US Federal Loan

US citizens or eligible non-citizens enrolled on a course that is at least 50% full-time may be eligible for student aid loans from the US government for their studies. The University of Derby is authorised as a foreign school to provide loans under the William D. Ford Federal Direct Loan (Direct Loan) Program.

Am I eligible?

For a student to be eligible for Direct Loans they must meet the following basic criteria:

Be a US citizen or an eligible non-citizen (those who are permanent residents or refugees, for example).
Have a valid social security number (SSN).
If a male, must have registered for Selective Service (military draft) between the ages of 18 and 25.
Not currently be in default on previous loan payments.
Not have reached the limit on the amount of loans they can have outstanding.
Be enrolled at least half-time on an eligible course.

Which courses can I receive aid for?

All degree programmes delivered in the UK at a Derby campus (Kedleston Road, Buxton) are eligible for aid. These include bachelors and masters degrees. Federal loans cannot be issued for:

Certificate programmes
Diploma programmes
Foundation Programmes
Distance learning programmes (in whole or in part)
Telecommunications or correspondence courses (in whole or in part)
Direct assessment programmes
Programmes that require a compulsory period of study abroad or internship of more than 25% of the length of the programme in the US
Programmes where a compulsory period of more than 25% of the length of the programme is dedicated to study abroad at a Title IV ineligible institution
Programmes offered in whole or in part via the distance-learning route
Nursing programmes

You will be notified if your course is eligible or not.

What are the types of loans I can receive?

There are three loan types that you can borrow to study at Derby:

Subsidised loans – an interest free loan for undergraduate students. There are annual and aggregate limits for how much you can borrow.
Unsubsidised loans – a loan with interest for both undergraduate and postgraduate students. There are annual and aggregate limits for how much you can borrow.
PLUS loans – a loan with a higher interest rate for postgraduate students or the parent of eligible undergraduate students who need additional funds to cover their Cost of Attendance (COA). There are no annual or aggregate limits for how much can be borrowed.

Please see How much you can borrow for information on the amounts you may be eligible for using these loans. Derby cannot disburse or administer any other types of loans or grants.

Applying for and Receiving Aid

The steps that you need to take to apply for Federal Loans is as follows:

Step 1

You must complete an online application called the Free Application for Federal Student Aid (FAFSA). Use this link to also access a paper version of the application if necessary. You will need to include details of yourself and the institution where you will be studying. The University of Derby has a school code which you need to put in the application. This code is 037283.

Step 2

Once you have completed the FAFSA email federalaid@derby.ac.uk to notify us. We will then download your Student Aid Report (SAR) to determine your eligibility and cost of attendance (COA).

Step 3

Complete a Master Promissory Note (MPN). This is a legal document in which you promise to repay the loans to the Department of Education. An MPN must be completed for each loan type (Sub/Unsub, PLUS) and each academic year.

Step 4

Complete Entrance Counselling. This is an information session designed to help you understand what it means to take out a Federal loan and offers advice on managing expenses. This must be done for both Subsidised/Unsubsidised loans and PLUS loans if you are borrowing both.

Step 5

Email federalaid@derby.ac.uk once you have completed the previous two steps. We will then ready the loans for disbursement and should everything be in order, write back with official confirmation.

These steps must be repeated each academic year that you wish to borrow Federal Loans.

What happens once my loans have been approved?

Once your loans have been approved you will be given your unconditional offer (assuming all other relevant conditions have been met). If necessary you will need to take the required steps to obtain a visa to study at Derby. Please check our pages for information.

When will I receive the funds?

Once your total funds have been determined the process of disbursing those funds to you does not begin until you have officially confirmed your enrolment in person. Prior to your arrival you will be informed of when you can expect to receive your first disbursement. This will usually be two weeks after teaching has started, or 30 days after for first-time borrowers studying an undergraduate course. It is very important that you bring enough funds to support yourself during the time you are awaiting your first disbursement of funds.

How will the funds be disbursed?

For undergraduate students your funds will be disbursed in two equal instalments, spread evenly throughout the year. For postgraduate students it will be in three instalments. For each instalment the university will deduct fees for your course. The remaining balance from that instalment is called the credit balance and that will be disbursed to you directly for your living costs.

To ensure you can receive your funds with ease you should set up a UK bank account as soon as you have enrolled on the course. The International Student Centre (ISC) can help you with this once you are here. If you do not set up a UK bank account there may be delays in receiving your loans.

After your studies

Is there anything I should prepare for before I finish my course?

Approximately one month before you are due to complete your course you will be contacted regarding completing Exit Counselling. Exit Counselling is similar to Entrance Counselling and provides important information to prepare you for repaying your loans. It is very important that you complete Exit Counselling once you are prompted to do so. More information about Exit Counselling.

When do I start repaying my loans?

You won’t start making payments until at least six months after you have completed your course. If your parent has borrowed a PLUS loan on your behalf the payments will be made once the loan has been fully disbursed.

Please visit the Student Aid website for information on repaying your loans, consolidation, deferment and forbearance.

Consumer Information

Federal regulations require schools to disclose specific consumer information to prospective and enrolled students. The following is a summary of the consumer information topic areas with links to policies, information and resources.