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Types of Loan and Loan Amounts

There are several federal programmes available for U.S. citizens or eligible non-citizens who are enrolled at least half-time in a degree programme, making satisfactory academic progress and not in default or owing a return repayment on a grant or loan.

What types of federal loans can I access?

The University of Warwick is able to disburse Direct Stafford Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program. There are three types of loan available:

  • Direct Subsidized Loans are available to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.
  • Direct Unsubsidized Loans are available to eligible undergraduate, graduate, and professional students. You do not have to demonstrate financial need to be eligible for this loan.
  • Direct PLUS Loans are available to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid.

The type of loan available to you may depend on your financial need. In addition, if you are an undergraduate student, the type of loans you are eligible is determined by whether you are regarded as a dependent or independent student for the purpose of federal aid. An independent student is one of the following;

  • Aged at least 24 years old
  • Married
  • A graduate or professional student
  • A veteran
  • A member of the armed forces
  • An orphan
  • A ward of the court
  • Someone with legal dependents other than a spouse
  • An emancipated minor
  • Someone who is homeless or at risk of becoming homeless

For more information on the types of federal loan see the US Federal Loan website.


How much federal loan can I borrow?

The Student Finance Team calculate the actual loan amount you are eligible to receive each academic year within the limits set by the federal loan programme. The annual and aggregated limits for subsidized and unsubsidized loans can be found here and these are also included below.

Dependent Undergraduate Students

Subsidised

Subsidised & Unsubsidised Combined

1st Year

$3,500

$5,500

2nd Year

$4,500

$6,500

3rd Year & Beyond

$5,500

$7,500

Aggregate limit for dependent students: $31,000


Independent Undergraduate Students

Subsidised

Subsidised & Unsubsidised Combined

1st Year

$3,500

$9,500

2nd Year

$4,500

$10,500

3rd Year & Beyond

$5,500

$11,500

Aggregate limit for independent undergraduate students: $57,500


Postgraduate Students

Subsidised

Subsidised & Unsubsidised Combined

Each academic year

$0

$20,500

Aggregate limit for graduate or professional students: $138,500, no more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.

In order to determine the amount of loan for the various forms of loan you are eligible for, the University first calculates the Cost of Attendance (CoA). This is what the University believes is the cost of attending the specific course that you have enrolled on for one academic year. It includes tuition and fees, course materials, room and board and allowable travel costs.

The Student Finance Team will calculate how much you can borrow in subsidized and unsubsidized direct loans based on information contained in your Institutional Student Information Record (ISIR) and the CoA. Private loans may also be taken out either on top of, or instead of, PLUS loans or Direct loans, but you can only borrow to the value of the CoA.

If you commence your studies part way through an academic year, the University will pro-rata your costs and loan eligibility according to the number of months you are enrolled for that academic year.

If you feel that the cost of attending the university is significantly different from the CoA that has been calculated for you, then you should send an email to studentfinance@warwick.ac.uk, ensuring you enter your student number and “Cost of Attendance” in the subject field. You will then be sent a form to complete and may be asked to provide evidence as to why you think your CoA has been incorrectly calculated correctly.


What types of private loans can I access?

Commonly referred to as “alternative” loans, these are credit-based, variable-interest-rate loans offered by banks and other private lenders that you and/or your family may use to help pay for up to the full cost of your tuition and related educational expenses (computer, books, lab fees, supplies, transportation, living expenses, etc.), less any other aid you may receive. They are not need-based, and you do not have to submit a FAFSA to apply.

Private education loans may be taken out alone or as a supplement to other financial aid. When considering a private education loan, you may want to shop around for a lender that offers the best interest rate, repayment terms and deferment options, as well as the lowest fees. Please ensure that your lender is aware that you are registering for a course at a foreign school as most lenders will not provide loans for courses at foreign schools.

Irrespective of which loans you choose to fund your studies at Warwick, the University can only certify loans up to the Cost of Attendance (CoA) calculated for you.