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Loan Disbursments and how loans are received

Loan disbursement

The disburesment dates for Federal Aid loans will vary depending on your level of study.

The actual amount in GBP £ you receive will vary as is it dependent upon the exchange rate from USD $ to GBP £ at the time of disbursement.

The following disbursement dates are when the funds are requested from the Department of Education by the University of Exeter

Undergraduate (UG):

6th October 2021

26th January 2022

Postgraduate Taught (PGT):

6th October 2021

26th January 2022

25th May 2022

Postgraduate Research (PGR):

6th October 2021

6th April 2022

When will you receive your disbursements?

You will receive each disbursement no earlier than 10 working days after the listed disbursement dates above

All disbursements are subject to the following conditions

  • You are making satisfactory academic progress
  • You are enrolled at least part time
  • You are not in USA
  • You have not violated any federal compliance regulations (repayment default, fraud, drugs)

You will receive an e-mail with a disclosure statement attached advising you that a disbursement is due and the value of it in USD $. When you receive this e-mail you may contact us to reduce or cancel the disbursement. If you wish to cancel or reduce your loan please email usloanfunding@exeter.ac.uk clearly stating you wish to cancel or reduce your loan.

Please ensure that when you arrive in the UK, you have sufficient funds to cover two weeks of living/maintenance costs as it can take up to 10 working days for your loan funds to be made available to you after you have registered as a student.

 

WARNING - if you do not warn us in advance not to draw down your disbursement, then you will be responsible for all interest charges and for its repayment.

Deadlines

To prevent delays in the drawdown of your first loan disbursement, we ask you have supplied the University with your completed Student information form, and completed your FAFSA MPN and entrance counselling by 1st August. Any applications received after this date will still be reviewed, but may result in a delay.

How your loan funds will be received

The University of Exeter will receive your loan proceeds, and the funds will be applied to your student account to offset any charges applicable for that payment period.

Once all charges for that period have been paid, any balance will be returned to you in GBP (£) to your UK nominated bank account by electronic transfer or by international bank transfer to an overseas bank account.

Please provide the University with your bank account details either via the Student Records System for UK accounts, or by emailing sid@exeter.ac.uk for international accounts. A form will be sent to you for completion with your international account information. 

You will be informed of the amount your loan has raised in GBP £ via your online statement. 

If your loan disbursement is not enough to cover the charges on your account applicable for that disbursement there will be no refund into your nominated bank account and you will need to arrange to pay any outstanding balance.

Opening a UK Bank Account

It can take up to 10 days to open a bank account in the UK and you cannot start to open an account until you have registered as a student and have a verifiable address.

How much money you will get and in which currency

The USA Government deducts an origination fee from each disbursement this is 1.057% from both subsidised and unsubsidised and 4.228% from PLUS loans. The amount after the origination fee that you are going to receive will be detailed in the Disclosure statement the University sends you with each disbursement.

The money is transferred to the UK and converted into GBP £. The University is not allowed to charge any fee or receive any commission for processing your loan, so the money received by you is exactly what the University received in GBP £.

We will deduct tuition fees and your accommodation charges (if due) for the payment period from each disbursement. Please note if you are not staying in Exeter University owned accommodation, it will be your responsibility to pay the accommodation charges

Any credit balance is paid to you by GBP £ directly into your UK bank account.

If the value of your disbursement does not cover all the deductions, you will not receive a refund. It will be the students responsibility to pay any shortfall in tuition and any accommodation fees.

Deferments

If you have previous loans and need repayment deferment you will need to request or obtain an in-school deferment form from your previous lender and send this to the Student Funding Team.

We are not able to sign any deferment forms until you have registered.

We will advise you by raising a SID enquiry that the form is ready for collection from the SID information desk.

Entrance & Exit Counselling for Federal student loan borrowers

Federal Regulations require you to complete entrance and exit Counselling for each loan. This is an audit requirement and is reviewed by the US department of education, and must be completed before any loans can be disbursed. The University is required to ensure that you have completed entrance and exit counselling. There is no exceptions to this.

Entrance counselling:

All students wishing to borrow via the Direct Lending programme are required to undergo entrance counselling, this process will assist your understanding of the loan programme and underline your rights and responsibilities

You can complete entrance counselling via Student loans.Gov website, and you will need the pin you used to access FAFSA. Please be aware the University of Exeter will not process your loans if you have not submitted confirmation of your entrance counselling with your loan application. 

Exit Counselling:

US regulations require all students who withdraw, graduate, or drop below half-time attendance (even if you plan to transfer to another school) to complete exit counselling

Exit counselling helps you understand your rights and responsibilities as a student loan borrower. It provides useful tips and information to help you manage your loan

1. You must complete Exit Counselling. This is done on-line via Student Loans.Gov and you will need to work through the pages (you will need your FAFSA log-in and PIN).

2. You must send an e-mail to usloanfunding@exeter.ac.uk confirming that you have completed Exit Counselling. 

Withdrawing or Interrupting from your Studies

If you withdraw or interrupt from your programme you must inform the student Funding Team by e-mail (usloanfunding@exeter.ac.uk).

It is a requirement of the University to complete a return of Title IV calculation to determine how much needs to be returned to the US Department of Education.