UNIVERSITY OF CENTRAL LANCASHIRE
INTERNATIONAL OFFICE
Information on Direct Loans for US students
What support is available?
If you are an American National or have permanent resident in the US you can apply for a Direct Loan if you have accepted an offer of a place at the University of Central Lancashire (UCLan) UK. UCLan is an eligible Federal Loan Institution and our Federal School Code is G35153 and our OPIED Code is 03515300.
Direct Loans
The Direct loan – This loan has replaced the Stafford Loan and is supported by the US government and is available to all students. There are two types of Direct Loans which are:
-Thesubsidized loan is assessed on “need” and as such the interest accruedon this portion of the loan is paid by the US government whilst students are in study.These costs will revert to the student’s responsibility after completion of the course.
-The unsubsidized loan will accrue interest during the period of study and these costswill be the student's responsibility.
Direct Parent Plus loan – These loans are available to Parents of dependent undergraduate students. The parent would take a loan out on behalf of the child to cover any additional educational costs.
Direct GRAD Plus loan – These loans are available to Graduate students and taken out in their own name under similar conditions to the Parent Plus loan. The student will need to complete the application form so that they are the student as well as the borrower. Students with low or little credit may require a co-signer.
Interest rates and charges
For full details of the interest rates associated with US Federal loans please refer to
In addition there will be an origination fee for Direct Loans first disbursed between 1st July 2015 and 30th June 2016 of 1.073% (net), which is deducted at source prior to the disbursement of the loans. The origination fee for Parent PLUS and Graduate PLUS loans first disbursed between 1st July 2015 and 30th June 2016 will be 4.29%.
Please be aware that private loans will incur a commercial interest rate. Look at interest rates and charges with different lenders. A lender may require someone else with a good credit rating as a guarantor or as a co-borrower.
Borrow what you need, but remember you have to repay it back.
How much can I borrow?
The table below shows the amounts of Direct Loan a student can borrow depending on the course and year they will attend.
Dependent Undergraduate 1st year
2nd year
3rd year / $3500
$4500
$5500 / $2000
$2000
$2000 / $5500
$6500
$7500
Independent Undergrad 1st year
2nd year
3rd year / $3500
$4500
$5500 / $6000
$6000
$7000 / $9500
$10500
$12500
Graduate/professional / Nil (as of 1st July 2012) / $12000 / $20500
Any Parent Plus loan (available to UG dependent students only), Grad Plus or Private loan is intended to cover any remaining costs of attendance the student has, without any set annual maximums.
The cost of Attendance includes Tuition fees and living costs and is set by the institution. Below is a guide to the cost of attendance you can expect for our institution.
Tuition Fees / Varies depending on courseLiving Expenses (per month) / £820
Transportation
(2 x return flights to UK and 1 internal US flight) / £1525
Miscellaneous Expenses (per year) / £650
Health Care (per year of study) / £150
If your cost of attendance exceeds the above you would need to put in writing to a breakdown of any extra funding that is required and what it is for.
When should I apply?
Student’s will need to apply for these loans on an annual basis and would be recommended to start the application process anytime from the 1stMarch each year, although the FAFSA applications can be submitted anytime from 1stJanuary. PLUS and Private loan applications should be applied for no earlier than 6 months prior to the start of the course.
Any application being received within a month of the course start date cannot be guaranteed to be processed in time for the start of the course or to provide the required documentation for any Visa.
How can I apply?
All students should apply for the Direct Loan before any other funds as it is the most beneficial loan available to students.You would need to complete this process on an annual basis, should you wish further funding.
- Students would need to complete a financial aid form through the FAFSA website (
- You then need to fill out the CoA form, available from Rachel Smith, Financial Aid Officer, at d email it back to
- Once you have done this you can go to and apply for your Direct Loan and Plus Loan (if required). You must also complete Entrance Counselling and a Master Promissory note before your loan can be originated by UCLan. If your parents are taking out a PARENT Plus Loan they must also complete a promissory note. A Promissory note is also required for the GRAD Plus Loan.
- Once you have done the above the University of Central Lancashire will then originate your loan and send you a confirmation letter confirming the amount you will receive and the dates you will receive it.
When will the funds be disbursed?
The Institution will request the Direct and Plus Loans after students have completed enrolment and it will be disbursed in 3 instalments, in accordance with US laws. The first disbursement of any Direct or Plus loans will be requested to be available at the start of your first semester at University. The subsequent instalments of the loans would be available at the start of the subsequent semesters/terms. Once UCLan has requested the funds students must allow up to 10 working days for the money to reach their bank account.
