Frequently Asked Questions

Please find below some of the questions regarding direct loans asked from Student Financial Support. Please read these carefully, as you may find the answer to your query.

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?

Applicants should receive the financial aid package 2-3 weeks after 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, students must be registered at the University and must confirm their attendance by scanning their smartcard. The earliest the funds can be disbursed is 10 days before the first day of classes.

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

It is not possible to use any of your funds to pay for deposits before registration (enrolment). Your first payment will be released 5-7 days after you have registered, collected your University Smart Card and so confirmed registration and it is your responsibility to cover your living expenses until your first disbursement is released. We also 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?

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

Can I bring any 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 that are not limit to, class time, study time, field work and commuting time for the student. The amount of the allowance is based on the number and age of such dependants and does not exceed reasonable cost for the king of care provided.

Will the funds be disbursed to me or to the university?

The University will request your Direct Loan funds from the US Department of Education. The University will then first disburse the funds by crediting its account to pay tuition fees. If the amount of aid is greater than the tuition fee charges, the University will pay the balance to the student 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 1/3 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:

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, students can defer repayment of a PLUS loan while they are enrolled on at least at halftime basis. The first payment will be due within 45 days after the deferment ends.

For further information please visit: