US Federal Loans - The Courtauld Institute of Art

US Federal Loans

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Financial Support for International Students

US Federal Loans

US Federal Loans

The Courtauld Institute participates in the William D. Ford Federal Direct Loan (Direct Loan) Program. This webpage outlines the types of loans available, how to apply for them and when and how they are disbursed. We will also keep you informed at each step of the process by email.

You may have previously borrowed via a private lender through the FFEL Program. This program is no longer available. However, the Direct Loan Program offers the same loans but instead of a bank lending the money, the U.S. Department of Education (the Department) lends the money directly to students through the student’s school.  There are also some differences in the names of the loans.  The FFEL Program’s Federal Stafford Loans (subsidized and unsubsidized) are called Direct Subsidized Loans and Direct Unsubsidized Loans and the FFEL Program’s Federal PLUS Loan is called a Direct PLUS Loan in the Direct Loan Program.

Please note that students studying outside of the USA are not eligible for PELL Grants or Perkins loans.

Please note that if you are applying for a programme which runs from more than one year in duration you will need to complete this process each year for your programme of study.

 

Your Application

Eligibility Criteria

In order to be eligible for a US Federal Loan you must be:

  • A US citizen or US Permanent Resident with a valid social security number
  • You are not in default on any pervious student loans
  • Male students also have to be registered for selective service
Complete your FAFSA application

If you meet the eligibility criteria then you will need to complete  your to complete your Free Application for Federal Student Aid (FAFSA), in order to obtain your Student Aid Report (SAR). The SAR is the document used by schools to determine your  eligibility for a US loan and to calculate your loan entitlement.

The Courtauld’s Federal School Code is: G21200.

Once your SAR is available, you should mail the original 10-page SAR (and not the online print-out) to The Courtauld at:US Loan Administration Academic Registry The Courtauld Institute of Art Somerset House Strand London WC2R 0RN UKBefore sending your SAR, you should ensure that there is an amount listed in the Expected Family Contribution (EFC) field, as it will be used to calculate your loan entitlement. If you are male and under the age of 26, you should also ensure that you are registered with Selective Services. Please write your Social Security Number on the top, right corner of the first page.

Further information on the types of loans you can apply for and on the scheme itself can be found here:

https://studentaid.ed.gov/sa/fafsa

Complete a Master Promissory Note (MPN)

You must complete a new Direct Loan Master Promissory Note (MPN) for each loan type you wish to borrow.

The MPN is the legal document through which you promise to repay your Direct Loans and any accrued interest and fees to the Department.  It also explains the terms and conditions of your loans.  In some cases, a Direct Loan MPN can be used to make loans for up to ten years. However, you will need to complete a new Direct Loan MPN each academic year that you receive a Direct Subsidized Loan and/or a Direct Unsubsidized Loan at our school.

  • You may complete a Direct Loan MPN electronically via the Direct Loan web site.
  • To complete a Direct Loan MPN electronically, you must have a Federal Student Aid PIN.  This is the same PIN used to complete the FAFSA.
  • After you complete your MPN, you will be able to print and retain it for your records.
  • Please keep a PDF copy of the MPN for your records and e-mail a copy to us.
Complete your Entrance Counselling

It is a Federal Loan regulation that you complete Entrance Counselling as part of your loan application. The counselling is designed to help you to understand the rights and responsibilities of Federal Student Loan borrowing. You can complete your counselling electronically at https://studentloans.gov/myDirectLoan/whatYouNeed.action?page=counseling&accordian=entrance

You may also find it useful to undertake the Financial Awareness Counselling at: https://studentloans.gov/myDirectLoan/whatYouNeed.action?page=counseling&accordian=finance

While this is not compulsory you may find it a useful tool in managing your money.

Once you have completed the counselling, you will be issued with a completion certificate. Again, please keep a PDF copy of your certificate for your records and email a copy to us.

PLUS loans

If your parent or guardian wishes to apply for PLUS Loans to help you with your studies, s/he will need to complete a credit check, MPN and Entrance Counselling. This can also be done on the Federal Student Loans website.

Again, you should retain PDF copies of the MPN and Entrance Counselling and also send along the confirmation of credit check approval.

Loan Certification

Once you have completed the required processes as outlined in the email sent to you, we will originate (certify) the loans and send a confirmation letter to you. You will be able to use this letter to support your visa application.

Federal loans can only be disbursed in 3 instalments and must be allocated to any due Tuition or Hall fees first. This will clearly affect your financial plans for the year and the options available to you. You should contact Student and Academic Services in the event of a query.

Please note that once originated loan information will be sent to the National Student Loan Data System.

As you can see this is a long process. In order for you to have your payment disbursed in time for the start of session you will need to have completed your FAFSA and signed the MPN by early July if possible. You will also need proof of funding for your visa application.

To Complete your Application

In order for the Courtauld to process your application, you MUST send and/or to the Courtauld, the following:

  • Sent the original 10- page SAR by post to The Courtauld.
  • Emailed PDF copies of your MPN and Entrance Counselling Certificate (for Unsubsidized Stafford Loans).
  • (Optional) Emailed PDF copies of your MPN, credit check and Entrance Counselling Certificate for PLUS Loans.

We CANNOT accept the online 5-page version of the SAR.  You must contact FAFSA and specifically request a hardcopy original be sent to you and then mail it to us.  They may tell you that this is not necessary to do and your university can access this information, but this is untrue.  As an overseas institute we MUST have the original 10-page SAR, and it must be mailed to us.

If you have any questions about the sending any of the above, please email pgadmissions@courtauld.ac.uk

Disbursement of Funds

Before each disbursement the Courtauld is required to confirm you are still eligible to receive funds. This includes ensuring you are making Satisfactory Academic Progress (see below) and are studying ‘at least half time’ and you are not conducting any study or research in the US.

The loans will be disbursed to the Courtauld who will then arrange to convert the loans to pounds sterling. Once we know the amount in pounds received the money is allocated to tuition and accommodation fees as laid down in the US Dept of Education regulations before any excess is returned to you. You will then be notified of how the loan has been allocated.

Excess funds are returned to you in GBP, either by cheque or bank transfer to a UK bank account..

Please note any PLUS loan is allocated to your Institutional charges before the subsidised and unsubsidised.

Exit Counselling

As with Entrance Counselling, you will be required to complete Exit Counselling before you receive your final loan disbursement. This can be completed electronically on the Federal Student Loans website

Satisfactory Academic Progress

Satisfactory Academic Progress for Federal Aid Recipients

All students who receive a US Federal Loan whilst studying at the Courtauld Institute of Art are required to make satisfactory progress on their course of study and to abide by the Institute’s regulations and all associated policies and procedures.

The Institute is required by the US Department of Education to check a student’s progress at intervals and to ensure that they meet both the Quantitative and Qualitative Requirements below:

 

Quantitative Requirements

Students enrolled on courses at The Courtauld are expected to attend ALL components of the course. Attendance is monitored, and if you miss two or more classes without good reason Student and Academic Services will contact your tutor, and you will be issued with a warning.

Postgraduate Research students are expected to attend and to meet with their supervisors regularly.  Supervisors will contact students who do not attend supervisory meetings or the compulsory Research Forum meetings.

Students may not receive federal aid if they have taken more than 150% of the normal duration of the course to complete their studies.  This applies to both undergraduate and postgraduate courses. Periods of interruption will not count towards this calculation.

Qualitative Requirements

Undergraduate students are expected to maintain satisfactory academic progress throughout their course of study as follows:

BA Year 1:  students must pass four course units at 40% or above in order to progress to year 2.

BA Year 2: students must pass 3.5 course unit s at 40% or above to progress to year 3.

BA Year 3 students must pass 3 course units at 40% or above to be awarded an undergraduate degree.

If a student meets all progression requirements they will be placed on good standing for financial aid.

Students who meet the progression criteria will be placed on good standing for Financial Aid.

Students who are unable to meet the progression criteria are deemed unable to progress and will be suspended for the purpose of Federal Aid until they have met the progression requirements at the next available attempt.  If a student fails to progress at the next available attempt then Financial Aid will be suspended.

Postgraduate Students are expected to maintain satisfactory academic progress throughout their course of study as follows:

Students must pass all assessments prescribed for the course at 50% or above.  Students who do not meet the progression criteria will be offered, at the discretion of the Assessment Board, another attempt at the next available opportunity.

Students who meet the progression criteria will be placed on good standing for Financial Aid.

Financial Aid will be suspended for students who do not meet the progression criteria.

