Important Information for US Student Loans

The US Department of Education requires that degree programmes involving study outwith the University of Aberdeen through a formal arrangement (Written Agreement) with another institution must meet the following conditions to remain eligible for Federal Aid:

• For study outside the USA, the institution does not need to be approved to participate in the Federal Aid (Title IV) Program.
• For study within the USA, the institution must be a participating and approved Federal Aid (Title IV) school.
• The study abroad period must not exceed 25% of the total length of the programme of study.
• The host institution must sign a Consortium/Contractual Agreement with the University of Aberdeen.

Information about our existing Partnership and Consortium agreements can be found here:

Where can I go? https://www.abdn.ac.uk/study/undergraduate/go-abroad/outgoing-students/where-can-i-go/ (opens in new window)

The following regulation will mainly affect our PG Research students, but all students must be aware of it.

If you receive US Federal Direct Loans at any point, US Federal Regulations do not allow you to return to the United States for fieldwork, research, placements, internships, externships, or to write your thesis. If these are required for your degree, you will no longer be eligible for Federal Direct Loans for the remainder of your degree and a Return to Title IV calculation may need to be carried out to determine to value of US Federal loan you have earned/not earned.

The only exception is for doctoral (PhD) students doing independent research during the dissertation phase if the research must be done in the US and is supervised by faculty. At the University of Aberdeen, the “dissertation phase” of a doctoral programme is after your supervised study. This is normally called the write-up or extension period. This requires approval from the Financial Aid Office and can only be granted for up to one academic year.

This restriction does not affect your ability to return to the US for holidays or vacations.

Your current programme, mode and method of study are eligible for Federal Direct Loan funding. However, any changes (e.g. switching to online or part-time) could affect your loan eligibility. More information on programme eligibility can be found on our webpage (opens in new window).

It is your responsibility to notify the US Loan Administrator in advance of any formal change to your study terms.

As a condition of our eligibility to participate in the Direct Loan Programme, the University must notify the US Department of Education of any change to your terms of study throughout the academic year, such as periods of off-campus, withdrawal, suspension, early submission of thesis, transfer to part-time, changes to degree programme, etc., which may result in an overpayment of your loan.  

Your eligibility and assessment for loan payments have been based on the information shown in your academic record.

Unless you have already advised us or it is mentioned in your financial aid package, your loan has been assessed on the understanding that you have not been awarded any other financial assistance including scholarships, bursaries, private loans or additional funding to help with tuition fees or living expenses.  If this is not the case, you need to notify the US Loan Administrators (usaloans@abdn.ac.uk) now. You are eligible for financial assistance to be certified up to the maximum cost of attendance, as determined by your academic situation, the funding you have received, and the types of loans you are applying for.

You will not be required to pay a tuition fee deposit if your loan(s) covers the full cost.

If your student loan(s) cover all your tuition fees, no upfront payment is needed for registration. Your tuition will be paid from your loan disbursements. We will notify the Credit Control team that a payment plan can be set up in line with your estimated disbursement dates.

If your borrowing is not at a sufficient level to cover the cost of your tuition fees, you may be required to pay the tuition fee deposit to receive your CAS and make a minimum 50% self-payment when completing Online Registration. We will notify the Credit Control team that a payment plan can be set up to allow you to pay the remaining 50% of your tuition fees in line with your estimated disbursement dates.

For students borrowing under the previous Federal loan regulations, any credit balance from Parent PLUS loans will be refunded directly to the student for living expenses.  If your parent wishes any surplus payment from Parent PLUS loans to be refunded to them, please email usaloans@abdn.ac.uk at least 2 weeks before the estimated disbursement date so we can have their bank details added to the Convera Portal.

For students borrowing under the new Federal loan regulations, due to the lower Parent PLUS loan limit, any credit balance is likely to come from additional funding sources such as private loans. As such, it is the student’s decision as to whose bank account details are provided for the credit balance.

We use Convera as our bank for processing your loan disbursements. Convera uses a mid-exchange rate, and other banks may offer better rates. We have no plans to change our payment processing system, and your loans will be paid according to the rate Convera offers on the day the funds for your disbursement are received.

If you have any questions about this process, please email the US Loan Administrators usaloans@abdn.ac.uk.

You should expect your first loan disbursement to arrive around 21 days after your programme starts. The dates in your loan confirmation letter are estimates, so we recommend that you plan to cover your initial living expenses during the first few weeks with personal funds.

Full disbursement and payment process details can be found here on our webpages (opens in new window).

You have the right to cancel or amend your loan amounts even after accepting the offer. If you wish to make changes, you must notify us at least 7 days before any scheduled disbursement date (as listed in your confirmation letter). We’ll send you a Right to Cancel email in advance of each disbursement to give you time to make any changes if needed.

Please note that all federal loans are subject to origination fees, which are deducted by the US Department of Education before your loan is disbursed to the University. This means the actual amount you receive (your net loan) will be lower than the amount listed in your funding offer and loan confirmation letter. We will include the gross value, origination fees and net value in your Right to Cancel email.

As a reference, the 2025–2026 origination fees were:

• 1.057% for Direct Subsidized and Unsubsidized Loans
• 4.228% for Direct PLUS Loans

Updated fee rates are announced each summer on the StudentAid website (opens in new window).

We are required to provide key information for students receiving US Federal Aid, but it contains information that may be relevant to all loan types. This includes details on policies and procedures. This information is updated annually and available on our webpages (opens in new window).

FERPA (Family Educational Rights and Privacy Act) guidelines, which protect your student data, are also included in the Consumer Disclosure section mentioned above on our webpage. These regulations are similar to the GDPR (General Data Protection Regulation) used in the UK.