FEDERAL DIRECT STUDENT LOANS 2020/21

We are working on loan assessments for those that are joining us in September/October 2020-2021.

We will start work on assessments for January/February 2021 starts in November.

Students commencing a new postgraduate taught programme of study at the University of Aberdeen are advised to select 1st year GRAD/PROF as the Grade level in their FAFSA application even if they have previously studied at postgraduate taught level. 

Students commencing a postgraduate research programme at the University of Aberdeen are advised to select Continuing GRAD/PROF as the Grade level in their FAFSA application.

 

WELCOME

The University of Aberdeen administers US Federal Direct Loans, US Private Loans and US Veterans Educational Benefits (or GI Bill) for students who are US citizens or eligible non-citizens.

The William D. Ford Federal Direct Loan Program offers Direct Loans to eligible students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education, though you may deal with a different agency as your loan servicer.

The University of Aberdeen is recognised as a Foreign School by the US Department of Education and is eligible to certify loans for eligible students as an approved Title IV institution.

Foreign Schools are NOT eligible to certify Pell loans or grants.

Note:

If you do not follow the steps in the How to Apply section and send us your loan documents, we will assume that you do not wish to apply for a loan for the current academic year. 

Eligibility

For the purpose of US Financial Aid, the University of Aberdeen is classified as a 'foreign school'.  The designation means that there are slightly different rules and areas of eligibility than you may used to if you have used Federal Aid before.

Most of our full-time and part-time degree programmes are eligible for Direct, Parent PLUS and Graduate PLUS loans.

Students undertaking the following programmes are NOT eligible to receive Federal Direct Loans.

  • Certificate and Diploma Programmes
  • Distance Learning Programmes
  • Medicine/Dentistry Programmes
  • Programmes which have a compulsory year abroad
  • PhD students who carry out periods of research in the US
  • Courses that are taught or part taught with another institution that is not eligible or not certified to participate in the William D Ford Direct Loans (Direct Loan) programme. All worldwide eligible institutions.
  • Visiting and Exchange students.  You are required to apply for Financial Aid through your home institution. 
  • Placements (including internships and externships) cannot be undertaken in the United States.

If your programme of study is not eligible, you may wish to apply for private loans to cover your cost of attendance.

You are deemed to be ineligible for loans if you have defaulted on payments for loans taken out prior to your studies here.  Check the status of any previous loans on the National Student Loan Data System (NSLDS) which is the system we will use to check your loan history. If a default status is recorded, there is little point in proceeding with your loan application at this point. You must make arrangements to pay arrears with your loan servicer. The NSLDS system can take some time to update status changes so you may have to present evidence from your loan servicer to show that your loans are in good standing.

General eligibility conditions for Financial Aid

To receive aid, including Federal Direct Stafford and PLUS Loans, you must meet the following eligibility requirements:

  • Must be a student enrolled or accepted for enrolment in an eligible programme at an eligible institution.
  • Must have a high school diploma or equivalent.
  • Must be enrolled at least half-time for the period for which the loan is originated. (PhD students who have submitted their thesis for examination do not meet this requirement)
  • Must comply with the University's satisfactory academic progress policy.
  • Must not be convicted of possessing or selling illegal drugs while receiving financial aid.
  • Must be a US citizen or eligible non-citizen with a valid Social Security number.
  • Must complete the Free Application for Federal Student Aid (FAFSA) each year.
  • If male and age 18-25, must be registered for Selective Service.
  • Must not be in default on an educational loan and must not owe a repayment on an adjusted federal grant.

Mature Student Provision

USA Federal Regulations state that you must have a secondary school completion credential (high school diploma) or the recognized equivalent of a secondary school completion credential to be eligible to receive Federal Student Aid.

The University of Aberdeen does not have a Mature Student Admissions provision policy.

Returning to the United States

If any part of your funding, at any time, is through USA Federal Direct Loan funds, you are prohibited under USA Federal Regulations from returning to the United States to undertake fieldwork, research, a placement, an internship or externship or to write your thesis.

