US Federal Government loans

• Overview
• Eligibility
• Loan Types
• Loan Limits
• Cost of Attendance
• When to apply
• How to apply
• General information

Overview

Eligibility

To be eligible for financial aid at The University of Queensland, you must meet the following criteria:

• Be enrolled at least half-time in an eligible program i.e. a degree program (Bachelors, Masters by Coursework, or Research program, MPhil or PhD).
• Have a high school diploma or a General Education Development (GED) Certificate, pass an Ability-To-Benefit (ATB) test approved by the U.S. Department of Education, meet other standards your State establishes that the Department approves, complete a high school education in a home (US) school setting that is treated as such under US State law, or have satisfactorily completed six credit hours or the equivalent course work toward a degree or certificate.
• Be enrolled internally at The University of Queensland, on-campus (no distance, external or online courses).
• Agree to, and maintain Financial Aid satisfactory academic progress.
• Be a citizen or eligible non-citizen of the United States.
• Not be in default on any education loan or owe a refund on an education grant.
• Not have been convicted of any offence under US State or Federal law involving the sale or possession of a controlled substance.
• Be in compliance with Selective Service Registration requirements if you are male and between the ages of 18-25.
• File a Free Application for Federal Student Aid (FAFSA).
• For PLUS loans, the borrower must also pass a credit check as required by the US Department of Education.
• Submit all documentation required by The University of Queensland to verify your eligibility and determine your financial need.

NB:

• All non-Australian citizens must also comply with the conditions of your relevant visa (Australian Immigration / visa legislation).
• Nursing programs are ineligible for US Federal funding. This includes Bachelors and Masters degrees.
• Certificate, Diploma, Postgraduate Certificate and Postgraduate Diploma programs are ineligible for the Direct Loan Program.
• If undertaking a research program, aid cannot be awarded if you undertake your research in the United States.
• It is a requirement under the Australian ESOS Act that all international students are enrolled full-time.

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Loan Types

 Stafford Loans (subsidised)

The Stafford Loan is based on financial needs as demonstrated to the US Department of Education. The US Federal Government pays your interest, (subsidises you) while you are studying at least half-time, during the grace period and during an authorised period of deferment.

Repayments for the loan will commence:

• Six months after graduation.
• If you withdraw from study, or
• If you drop below half-time enrolment (less than four units per semester at UQ).

NB: Effective for loans made for enrolment periods (award year) commencing on or after 1 July 2012, all Graduate and Professional students are ineligible to receive Stafford Subsidized Loans. However, Graduate and Professional students whose enrolment period (award year) began prior to 1 July 2012, are not affected by this change.

Undergraduate students are also unaffected by this change.

For further information, please visit the US Financial Aid website or contact one of the Financial Aid Officers.

Stafford Loans (unsubsidised)

This loan is not based on financial needs and is available to all eligible students. As an unsubsidised loan you are responsible for paying the interest. Interest accrues immediately from the time of your first disbursement. Options for payment include:

• Making minimum monthly payments of the unpaid balance including interest, whichever is less while in school. This will save you a considerable amount and reduce your debt in the long run.
• Deferring your interest and principal payments until you enter the repayment period (at which point this interest is ‘capitalised’). This option may increase your monthly repayment amounts when you leave university.

Direct PLUS Loans for Graduate Students (Grad PLUS) 

The Grad Plus loans are federally guaranteed loans that allow graduates to borrow funds to pay for educational expenses on their own signature or with an eligible co-signer.

• The loan requires the borrower to pass a credit check.
• Before applying for this loan the borrower must apply for and the school must determine their eligibility for the maximum annual Stafford loan amount.
• Repayment usually occurs 6 months after the student graduates, withdraws or drops below half-time enrolment.

Direct PLUS Loans for Parents

The PLUS loans are federally guaranteed loans that allow parents to borrow funds to pay for the educational expenses of their dependent undergraduate student.

• Loans are needs-based.
• Parents with children who are defined, by the US Department of Education, as dependent undergraduate students are eligible for this loan.
• A credit check must be passed.
• Interest begins to accrue when funds are disbursed and repayment begins within 60 days after the loan has been fully disbursed.

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Loan Limits

* NB. Applies to loans originated on or after 1 July 2012

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Cost of Attendance

The Cost of Attendance is an estimate of your education expenses for an enrolment period (award year) of up to twelve months. As specified under US Law, Cost of Attendance amounts are the same for all US Direct Loans. The Cost of Attendance will appear on your Award letter and will specify the total amount you may borrow under the Direct Loan Program minus any other aid you may be receiving for that award period.

Allowable costs calculated in your annual Cost of Attendance are detailed below. These figures are reviewed and updated annually.

All amounts above are in Australian dollars (AUD) and are converted to US dollars (USD). The USD Cost of Attendance appears on your Award Letter.

A conversion between Australian and US dollars occurs on two separate occasions during your application process.

1. On application the Cost of Attendance is calculated in AUD and then converted to USD to calculate the eligible US Loan amount. The USD amount will appear on your Award letter.
2. The US Federal Government transfers the loan amounts to The University and the funds are converted again from USD to AUD on the date the funds are deposited into The University bank account. Your disbursement amount is then available to you from the first day of semester.

The two conversion points as explained above may result in variances to the loan amount due to exchange rate fluctuations between the USD and AUD.

