Check List for Applicants Applying for US Federal Stafford, Grad Plus and Parent Plus Loans

Welcome to Birmingham City University.  Should you choose to fund your studies through the US Federal Loan programme here is some information which you may find useful.

What support is available?

An American National or permanent resident can apply for a loan if an offer of a place at Birmingham City University has been accepted. We are an eligible Federal Loan institution and our school code is 0122150.

There are various loans that an American student can apply for:

1)  The FFELP Stafford loan – This loan is supported by the US
    government and is available to all US students.  The Stafford loan is
    offered at a fixed interest rate which has been set at 6.8%*. Repayment
    starts 6 months after you have completed the course or dropped below
    50% of the full-time attendance requirement. There are 2 parts to the
    Stafford loan.

• The subsidised loan is assessed on “need” and as such the interest
  accrued on this portion of the loan is paid by the US government   
  whilst you are in study. These costs will revert to your responsibility
  after completion of the course.
• The unsubsidised loan will accrue interest during the period of study
  and these costs will be your responsibility.

2)  The FFELP Parent Plus loan – This loan is available to parents of
    dependent undergraduate students. Your parent(s) would take a loan
    out on your behalf to cover any additional educational costs.  The loan is
    offered at a fixed interest rate of 8.5%*.  Your parents can delay
    repayment of this loan until 6 months after you have completed the
    course or dropped below 50% attendance.

3) The FFELP GRAD Plus Loan – This loan is available to graduates and is
    taken out in your own name under similar conditions to the Parent Plus
    loan. You will need to complete the application form so that you are the
    student as well as the borrower.  Should you have low or little credit you
    may require a co-signer. Again these loans are offered on a fixed interest
    rate of 8.5%* and can be deferred repayment until 6 months after the
    completion of the course.

4)  Private Loans – These are loans offered by some lenders to offer top
    up support and are not connected to the US government.  They are
    available to all students, although some students may require a
    co-signer. The loans are based on credit history and therefore interest
    rates can vary.   

    Repayment on these loans starts 6 months after completion of the course
    or 6 months after dropping below 50% of the full-time attendance
    requirement.  It is strongly recommended that a student utilises all of the
    Federal funding available before applying to take out any private loans
    due to the increased costs normally involved.

     *The interest rates quoted are correct as at 1st March 2009

How much can I borrow?

The amounts of Stafford loan you can borrow depend on the course, the academic year of the course you will enter and any previous amounts you have borrowed.  Any Parent Plus loan (available to undergraduate dependent students only), Grad Plus or Private loan is intended to cover any remaining costs of attendance which is not met by other loans.  There are no set annual maximums. The cost of Attendance includes tuition fees and living costs and is set by Birmingham City University.  Further information can be found at www.bcu.ac.uk/international.  To qualify for funding at an overseas university you must meet the following criteria:

• The programme of study must be full-time and based in the United Kingdom. 
• You must have met any required prerequisites for the course.
• You must have met the entry requirements of the UK Border Agency.

Please note distance learning course are not eligible for a Federal loan.

If you have any queries concerning the above or wish to check if the course is designated, please contact Academic Registry, Graham Gauld (telephone 0121 331 7795, e-mail graham.gauld@bcu.ac.uk).

What is the repayment period?

These loans can be repaid within a period of 10 to 15 years depending on what is arranged with the lender. Repayment normally starts 6 months after completion of the course. There are no early repayment penalties on any of these loans. You could also defer repayments on previous Stafford, Grad Plus and Private loans whilst you are attending an educational course full time at another eligible institution.

When should I apply?                   

You will need to apply for these loans on an annual basis and would be recommended to start the application process anytime from the 1st March each year, although the FAFSA applications can be submitted anytime from January 1st.   PLUS and Private loan applications should be applied for no earlier than 6 months prior to the start of the course.

Any application 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 do I apply?

