US Federal Government loans

• Overview
• Eligibility
• When to apply
• How to apply
• General information

Overview

Welcome to The University of Queensland Financial Aid website for US students.

UQ is accredited by the United States Department of Education to administer various need based loans to eligible students and or parents as part of the WD Ford Direct Loan Program (DL).

Grants and Scholarships from the US Department of Education are not available to universities outside the United States and loans are the only available financial aid while studying at UQ and other foreign schools.

NB: these loans are only available to US Citizens.

Available loans:

• Stafford Loans (subsidized)

The subsidised Stafford Loans are awarded to students who demonstrate financial need.

The federal government pays your interest, (subsidizes you) while you are studying at least half-time, during the grace period and during an authorized period of deferment.

Although you are not required to make payments while you are studying, you will enter repayment six months after you graduate, withdraw from study, or drop below half-time enrolment (less than four units per semester at UQ).

• Stafford Loans (unsubsidized)

The unsubsidised Stafford Loans are available to all eligible students, regardless of income or need.

Unlike the subsidized Stafford Loan, you are responsible for paying the interest.

Interest accrues from the time of the first disbursement; however, you have the option of 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.

Alternatively, you can opt to make minimum monthly payments or 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.

• 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 does require 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 enrollment.

• Parent Loans for Undergraduate Students (PLUS)

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

These loans are need based and parents are eligible for this loan if the child is a dependent undergraduate student as defined by the US Department of Education.

Parents may borrow up to the total cost of attendance minus any other funding.

The program requires the borrower (parents) to pass a simple credit check.

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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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)
• Nursing programs are ineligible for US Federal funding, this includes Bachelors degrees and Masters degrees.
• If undertaking a research program, aid cannot be awarded if you undertake your research in the United States
• Enrolled internally at The University of Queensland, on campus (no distance , external or online courses)
• Agree to, and maintain Financial Aid satisfactory academic progress, while complying with the conditions of your student visa Australian Immigration / visa legislation.
• 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 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
• Comply with requests for documentation if selected for verification by the U.S. Department of Education, as indicated on your Student Aid Report
• Finally, you need to submit all documentation required by The University of Queensland to verify your eligibility and determine your financial need

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When to apply?

You must be given an academic offer letter from UQ before you apply for financial aid from the University.

However, you are able to file your FAFSA as soon as it becomes available.

While at UQ, you must apply annually for Aid in parallel to the UQ academic year (February to November) as aid is awarded annually for a maximum of 1 year at a time.

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

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How to apply?

Step 1: Apply for academic admission to UQ

Students can apply 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.

Step 2: Complete the FAFSA

To apply for a Financial Aid you must complete your FAFSA online. UQ recommends that you complete the FAFSA form at the same time that you apply for admission to the University.

Step 3: Get your student aid report (SAR)

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), the amount used in determining your eligibility for federal student aid.

The EFC is an amount you and your family should be able to contribute toward your university education during the academic school year.

Your EFC appears in the upper-right hand portion of the first page of your SAR. 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.

Please email, the 5 page Acrobat pdf version of your SAR to the University.

Step 4. Complete the application form

Complete the UQ Direct Loan Application form and submit it to UQ along with your other documents.

Step 5: 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.

This must be completed along with other processes, before UQ can certify funds for you.

If you progress from undergraduate to postgraduate studies, you must again complete entrance counseling.

Step 6: E-sign master promissory notes (MPNs)

Completing and e-signing MPNs is your actual loan application between you and the US Federal Government.

The MPN is a contract 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.

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

Some student may wish to borrow private loans to supplement Their Stafford funding. Due the current economic climate, Sallie Mae is the only Financial Institution lending privately to students at Foreign Schools. This information will be updated if competition becomes available. Please provide information to the University at time of application if you are borrowing privately.

Step 7: Submit all your documents

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

• Student Aid Report – 5 page pdf
• UQ Direct Loan Application Form
• Confirmation of Entrance Counseling
• Stafford MPN
• Grad Plus MPN or Parent Plus if applicable
• Proof of Private Loan Application, if applicable

Step 8: Respond in writing to the University

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.. You will be required to respond in writing to the University, acknowledging your annual loans. The university will then electronically certify your loans. Confirmation emails are sent from the US federal Governemtn when the loans are being processed.

Step 9: Meet with the Financial Aid Officer

Funds can not be released to the Univerisity or student before the start of your semester.

You should meet with the Financial Aid Officer during Orientation week to actively reconfirm the amounts you wish to borrow.

Funds will then be electronically drawn down from the US Federal Reserve and deposited into the UQ bank account.

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

Please contact the Financial Aid Officer for further assistance with this process.

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General Information

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

• In-School Status

Other Financial Aid programs and loans, such as Pell Grants and Federal Perkins Loans are not available to students enrolled in institutions outside of the United States.

However you may defer your repayments of these funds while you are enrolled in at least four4 units per semester at UQ.

• Cohort Default Rate

The University of Queensland’s official Cohort Default Rate for the 2006 Fiscal year is 2.6.

• UQ Students United States Medical Licensing Examination (USMLE) Scores:

• AmeriCorps

The University of Queensland is registered with AmeriCorps to receive online payments. For further information please contact the Financial Aid Officer or refer to the AmeriCorps website.

• Internal Revenue Service (IRS) Offshore Bank Accounts

All foreign bank accounts held by US citizens must be disclosed to the IRS annually and the TD F-90.22.1[FBAR form must be filed with the IRS. Failure to comply may lead to criminal charges or imprisonment for tax evasion in the United States.

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