US Loan Guide

Last updated March 2011
University of the Arts London
US Loan Guide for 2011/2012
If you are interested in borrowing loans to fund your studies, you must read both this
US Loan Guide and the Frequently Asked Questions carefully and thoroughly.
6 Easy Steps to Apply for Direct Federal Loans—
Stafford, Parent PLUS, Graduate PLUS
1. Complete a FAFSA (http://www.fafsa.ed.gov) AFTER you and your family have filed
your taxes in April. The FAFSA will generate your Student Aid Report (SAR) which
we need in order to certify you for federal loans. You will need the school code when
filling out the FAFSA—ensure you select the correct code:
Camberwell College of Arts School Code G12333
Central Saint Martins College of Art and Design School Code G12539
Chelsea College of Art and Design School Code G34753
London College of Communication School Code G34624
London College of Fashion School Code G34733
Wimbledon College of Art School Code G35003
2. When you have completed your FAFSA, and waited for the information to upload
(normally takes 24 hours), check your SAR online to make sure it includes an EFC
(estimated family contribution) and details of any previous federal student loans that
you borrowed. If that information is missing or if there are any problems detailed in
the comments section, you must log back into your FAFSA to make corrections.
We need an error-free SAR in order to certify you for loans.
3. Completing the FAFSA does not mean you have applied for loans. You must
apply for your federal loans by submitting your Master Promissory Note (MPN)
electronically through this website: www.studentloans.gov. You will need a PIN (the
same PIN that you created to complete your FAFSA will work).
4. When you have completed your MPN(s), you should be able to view them as PDF
files. Email the PDF(s) of your MPN(s) to us.
5. If you are borrowing a PLUS loan (Parent PLUS or Graduate PLUS) you must also
email us with the amount you wish to borrow. We will assume that you want the
full allowance on the Stafford loan but if you don‟t, you must inform us accordingly.
To get an idea of how much you can borrow, please see the final page of this
document (Appendix 1).
6. Complete your Entrance Counselling. This is a requirement of the US Department of
Education and can be completed on the same site where you submit your MPNs:
www.studentloans.gov. Counselling must be submitted for each federal loan
where the student is the borrower and you must email us to inform us you have
completed your counselling when done.
Last updated March 2011
Additional Information About Your Loans
We must have a copy of your MPN and SAR in order to certify you for federal loans. We can
retrieve your SAR electronically but it is very important that you email us your MPN in
PDF format, inform us that you have completed your FAFSA, checked your SAR for
errors, and provided the amounts you wish to borrow.
When we are in possession of your SAR and MPNs and you have told us which loans you
want to borrow and how much, we can proceed with certifying the loans for you. After the
loans are certified/guaranteed, you will be told how much you will get and when the money
will be disbursed. Provided we have all the relevant information from you, it should only take
a few days for the loans to guarantee.
While most of our courses are eligible for federal loans, our Access courses,
Graduate/Postgraduate Certificate programmes, short courses and Study Abroad
programmes are not. This also applies to Distance Learning courses and some research
courses. If you are not sure if your course is eligible, please contact us.
Direct Stafford Loans
Students are always advised to borrow a Direct Stafford loan first as these loans are partially
subsidized by the US Government and have lower interest rates. Since Stafford loans are
government funded, however, there are set limits you can borrow based on your age and
study level. The proportion of the loan that is subsidized (government pays the interest for
you while you are in school) versus unsubsidized varies according to your EFC and/or
previous borrowing levels. Stafford subsidized loans have a 3.4% interest rate and Stafford
unsubsidized loans have a 6.8% rate. Please note that Graduate students pay 6.8% on both
the subsidized and unsubsidized portions of the loan.
Dependent Undergraduates (under age 24) Subsidized Unsubsidized Total
Foundation/Diploma (grade level 01) $3500 $2000 $5500
1st year BA or 1st year Foundation Degree
 (02) $4500 $2000 $6500
2nd/ 3rd year BA, 2nd year Foundation Degree or
Graduate Diploma
 (03/ 04) $5500 $2000 $7500
Independent Undergraduates Subsidized Unsubsidized Total
Foundation/Diploma (grade level 01) $3500 $6000 $9500
1st year BA or 1st year Foundation Degree
 (02) $4500 $6000 $10,500
2nd/ 3rd year BA, 2nd year Foundation Degree or
Graduate Diploma
 (03/ 04) $5500 $7000 $12,500
Graduate Students
(MA/PhD/Postgrad Diploma) Subsidized Unsubsidized Total
(Grade level A-D, depending on year) $8500 $12,000 $20,500
Your federal loans will be disbursed in equal instalments at the start of each term. Generally,
this means 3 equal instalments. These disbursement arrangements are a requirement of
the US Government’s Deficit Reduction Act 2005 (HEA 428G(e)), effective 1st July 2006,
and must be abided by.
The University requires full tuition fees to be paid at enrolment. The multiple
disbursements on the federal loans mean that the first combined instalments alone will
not normally be sufficient for this purpose.
Last updated March 2011
Federal loans are wired to the University. We will put the funds towards your tuition fees and
any surplus will be refunded to you for living costs. Refunds take 2 weeks to be processed.
Direct PLUS Loans
Parent PLUS and Graduate PLUS loans are processed the same way as Stafford loans so we
will still require your SAR and an MPN. Unlike the Stafford, the Graduate and Parent PLUS
loans are subject to an adverse credit history check. Both kinds of PLUS loans are presently
fixed at an 7.9% interest rate.
Parent PLUS loans are federal loans taken out by a parent on behalf of a student and are
only available to students under age 24 who are studying at undergraduate level. If a
parent is denied on their application for a Parent PLUS loan, the student is eligible to be
considered “independent” for Stafford loan purposes. Please alert us as soon as possible if
your PLUS loan is denied and provide us with the relevant supporting paperwork so we can
adjust the Stafford loan amounts accordingly.
