FAFSA LOAN GUIDE by niusheng


									US Loans Scheme
What support is available?
An American National or permanent resident can apply for a loan if you have accepted an offer of a place at
GSA. Students who are in the US on a work visa or limited leave visa, are unlikely to be eligible for these
loans. There are various loans an American student can apply for.

The FFELP Stafford loan – This loan supported by the US government that is available to all students. The
Stafford loan is offered at a fixed interest rate which has been set at 6.8%. This loan does not enter into
repayment until 6 months after the student has completed the course or dropped below 50% attendance.
There are 2 parts to the Stafford loan.

        -   The subsidized loan is assessed on “need” and as such the interest accrued on this portion of
            the loan is paid by the US government whilst students are in study, however these costs will
            revert to the student’s responsibility after completion of the course.
        -   The unsubsidized loan will accrue interest during the period of study and these costs will be
            the student's responsibility.

The FFELP Parent Plus loan – These loans are available to Parents of dependent undergraduate students.
The parent would take a loan out on behalf of the child to cover any additional educational costs. The loan is
offered at a fixed interest rate of 8.5%. Parents can delay repayment of this loan until 6 months after the
student has completed the course or dropped below 50% attendance.

The FFELP GRAD Plus Loan – These loans are available to Graduate students and taken out in their own
name under similar conditions to the Parent Plus loan. The student will need to complete the application
form so that they are the student as well as the borrower. Students with low or little credit may require a co-
signer. Again these loans are offered on a fixed interest rate of 8.5% and student’s can defer repayment until
6 months after the completion of the course.

Private Loans – These are loans offered by some lenders to offer top up support, not connected to the US
government. 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% attendance.

How much can I borrow?
The table below shows the amounts of Stafford loan a student can borrow depending on the course and
year they will attend.

Year of course                          Subsidised loan       Additional Unsub loan         Total loan

Dependent Undergraduate 1st year        $3500                 $2000                         $5500
                            2 year      $4500                 $2000                         $6500
                            3 year      $5500                 $2000                         $7500

Independent Undergrad       1st year    $3500                 $6000                         $9500
                            2 year      $4500                 $6000                         $10500
                            3rd year    $5500                 $7000                         $12500

Graduate/professional                   $8500                 $12000                        $20500

Any Parent Plus loan (available to UG dependent students only), Grad Plus or Private loan is intended to
cover any remaining costs of attendance the student has without set maximums. The cost of Attendance
includes Tuition fees and living costs and is set by the institution.
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. Students can 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?
Student’s will need to apply for these loans on an annual basis and would be recommended to start the
application process anytime from the 1 March each year, although the FAFSA applications can be
submitted anytime from Jan 1 . Private loan applications should be applied for no earlier than 6 months prior
to the start of the course.

Any application being 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 can I apply? All students should apply for the Stafford loan before any other funds as it is the most
beneficial loan available to students.

       Students would need to complete a financial aid form through the FAFSA website
        (www.fafsa.ed.gov) to generate the essential Student Aid Report. As we are an overseas institution
        we do not receive any information electronically and we will require the student to send the 8 page
        SAR report to the school personally. Students can contact FASFA to request the hard copy of this
        form on +1 800-433-3243 – TIP -you will automatically be mailed a hard copy of this form if you do
        not enter and an email address on the FAFSA application.
       Complete the Loan Debt Counselling at the following website, required by the Department of
        Education in the US.
       Students will also need to select a lender to guarantee and disburse the funds by completing their
        Master Promissory Note. We do not have any preferred lenders, however we would strongly
        recommend checking your lender works with international institutions. Previous students attending
        this institution have worked with.
         Sallie Mae International    http://www.salliemae.com/international/us_students/

        Sallie Mae can provide student loan support for Federal Stafford and PLUS loans along with Private
        loans. Sallie Mae processes loans through their own internal lenders Sallie Mae Ed Trust (802218) and
        AMS (833471) but students can also opt to use 2 unaffiliated banks as their lenders; Fifth Third Bank
        (808780) and Regions Bank (810612).

        Students can apply for Federal and Private loans online for all of these lenders via the following link
        IEFC https://www.iefc.com/
        IEFC can provide student loan support for Federal Stafford and PLUS loans along with Private
        loans. Full details can be found on their website www.iefc.com Students can apply for Federal and
        Private loans online.
        Fifth Third lender code 808780


        Regions Bank lender code 810612

         Students applying online with one of these lenders would not need to send the original MPN to the
        school. If using a different lender however, students would then need to send the signed MPN to the
        school along with your SAR.
       Parent/Grad Plus or Private loans can be applied to cover any remaining cost of attendance. Again
        students can apply for these loans through the lenders listed above and will need to complete a
        separate MPN to take out these different loans. Again if applying online, students would not need to
        send any additional information.
When will the funds be disbursed? The Institution will request that the Stafford and any Plus Loan or Private
loan is disbursed in at least 2 installments, in accordance with US laws. The first disbursements of the Stafford
loans will be requested to be available, to collect from the institution, as soon as you have enrolled for the start of
relevant academic year. The 2 installment of the Stafford loan would be released on the start of the subsequent
term or semester.

Satisfactory Academic Progress

All students applying for or receiving US Federal Aid (subsidized, unsubsidized and PLUS) must progress
satisfactorily towards completion of a chosen academic program in order to remain eligible to receive US loan

The guidelines below have been established to encourage students to successfully complete the academic
program they attend 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
    Should pass the courses at grade C to confirm they 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 students course. Satisfactory Academic
progress will be checked before any loan funds are released to a student.

Financial Aid Probation and/or suspension
Should a student not meet the above mentioned procedures for Satisfactory Academic Progression, the
university has agreed to place students on probation for the following term, until more credit marks become
available or the failed module can be re-sat. The Director’s office would confirm any probation or suspension
period in writing with the individual student should this situation arise.

If the student does not achieve satisfactory progress within the allotted timeframe, the student may lose their
entitlement to US Loan support.

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