Frequently asked questions about US student loans

How do I apply for a loan?

Please see our How to Apply page for a step-by-step guide.

When should I apply for my loan and how long will it take to process?

We begin processing loans for the new academic year each May.

Any applications will need to be received a minimum of one calendar month before the next disbursement date to receive funds on that disbursement date. This applies to the first disbursement date as well as to any applications made throughout the year.  (Please see our Loan Disbursement page for disbursement dates).

We can normally process your loans in around two weeks, depending on individual circumstances; however during our peak application season (June to October) the process can take significantly longer.  Therefore, if you need your application to be processed for a particular deadline, please ensure you apply in plenty of time (we recommend applying at least five weeks before a deadline). It is your responsibility to ensure that a complete loan application is submitted in a timely manner.

We cannot guarantee that applications will be approved within these timescales if there are outstanding matters related to the loan.

It is also possible to apply for or adjust your loans during the year; this is particularly useful for students who have not borrowed their full cost of attendance and would like to apply for additional funding. Please see our How to Apply and Amending your Loan pages.

 I  received a US federal student loan at Oxford last year,  do I need to re-apply or will I automatically receive loans for each year of my course?

You must apply for your US loan each year. Please follow the instructions on our How to Apply page if you wish to submit an application for a loan this year.

I have completed my FAFSA but I haven't heard anything, what should I do?

There are several other steps to completing a loan application at Oxford, other than the FAFSA.  As a foreign school, we are not notified when you complete your FAFSA, you must complete all of the steps on our How to Apply page in order to notify us that you are applying for a loan.

Why can't I receive my entire loan amount at the beginning of my studies and when will I receive my loan disbursements?

Following several cases of fraud in the US, the US Department of Education decided to make multiple payments or 'disbursements' common practice for all federal loans. This means that you can only receive loan disbursements in equal amounts at the beginning of each academic term. The terms at Oxford are Michaelmas (October-December), Hilary (January-March) and Trinity (April-June). There will be a disbursement at the beginning of each of these terms; please see our Loan Disbursement page for more detail.

My college has asked me to pay all tuition and college fees on arrival at Oxford. How can I do this if I will receive my loan in several payments?

Although it is standard practice to invoice students for all fees at the beginning of the academic year, special dispensation will be made for students who are funding their studies by means of a US federal loan.  Your college will arrange for your fees to be paid in instalments that correlate with your US loan disbursements. Please see our Loan Disbursement page for more detail.
Once your loan has been approved, we will contact your college to inform them of your loan amounts and disbursement dates. If your college has questions about your loan or the disbursement process, you can ask them to contact the US Loans Team directly by emailing us.loans@admin.ox.ac.uk.

How can I defer repayment on previous US student loans? 

Please see our Defer repayment on previous US student loans page.

What is Cost of Attendance (COA)?

Your cost of attendance refers to the costs of completing your study at Oxford for one academic year.  This, less any other financial aid you may be receiving, is used to calculate the level of US loan funds that you are eligible to borrow. These costs must relate only to you, the student, and can include: tuition and college fees; room and board; books and supplies; transport and personal expenses; dependent care; disability-related expenses; and loan origination fees. The cost of attendance cannot include costs for partners or children (other than child care/nursery costs). Your COA can include return flights to the US, but please note that we cannot issue loan payments before the beginning of the academic year, so you should not rely on your first payment to finance your travel to Oxford.

What exchange rate is used when calculating my cost of attendance?

For the 2013/14 academic year, Oxford is using the exchange rate of $1.67 = £1 to calculate the cost of attendance. However, the actual amount that you will receive in GBP (£) will depend upon the exchange rate available to your college's bank, or currency exchange service provider, on that particular day.

Some of Oxford’s colleges use Travelex to carry out the currency exchange. Whilst any bank or service provider that carries out currency exchange services will charge a fee for the conversion, Travelex have waived all other fees and offer this service for free to the University and its colleges. The cost of currency conversion via Travelex is comparative with the rate charged by banks. Please note that the exchange rates often quoted in the media are the inter-bank rate, which is subject to additional fees, and cannot be obtained unless you are transferring very large sums of money.

How is my academic performance assessed once I have obtained the funding?

