US Federal Loan
US Federal Loan information
US Federal Loan information
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.
US Federal Loan details
1.Complete your FAFSA
The first step in applying for a US Federal Direct Loan is to complete a FAFSA (Free Application for Federal Student Aid). The Federal School Code for Guildhall School of Music & Drama is G21967. To apply electronically, you must have an FSA ID. Start the application process.
Please note that you must re-apply for each academic year of study.
As soon as you have submitted your FAFSA, please inform us about your application by emailing your full name to the Senior Student Funding Officer.
2. Student Aid Report is generated
Once your FAFSA is completed and processed, it will generate a Student Aid Report (SAR). This is used by The Guildhall School to determine your eligibility for a loan as stipulated by the U.S. Department of Education.
3. Award Letter is sent to you
After the School receives your SAR, you will receive an Award Letter approximately two-three months before the beginning of academic year. The letter details the amount of loans you may be eligible for based on such elements as your Cost of Attendance, your year of study, need and other financial assistance.
4. Complete your Master Promissory Note (MPN).
Once you have accepted and returned your Award Letter, you can go on to complete the applicable Master Promissory Notes (MPN). The MPN is a legal document in which you promise to repay your loans and any accrued interest and fees to the US Department of Education. It also explains the terms and conditions of your loans.
The MPN is a binding legal document that you must sign when you get a federal student loan. It lists the terms and conditions under which you agree to repay the loan and explains your rights and responsibilities as a borrower. It is important to read and save your MPN because you’ll need to refer to it later when you begin repaying your loan or at other times when you need information about provisions of the loan, such as deferments or forbearances.
5. Complete your Entrance Counseling
Except for parent Direct PLUS Loan borrowers, if you have not previously received a loan, you must complete entrance counseling before the School can make the first disbursement of your loan. This helps you to understand your responsibilities regarding your loan. You can complete your entrance counseling online.
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. 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, a non-degree or online course 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.
| 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 |
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 1.057% deducted at disbursement. The origination fee deducted at disbursement for PLUS loans is 4.228%.
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 are:
- $57,500 for undergraduates - no more than $23,000 of this amount may be in subsidised loans.
- $138,500 for graduate or professional students - no more than $65,500 of this amount may be in subsidised loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
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 will be made three times a year at the beginning of each term - end of September/ start of October, January and May. All disbursements are made on 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 transferred directly to your UK bank account once the details have been provided to the Finance Department upon request. Please note payment processing can take up to 10 working days from when the disbursement is received by the School.
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.
The School is required by the US Department of Education 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, this will be sent to you by email once the application process is complete.
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.
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 policy below
Return of Title IV Funds Policy.pdf
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 Direct 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.
