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Federal loan FAQs

Frequently asked questions

Not sure of all the Federal Aid terminology? studentaid.ed.gov have put together a helpful glossary.

When and how will my loan be paid?

Federal Loans are paid at the beginning of each semester; normally October and February.

Tuition fees and accommodation fees (if applicable) will be deducted from the loan and the credit balance will be paid directly to a UK bank account. 

Are private loans such as Sallie Mae disbursed the same way as Federal Loans?

Private loans such as Sallie Mae can be disbursed in 1 lump sum at the beginning of the academic year, or by semester in line with Federal Loans.

Having the loan disbursed in a lump sum will incur more interest, because the entire balance incurs interest when the loan is disbursed.  Disbursement by semester will incur less interest.

What exchange rate will be used to convert my US loan?

We will use the market rate from our bank on the day we convert the USD into GBP.  This is when the US loan is received in our bank account and converted to GBP.

How will my tuition and accommodation be paid?

We will deduct half of your tuition and accommodation fees (if applicable) from your disbursement amount before paying you the remaining balance.