Postgraduate Research Students

Postgraduate research students are expected to maintain satisfactory academic progress as follows:

In Year 1 research students must successfully complete the First Year Monitoring Exercise and the upgrade from an MPhil to a PhD.

In Years 2 and 3 research students must successfully complete the Annual Monitoring Progress report.

Students who do not meet the progression criteria will be offered, at the discretion of the Research Degrees Committee, another attempt at the next available opportunity.

Students who meet the progression criteria will be placed on good standing for Financial Aid.

Students who are unable to meet the progression criteria are deemed unable to progress and will be suspended for the purpose of Federal Aid until they have met the progression requirements at the next available attempt.  If a student fails to progress at the next available attempt then Financial Aid will be suspended.

Financial Aid Warning

Students who fail to make Satisfactory Academic Progress will firstly be issued with a ‘Financial Aid Warning’. This warning will last for 1 payment period (ie until the next disbursement), during which time a student can still receive Financial Aid. Students that fail to regain Satisfactory Academic Progress by the next disbursement will no longer be eligible for Aid, unless they are successful in an appeal (see below)

Appeal Procedure

To appeal the financial aid suspension, a student must, within 14 calendar days of notification, submit to Student and Academic Services, a signed and dated letter of appeal explaining why he or she shouldn’t have Financial Aid suspended. A student may appeal due to an emergency condition (e.g., health, family, catastrophe, etc.) and state what has changed in their situation that will allow them to meet Satisfactory Progress at the next evaluation date. Documentation verifying the situation may be requested.

The appeal will be considered by the Head of Student and  Academic Services and the Finance Department a decision will be made, and the student will be informed in writing of this within two weeks of the student’s appeal.

Please send your appeal to: advice@courtauld.ac.uk

Consumer Information
Information for students intending to interrupt their studies or withdraw
Return of Title IV Funds Policy

If a student in receipt of Title IV funds withdraws, or interrupts for more than 180 days or drops below half time attendance the Courtauld Institute will follow the requirements of returning funds laid down by the US Department of Education, this will be applied by alongside the Institute’s Interruption and Withdrawal policy.  The Institute will use RT24 (Return of funds calculator  provided by the US Department of education to determine how much of the loan may be retained and how much must be returned.

Information for students intending to interrupt their studies or withdraw

Return of funds by the school

A student ‘earns’ aid on a daily basis and therefore if a student withdraws any ‘unearned’ aid for that payment period will need to be returned to your lender. Once the amount the Institute and the student needs to return has been calculated a cheque will be sent to the lender and the student notified if they need to return any funds.

Loans are returned in the following order:

  1. Unsubsidised Stafford
  2. Subsidised Stafford
  3. PLUS (Graduate or Parent)

There are some Title IV funds that students may have been scheduled to receive that cannot be earned once a student withdraws because of other eligibility requirements. For example, in certain circumstances, if a first-time, first-year undergraduate student has not completed the first 30 days of the program before withdrawal, the student will not earn any FFEL loan funds that he or she would have received had the student remained enrolled past the 30th day.
A first year undergraduate, receiving Aid for the first time who withdraws within the first 30 days of a programme will be deemed not to have earned any aid.

As this policy uses a different calculation to the Institute withdrawal policy it may mean that the student owes the Institute once the money has been returned to the lender. Students will be notified if this is the case.

Return of funds by student

If the student is notified that there are loan funds that must be returned (by the student) the student should repay in accordance with the terms of the promissory note. That is, scheduled payments are made to the holder of the loan over a period of time. Students who have received a refund of their loan proceeds before withdrawing may be required to return part or all of those funds to the lender.

Approved leave of absence

If a student interrupts it is important that they also speak to the Finance Office  in order for the correct loan status to be determined.

An Approved Interruption can last for 180 days before a student goes into repayment or has to return funds. If the student does not return after 180 days the last date of actual attendance will be used to calculate the ‘earned’ loan amount and the date a student enters repayment.

 

 

If you have any questions about the Institutional side of the application, please email pgadmissions@courtauld.ac.uk.

Other Useful Contacts:

US Dept of Education: (202) 377 3168 or (213) 345 2104

Full information about the loan process can be found on the Federal Student Aid website.

Click here for FAFSA Website.

Click here to apply for Direct Loans.


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