The only exception to this is if you undertake independent research in the United States during your dissertation (write-up) phase of a doctoral program under the guidance of faculty and the research can only be conducted in the United States. Please note that prior approval must have been given by the Financial Aid Office and you can only do this for a maximum of one academic year.

Thesis Submission

The registered status for PhD students drops to less than half-time when you submit your thesis. Less than half time status means that you become ineligible for further financial aid.

Federal Work-Study

Employment is not provided as part of the financial aid package at this University. ​​​​

Types of Loans and Amounts

The amount that you are eligible to borrow in each academic year is assessed according to your grade level; whether you are a dependent or independent student; and your financial need and cost of attendance.

The following loan types are offered:

  • Subsidized: for undergraduate students with demonstrated financial need as determined by USDE regulations
  • Unsubsidized: not based on financial need and both undergraduate and postgraduate students can apply
  • PLUS: graduate/professional students and parents of dependent undergraduate students can apply for the Graduate or Parent PLUS loan

Subsidized and unsubsidized loans are capped and have maximum limits.

The following charts shows the annual and aggregate limits for subsidized and unsubsidized loans.

 

Annual Loan Limits

  Subsidized Loan Limit Unsubsidized Loan Limit Combined Loan Limit (Subsidized and Unsubsidized Loan)
Dependent Undergraduates (except students whose parents are unable to obtain PLUS Loans)

First Year Undergraduate

$3,500

$2,000

$5,500

Second Year Undergraduate

$4,500

$2,000

$6,500

Third Year and beyond Undergraduate

$5,500

$2,000

$7,500

Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
First Year Undergraduate $3,500 $6,000 $9,500
Second Year Undergraduate $4,500 $6,000 $10,500
Third Year and beyond Undergraduate $5,500 $6,000 $12,500
Graduate or Professional Students

All years

Not Applicable (all graduate and professional students are considered independent)

$20,500 (unsubsidized only)

$20,500 (unsubsidized only)

 

 

Aggregate Loan Limits

  Subsidized Loan Limit Unsubsidized Loan Limit Combined Loan Limit (Subsidized and Unsubsidized Loan)

Dependent Undergraduates

$23,000

$8,000

$31,000

Independent Undergraduates

$23,000

$34,500

$57,500

Graduates and Professional Students

$65,500

$73,000

$138,500 (includes all federal loans received for undergraduate study)

Most postgraduate students will borrow the first $20,500 through the unsubsidized loan and top up borrowing through the PLUS loan.

How to Apply

The application process for foreign schools differs from the process for domestic schools in the US.  It is your responsibility to send us the documents we need to make your loan assessment. Please read this carefully. It will save time and inconvenience if you follow each of the steps detailed.

The University of Aberdeen School Code is G09368 (this code may also appear as 009368).

Set out below are the steps you need to take to make an application for a Direct Loan(s) to help cover your educational costs at the University of Aberdeen.  There are no shortcuts to the application process, therefore if Steps 1-6 are not completed, your application will not be processed.

  • FAFSA applications for 2020/2021 can be submitted from 1 October 2019
  • FAFSA applications for 2021/2022 can be submitted from 1 October 2020
  • The University of Aberdeen US Loans teams will process applications in strict order of receipt.

Application Steps

Origination Fees

Information on origination fees for all Federal loan types is available from

http://studentaid.ed.gov/sa/types/loans/interest-rates#fees

The University’s Cost of Attendance take origination fees into account so that maximum net borrowings are sufficient to cover educational costs.

Private Loans

If part of your programme is ineligible for Direct Loans or if you decide to use private funds instead of the Federal Funds, you need to complete a Private MPN (apply directly to the lender).

Cost of Attendance

How Much Can I Borrow?

