US Federal Loans

US citizens or permanent residents with a valid social security number may apply for Direct Loans. To be eligible to apply applicants need a high school diploma or equivalent qualification and must not have defaulted on any previous student loans. 

You must meet the criteria set by the US Department of Education to be eligible for US loans. The basic eligibility criteria are listed on the Federal Student Aid website. There are additional criteria for foreign schools, which is outlined briefly below: 

• be studying an eligible, degree-bearing programme 
• be enrolled and continue to be enrolled at least half time at the University of South Wales 
• maintain Satisfactory Academic Performance during your studies- see our SAP Policy for details 
• undertake your study and or research within the UK (including your writing up period)  

The University of South Wales has been approved to certify federal student loans for degree programs ( Undergraduate degrees and Postgraduate degree). 

The University has not been approved to certify federal loans for students wishing to study:

• Nursing degrees
• HND/HNC or Foundation Degrees 
• PGCE, PGCE PCET Courses and courses leading to Qualified Teacher Status (QTS)
• Certificate or diploma programs 
• Top up degrees
• Degree Apprenticeships
• English Language programmes 
• Professional Courses 
• Courses offered at a Partner College
• BSc (Hons) Football Coaching, Development and Administration (Route 1 and 2) 
• A course where attendance is considered less than half time 
• A course that is offered in whole or part as online or distance learning  

If the course you intend on studying has a work placement, study or work placement abroad, please contact [email protected]   in advance of applying for the degree so that we can identify the eligible institutions that you may attend. 

It is not normally possible for students in receipt of US loans to undertake any part of their study or research in the US. However, independent research conducted by an individual student in the United States for no more than one academic year is permissible if it is conducted during the dissertation phase of a doctoral program under the guidance of faculty, and the research can only be performed in the United States.

If any part of your programme includes anytime outside of the UK, please email the [email protected]  immediately as this may affect your eligibility for US loans.  

These rules and regulations are set by the US Government. The University does not have any discretion to change these regulations.

If you are not eligible for Title IV Federal Aid, you may be eligible for Private Loans.  

The first step in applying for a loan is to complete a Free Application for Federal Student Aid (FAFSA). FAFSA applications may be made from 1 October each year. Students at foreign schools must complete this process on an annual basis.

Please note that we will not start processing your loan application until May/June of the summer before your start your course.  E.g. if you are starting course in September 2024, we will start processing your application in May/June 2024.

How can I complete my FAFSA?

To complete a FAFSA online, please visit the Federal Student Aid (FSA) website.  For information on how to complete your FAFSA, please view this video.

When completing your FAFSA you will need the University of South Wales Federal Direct Loan School Code, which is G35473. Please note, we can only access your Student Aid Report (SAR) if you have included our School Code as one of your choices.

Once completed, the US Department of Education will process the information and send you a SAR which can be viewed, printed and retained for your records. This document lists the information you and your family have provided and informs you of your Student Aid Index (SAI). The SAI is used to determine eligibility for needs based Federal Student Aid and relates to the Subsidised portion of the Stafford Loan. Please check all information to make sure that it is accurate. It is also important that you check the comments section on your SAR, as there may be issues that you need to address and any unresolved issues may delay the processing of your loan.

What happens after I submit my FAFSA/SAR?

Once you have completed your FAFSA we will be sent a copy, we will check that you are eligible for a loan.

If you are eligible for a loan and have received an offer from the University, we will send you a loan offer letter. Please note that if you are in receipt of any additional funds or scholarships you need to let us know at this stage as additional financial support will need to be deducted from the amount you can borrow.

The loan offer letter states the maximum amount you are able to borrow, broken down over the applicable loans for you, with a disbursement structure detailed.  We require you to read and review the loan amounts outlined on this letter, then either confirm this is the amount you would like to borrow or advise us if you would like to reduce the amount.  Once we have determined the amount you would like to borrow and received a signed loan offer letter back we will check that you have also completed all the necessary tasks.

Master Promissory Note (MPN)

You must complete the Direct Subsidised and Unsubsidized Master Promissory Note (MPN) on the Federal Student Aid website.

The MPN is a legal document through which you promise to repay your Direct Loan. The MPN details the conditions of your Direct Loan and the terms under which you agree to pay it back. You will need to complete a new MPN each academic year.

Graduate PLUS Loan or parent PLUS loan master promissory note (if applicable)

If you are applying for a Graduate PLUS Loan or Parent PLUS Loan, you must complete a Direct PLUS Loan Master Promissory Note (MPN) on the on the StudentAid.gov website.

This is a legal document through which you promise to repay your Direct Loans and any accrued interest/fees. It also explains the terms and conditions of your loan. You will need to complete a new MPN each academic year.

Credit check for direct PLUS loans

Complete a credit check for the Direct PLUS Loans on the StudentAid.gov website (login required). If you have an adverse credit history, you may still receive a Direct PLUS Loan through one of these two options:

1. Obtaining an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay it. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.
2. Documenting to the satisfaction of the US Department of Education that there are extenuating circumstances relating to your adverse credit history.

