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?
- How much federal loan can I borrow?
- Fees and interest rates
- Cost of attendance
- Amending, decreasing or cancelling a loan
- What types of private loan can I access?
- US Military veteran funding (Veterans Affairs)
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 Student 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 undergraduate students: $31,000 No more than $23,000 of this amount may be in subsidized loans |
||
|
Independent Undergraduate Students |
Subsidised |
Subsidised & Unsubsidised Combined |
|
1st Year |
$3,500 |
$9,500 |
|
2nd Year |
$4,500 |
$10,500 |
|
3rd Year & Beyond |
$5,500 |
$12,500 |
|
Aggregate limit for independent undergraduate students: $57,500 No more than $23,000 of this amount may be in subsidized loans |
||
|
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. |
||
Fees and interest rates
Origination fees
Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while you are enrolled at University. This means that the money you receive will be less that the amount you actually borrow. You are responsible for repaying the entire amount you borrow - not just the amount you receive. These are called origination fees and they change each year.
Interest rates
The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan. Interest rates change each year from 1 July.
Cost of attendance
In order to determine the amount of loan you will receive and the various forms of loan you are eligible for, the University first calculates the Cost of Attendance (CoA). This is an estimate of your educational related costs for one academic year less any other funding you may be receiving (such as bursaries, scholarships, PG stipends, sponsorship or private loans). If you are eligible for a subsidised loan, your expected family contribution (EFC) will also be deducted from the CoA figure in order to establish your 'financial need'.
Whilst your costs may vary depending on where you live, the CoA is what the University believes is the average cost of attending the specific course that you have enrolled on for one academic year. The CoA for students studying at the University of Warwick is set by Student Finance and is increased in line with inflation for each academic year. The costs relate only to you, the student. These costs cannot include costs for partners, dependents or children (other than childcare or nursery costs).
These broad based costs can be broken as follows:
- tuition
- accommodation (on or off campus)
- food
- personal miscellaneous expenses
- books, supplies and equipment
- transport - local
- transport - flights home
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 would like to appeal or request modifications to the loan package awarded, then you should send an email to studentfees@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.
If you are successful in receiving a bursary or scholarship, PG stipend, sponsorship or private loan - either from the University of a private source - you must inform us so that this may be factored in to your Cost of Attendance. Failure to do so will result in a recalculation and reduction of your loan later in the academic year.
Amending, decreasing or cancelling a loan
If you wish to make any changes to your US Federal Loan(s) then please e-mail Student Finance.
Increase
You will not be able to ask for additional funding during the academic year if you have previously requested the maximum amount in your Cost of Attendance (CoA). You are not able to borrow more than the maximum CoA figure.
Decrease
Please be aware that any requested reduction will be spread across any remaining fund disbursements.
Cancel
You need to notify Student Finance at least two weeks before your disbursement date if you wish to cancel your loan via the University. You can cancel your loan by making a payment directly to your loan servicer. If you choose to do this then you are advised to contact your loan servicer for up-to-date details on the steps you need to take to cancel your loan with them. More information and details can be found on the Federal Student Aid website.
Please be advised, if you cancel your US Federal Loan(s) after receiving a disbursement you are required to complete Exit Counselling.
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. Private loans can generally be more expensive and you should research whether these loans suit your borrowing needs. 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.
The University will seek to work with whichever private lender you decide to use. However, we are currently most familiar with Sallie Mae and Earnest. Please be advised that no more than 365 days can pass from the loan period end date to the first disbursement of your loan through Sallie Mae and Earnest.
You do not need to set-up these external loan providers as sponsors on the University system. The loan funds will either be paid to you directly or be sent to the University. If you are taking out an external loan please notify studentfees@warwick.ac.uk so that we can more effectively identify payments and associate them with your student account.
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.
US Military veteran funding (Veterans Affairs)
The University of Warwick has previously been an approved provider of funding and benefits offered by the Department of Veterans Affairs (VA). Unfortunately, due to regulatory changes for foreign institutions the University no longer processes VA funding for students.