USA loans
General information on US Dept. of Education loans at UNSW Students attending the University of New South Wales are eligible to apply for five loans sponsored by the US Dept of Education, whilst studying at UNSW.
1. Stafford Subsidised Loans
This loan is based on financial need as defined by the Department of Education. The loan is subsidised because the government pays the interest while attending university at least half time and in grace.
Under Australian law students studying in-country are required to be studying in a full-time mode.
2. Stafford Unsubsidised Loans
This loan is not based on financial need. Because it is unsubsidised you are responsible for paying the interest from the time the money is disbursed. If payments are postponed, the interest accrues and is capitalised (added to your principal loan balance). If you choose this billing option, you won't make any payments while you are in university. However, this option adds to the amount you will have to repay on your loan when you leave university.
3. Stafford PLUS (Parent Loan for Undergraduate Students)
Parents are eligible for this loan for their dependent undergraduate student as defined by the US Department of Education, if they meet certain credit guidelines. Repayments commence within 60 days after the loan is fully disbursed, although deferment of payment may be available through select lenders. Parents may use this loan to pay the entire Cost of Attendance - minus any other financial aid received for their dependent student.
4. Stafford PLUS (graduate)
Beginning July 1, 2006, graduate and professional students are eligible to borrow through the Federal PLUS Loan program. Previously this loan was only available to parents of undergraduate students.
Graduate students may borrow through this program on their own signature, to cover the difference between COA and all other awarded aid, after applying for other Stafford aid.
Although the new legislation authorizing this change is in place, most references to the program on the federal web sites and official notices still refer to the PLUS Loan being a program for parents of undergraduate students.
This loan does require student applicants to undertake a federal credit check. This review looks for bad credit only. You do not have to meet other financial standards required by private alternative loans.
5. Stafford Consolidated Loans
Stafford consolidation loans allow a student to group all applicable US federal student loans into one loan with a fixed rate and a single, lower monthly payment. The student will pay no additional fees to consolidate their loans. A longer repayment term increases the amount of interest you pay over the term of your loan.
Consolidation loans offer terms ranging from 10 to 30 years. Repayment options on consolidation loans include: Standard, Graduated and Income Sensitive repayment plans. To be eligible for a consolidation loan, you must be in a grace period, repayment, deferment, or forbearance
As of July 1, 2006 any US student studying in a foreign environment, could not obtain aid for the entire program if there was a compulsory online component. If a student elects to take an online elective, they will lose eligibility for Stafford aid from that point onwards.
All students affected by this ruling are still eligible to apply for private loan funding to cover their educational expenses.
Other US Dept of Education Federal loan information
There are a number of other programs (Pell Grants, Perkins Loans, Direct Stafford etc) available under the same US legislation (Title IV) however these cannot be awarded whilst students are studying outside the US.
Whilst UNSW cannot award aid under these programs it however can defer the repayment of these loans whilst you are attending University of New South Wales on a full-time or more than half-time basis.
 Initial Application for Financial Aid:
You need to complete and submit all the documentation specified on the UNSW Financial Aid Application Form. This allows your application to be assessed in accordance with the US Department of Education and University of New South Wales's legislation in relation to the administration of the Stafford loan program.
The following three segments are mandatory for all first time borrowers:
1. Entrance Counselling
Pre-Loan Counselling
University of New South Wales requires all students to complete loan counselling at the appropriate grade level (undergraduate or graduate) prior to the initial certification of any US Federal loan funds. If you have completed your undergraduate degree with UNSW and then continue on to post graduate studies, you will be required to undergo entrance counseling again, at the new grade level
As most new students applying for their assessment of eligibility for Financial Aid prior to arrival in Australia, you can access pre-loan entrance counseling through our preferred on-line provider, Mapping Your Future. We will be advised via email once you have successfully completed the counselling session.
2. Student Aid Report
You must complete a Free Application for Federal Student Aid ( FAFSA) prior to be considered for US financial aid. You can apply now for your FAFSA.
University / School codes
One of the final steps in completing the FAFSA is supplying UNSW's US Dept of Education federal university / school code: G08670
You will need to obtain the necessary PIN to validate the signature before electronically sending the application to be processed. Parents (for dependant students) and students are required to have individual pin numbers. PIN's can be obtained from going online with the US Department of Education - PIN Registration.
