Federal Loan Application Procedure Worksheet 2016-17

Federal Loan Application Procedure Worksheet 2016-17

Please print out this Worksheet, together with the Checklist, so that you can refer to them easily during each step. You must read each step carefully before proceeding.

YOU MUST FOLLOW EACH STEP IN ORDER AND IF YOU DO NOT PROVIDE ALL OF THE REQUESTED DOCUMENTS FROM EVERY STEP THEN YOUR LOAN APPLICATION CANNOT BE PROCESSED.

It is important to complete each step correctly. For example, if you forget to take a screen shot of your PLUS Loan credit check, then you will have to wait before requesting another credit check. Each request will be logged and may affect your future credit rating.

Step 1 - Complete your FAFSA (Free Application for Federal Student Aid)

You can complete your FAFSA immediately at www.fafsa.ed.gov and enter Kings’ school code G09085. You will receive an email acknowledgement from King’s that you have entered our school code, but you must wait until you have firmly accepted an unconditional offer before proceeding to the next step. You must keep the acknowledgement email so you can reply to it once you have firmly accepted an unconditional offer. An explanation of an unconditional offer is included in the email.

Your FAFSA produces a Student Aid Report (SAR) which you can view online when you log-in at the FAFSA website. You must check the “Comments about Your Information” section on your SAR, as you will only be eligible for Federal Loans if you have no issues to resolve. Instructions on resolving issues are provided under the “What you must do now” section on your SAR and you must submit any additional documents (for example, documentation of your citizenship status) if instructed.

DO NOT PROCEED TO THE NEXT STEP UNTIL YOU HAVE FIRMLY ACCEPTED AN UNCONDITIONAL OFFER AND HAVE RESOLVED ANY ISSUES ON YOUR SAR

Step 2 - Stafford Loan Entrance Counselling

It is a legal requirement that any US student who receives a Federal Loan should first complete the Entrance Counselling at www.studentloans.gov King’s require that you must complete the counselling, even if you have had a Federal Loan previously.

Remember that you will be required to take a screen shot or attach the completion certificate to your email application.

Simply sign in using the same PIN that you used to complete your FAFSA. The entrance counselling advises you on the different types of loans available, repayment methods and schedules and also makes you aware of any legal requirements of participating in the Direct Loan programme.

Step 3 – Use your COA to decide how much to borrow

The maximum you can borrow is your Cost of Attendance (COA) less any Expected Financial Aid (Grants, Scholarships, Bursaries or Awards). Use http://www.kcl.ac.uk/prospectus King’s online Prospectus to find your course and the tuition fee amounts are listed under the “Applying, fees and funding” tab under “Key Facts”. You can then enter this amount in the COA spreadsheet which is available on the King’s US Loan webpage. The COA spreadsheet is for guidance only: King's is not responsible for the misuse of this spreadsheet and an incorrectly calculated COA will not be honoured. Select undergraduate or postgraduate from the dropdown menu. Then if you have any Grants, Scholarships, Bursaries or Awards you must enter the total in the Expected Financial Aid boxes; one for total aid in USD and one for total aid in GBP (keep the aid in the currency that it is given). Please note that Veterans Affairs Benefits are exempt and are NOT included as aid. An estimated fixed conversion rate of $1.75 = £1 is used to take into account changes in the rate during the year and Federal fees.

The maximum you can borrow is then given in USD as all funds will be borrowed in USD. You do not have to borrow the maximum (you may have savings, intending to work, or family contribution) but the UK Borders Agency do require you prove you have minimum funds when you apply for a visa.

You can enter the amount you wish to borrow on the COA Spreadsheet and then select if you are a postgraduate or undergraduate (including year of study) to display the amount of Stafford Loan available and the amount of PLUS Loan (for a Graduate or parent of dependent undergraduate only) if needed. Every student applies for a Stafford Loan first, as it has the lowest interest rate and a subsidised part for undergraduates. We will always allocate the maximum available subsidised Stafford Loan for undergraduates and this is determined by the SAR. Please see the US Loan webpage for full details, but the Checklist also states the Stafford amounts available.

If you want to borrow more than the maximum amount of Stafford Loan available to you, then you must apply for a Graduate PLUS if you are a postgraduate or your parent can apply for a Parent PLUS if you are a dependent undergraduate. If you are an independent undergraduate, you are not entitled to PLUS Loans, but you can apply for private study loans, but total loans are still subject to COA less aid. The independent undergraduate Stafford amounts apply to dependent undergraduates whose parents are declined a Parent PLUS and cannot find an Endorser.

Step 4 – Apply for your loans

You must electronically sign a new MPN at a foreign school as the multiple loan feature of the MPN does not apply. Sign in at www.studentloans.gov and e-sign your Stafford Master Promissory Note (MPN). Remember that you will be required to send us a PDF of your Stafford MPN.

Unfortunately the email you receive stating “We will send an electronic confirmation of your completed MPN to UNIVERSITY OF LONDON KING'S COLLEGE within 24 hours” is of no use to us! The main reason is that the MPN does not provide us with the amount of loan you wish to borrow.

If you are borrowing more than the maximum Stafford, you (or your parent if you are a dependent undergraduate) will need to e-sign a PLUS MPN. Remember to send a PDF of your PLUS MPN. PLUS Loans also require a credit check, so you must also complete this under the section “Complete PLUS Request Process” and remember to take a screen shot showing the credit check is “Accepted” or attach the PDF confirmation letter. If the borrower credit check is declined, you will need an Endorser. Remember we will need a screen shot of your endorser’s credit check acceptance and a PDF of the Endorser Addendum. The credit check is only valid for 90 days, so do not complete it until just before you send your application, the opening date for applications is 1st June.

Step 5 – Send your Application

Email with subject “US Loan Application Documents” followed by your name. Remember to include your address in the email so we can send a letter confirming your Direct Loans that you can use for your visa application. You will need to complete and attach the Checklist to the email, together with every other document requested. Don’t forget to complete the boxed section of the Checklist that confirms how much you want to borrow and your financial aid. Do complete and keep the Checklist you printed out for your own records.

You can send your application by courier, remembering to provide a printed copy of each document requested (we only need the Borrower Information page of the MPN) to: King’s College London, Student Funding, 7th Floor, 57 Waterloo Road, London SE1 8WA, UK.

Please wait until the 1st June before emailing your application and allow 2 weeks from 1st July for processing and 2 weeks for the confirmation of funds letter for your visa to arrive. As we cannot guarantee the delivery date of the visa letter you can arrange courier collection if necessary.