US Federal Aid
General information: Disbursement of funds
Please note the following variations to the disbursement of funds.
- First-year, first-time undergraduate borrowers: disbursement cannot be made until 30 days after classes started.
- First-time borrowers but postgraduate students: funds will be disbursed 1 day after classes started.
- Returning students/existing borrowers: funds cannot be disbursed until 1 day after classes have started.
The loan cannot be disbursed if an MPN is not on file. Please complete an MPN electronically via StudentLoans.gov website.
Half of your loan will be disbursed when your classes start and the rest is disbursed beginning of the 2nd semester, i.e.half of the subsidized portion, half of the unsubsidized portion plus half of the Plus loan,if applicable.
Payment of tuition fees
You are required to pay the minimum initial amount, as per fee booklet, for your academic and residence fees. The excess funds are transfered to your banking account.
Any outstanding fees are due immediately on cancellation of studies or if you have not obtained satisfactory academic progress.
Procedure for disbursement of funds
Please be advised that as a foreign school, we cannot offer the same turnaround time as US domestic schools when disbursing funds to you. After the funds has been released in the US, the process takes at least 4 - 5 weeks before payment can be made to your South African banking account.Federal holidays in the US or public holidays in SA may cause the period to be extended.
| Action | When | Overview |
| Loan is released | Date of disbursement as stated on your US DOE disclosure statement | Funds are booked with the US DOE and awaiting approval for draw down |
| Draw down the booked funds | 2 buss days after the release of funds/disbursement | Funds are transfered to UCT`s bank account |
| Bank receives funds and notifies UCT | 3 - 4 buss days after funds disbursed | Arrival of US federal Aid funds in UCT bank account |
| Funds moved to a GL account | After 2 buss days after the arrival of the funds | Normal operation when funds transfered into the bank account |
| Funds moved to a Customer Account | 2 - 3 buss days | Funds not student specific and needs to be identified |
| Funds moved to the US Federal Aid Fund | 2 - 3 buss days | Funds listed as US Federal Aid on peoplesoft in accordance with US regulations |
| Funds moved to the student fee account | 2 - 3 buss days | Funds disbursed to the student by crediting the student fee account |
Students will receive their excess funds due to them, via EFT, to their South African banking account. A Refund form is required to action the EFT. The completed form is to be handed to the US loan administrator ,who will in turn forward it to the fees office for processing. Please make sure that your banking details are loaded on PeopleSoft.
Refunds are strictly only processed on a Monday ,Wednesday and Friday. Should a public holiday fall on those days, the refund will be actioned only on the next processing day.
Satisfactory Academic Progress (SAP)
In accordance with section (34 CFR 668.18 , 34 CFR 668.34, and 34 CFR 668.32) the University of Cape Town is required to ensure all US Federal Loan Students meet the minimum Satisfactory Academic Progress for their academic program, see SAP policy, or the student may lose their eligibility for Federal loan funding.
If your SAP report is not satisfactory, or you exceeded the time frame to complete your academic program, you will be placed on a "financial aid warning" for the next semester of enrollment. However, you may be able to continue with your current academic program (consult the faculty) with your own funding or you may apply for a personal loan. When you receive your next SAP your eligibility may be reinstated.
Repeat courses that were previously awarded US federal funds are not eligible for further aid. For US federal loan purposes repeat courses do not count towards full-time status.