If a parent borrower is unable to obtain a PLUS loan due to an adverse credit history, the undergraduate dependent student may be eligible for additional Unsubsidised loans. Email [email protected] for further information.

Loan Certification

When we have received your loan offer letter back and have provided your MPN’s, Entrance Counselling (new students only) and credit check (if applicable), you will receive a notification letter from us outlining the amount of loans you will receive, your disbursement dates, and the period / academic year your loan relates to. The wording and format of this letter has been agreed with UK Visas and Immigration as acceptable proof of funding for visa applications.

This loan notification letter will be emailed to you. 

The CoA is an estimate of your educational related costs for the academic year. The CoA will specify the total amount you may borrow through federal loans minus any other aid you may be receiving for that academic year such as bursaries or scholarships. If you are eligible for a Subsidized loan, your Student Aid Index (SAI) will also be deducted from a CoA figure to establish your ‘financial need’.

The CoA for students studying at the University of South Wales is set by the  Student Money Advice Team. These educational costs relate only to you, the student. These costs cannot include costs for partners or children (other than childcare or nursery costs). We will take the average cost of the following in to consideration for calculating your costs of attendance

• Tuition Fees
• Accommodation and Living Costs
• Course costs
• Visa and Healthcare
• Transportation (2 return flights)
• Transportation (2 return transfers to London)
• Loan fees

Please note, whilst your CoA can include Travel, we cannot issue loan payments before the beginning of the academic year so you should not rely on your first payment to finance your travel to the University of South Wales.

While your costs may vary depending on where you stay in South Wales (Cardiff/Treforest/Newport), we expect your cost of attendance to be roughly in line with our estimates. We have set average CoA's for students living in:

• USW Treforest Halls of residence
• Private Housing (off USW campus) in Treforest and Newport
• Private Housing (off USW campus) in Cardiff

The University uses a standardized exchange rate to avoid fluctuations. The U.S. Department of Education states that students attending foreign (those outside of the United States) schools will have to tolerate such fluctuations.  

There are different loans available depending on whether you are an undergraduate or postgraduate student.

Any loans that you take plus any additional financial aid (awards, bursaries, scholarships etc..) must not exceed the yearly cost of attendance (US regulations).

Subsidized Loans and unsubsidized loans

Direct Subsidized Loans are available to undergraduate students with demonstrated financial need. The U.S Department of Education pays the interest on subsidized loans while a student is in school for at least half time, whilst in the grace period (the first 6 months after you leave school) and during a period of deferment.

 Direct Unsubsidized Loans are available to undergraduate and graduate students and there is no requirement to demonstrate financial need.  Students are responsible for paying the interest on an Unsubsidized Loan during all periods.

To receive either type of loan, you must be enrolled at least half time on to an eligible program of study.

Direct PLUS Loan

A Direct PLUS Loan is referred to as a Parent PLUS loan when made to a parent and as a Grad PLUS loan when made to a graduate or professional student

Parent PLUS Loan

Parent PLUS Loans are available for parents of undergraduate students who are classed as dependent. Parents can borrow up to the total estimated Cost of Attendance as issued by the University of South Wales.  A credit check will be performed as part of the application process.  Parent PLUS loans are the responsibility of the parent and not the student.

Graduate PLUS Loans

Grad PLUS loans are available for postgraduate students (graduates). A graduate student may borrow up to the total estimated Cost of Attendance as issued by the University of South Wales. 

Private Loans

Students who are unable to take out Federal Student Aid  or who do not meet the criteria for a Federal Student Aid can borrow from private lenders in the US.

We advise that if you are eligible for US federal loans, you investigate these before applying for a US private student loan, as federal loans are often cheaper and most American students are eligible for them. Note that US private student loans do not enable you to borrow more funds than Federal Student Aid.

The University will try to work with whichever private lender you decide to use, however be aware that Sallie Mae is the only lender we currently work with. To apply for a private loan, you must apply directly to the lender and then send a copy of your e-signed Promissory Note to the US Loans Administration Team.

You are advised to compare the terms, charges, and interest rates before taking out a private loan.

Loan Amounts

The maximum amount of subsidized and unsubsidized loans is as follows:

Dependent undergraduates (students aged 24 and under)

Independent undergraduates (students aged over 24 or those whose parents are refused a Parent Plus Loan)

Graduate students

All years Unsubsidized maximum of $20,500

The actual loan amount you are eligible to receive for an academic year is determined by your cost of attendance. This is determined by your school and may be less than the maximum annual amount shown above. With a Direct PLUS Loan, a graduate/professional student can borrow up to the cost of the student's attendance minus any other financial aid the student receives, including the amount above.

