US Federal Loan
The Federal and private loans for students from the USA are handled by the Student Funding Officer. Please read the information below and if you have any questions contact the Student Funding Officer. Please be aware that the School does not issue cost of attendances to applicants who have not been offered a place or accepted their offer of a place. The School will not know that you have applied for a loan until you send us the information we need.
Process for application
- Once you have been offered a place at the School you may submit an application for a loan after 1 June for the following academic year.
- You must first read the Student Instructions US Loan Application.
- You must refer to the US Loans Student Flow Chart.
- You must complete FAFSA (www.fafsa.ed.gov) for which you will need the Guildhall School of Music & Drama school code which is G21967. Once you have completed this you will be emailed your Student Aid Report (SAR), please review this and make sure it includes an EFC (estimated family contribution) and details of any previous loans. If any information is missing or there are comments stating further information is required, you will need to make corrections and re-submit your application. If there is a C shown next to the EFC, further information will be required. Check the comments codes and make any necessary corrections. In some cases we may need to ask you to provide documentary evidence (such as proof of US citizenship).
- Complete the Cost of Attendance spreadsheet for 2018/19 and send this along with other essential documents listed in the US Loans Student Flow Chart.
- Your application will be assessed by the Student Funding Officer who will endeavor to reply within 48 hours
- You must re-apply for each academic year of study.
- For more detailed information on Direct Loans see the US Department of Education’s Federal Student Aid Website
- When you provide evidence for your application, including the completed Cost of Attendance (CoA) spreadsheet and any Master Promissory Notes (MPNs), this will be processed according to our data protection policy and information about how your data is used is explained on the MPN, with reference to the US Privacy Notice. Please view the Consumer Information page for further information regarding privacy of student records.
Eligibility and Entitlement
Direct Loans are available to all US citizens or permanent residents with a valid social security number who have a high school diploma and are not in default on any previous student loans. Male students will also have to be registered for Selective Service. In addition to completing a FAFSA and following the steps above, you will need to be accepted on one of the Bachelors degree or Masters degree programmes at Guildhall. If you are studying on the doctoral programme or on a non-degree course (eg Artist Diploma) you are not eligible to receive Federal Aid from Guildhall. You may, however, be eligible for a private loan such as Sallie Mae loans (with the exception of short courses).
You may borrow up to the Cost of Attendance and no more. This sheet is set up by the School for each academic year but may be adjusted by you to reflect specific needs. The spreadsheet will give a warning if too much money is requested.
There are limits set on the amount of money you can apply for depending on whether you are dependent, independent or postgraduate. These may be topped up to the full cost of attendance with a PLUS loan which is not an entitlement but is subject to credit checking and may be declined.
Loans available are:
| Student | Subsidised Loan | Dependent student Unsubsidised loan | Independent student Unsubsidised loan |
|---|
| Undergraduate year 1 | $3,500 | $2,000 | $6,000 |
| Undergraduate year 2 | $4,500 | $2,000 | $6,000 |
| Undergraduate year 3 & 4 | $5,500 | $2,000 | $7,000 |
| Postgraduate | $0 | $0 | $20,500 |
| PLUS loan |
Balance up to Cost of Attendance
|
Interest rates for each loan type can be found on the US Department of Education page about interest rates.
Subsidised and Unsubsidised loans include an origination fee of 1.066% deducted at disbursement. The origination fee deducted at disbursement for PLUS loans is 4.264%. The Cost of Attendance shows how much can be borrowed and how much is actually received by the student after the government deducts an 'Origination Fee' from each loan disbursement. The value that is going to be received is shown on the letter sent by the School when the loans are originated.
The lifetime aggregates remain $65,500.00 (subsidised) and $138,500.00 (combined subsidised and unsubsidised). Students may not borrow more than this total amount. Federal Direct Parent and Graduate PLUS Loans may be used as supplemental funding when subsidised and unsubsidised loan maximums are reached. As always, the total amount a student may borrow in student loans for any academic year is limited to the annual calculated cost of attendance minus all other sources of funding.
Disbursements
Disbursements will be made 3 times a year at the beginning of each term. All disbursements are made of the following conditions:
- Satisfactory Academic Progress is being made (see below)
- The student is enrolled at least part-time
- The student is not in the USA
- The student has not violated any federal compliance regulations (repayment default, fraud or drugs etc).
You will be advised by email 14 days prior that a disbursement is due, its value and how much is due to be deducted from it. It is your responsibility to contact the School to reduce or cancel the disbursement.
WARNING – if the School is not warned in advance not to draw down your disbursement, then you will be responsible for all interest charges and for its repayment.
From each disbursement the School deducts an amount that will go towards tuition, accommodation (if applicable) and any other charges incurred. The remainder will be forwarded to you in the form of a cheque that should be collected from the Finance Office, unless the School has your UK bank details in which case the money will be transferred directly to your bank account. Please note that in the UK cheques can take 3-4 working days to clear. Cheques will be issued in £sterling. If you need assistance opening a bank account please go to the Registry to request a status letter which the bank will need to see as proof that you are a student.
Satisfactory Academic Progress (SAP)
The School is required by the USDE regulations to ensure that all students receiving the Federal aid make satisfactory academic progress. If you fail to meet SAP then you will become ineligible for US Direct Loans.
For more information please read the School's SAP Policy.
Withdraw/Defer of course
Should you withdraw or defer during the academic year then you must inform the Student Funding Officer as soon as possible. If you withdraw from the programme then we will recalculate the financial aid eligibility based on the period of attendance. This could mean that you have to pay back money received. The School may also have to repay money paid towards tuition and/or accommodation. In this case you may become liable for additional fee payments to the School in order to replace these funds. Any calculation will be undertaken in line with the rules set by the US Department of Education and cannot be amended in any way.
US Loans and Federal Aid Return of Title IV Funds Policy
If a student who receives Title IV funding withdraws, interrupts for more than 180 days in a 12 month period or drops below half time attendance, Guildhall School of Music & Drama will follow the requirements of returning funds laid down by the US Department of Education and is applied alongside the college's withdrawal and refund policy. The Finance Office will use the 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. Please see the R2T4 Policy and the Tuition Fee Policy.
Exit Counselling
It is a legal requirement that all students who have received Federal loan(s) and have graduated or withdrawn from their programme of study complete exit counselling. This is done through the Student loans website. Please go to the site and follow the instructions for Stafford Loan and /or PLUS Loan exit counselling. Once you have completed the Exit Counselling please scan/pdf the ‘congratulations’ page and email it to the Student Funding Officer.
