ends.

Find out more about repaying your loan.

Latest News for 2020-2021 and 2021-2022 FAFSA applicants.

As a student in receipt of US Federal loans you may be concerned about the impact of the COVID 19 virus on your continued eligibility for funding, given that normally both online learning and studying in the USA are prohibited for students at foreign schools. 

• The US government has, on 27th March, approved the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) which includes legislation relevant to students enrolled at foreign schools.   For the duration of the current emergency and for one further payment period (part academic year) the university is continuing to process scheduled loan disbursements, even though teaching and supervision is being delivered online and students may have returned to the US, providing that students continue to meet all other Federal Student Aid eligibility requirements. 
  
  
• The Consolidated Appropriations Act has increased the duration for which the Secretary may permit an otherwise eligible program to be offered by distance education.  While previously the CARES Act permitted otherwise eligible programs to be offered via distance education for the duration of the qualifying emergency and the following payment period, the amendments now use a “covered period”.  The “covered period” ends on whichever is later of June 30, 2022 or the June 30 following the end of the emergency as declared by the country in which the foreign school is located.

As a foreign institution Newcastle University does not complete the 1098-T tax form for students. However as an alternative, students are advised to request a Tuition Fee Certificate, which may be used for tax purposes, from the Tuition Fees Team (tuition-fees@ncl.ac.uk).