Aggregate loan limits
 Below are the aggregate (total) limits for Direct Subsidized and Unsubsidized Loans:

• $31,000 for dependent undergraduate students excluding those whose parents are unable to borrow a PLUS Loan (no more than $23,000 may be subsidized)
• $57,500 for independent undergraduate students and dependent undergraduates whose parents are unable to borrow a PLUS loan (no more than $23,000 may be subsidized)
• $138,500 for graduate or professional students (no more than $65,500 may be subsidized; includes loans for undergraduate study)

There is no limit for PLUS loans.

These aggregate limits include both Direct Subsidized and Unsubsidized Loans and any Subsidized and Unsubsidized Federal Stafford Loans previously received through the Federal Family Education Loan (FFEL) Program. You cannot borrow over your aggregate loan limit.

Repayments

It is important that you understand your rights and obligations when borrowing Federal US Loans. Students are advised to fully research and understand responsible borrowing and repayment before requesting Federal Student Loans. The Federal Student Aid web page has an estimate calculator where you can calculate your estimated loan repayments.

Interest rates

If you receive a federal student loan, you will be required to repay that loan with interest. It is important that you understand how interest is calculated and the fees associated with your loan. The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan.

Fees

Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received

The first disbursement of loans will not be paid until students are enrolled at the University of South Wales.  In case of any unforeseen events, please ensure you have personal funds in place to cover your living costs before you receive your first disbursement.

Federal Loans

The disbursement dates for the 2024/25 academic year for both undergraduate and postgraduate students are:

Undergraduate September 2024 courses

• Disbursement 1: 4th October 2024
• Disbursement 2: 7th February 2025

Postgraduate September 2023 courses 

• Disbursement 1: 4th October 2024
• Disbursement 2: 7th February 2025
• Disbursement 3: 13th June 2025

The actual amount of each disbursement in GBP(£) will be dependent upon the exchange rate used to convert USD($) to GBP(£) on that date

Once you have enrolled at the University of South Wales , from each disbursement (after it has been exchanged into £ GBP) we will deduct an amount towards tuition, accommodation (if you are in USW accommodation) and any other charges incurred, and the remainder will be forwarded to you. You will need to open a UK bank account to avoid having to pay two foreign exchange charges. 

You will receive an email notification approximately 14 days prior to the disbursement, in line with Federal regulations concerning your right to cancel. Once the disbursement has been made and we have deducted your fees, you will receive a further confirmation of any refund that will be deposited into your bank account.

Please note that it can take up to 14 days after the disbursement date for you to receive your refund. For example, for a disbursement date of 7th October any refund will be paid to you by 21 October.  It is  recommended that you have personal funds to support your living costs until the funds clear in to your account. 

We use Convera to make our payments, it will be necessary that you set up an account with them with your bank details.  You will be sent information from Convera before your first disbursement. 

Private Loans

The US Loan Administration Team will certify your Sallie Mae loan application once you have enrolled at the University of South Wales. We will request the loan to be payable in one instalment. The University will allocate any Tuition Fees and Accommodation Fees to be paid from the private loan, and pay the you any remaining funds via Convera. You will be sent information from Convera before your payment.  It is  recommended that you have personal funds to support your living costs until the funds clear in to your account. 

NSLDS 

The University of South Wales is required, in accordance with Federal Regulations, to report your enrolment status to the US Department of Education via the National Student Loan Data System (NSLDS) every month. Reporting students as studying full-time or half-time at USW will defer any previous Federal US Loans taken out before you started your studies at the University of South Wales .

If you are not taking out Federal US Loans during your study at the University of South Wales, but you wish to defer your previous US Loans as you are now studying, please email [email protected]

Satisfactory Academic Progress

To remain eligible for Federal US Loans during the academic year, students must meet Satisfactory Academic Progress (SAP), and this will be measured before each disbursement of your loan. Students are advised to familiarize themselves with the SAP Policy.

Exit Counselling 

Students coming to the end of their studies are required to complete Exit Counselling for each type of Federal US Loan borrowed. This is a condition of your loan terms.

The Student Money Advice Team will email you to remind you to complete Exit Counselling 

You are required to complete Exit Counselling if you drop to less than half-time, withdraw from your studies or complete your studies.

It is essential that you email [email protected] if you change the status of your studies as follows:

• Suspend
• Withdraw
• Transfer course
• Upgrade / downgrade
• Change from full-time to half-time or less than half-time

Under US federal law, the University is required to report any changes to your enrolment within tight timescales. For students who withdraw from their studies, suspend their studies for more than 180 days, or complete their studies earlier than expected, it may be necessary, to complete a Return to Title IV (R2T4) calculation, and arrange for the return any ‘unearned’ funds to the US Department of Education. Further information can be found in the Return of Title IV Funds Policy.

If you are thinking of changing the status of your studies and want to know what your US Federal Loan entitlement will be, please email [email protected]

It is the requirement of the U.S. Department of Education that Schools must provide a notice of the availability of all consumer information.

View the Consumer Disclosure Information.