The University of Oxford is required by US Federal Law to define and enforce standards of Satisfactory Academic Progress (SAP) on students who wish to access US Federal Funds. The guidelines have been established to encourage students to progress and complete successfully the academic programme for which aid is received.

What happens if I fail to make satisfactory academic progress?

If you fail to make satisfactory academic progress, you will be placed on financial aid probation for six months. If you have been placed on probation and subsequently meet the requirements in the next term, you will be placed back into good Financial Aid standing.

Students who have been placed on probation and do not meet the requirements applicable to degree and level will be suspended and ineligible to receive aid until such time as they achieve the required standard.

Students who transfer into a new academic program will also transfer with any SAP warning or sanction and will still need to meet the specified criteria in the new programme before re-establishing eligibility to receive aid.

What are my repayment options?

Please see our Repayment of US student loans web page.

Is the University of Oxford eligible for the US Department of Veterans Affairs Funding?

Yes, we are able to process VA funding and this is managed by the US Loans Team. Please email us at us.loans@admin.ox.ac.uk for more information.

What happens if I withdraw from a course at the University of Oxford or become ineligible for federal student aid, but have already received US federal loans?

Please see our Changes to your enrolment at Oxford (including suspension or withdrawal) web page.

Am I a dependent or independent undergraduate student?

Please see our Loan Types and Amount for Undergraduate Students page.

How do I increase / decrease / cancel my loan, mid-year?

Please see our Amending or cancel your Loan page.

What is EFC?

EFC stands for Expected Family Contribution and is shown on your Student Aid Report (SAR) which is generated once you complete your FAFSA. We ask undergraduates to add the EFC to their cost of attendance worksheet.  The EFC is used to determine 'need' and therefore it limits the amount that you can borrow as a Direct Subsidised loan; it is not required for graduate loan applications as this loan type is not available to graduates.  You may still borrow up to the full cost of attendance, even if you have a high EFC, using the unsubsidised or Plus loans.  Please note that although the EFC stands for Expected Family Contribution, essentially it is used to determine financial need, rather than reflecting whether or not your family will be contributing to the cost of your studies.  The EFC cannot be amended by the University if your family are not contributing to your studies.

What is an origination fee?

This is the fee charged by the U.S Department of Education to cover initial administrative charges related to your loan. For information on origination fee amounts please refer to our Loan types and amounts page.

What is Entrance Counselling and Exit Counselling?

It is important that you understand the responsibilities and obligations associated with a student loan. It is also a US Department of Education requirement that you undertake Entrance and Exit Counselling (most commonly taken through StudentLoans.gov) at the start and end of your studies. The counselling informs you about loan repayment, money management, your responsibilities as a borrower and it outlines the terms and conditions of your loan. The US Loans Team will request that you complete exit counselling towards the end of your course or if you withdraw, suspend or cancel your loan. The University does not collect information through exit counselling in order to provide this to servicers.

What is a Guarantor?

This is an organisation approved by the US Department of Education to guarantee Direct loans; generally a state-operated organisation or non-profit agency. They are required to maintain a reserve to cover defaulted loans, and to conduct default prevention activity. Guarantors also serve as the security or collateral on these loans, so students are not required to obtain co-borrowers. You can check your guarantor details at StudentLoans.gov.

How do I obtain proof of funding for visa purposes?

Once your federal loan(s) have been processed, the US Loans Team at Oxford will send you an award letter which will detail your loan amounts and disbursement dates. We will send this by email and by post and we will also provide a copy to your college so they know that your loan has been approved.  The wording and format of the letter has been agreed with the UK Border Agency as acceptable proof of funding. The original award letter (with signature) must be available when you apply for a student visa, but not everyone will have to submit the letter with their application.  Please access this webpage to confirm whether you are required to submit your award letter with your student visa application: http://ukba.homeoffice.gov.uk/visas-immigration/studying/adult-students/evidence/.  The University website also gives detailed information about the visa process: http://www.ox.ac.uk/students/international_students/visabefore/tier4studentvisa/.

How do I contact the US loans team at Oxford?

If you haven't found the information you are looking for on our web pages, please send us an email at us.loans@admin.ox.ac.uk or call (+44) 01865 280487 (Mon to Fri, between 9am and 5pm, UK time).