Did you know you can use a Federal Student Aid loan to cover the costs of undergraduate, graduate and non-degree study abroad in the UK?

There are more than 100 UK universities and colleges approved by the US Department of Education for participation in the Federal Family Education Loan (FFEL) programs.

Using a US Federal Loan to study overseas is a fairly new development and it is possible that your UK university will have little experience with this process. If you keep actively involved and follow the steps below, obtaining your Stafford Loan for study in the UK should be simple.

The one exception to the US Federal Loan arrangements with UK universities is for Distance Learning.  As of July 1, 2006, US students studying at foreign institutions can no longer receive Stafford or PLUS loans for a program of study that includes classes taught only via telecommunications.  This decision came out of recent changes to the Higher Education Reconciliation Act that affects foreign schools participating in the student loan program.    

Generally, these programs may still be funded with private credit based loans.  If you are unsure as to whether a program you are interested in is eligible, contact the university.

HOW MUCH CAN I BORROW?

Graduate Students

Typically a graduate student in the UK will be eligible to borrow $18,500 in Federal Stafford Loans, with up to $8,500 in Subsidized Stafford Loans.

New for 2006-07 is the PLUS Loan for Graduate and Professional Students (Grad PLUS). It offers a fixed interest rate education loan that can be used to finance up to 100% of a graduate or professional education (cost of attendance less any estimated student financial assistance). You may qualify for a Grad PLUS Loan even if your financial assets limit your eligibility for other loans.  

Loans can cover the full Cost of Attendance less other aid you receive.

Undergraduate Students

Stafford Loan eligibility for undergraduate students receiving their degree in the UK varies based on information from your FAFSA and your year of study.

Federal PLUS Loans enable parents to borrow on behalf of their dependent undergraduate children. PLUS Loans may not exceed the student’s cost of attendance minus other financial aid awarded during the period of enrollment. This is the only borrowing limit for Federal PLUS Loans.

HOW TO APPLY FOR A FEDERAL AID LOAN

1. Contact FAFSA to access a FAFSA form online.

2. Find the code for your UK institution or check if it accepts federal aid loans.

3. Submit your FAFSA form online. You can begin this process from January 1 prior to the start of your course.

4. Obtain your original Eight-Page Student Aid Report (SAR). Please note that UK institutions will not receive your information electronically. In order for your UK university to process your aid, you must obtain and send the original Eight-Page SAR to your university. Upon completion of the FAFSA, the Department of Education will send you a normal SAR receipt. This short SAR is not enough. You must obtain the original Eight-Page SAR. If you do not list your e-mail address when you submit your FAFSA application, the Eight-Page SAR will automatically be mailed to you.

If you wish to list your e-mail address, you must call 1 800 4 FEDAID to request the Eight-Page SAR.

5. After you have received the original Eight-Page SAR, you must select a lender. It is up to you to decide which lender you would like to use. You should contact your UK university for recommended lenders.

To help you with your search, IEFC, and SallieMae currently work with US loans in the UK. Guaranty Agencies provide information for students about loans, and some help in the administration of the loan process for students attending UK universities. Please note that the British Council USA does not endorse any of the above companies. They are only put forward as available options.

Once you select a lender, you should then contact them for Stafford and/or PLUS Loan Forms (Master Promissory Notes and any Loan School Certification Forms).

6. When you have completed your Loan forms, send the Eight-Page SAR and your completed loan forms to the UK institution where you have been accepted.

7. The UK institution will fill out your loan forms appropriately with tuition fees and dates of terms and then return the completed documents to you.

8. You will then need to send the loan forms back to your lender for your loan to take effect. Many universities require that you complete Loan Entrance Counseling. You should contact the person at your university responsible for US Federal Loans to find out how you should complete entrance counseling. This is highly recommended for the borrower, whether or not it is required by your universitiy.

NOTE: As of 1 July 2006, US Federal Aid requires that all Stafford and PLUS loan funds be disbursed in multiple disbursements based on your program's terms or semesters.

You can also get a FAFSA or duplicate SAR loan form from the US Department of Education by calling 1 800 4 FEDAID (1 800 433 3243).

For more detailed information about US Federal Loans, please read Funding Education Beyond High School: The Guide to Federal Student Aid, a guide to financial aid from the US Department of Education. And for further information on other types of financial aid offered by the US Department of Education, visit Federal Student Aid (FSA).

To research options for non-federal loans, we recommend that you browse through FinAid's information on private education loans. Private loans are also available from IEFC and SallieMae.

Please note that the British Council USA does not provide help with the completion of FAFSA or Stafford Loan forms. For more information on US Federal Aid to study overseas, or for other federal aid questions, please contact the US Department of Education at 1 800 4 FEDAID.