Students can borrow amounts equal to the Cost of Attendance (COA). The COA consists of 2 elements:

Maximum Cost of Living Expenses 2020/21

Undergraduate

Costs

Weekly £

No of weeks

Total Academic Year

Rent

145

35

£5,075 GBP

Utilities

30

35

£1,050 GBP

Food

50

35

£1,750 GBP

Travel Expenses

20

35

£  700 GBP

Personal

65

35

£2,275 GBP

Books / Computer Equipment / Printing

-

-

£  750 GBP

Flights home (2 per year)

-

-

£2,000 GBP

Total

-

-

£13,600 GBP

       

 

Conversion Rate

1.4*

$19,040 USD

Approximate Origination Fee costs     $  1,045 USD
  Maximum Loan for Living Expenses Rounded to nearest $100 $20,100 USD

 

Postgraduate

Costs

Weekly £

No of weeks

Total Academic Year

Rent

145

52

£7,540 GBP

Utilities

30

52

£1,560 GBP

Food

50

52

£2,600 GBP

Travel Expenses

20

52

£1,040 GBP

Personal

65

52

£3,380 GBP

Books / Computing Equipment / Printing

-

-

£  800 GBP           

Flights home (2 per year)

-

-

£2,000 GBP

Total

-

-

£18,920 GBP

       

 

Conversion Rate

1.4*

$26,488 USD

Approximate Origination Fee costs     $  1,045 USD
  Maximum Loan for Living Expenses Rounded to nearest $100 $27,600 USD

 

*Exchange rate is 1.25 at the time of compiling this table.  Regulations allow us to set theoretical exchange rate to convert GBP costs to USD values to allow for volatility in the exchange rate as the year progresses.

NB We use Western Union as our bank for processing your loan payments when the money is released by US Treasury.  Western Union will use a mid exchange rate and other banks may offer better rates. We have no plans to change our payment processing and your loans will be paid according to the rate Western Union offer on the day your loan is released.

Disbursement of Loans

Your award letter is proof that you have fully completed the loan application process. The award letter will be accepted by the visa authorities as evidence that you have the required funds to support your studies for the current academic year.

We cannot request the release of your loan until you have completed all stages of the student registration process. If you have received your award letter, completed the registration process, and if there are no US Department of Education system maintenance or failures, your loan payment should be paid within 14 days of your course starting so it’s important that you have money of your own to cover expenses until your loan payment is made.

Multiple Payments

Loan payments will be paid directly to the University via Western Union and converted into UK currency (GBP). In accordance with US Department of Education regulations, your loan will then be paid to you in two or three equal instalments according to the dates on your award letter:

  • Undergraduate Students: 2 instalments - September and January
  • PG Taught Students: 3 instalments - September, January and May
  • PG Research Students: 2 instalments - October and April

Before each disbursement, the US Department of Education deducts their origination (loan) fees from students' Direct Loan(s). They then send the amounts to the University of Aberdeen.  For information on origination fees, please see: https://studentaid.ed.gov/sa/types/loans/interest-rates

Opening a UK Bank Account

If you do not already have a UK bank account, you will receive your first loan instalment as a GBP cheque. Opening a UK bank account can take up to three weeks, and it normally takes three working days for a cheque to clear when deposited in your account. Realistically, it could take 3 to 4 weeks for you to have access to your loan payment so you should make opening a bank account a priority after you have completed registration.

Information on how to open a UK bank account can be found here.

Paying Tuition and Accommodation Fees

We will automatically set up a tuition fee payment plan for you, allowing you to pay your institutional charges in two or three instalments to coincide with your loan instalments. If you are living in University managed accommodation, your accommodation fees will also be included in the payment plan. You do not have to make any payments before arriving in Aberdeen, unless you are joining a Masters programme within the Business School which requires payment of a non-refundable deposit. Deposit payments must be made in advance of registration to secure the offer of your place.

If your loan payments do not cover the full cost of your tuition fees, your loan disbursements will be applied towards the payment of your tuition fees however you will be required to pay 50% of your total fees to complete registration.  You can then make arrangements to pay the balance of your fees (minus your loan disbursements) either in full or following the University's standard instalment plan.

