There are three types of loan available to students through the Federal programme. These are the Direct Subsidized, Direct Unsubsidized and Direct PLUS loans. If you are a graduate you can apply for a PLUS loan in your own right. If you are an undergraduate student you cannot apply for the PLUS, but your parents can apply on your behalf.
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. The maximum you can borrow is the estimated Cost of Attendance. The sum of your Federal, any private loans and scholarships/ bursaries cannot exceed the Cost of Attendance so you should think carefully about the loans your are applying for.
The following loan types are offered:
- Subsidized: available to undergraduate students with demonstrated financial need (new window) as determined by US Department of Education regulations. No interest is charged whilst you are studying at least half-time, during the grace period (the first 6 months after you finish University) and during deferment periods (a postponement of loan payments).
- Unsubsidized: not based on financial need and both undergraduate and postgraduate students can apply. Interest is charged during all periods.
- Parent PLUS: available to parents of undergraduate students who are classed as dependent. Parents can borrow up to the total estimated Cost of Attendance as issued by the University of Aberdeen. Parent PLUS loans are the responsibility of the parent and not the student.
- Grad PLUS: available to postgraduate students. A graduate student may borrow up to the total estimated Cost of Attendance as issued by the University of Aberdeen.
- Private student loans are not federal loans but are available to most US citizens.
Students studying in the UK are NOT eligible for Perkins Loans or Pell Grants.
Subsidized and unsubsidized loans are capped and have maximum limits.
The following charts show the annual and aggregate limits for subsidized and unsubsidized loans.
Annual Loan Limits
| Year of Study |
Dependent Students (except students whose parents are unable to obtain PLUS Loans) |
Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS loans) |
|---|---|---|
| First Year Undergraduate | $5,500 - No more than $3,500 of this amount may be in subsidized loans | $9,500 - No more than $3,500 of this amount may be in subsidized loan |
| Second Year Undergraduate | $6,500 - No more than $4,500 of this amount may be in subsidized loans | $10,500 - No more than $4,500 of this amount may be in subsidized loans |
| Third Year and Beyond Undergraduate | $7,500 (each year) - No more than $5,500 of this amount may be in subsidized loans | $12,500 - No more than $5,500 of this amount may be in subsidized loans |
| Graduate or Professional Students | Not Applicable - All Graduate and Professional students are considered independent | $20,500 - unsubsidized only |
Aggregate Loan Limits
| Level of Study | Dependent Students (except students whose parents are unable to obtain PLUS Loans) | Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
|---|---|---|
| Undergraduates | $31,000 - No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. |
| Graduates and Professional Students | n/a | $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. (includes all previous federal loans received) |
Most postgraduate students will borrow the first $20,500 through the unsubsidized loan and top-up borrowing through the PLUS loan or a private student loan.
Further Information can be found on the StudentAid webpages (opens in new window).