Types of loan

Subsidised loans

Subsidised loans are awarded to students based on financial need. The loan is subsidised because the US Government pays the interest while you are at university. It also pays the interest during any authorised period of deferment of the loan and for the six-month grace period after you leave university.

Unsubsidised loans

Unsubsidised loans are not based on financial need and you are responsible for paying the interest from the time the money is disbursed.

The interest may be paid as it comes due or it may be postponed and allowed to accumulate while you are at university, during any authorised period of deferment, and for the six-month grace period after you leave university.

If you choose to postpone the interest payments, you won't make any payments while you are at university but this option adds to the amount you will have to repay on your loan when you leave university.

Expected family contribution (EFC)

The proportion of subsidised loan that you are eligible for is dependent on your Estimated Family Contribution (EFC) – this is on your Student Aid Report. We calculate your eligibility by subtracting your EFC from your costs of attendance. You may still borrow up to the full cost of attendance – even if you have a high EFC – using the Unsubsidised and PLUS loans.

Please note that, although the EFC stands for Estimated Family Contribution, essentially it is used to determine financial need, rather than reflecting whether or not your family will be contributing to the cost of your studies.

The EFC cannot be amended by the University if your family is not contributing to your studies.

Dependent or independent student

A student's dependency status is determined from information provided on the Free Application for Federal Student Aid (FAFSA). It affects the Expected Family Contribution (EFC) and the aid that you may be eligible to receive.

Independent student status

For purposes of Title IV aid, a student is considered independent if they meet one or more or the following criteria:

• the student is at least 24 years old by 31 December of the award year
• the student is an orphan or ward/dependent of the court or was a ward/dependent of the court until they reached age 18
• the student is a veteran of the US Armed Forces
• the student is working on a master's or doctorate programme at the beginning of the award year for which the FAFSA is completed
• the student is married as of the date the FAFSA is completed
• the student has at least one child who receives more than half of their support from the student
• the student has a dependent, other than a spouse or a child, who lives with the student and receives more than half of their support from the student at the time the FAFSA is completed, and through June 30 of the award year
• the student is currently serving on active duty in the US Armed Forces for purposes other than training.

Dependent student status

A student is considered dependent if they do not meet any of the preceding criteria for an independent student, unless the financial aid administrator determines that the student is independent on the basis of special circumstances and performs a dependency override.

Direct (Graduate) Plus

These types of loans are available to graduates. Borrowers should first apply for the Direct Loan before applying for the Direct Plus Loan.

The Direct Plus Loan can be the difference between the Direct Loan and the cost of attendance less any other financial aid. You don't have to make any payments while you're enrolled in school at least half-time, and for an additional six months after you complete your studies, withdraw or drop below half-time enrolment.

During any period when you're not required to make payments, interest will accrue on your loan(s). You may choose to pay the accrued interest or allow the interest to be capitalised (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.

Direct (Parent) Plus

Parents of dependent undergraduates can take out a Direct (Parent) Plus Loan under their name to pay the entire cost of attendance less any additional financial aid.

If a Direct Loan has been taken, the maximum Direct (Parent) Plus Loan can be the difference between the Direct Loan and the cost of attendance less any other financial aid.

We will require a statement from parents who apply for a Direct (Parent) PLUS Loan without first completing a Free Application for Federal Student Aid to confirm that the student and parent will use the Direct (Parent) PLUS Loan funds for educational expenses. If you are a parent borrower, you'll generally be expected to start making payments on your Direct (Parent) PLUS Loan once your loan is fully disbursed (paid out).

You may request a deferment while the student is enrolled at least half-time and for an additional six months after the student completes their studies, withdraws or drops below half-time enrolment.

You should have the option of requesting a deferment as part of the loan request process. You can also contact your servicer to request a deferment. During any period when you're not required to make payments, interest will accrue on your loan(s).

You may choose to pay the accrued interest or allow the interest to be capitalised (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.

Origination fees, default fees and interest rates are subject to change. For the latest information on interest rates and fees, please see the Federal Student Aid website.

Interest rates

Students who are unable to take out US federal loans or who do not meet the criteria for a US federal loan can borrow from private lenders in the US.

For instance, students on distance learning courses based in the US but enrolled on a UK degree course at UWE Bristol may use a private loan to cover the cost of their tuition fees.

If you are eligible for US federal loans, we advise you to investigate these before applying for a US private student loan, as federal loans are often cheaper and most American students are eligible for them. Please note that US private student loans do not enable you to borrow more funds than US federal loans.

If you wish to apply for a private US student loan, please email at us.loan@uwe.ac.uk. We will email you a Cost of Attendance showing the amount of loan you are able to borrow.

We will only issue you with a Cost of Attendance if you have received an offer to study at UWE Bristol and we will priortise students who have firmly accepted their offer.

The University will work with whichever private lender you decide to use however, Sallie Mae International is the only lender we are aware of currently that is willing to lend to students at a foreign school.

You should compare terms, charges and interest rates before taking out a private loan.

Private loan applications with Sallie Mae must not exceed 365 days between the application date and disbursement date.

UWE Bristol will certify your Sallie Mae loan application once you have registered. We will request the loan be payable in one instalment and this will be transferred to your bank account. 

UWE Bristol will allocate any tuition fees and accommodation fees to be paid from the private loan, and we will pay you any remaining funds. If you are a distance learning student, providing the amount is less than $10,000, we will post the cheque to you by courier.

It is important that you understand your rights and obligations when borrowing federal US loans. You should fully research and understand responsible borrowing and repayment before requesting federal student loans.

The Federal Student Aid webpage has an estimate calculator where you can calculate your estimated loan repayments.

Entrance counselling and exit counselling is a condition of your loan agreement. It should be completed before you start your course and as you are coming to the end of your studies at UWE Bristol. Counselling will inform you about repayment and money management and advise you how to make the necessary arrangements before and during repayment.

If you are struggling with repayments

Your student loan must be repaid. If you do not meet the loan repayments as required by your loan servicer, you will go into default. Keep in touch with your loan servicer and discuss your options if you are struggling to meet your repayments.

You must update your loan servicer of any changes to your personal details such as address, phone number and enrolment status.

• Federal Student Aid provides up to date information on repayment of federal loans and default.
• You may also find the Federal Student Loans Basics (PDF) useful.