Living Expenses

Once the institutional costs are covered, any excess amount from your loan payment will be refunded to you via cheque or bank transfer (provided we have your bank account details). This process is normally completed within 14 days of your programme start date.

Post Disbursement Exchange Rate

We use Western Union as our bank for processing your loan payments when the $USD value is released by the US Treasury. Western Union will use a mid-exchange rate. Other banks may offer better rates. We have no plans to change our payment processing and your loan payments will be converted to £GBP according to the rate Western Union offer on the day your payment is released.

Deferments, Repayments and 1098T Tax Information

Deferment

If you have taken out Federal student loans prior to coming to Aberdeen, and if you are taking out loans in the current year, we will automatically update your enrolment details on the National Student Loan Data System (NSLDS) to ensure that your repayments are deferred. The information we provide is shared with all of the US Department of Education's servicing agents, who are responsible for administering loan repayments.

If you are not taking out loans for your studies while you are here and need a loan deferment for previous loans, you need to email the US Loan Administrator (usaloans@abdn.ac.uk) giving your Social Security Number (SSN) and we will add your information to the NSLDS database.

We do not complete the paper In School Deferment forms for US Federal Loans but can complete them for private loans.  If you need to have a paper form completed, please email it to usaloans@abdn.ac.uk or hand it into the Infohub once you are on campus.

Please note that once you have completed your period of registered or supervised study you cease to be enrolled at least half time with us. The date when your studies end is not the same as the date when you will graduate and receive your degree. If you are a doctoral student and go on to a writing up year, you will continue to be classified as enrolled at least half time and still be able to defer your loans for one further 12 month period. Your completion date will be the date that you submit your thesis.

Repayment

It is your responsibility to repay your loans. When you leave your course or drop below half time study, this will be reported to NSLDS and you will enter a six-month grace period (this does not apply to PLUS loans which go into repayment immediately, but you can request a deferment).

There are a number of repayment options available and you should discuss these with your loan servicer to determine which is the most appropriate for you. If you do not select a repayment plan you will be placed on the standard plan with fixed repayments for up to ten years. You can find details of your loan servicer on the NSLDS Website.

Further details about repayment plans, including interactive calculators can be found on the Federal Student Aid website.

1098T Tax Forms

We do not complete any part of the 1098T tax form.  However, we can issue a receipt for tuition fees paid which can be used as evidence of payment.  Contact our Payments Section (payments@abdn.ac.uk or tel 01224 272266)  to arrange this.

Entrance and Exit Counselling

Entrance Counselling

All students who take out Direct Loans must complete entrance counselling as part of the loan application process to make sure that you understand the responsibilities and the terms and conditions of your loan.

You'll need your PIN - the same one you used for your FAFSA. If you are only taking a Direct Stafford Loan the Direct Stafford Loan entrance counselling will need to be completed. If you are also taking a PLUS Loan please complete the PLUS Loan entrance counselling.

In addition, you'll need to save your counselling confirmation and email it to us at usaloans@abdn.ac.uk with your MPN’s as we require proof that the counselling session(s) have been completed.

We will not be able to proceed with your loan assessment until we have a copy of the counselling confirmation.

Exit Counselling

In accordance with USDE regulations, you must complete exit counselling when you finish your studies. This has to be done before you graduate, drop below half-time attendance, or withdraw. The counselling session will help you understand your rights and responsibilities as a student loan borrower and provides useful tips and information to help you manage your loans.

We will prompt you to complete your exit counselling just before your final loan disbursement is scheduled for payment.

You'll need your PIN - the same one you used for your FAFSA and it will take you approximately 30 minutes.

You must notify the US Loans Office by email usaloans@abdn.ac.uk  that you have completed the counselling.  A report can then be obtained by the US Loans Office that shows that you have met the US Department of Education's requirements.

Private Loans

If your programme of study is not eligible for Federal Loans you may want to consider Private (credit-based) loans to help pay for university expenses. Even if your programme of study is eligible for Federal Loans, you may still choose to borrow through a Private Lender but it would be sensible to do a comparison between the terms and conditions before making a final decision.

