US Federal Aid

Type of loans

The Direct loan is a fixed-rate student loan made to undergraduate and graduate students attending college or university at least half-time. The US DOE is your lender.

Interest rates.

Subsidized Direct Loan | Unsubsidized Direct Loans | Federal Parent PLUS loans | Graduate PLUS loans

Subsidized Direct Loans

Subsidised Direct Loans are need-based, and interest does not accrue on these loans while you are in school, during the six-month grace period and during a deferment period.

Eligibility

• You must have submitted a Free Application for Federal Student Aid (FAFSA) online to be eligible for a Direct Loan.
• For subsidised Direct Loans, you must have financial need as determined by your school.
• You must be a US citizen or national, a US permanent resident, or eligible non-citizen.
• You must be enrolled or plan to enroll at least half-time in a school.
• You must be accepted for enrollment or attend a school that participates in the Direct Loan Program.
• You are not completing researchwork in the United States (Master’s and PhD students).
• You must not be in default on any education loan or owe a refund on an education grant.

Unsubsidized Direct loans

Unsubsidised Direct loans are not need-based, and you are responsible for all of the interest that accrues on the loan, including while you are in school.

Eligibility

• You must have submitted a Free Application for Federal Student Aid (FAFSA) online to be eligible for a Direct loan.
• You must be a US citizen or national, a US permanent resident, or eligible non-citizen.
• You must be enrolled or plan to enroll at least half-time.
• You must be accepted for enrollment or attend a school that participates in the Direct Loan Program.
• You are not completing researchwork in the United States (Master’s and PhD students).
• You must not be in default on any education loan or owe a refund on an education grant.

Parent PLUS loans

The federally sponsored Parent PLUS loan is a low interest student loan for parents of undergraduate, dependent students. With a Parent PLUS loan, families can fund the entire cost of a child's education (less other financial aid received).

Eligibility

• You may apply for a Parent PLUS loan to pay for the higher education-related expenses of an undergraduate, dependent child. Parents of independent students are not eligible.
• You must be a US citizen or national, a US permanent resident, or eligible non-citizen.
• You are not completing researchwork in the United States (Master’s and PhD students).
• A credit check is required.

Legal issues

• You are responsible for all interest that accrues on the Parent PLUS loan.
• Interest will be capitalised (added to the loan principal) and you will therefore pay interest on a higher amount.
• Repayment on PLUS loans begins within 60 days after the final disbursement of the loan. You may postpone repayment while the beneficiary student remains enrolled at least half-time and for an additional six months afterward.

Graduate PLUS loans

Graduate PLUS loans are federally sponsored loans for students attending graduate school. With a Grad PLUS loan, you may borrow up to the full cost of attendance, less other financial aid received including Federal Direct loans.

Eligibility

• You may be eligible for a Graduate PLUS loan if you are enrolled in school at least half-time.
• A credit check is required.You may obtain a credit worthy endorser to sign should you be denied the loan due to a bad credit history
• You are not completing researchwork in the United States (Master’s and PhD students).
• You must be a US citizen or national, a US permanent resident, or an eligible non-citizen. You must submit a Free Application for Federal Student Aid (FAFSA) online

Legal issues

• You are responsible for all interest that accrues on the Graduate PLUS loan. Unpaid interest will be capitalised (added to the loan principal) and you will therefore pay interest on a higher amount.
• Repayment on PLUS loans begins within 60 days after the final disbursement of the loan. Graduate PLUS loans, for borrowers who are certified by their school to be attending at least half-time, will be placed into in-school deferment. No payments are required during in-school deferment.

Private loans

Private loans are available from private non-government lenders and are solely based on credit history checks. Students can use private education loans to borrow the difference between their Federal Loans and their calculated Cost of Attendance. Students should first apply for the Federal Loans where eligible and then apply for additional funds through a Private loan if necessary. As these loans are not as favourable as Federal Loans due to the higher interest rates that begin accruing at the start of the loan.
The decision on which Private loan provider to use is entirely your choice, so it is important that you research carefully to find the best conditions that suit you.
One option would be the Sallie Mae Smart Option. A Private loan entrance counselling is required if you decide to apply for a private loan.

Please note for the student visa application, you may be required to provide evidence that you have applied and been approved a Private Loan. As a university we only have the authority to approve your Federal Loans. For your Private loans you will need to contact your lender to supply this evidence for your student visa.

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