After completing the FAFSA, you will receive a Student Aid Report (SAR). This document lists the information you and your family have provided and tells you what your Expected Family Contribution (EFC) is for the year you are applying.
You will be advised on the SAR print summary document that the Financial Aid Office receives this information in an electronic format. This is not the case for students attending foreign universities.
Each student will be able to access their SAR with their PIN Number. Please fax or email this to our office (+612 9385 7304 or financialaid  unsw.edu.au) along with the other documentation required in the UNSW Financial Aid Application Form as it will enable the university to track and process your application more efficiently.
3. Master Promissory Note (MPN)
Rules and regulations differ slightly when you are enrolled in a university outside the US. The MPN you sign whilst valid for 10 years in the US will need to be completed annually with each new application for aid.
There are different MPN forms for PLUS loans or Stafford Loans as the US loan regulations require different information to be stipulated by/to the borrower. All of these forms are available under our Forms section.
Parent PLUS Loans
Dependant students are eligible to borrow funds under their own signature up to specified amounts. These calculations have to be completed first, prior to a determination as to PLUS loan amounts that can be awarded.
The parents of a dependant student may be eligible to borrow the difference between the COA and other aid awarded to the student.
The student borrower will be required to complete a UNSW Financial Aid Application Form to ensure all data is verified quickly and accurately, and their parent will be required to complete the UNSW Parent PLUS Application
All documentation will need to be submitted to the UNSW FAA prior to certification of the funding.
Graduate PLUS Loans
Graduate students who wish to utilise access to additional US government funds under the new Grad PLUS loan, available from July 1, 2006 must first have applied for aid under the original Stafford loan program. Whilst you are not obligated to draw down the Stafford loan amounts, and can take the whole amount as a PLUS loan - you must apply for the Stafford loan for the relevant checks to be undertaken.
You will need to complete a UNSW Financial Aid Application Form for the Stafford award and the award letter will detail both your Stafford eligibility and your Grad PLUS amounts. You will be required to identify, how much aid you wish awarded under the eligible categories - based on the data provided in your aid award, then return the signed award statement to UNSW's FAD
Accessing Aid in the next award year
In the following years you will still be required to complete an MPN and file a SAR and complete all the data requested on the UNSW Financial Aid Application Form. Students utilising ASA as their guarantor can sign their MPN online.
If you move from and undergraduate degree to a post-graduate degree whilst at UNSW you will be required to undertake exit counseling as an undergraduate student and entrance counseling as a post-graduate student to ensure that you are familiar with the differing requirements stipulated under the US legislation.
What can I borrow at UNSW? How much am I eligible to borrow?
Your eligibility for aid at UNSW will be assessed based on the information that you have provided on you UNSW Application for Financial Aid.
The US government specifies the maximum a student may be eligible to borrow under the Stafford loan program annually.
Maximum annual amounts for Federal Stafford Loans:
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Dependent Undergraduate Students
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Subsidized (U.S. government pays interest while student is in university and six months after graduation/withdrawal)
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Subsidized & Unsubsidized Combined
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1st Year
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$2,625
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$2,625
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2nd Year
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$3,500
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$3,500
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3rd Year & Up
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$5,500
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$5,500
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As of July 1, 2008
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Dependent Undergraduate Students
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Subsidized (U.S. government pays interest while student is in university and six months after graduation/withdrawal)
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Subsidized & Unsubsidized Combined
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1st Year
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$3,500
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$5,500
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2nd Year
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$4,500
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$6,500
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3rd Year & Up
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$5,500
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$7,500
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Total life time borrowing limit for Dependent students: $31,000
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Independent Undergraduate Students
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Subsidized
(U.S. government pays interest while student is in university and six months after graduation/withdrawal)
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Subsidized & Unsubsidized Combined
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1st Year
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$2,625
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$6,625
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2nd Year
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$3,500
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$7,500
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3rd Year & Up
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$5,500
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$10,500
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As of July 1, 2008
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Independent Undergraduate Students
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Subsidized
(U.S. government pays interest while student is in university and six months after graduation/withdrawal)
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Subsidized & Unsubsidized Combined
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1st Year
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$3500
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$9,500
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2nd Year
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$4,500
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$10,500
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3rd Year & Up
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$5,500
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$12,500
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Total life time borrowing limit for Independent students: $57,500
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Subsidized
(U.S. government pays interest while student is in university and six months after graduation/withdrawal)
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Subsidized & Unsubsidized Combined
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$8,500
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$18,500
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As of July 1, 2008
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Graduate Students
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Subsidized
(U.S. government pays interest while student is in university and six months after graduation/withdrawal)
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Subsidized & Unsubsidized Combined
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$8,500
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$20,500
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Total life time borrowing limit for Graduate students: $138,500
These amounts that you may be awarded could be lower, depending on the eligibility determined by the financial aid office. Students who receive unsubsidized loans may pay the interest while they are in university with principal deferred until after they cease to be enrolled at least half time or they can choose to have both the interest and principle deferred until after they cease to be enrolled at least half time.