You and/or your family must apply for credit-based loans directly with the lender. Applicants must meet credit and other eligibility requirements set by the individual lender. The only private lender option known to us is the Sallie Mae Student Loans. However, the university will work with any other private lender willing to lend to students who attend a foreign school.

Before taking out any credit-based loan, you should read the terms and conditions carefully before committing. You cannot borrow more than the maximum Cost of Attendance (COA) which can be found on the Cost of Attendance section of our website.

When you have submitted the on-line application and approval has been granted, you should email the US Loan Administrator (usaloans@abdn.ac.uk) to advise that your application has been approved. Provided you have completed all admission requirements, we will certify your application for payment release.

Sallie Mae loan payments are paid in one single disbursement after you have completed all stages of the registration process.

The payment will come directly to the University for campus based students. Institutional charges will be deducted and any excess payment refunded to you for living expenses, therefore, you should ensure that you set up a UK bank account on arrival.

As you will not receive your loan at the immediate start of the academic year, we would advise you to ensure that you have sufficient funds to cover your travel to the University plus expenses for a minimum of 6 weeks from the beginning of Semester 1.

VA Educational Benefits

We are approved by the US Department of Veteran Affairs (VA) to administer educational benefits to eligible students.  Most of our campus based programmes are eligible for VA funding but the VA deem our on-line and distance learning programmes to be ineligible. 

 

Our Facility Code is 1-1-1083-74. 

 

Further information about the application process can be found here:-

 

https://www.va.gov/education/how-to-apply/

 

If you are eligible for benefits, the VA will send you a Certificate of Eligibility document.  You need to send this document to usaloans@abdn.ac.uk .  If you’ve completed the Admissions process ie received and accepted a firm offer to study with us, we can send the VA a School Certification form confirming your start and end dates and the cost of your tuition fees.  Please note that we cannot do this more than 120 days before the start of the academic year.

 

Tuition fee payments will be sent directly to the university by $USD cheque.   Because of the fluctuating exchange rates, your tuition fee charges will never be covered exactly.  There will always be an underpayment or overpayment.  We will ask you to pay the balance of any underpayment.  Any overpayment will be refunded to you after your final tuition fee payment is made ie if your programme runs for 3 years, any overpayment will be refunded to you after the 3rd year tuition payment has been made.

 

Housing/book stipends are paid directly to you and we are not involved in any way with that process.

 

The University does not receive advance confirmation from the VA about the level of tuition fees that they will pay but this information should be available to you.  Therefore, you must ensure in advance of registration that your VA benefits are sufficient to cover the cost of tuition fees.  You will be liable to pay the full cost of tuition fees if there is a shortfall with the VA payment.  

Satisfactory Academic Progress

The U.S. Department of Education requires institutions of higher education to establish minimum standards of satisfactory academic progress for students receiving Federal aid. Satisfactory Academic Progress (SAP) means the student is proceeding in a positive manner toward fulfilling degree requirements. SAP includes two standards; qualitative and quantitative. Students must meet both standards to continue receiving financial aid.

In accordance with Federal Student Aid regulations, the University will update you enrolment status in NSLDS every 60 days.

In order to maintain eligibility for financial aid with the qualitative standard, a student must maintain the academic standing necessary to proceed.

The University of Aberdeen Satistactory Academic Progress (SAP) Policy for Title IV Financial Aid Recipients can be found here.

Qualitative

Student studies may be terminated by the University if they have not made sufficient academic progress to warrant continuance of study. Students who fail to maintain sufficient academic progress may be required to discontinue study. This procedure sets out the process for appeals against exclusion.

Students who are re-admitted to the program may be issued a one-time waiver to continue receiving financial aid. The details are specified below.

Quantitative

Credit requirements and degree durations are specified in the Degree Regulations and Programmes of Study:

Scheduled awards for the next academic year for students who are not making Satisfactory Academic Progress will be cancelled.