You should apply for the Stafford loan before any other funds as it is the most beneficial loan available to students.  Guidance for all types of loans is available at www.ed.gov/.

1)  You need to complete a financial aid form through the FAFSA website  
     (www.fafsa.ed.gov) to generate the essential Student Aid Report (SAR).  

2)  You will need to select a lender to service and disburse the loan by
     completing their Master Promissory Note.  Birmingham City University
     does not have any preferred lenders, however we would strongly
     recommend checking your lender works with international institutions.
     Guidance for applications for all types of loans is available at
     www.ed.gov/index.jhtml. 

     You will need to have details of the amount you wish to borrow when  
     selecting a lender.  This must be based on Cost of Attendance information,
     which includes both tuition fees and the cost of living for a year of study in
     the UK.  Cost of living information can be obtained by contacting our US
     Loans Administrator at graham.gauld@bcu.ac.uk

     It should be noted that if you are in receipt of a scholarship or bursary from
     Birmingham City University this will be deducted from the amount of money
     which you can borrow.  This procedure is in accordance with the terms of
     your US Federal loan.

3)  As Birmingham City University is an overseas institution we do not receive
     any information electronically.  You will need to send hard copies of the
     following information to our US Loans Administrator:

• The original full ten page SAR (Student Aid Report)

(Applicants and continuing students can contact FASFA to request the hard copy of this form on +1 800-433-3243)

• Master Promissory Note (this indicates the lender and the amount you wish to borrow)
• Part-completed School Certificate (sections 1-14 completed)
• If applicable, Private/GRAD Plus loan form (this indicates lender and the amount you wish to borrow)

We suggest you send these documents to us by registered/recorded post o Mr G Gauld, Academic Registry, Birmingham City University, Perry Barr, Birmingham B42 2SU, United Kingdom. 

4)  Our Academic Registry will check your eligibility for the loan and, if the
     application complies with the US Federal Loan regulations, we will contact
     you to ask you to complete the on-line entrance counselling required by
     the Department of Education in the US.  This should be done through the   
     mapping your future website at http://www.mappingyourfuture.org/OSLC/.

5)  Once your entrance counselling has been completed the loan request can be
     approved. 

How do I receive my loan instalments?

oan cheques will be available at the beginning of each term, when you will be contacted by Academic Registry to endorse the cheque.  The following should be noted:

• The student loan cheques are initially sent to the University at the start of each term
• No cheques are sent directly to the student 
• You must be fully enrolled before the payment can be made
• You are required to make satisfactory progress each academic year for the student loan to continue
• No loan period can exceed more than one and a half times the length of the programme of study.  For example a three year course can only be funded for a maximum of four and a half years
• On completion or withdrawal from the course you must complete on-line exit counselling (http://www.mappingyourfuture.org/OSLC/)

Satisfactory Academic Progress

When applying for or receiving US Federal Aid (subsidised, unsubsidised and PLUS) you 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 you to successfully complete you academic program 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.  For example a three year course can only be funded for a maximum of four and a half years.

• Should pass the course/modules with a minimum of grade C (which is equal to 40% and above) to confirm you are making satisfactory progression.”

The satisfactory progression to retain Financial Aid is entirely separate from the academic requirements to remain on the course and does not guarantee the outcome of the your course. Satisfactory Academic progress will be checked by Academic Registry before any loan funds are released to a student.

Financial Aid Probation and/or suspension

Should you not meet the requirements for Satisfactory Academic Progression, the University can agree to place you on probation for the following term, until more credit marks become available or the failed module can be re-sat. The Academic Registry would confirm any probation or suspension period in writing with you should this situation arise.  This probationary period does not affect tuition fees or access to University facilities, it enables the your funding to continue whilst retrieving failed modules.

If you do not achieve Satisfactory Academic Progression within the
allotted timeframe, you may lose your entitlement to US Loan support.

On successful completion or withdrawal from the course you will be required to complete on-line exit counselling.  Academic Registry will contact you with details of this.