As the two conversions above occur at different points during the year each conversion will result in a rate risk due to movement in the USD/AUD exchange rate. It is the borrower’s responsibility to understand and accept this risk as part of studying at The University of Queensland and borrowing US Financial Aid. The University is unable to set any exchange rates.

All aid awarded to you under either the Direct Loan program, or a private loan, cannot exceed your COA.

If you believe that you are eligible to receive additional amounts (i.e. for dependent care and/or additional educational expenses) please complete the relevant form and submit all documentation to the Financial Aid Officer for an assessment.

• COA Appeal - Additional Dependent Care Expenses
• COA Appeal - Additional Educational Expenses

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When to apply? 

You must be given an academic offer letter from UQ and you must accept your offer before applying for financial aid from the University.

While at UQ, you must apply annually for Financial Aid in parallel to the UQ academic year. Aid is awarded annually for a maximum of 1 year at a time.

Financial Aid applications will generally be processed 1-2 months prior to the commencement of your study period once all documentation has been received 

More information is available on the US Federal Student Aid website.

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How to apply?

Step 1: Apply for Financial Aid after accepting your academic offer from UQ

Students can apply for academic admission to The University through one of UQ’s authorised international education representatives or directly to the University using a hard-copy application form. Detailed information is available on the UQ International website.

However, you must receive and accept your academic offer before applying for Financial Aid.

Step 2: Complete the FAFSA and receive your Student Aid Report (SAR) 

To apply for a Financial Aid you must complete your FAFSA online.

Once your FAFSA form has been filed with the US Department of Education, you will receive a Student Aid Report (SAR). The SAR confirms information you provided on the FAFSA.

If you apply electronically you will receive a SAR Information Acknowledgement in the mail within two weeks of submitting your completed application.

If you apply by mail, it will take approximately four weeks to receive a SAR acknowledgement in the mail.

The SAR will report your Expected Family Contribution (EFC). This amount is used to determine your eligibility for federal student aid.

Your EFC appears in the upper-right hand portion of the first page of your SAR. The EFC details the amount you and your family should be able to contribute toward your university education during the academic school year.

The aid you may receive is determined by subtracting your EFC from the estimated educational expenses you are expected to incur during your studies at The University of Queensland.

Step 3: Complete the application form

Complete the UQ Direct Loan Application form.

Step 4: Complete entrance counseling

If this is your first application for US Financial Aid at UQ, you must complete Entrance Counseling, through the StudentLoans.gov website.

If you are progressing from undergraduate to postgraduate studies, you must complete the online entrance counseling again prior to your postgraduate program.

Step 5: E-sign Master Promissory Notes (MPN's)

Complete and e-sign the Master Promissory Notes (MPNs).

The MPN is a contract between you and the US Federal Government that you sign when you receive a loan. Signing this note indicates that you promise to repay your student loan.

The note includes important information about your rights and responsibilities as a borrower. Follow the links to the MPNs from the StudentLoans.gov website. The MPNs may depend on your specific loan:

• Undergraduate students should complete a ‘Stafford’ MPN.
• Parents of undergraduate students may complete a ‘Parent Plus’ MPN.
• Postgraduate and Professional Students should complete both ‘Stafford’ and ‘Grad Plus’ MPNs

Step 6: Submit all your documents

 Submit the copies of the following documents by email to the University Financial Aid Officer:

• Student Aid Report – 5 page pdf.
• UQ Direct Loan Application Form.
• Confirmation that you have completed the Entrance Counseling (Step 4) – Counseling Session/Quiz, if applicable.
• MPNs if applicable.
• Proof of Private Loan Application, if applicable.

Step 7: Sign Award Letterand Complete Bank Reconciliation Form

Upon receiving your documents, The University of Queensland will determine borrower eligibility. The University will advise you in writing through your Award Letter of the loans and amounts available to you for the loan period. However, please note that Financial Aid applications will not be processed until 1-2 months prior to the commencement of your study period once all documentation has been received.

You will be required to respond in writing to The University, acknowledging your annual loans by signing and completing your Award Letter and Bank Reconciliation form with the amounts you wish to borrow. The University will then electronically certify your loans. Confirmation emails are sent from the US Federal Government when the loans are being processed.

NB. Your Award will be calculated in Australian dollars and converted to US Dollars on the day the calculation is made. Your Award letter will notify you of the amount in US Dollars and Australian dollars and how this calculation was made. You bear the risk of any changes in the actual amount that result from exchange rate variances.

Step 8: Disbursement of Funds

Funds cannot be released to the University or student before the start of each semester and until UQ receives your completed signed Bank Reconciliation form.

The funds you have signed for on your Award Letter will then be electronically drawn down from the US Federal Reserve and deposited into the UQ bank account in US Dollars. This process can take approximately 10 business days.

Please note that the US Department of Education deducts origination fees from each disbursement, prior to depositing the funds into UQ’s bank account (information on fees and rebates is covered in your Entrance Counseling and can be found in the Disclosure Statement sent to you when your loan is disbursed).

UQ will then convert the funds into Australian dollars, deduct your tuition fees and pay the balance/ living allowance into your nominated bank account if applicable.

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General Information

General information regarding Financial Aid - loans, repayments, consolidation, income tax is available via the US Department of Education website.

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