While Parent PLUS loans generally go into repayment immediately, a parent borrower can
request to defer repayment during the student‟s studies and/or for an additional 6 months
after the student graduates.
Graduate PLUS loans are available to graduate/professional students (MA, PhD or
Postgraduate Diploma courses only) and are taken out by the student. Graduate PLUS loan
borrowers must apply for the maximum Stafford loan available to them before being allowed a
Grad PLUS. This loan, like the Parent PLUS, can also be deferred during your studies but
you must request this yourself otherwise the loan will go into repayment immediately.
Private Loans
Due to the multiple disbursement policy on all federal loans, you may require funds in addition
to (or instead of) a Stafford, Parent PLUS, Graduate PLUS loan.
Private loans are credit-based so you must have a credit-worthy co-signer. You can borrow
up to your estimated Cost of Attendance (see Appendix 1) minus any federal loans, grants or
scholarships that you will receive. Private loans can disburse in a single instalment or you
can select to have two instalments. Most students select to obtain the full loan in one
instalment so as to have enough funds available to pay the fees and living expenses.
The only private loan we are currently aware of is the Sallie Mae Smart Option loan and
this loan is disbursed as a cheque to the University.
This loan can be applied for by visiting this site,
http://www.myglobaled.com/StudentLoan/studentLoans.html. Sallie Mae offers fixed
payment and interest payment versions of the Smart Option loan so please visit their website
to determine which version of the loan would work best for you. The private loans have a
variable interest rate, based on credit, that can make them either affordable or quite
expensive. They are based on LIBOR (which is the current bank base rate) plus an additional
percentage that can ranges between 3% and 12%.
Accommodation and Loans
Loans can be used towards your housing costs but, upon arrival to the UK, loan monies will
not be available in time for students to pay initial deposits or rent. When faced with overseas
transactions, foreign currency and occasionally cheques, refunds cannot be processed
quickly.
Last updated March 2011
Many of the properties are managed externally from the University and thus have strict
payment policies. Students must arrange to make their initial housing payments
independently of their loans and can refund themselves from the loan money when it
becomes available.
Deposit Payments and Loans
The University of the Arts London now charges students joining a new course a nonrefundable
deposit of £2000. The deposit will be put towards your tuition fee bill. Loan funds
are not available to pay this deposit as such funds can only be disbursed to students after
they have formally enrolled. You will have to pay the deposit from your own funds and then
reimburse yourself from your loan money later.
Withdrawal and the Return of Federal Loans
If you withdraw or fail to attend your course, you must inform us immediately. If you
withdraw from your programme of study before, and up to, a point in time when 60% of your
programme of study has passed, the University is required, in accordance with federal
regulations, to return all „unearned‟ loan funds to your guaranty agency or lender. This is also
stipulated on your MPN.
If your loan funds are drawn down from the Treasury and you inform us that you will not be
attending or requiring the loan funds after this time, you will be liable to pay any
conversion charges and costs associated with the return of the funds. It is your
responsibility to inform us if you will not be attending or if you wish to have some of your loan
instalments cancelled before they are wired from the US.
Loan Deadlines/Entry Clearance
In order to secure a student visa, you must provide proof that you can afford your full tuition
fees and the estimated living expenses. Your offer letter will outline your tuition fees and the
Guide for Offer Holders, which is included with your offer letter, provides information
regarding sufficient living/maintenance funds that must be demonstrated. Please refer to
Appendix 1 for the estimated cost of living we use for US loan certification purposes as it is
higher than what the UK Border Agency will require, but is deemed more accurate.
You must apply for your loans in a timely manner, as we will have to provide you with a letter
for your visa application. You must apply early enough so that the loans have time to be
processed and guaranteed. We cannot assist with any issues relating to the inability to
pay tuition fees or acquire entry clearance due to a late loan application.
The recommended deadline to apply for a loan is August 1st for courses starting in
September and December 1st for courses starting in January.
If you have questions, please contact us:
Melissa Chatton at m.chatton@arts.ac.uk (011 44) 207 514 8463
Helen Powell at h.powell@arts.ac.uk (011 44) 207 514 8413
Last updated March 2011
You are responsible for the organization of your own funding. You will need a
student visa to enter the UK if you are studying. Your tuition fees are due in
full at enrolment and if you are fully dependent on loans to fund your studies,
you must have them guaranteed before you get a visa and in order to pay
your fees.
Appendix 1 – Cost of Living
When calculating financial need, a Cost of Attendance (COA) is required. This is a
set formula based on the estimated cost of living in London plus tuition fees. Please
note that tuition fees have NOT been included below, as fees vary per course.
The amount of money you can borrow cannot exceed your Cost of Attendance minus
any scholarships, grants or bursaries you will be receiving for the same study period.
Costs 10 months 12 months
Room £7,000 £8,400
Board £2,000 £2,400
Books/materials £4,000 £4,800
Travel £1,000 £1,200
Personal £3,000 £3,600
Return Flight £800 £800
TOTAL COST OF LIVING £17,800 £21,200
To determine your total COST OF ATTENDANCE, you must add your COST OF
LIVING (listed above) + your TUITION FEES (found on your offer letter).
** Please note these figures are set by the University and are based on standard
costs. You do not have to borrow money to match these exact figures--they are
only estimates. You will not, however, be permitted to borrow more than these
figures. Loans are available to support basic needs, not a certain lifestyle. We will
update this formula on an annual basis if required. It is designed to be fair to all
students no matter what subject matter or level of study and is therefore nonnegotiable.