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 nd 2 year $4500 $2000 $6500 rd 3 year $5500 $2000 $7500 Independent Undergrad 1st year $3500 $6000 $9500 nd 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 st application process anytime from the 1 March each year, although the FAFSA applications can be st 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. http://www.mappingyourfuture.org/OSLC/ 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 www.customschool.com/conservatoire/ 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 http://www.53.com/wps/portal/pv/?New_WCM_Context=/wps/wcm/connect/FifthThirdSite/Personal/Stude nt+Loans/ Regions Bank lender code 810612 http://www.regions.com/personal_banking/student_loans.rf 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 nd 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 support. 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.