The one exception to US Federal Loan arrangements with UK universities is for Distance Learning.  As of July 1, 2006, US students 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 Reconcilation Act that affects foreign schools participating in the student loan program.

Generally, these programs may still be funded with private credt-based loans.  Contact the university if you are unsure as to whether a program in which you are interested is eligible.

• A graduate student in the UK will generally 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 any other aid you receive.

• Stafford Loan eligibility for undergraduate students receiving UK degrees varies based on information for your FAFSA and your year of study:

           YEARLY AMOUNTS          Dependents               Independents

           Year 1                                $2,625                          $6,625

           Year 2                               $3,500                          $7,500

           Year 3-5                            $5,500                          $10,500

• Federal PLUS loans enable parents to borrow on behalf of their depandent undergraduate children.  PLUS loans may not exceed the student's cost of attendance minus other financial aid awarded during the period of enrolment. This is the only borrowing limit for Federal PLUS loans.