Loan funds will be disbursed in the form of US Dollars into UCLan’s bank account and then will be given to the student in pound sterling at the exchange rate received on the date of receiving your funds.
All disbursements are subject to the following conditions:
- You are making satisfactory academic progress
- You are enrolled at least half time or more
- You are not in the USA
- You have not violated any federal compliance regulations (such as repayment default, fraud and drug offences)
Other Private Loans
SMART OPTION STUDENT LOAN- A private,credit-based loan for undergraduate and graduate students. This loan helps fund education expenses not already covered by federal student loans. Designed to reduce the overall loan costs and help shorten the amount of time it takes to pay off the loan, the Smart Option Student Loan features interest-only payments while in school and repayment terms based upon the cumulative outstanding Sallie Mae-serviced private student loan balances and the borrower’s academic grade level. Students can borrow the full cost of attendance any other loans and scholarships will be deducted before the loan is certified.
Financial proof for obtaining Tier 4 Visa
Once your loan has been approved you will receive a confirmation letter confirming the amount of loan that has been approved and the disbursement dates. This letter can be used as proof of funds in order to apply for your Tier 4 visa. This letter will only be produced up to 3 months prior to the start of your course.
Distance Learning Courses
Please note that any students undertaking distance learning courses are NOT eligible to receive US Government funding.
Students undertaking distance learning courses provided by the University of Central Lancashire can apply for Private loans to help cover costs of tuition.
Satisfactory Academic Progress
All students applying for or receiving US Federal Aid (subsidized, unsubsidized and PLUS) must progress satisfactorily towards completion of a chosen academic program in order to remain eligible to receive US loan support.
The guidelines below have been established to encourage students to successfully complete the academic program they attend and continue to receive financial aid.
A student:
- Should not exceed 150% the published time frame for the course and should remain at least half time
- Should pass the course / modules with a minimum of grade C to confirm they are making satisfactory progression.
The Satisfactory progression to retain Financial Aid is entirely separate from the academic requirement to remain on the course and does not guarantee the outcome of the student’s course. Satisfactory Academic progress will be checked before any loan funds are released to the student.
Financial Aid Probation and/or suspension
Should a student not meet the above mentioned procedures for Satisfactory Academic Progression, the university has agreed to place students on probation for the following term, until more credit marks become available or the failed module is re-sat. The International Office would confirm any probation or suspension period in writing with the individual student should this situation arise.
If the student does not achieve satisfactory progress within the allotted timeframe, the student may lose their entitlement to the Direct Loan and any PLUS loan taken out.
Tuition Refund Policy
The University of Central Lancashire’s tuition fee policy can be found at:
The following is an addendum for students who are utilising US Federal student aid funds:
If a student who receives financial aid withdraws from the institution, the university will re-calculate your Financial Aid eligibility based on the period of attendance. As a result you may be required to pay back money to the US Federal Government from the Direct Loan subsidized and unsubsidized or PLUS loans you may have received. The institution may also have to repay any funds for tuition to the US Federal Government. As such, you may be requested to make an additional fee payment to the school to replace these funds.
Pro-rata refund calculations apply for any student who withdraws within 60% of the payment period. If a student withdraws prior to completing 60% of each payment period, the university will calculate the amount of funds to be returned based on your period of attendance for that specific term. The last date of attendance will be the date confirmed by the program office and the calculations undertaken are those that are set by the Department of Education in the US and cannot be altered.
Consumer Disclosures
The University of Central Lancashire is required by the William D Ford Federal Loan Program to provide the following consumer information:
The University’s prospectuses can be found by clicking onto the following link:
The accrediting agencies and governmental bodies that approve, accredit or license UCLan are the Quality Assurance Agency for UK Higher Education; and the Department for Employment and Learning;
Information regarding retention rates of all certificate and degree seeking, first time, full time undergraduates entering a HEI are available via the Higher Education Statistics Agency (HESA):
Placement and types of employment obtained by graduates (undergraduate and graduate) of the school’s programmes are available via the Higher Education Statistics Agency (HESA):
Information of transfer of credit from previous institutions (accreditation of prior learning APL) can be found at the following link:
The University’s Data Protection Policy can be found at:
Information regarding vaccinations and the University’s medical centre can be found at:
Services and facilities provided for students with disabilities can be provided at:
Rules and regulations regarding plagiarism and misconduct can be found on the following link:
The University’s Drugs & Alcohol Prevention is covered under the regulations for conduct of students.
At the end of your studies
At the end of your course you must complete Exit Counselling by going to:
An email will be sent to you shortly before you complete your studies at UCLan to remind you to do this.