Financial aid will be disbursed on the first day of each semester. Students who withdraw after that will have their eligibility to retain part of their financial aid calculated on the percentage of the semester attended. Students who attend more than 60% of the term may retain all of their aid. See the section on Return to Title IV (R2T4).

Consumer Disclosure Information

Federal regulations require schools to disclose specific consumer information to prospective and enrolled students. The following is a summary of the consumer information topic areas with links to policies, information and resources. If you need assistance or paper copies, please contact the University of Aberdeen US Loans Office.

 

Default Management Plan

This default management plan contains some of the strategies used by the University of Aberdeen to help our American Loan Students understand the responsibility of borrowing loans to fund their degree studies.  The purpose is to reduce the number of students who default on loan repayments.

1. Entrance and Counselling

All first time borrowers of Direct Loan program, new students or students changing study path are required to undertake entrance counselling where students are advised about:

  • how the master promissory note works,
  • the importance of repaying the loan,
  • the consequences of default, and
  • sample monthly repayment amounts

A copy of the Entrance Counselling is retained in the student file.

2. Early Identification and Counselling for Students At Risk of Progression/Withdrawal

The University is responsible for monitoring borrowers who are at risk of non-progression or withdrawing and doe counselling students according to circumstances with a view to retaining those students.

3. Communication

All Federal Direct Loan students are directed to the mandatory Foreign Schools Consumer Information. Academic progress and enrolment status are held on the central student record system which is accessible by all relevant offices across campus including the office that disburses funds and authorise payments. Up to date contact information for both the student and next of kin is obtained from students at enrolment.

4. Exit Counselling

Graduating and withdrawing students are advised that they must undertake Exit Counselling as a condition of borrowing Federal Direct Loans. All students are directed to:

Students must confirm to the US Loan Administrator that they have completed exit counselling and a copy is retained in the student file. 

5. Timely and Accurate Enrolment Reporting

As a condition of our eligibility to certify Direct Loans, we are required to submit accurate enrolment updates to the National Student Loan Data System (NSLDS) at regular intervals throughout the year.

6. Analyse Defaulted Loan Data to Identify Defaulter Characteristics

Defaulted loan data is monitored to identify defaulting borrowers and to analyse reasons the reasons for defaulting. We use this information to improve default prevention and management practices and initiatives. Internal data includes key information such as school attended, program of study, demographics, grades, etc. The Loan Record Detail Report (LRDR) is reviewed to determine if there are common characteristics among defaulters.

We make use of the recommended tools listed below to ensure data accuracy and use effective loan counselling and default prevention management techniques to aid students and the University.

7. Where do I begin?

FSA Assessments for Default Prevention and Management

8. Loan Counselling

9. Enrolment Reporting and Data Accuracy

10. Default Prevention

or contact your Loan Servicer

11. General Connections/Publications

Return to Title IV Policy

United States Department of Education

Return to Title IV (R2T4) Regulations

The law specifies how the University must determine the amount of Title IV program assistance (Direct/PLUS Loans) that students earn if they withdraw or interrupt midway through the academic year. The US Loan Administrator is responsible for calculating R2T4 by using worksheets provided by the US Department of Education.  The Finance Section is responsible for transferring the funds. All funds must be returned to the lender within 45 days of the date of when the University determined that a student withdrew/interrupted. If you have questions about your Title IV program funds, students can call the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913.

When a student withdraws or is deemed to have withdrawn during a payment period, the amount of Title IV program assistance that has been earned up to that point is determined by a specific formula. The date of withdrawal can be determined by the Student/School or Supervisor and will be the last day the student attended. If the student received (or the University received on the student’s behalf) less assistance than the amount that is earned, the student may be able to receive those additional funds. If the student received more assistance than was earned, the excess funds must be returned by the University and/or the student. The University is not required to take attendance although most will be required to attend in order to receive a passing grade. Students who are not in attendance are reported to Student Services, who will consult with the student’s Department/School to determine if the student attended classes or to verify the last date of attendance. The University will use the last date of attendance to compute the R2T4 formula.

