Types of loan

Direct Subsidised loans

Direct Subsidised loans are awarded to undergraduate students based on financial need. The US Department of Education pays the interest on this loan while you are at university (at least half-time attendance). It will also pay interest during any authorised period of deferment and for the six-month grace period after you leave university.

Direct Unsubsidised loans

Direct Unsubsidised loans are awarded to undergraduate and postgraduate students. This loan is not based on financial need and you are responsible for paying the interest from the time the money is disbursed.

The interest can be paid as and when it is due or you can postpone the payment of interest and allow it to accumulate whilst you are at university, during any authorised period of deferment and for the six-month grace period after you leave university.

Postponing the interest payments means that you won’t pay any interest whilst you are at university. The interest will be added to the amount you have to repay on your loan when you leave university. 

Dependent or independent student

If you are a dependent student you will report yours and your parents information when you fill out your Free Application for Federal Student Aid (FAFSA). If you are an independent student, you will only report your own information and your spouses if you are married.

If you are a dependent student, this does not mean that your parents will be required to contribute financially. The dependency status allows for your maximum eligibility for federal student aid to be calculated.  

Independent student status

For purposes of federal 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
• the student is homeless or at risk of becoming homeless.

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.

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.

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.

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.

Paperwork

Credit checks are conducted on all Direct PLUS Loan applicants. If you fail your credit check, you may not be eligible for any PLUS Loans. 

You will be required to complete a Direct PLUS Loan MPN before you will be able to receive any PLUS Loan funds.

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 prioritise students who have firmly accepted their offer.

UWE Bristol currently certifies private loans from Sallie Mae and Earnest Loans.

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 private 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.

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.