In the case where a student notifies the Personal Tutor/Programme Director or a member of staff that he or she intends to withdraw, the student must be informed of the need to submit a formal withdrawal form, citing the reason for withdrawal in writing and the effective date. Should the student fail to write or there is a lag between the notification and the student’s written confirmation, the earlier date of notification will be used in calculating the R2T4 formula. In the event a student receives all failing grades for a semester, the Personal Tutor/Programme Director will contact academic staff to determine if the failing grades were earned or represent a lack of attendance. In the event it is determined that those grades were the result of lack of attendance, the Personal Tutor/Programme Director will attempt to determine the last day of attendance and use that date in the R2T4 calculations. If the exact date cannot be determined, the University will assume a 50% attendance, and use that date as the last date of attendance. Students who do not attend even one class, are ineligible for Title IV funds and all of the loan proceeds will be returned to the lender.

The amount of assistance earned is determined on a pro rata basis. The payment period is the semester for which the loan was certified and the per cent of attendance is calculated by dividing the number of days attended by the total number of days in the payment period. If the student has completed 60% or more of the payment period or period of enrolment, all the assistance that the student was scheduled to receive for that period is considered to have been earned. If the student did not receive all of the funds that were earned, he or she may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, the student may choose to decline the loan funds so that additional debt is not incurred.  If, for example, if the student completes 30% of the payment period or period of enrolment, the student has earned 30% of the assistance they were originally scheduled to receive.  The US Loan Administrator will use the R2T4 worksheets as provided by the US Department of Education to determine how much of the loan may be retained and how much must be returned.  Future dated loans due for disbursement will be cancelled.

The University may automatically use all or a portion of your post-withdrawal disbursement (including loan funds, if the student accepts them) for tuition, fees, and accommodation. For all other University charges, the University needs the student's permission to use the post-withdrawal disbursement. If the student does not give permission the student will not be offered the funds.

There are some Title IV funds that students are scheduled to receive that cannot be earned once a student withdraws because of other eligibility requirements.  If the student receives (or the University receives on behalf of the student) excess Title IV program funds that must be returned, the University must return a portion of the excess equal to the lesser of:

  • The institutional charges multiplied by the unearned percentage of the funds, or
  • The entire amount of excess funds.

The University must return this amount even if it didn't keep this amount of the Title IV program funds. If the University is not required to return all of the excess funds, the student must return the remaining amount. Any loan funds that must be returned, the student must repay in accordance with the terms of the promissory note. That is, scheduled payments are made to the holder of the loan over a period of time. Students who have received a refund of their loan proceeds before withdrawing may be required to return part or all of those funds to the lender.

Title IV funds will be returned in the following order:

  1. Unsubsidized Federal Direct loans
  2. Subsidized Federal Direct loans
  3. PLUS Loan Funds

The requirements for Title IV program funds when students withdraw are separate from any refund policy that the University may have. Therefore, the student may still owe funds to the University to cover unpaid institutional charges. The University may also attempt to collect from the student any Title IV program funds that the University was required to return.

If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1-800-4-FEDAID (1-800-433-3243). TTY users may call 1-800-730-8913. Information is also available on Student Aid on the Web.

Leave of Absence

A student may take a leave of absence during their period of study, provided the leave is formally requested and approved, the reason for the request is stated and the leave of no more than 180 days’ duration in a 12-month period. There must be a reasonable expectation that the student will return from the period of absence. The leave of absence withdrawal date is the last date of attendance. Leave of absence students retain ‘in-school’ status. Students must be warned about the effects on their loans repayment grace period if they do not return from the leave of absence.

Contacts

The US Loan Office are responsible for administering Direct Loans at the University of Aberdeen. Our contact details are:

E: usaloans@abdn.ac.uk

T: +44 (0)1224 272046

Hours: Monday – Friday 9am to 5pm

 

US Loans

Registry Student Services

University of Aberdeen

Kings College

Aberdeen

AB24 3FX

SCOTLAND

 

US Loan Administrators

Mandy Ewen and Ashley Fyffe