Cost of Attendance at UNSW The cost of attendance is an estimate of a student's education expenses for the period of enrollment. The compulsory components of the cost of attendance are the same for all US Stafford programs, as specified under US law.
There are exceptions to the normal cost of attendance allowances for the following in addition to the normal Australian visa requirements:
- Less than half time students
- Correspondence study
- Incarcerated students
- Professional Judgment cases
Your allowable segments included in your annual COA from UNSW are defined as follows:
(These fees are not charged if you use UNSW's preferred providers)
| Tuition & Fees: |
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Living Allowance:
(includes room / board, pers expenses)
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First Time Borrower AUD$24,100
Renewing Borrower AUD$22,100
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Return Home:
one time only allowance awarded on first application
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AUD$3,500 East Coast AUD$3,020 West Coast |
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Laptop computer:
one time allowance awarded on the first application for aid at UNSW
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AUD$1,500 |
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Compulsory Health Care:
visa length cover is required by UNSW*
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AUD$380 |
| Books and Supplies: |
AUD$1,200 |
N.B. The above figures are in Australia Dollars and will be converted into USD on the day the COA is prepared.
For students that hold dual US and Australian / New Zealand citizenship or Permanent Residency, your COA will be modified to reflect the student status option that you are eligible for (and the Student Status payment option that you have chosen) as well as access to other support based on your country of origin.
All aid awarded to you under either the Stafford loan program, or a private loan (www.iefc.com) cannot exceed your COA.
If you believe that you are eligible to receive additional amounts (dependant care, disability related expenses, study abroad costs etc) please complete the relevant Application Form, submit the documentation to the FAA at UNSW and we will assess the inf ormation and discuss these issues with you personally.
Dependant vs. Independent student
The federal government has established criteria for classifying financial aid applicants as dependent or independent. If you are dependent, your parents' assets and income as well as your own are considered when determining your financial need. If you are independent, your need is evaluated solely on your (and if married your spouse's) income and assets.
If you can legitimately answer "YES" to any of following questions, you are considered independent for aid purposes for the 2007 academic year starting in January 2007. If not, you are a dependent and need biological or adoptive parent information on your FAFSA form.
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Will you be 24, by December 31st 2008?
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Will you be enrolled in a masters or doctorate program (beyond a bachelor's degree) when you start university in 2008?
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Where you legally married at the time you signed the FAFSA application?
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Do you have children for whom you provide more than 50% support? (This assumes you are living away from your parents and paying for all your own expenses.)
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Do you have legal dependents other than a spouse or children who receive more than half their support from you? (This assumes you are living away from your parents and paying for all your own expenses.)
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Are both your parents deceased or are you a ward of the court or have been award of the court until reaching the age of 18? (Note that being incarcerated does not make you award of the court for aid purposes.)
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Are you a veteran of the U.S. Armed Forces (Army, Air Force, Navy, Marine Corps, or Coast Guard)?
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If you cannot answer "YES" to any item, you are considered dependent on your parents and must include their financial information on your financial aid forms.
Note that the US government does not consider factors like:
- Parents do not financially support you
- Parents do not claim you as a tax exemption
- You do not live with your parents
- You pay all your own expenses
These items alone do not make you an independent student for financial aid purposes.
You are considered dependent if you do not meet any of the preceding criteria for an independent student unless the financial aid administrat or determines that you are independent on the basis of special circumstances and performs a dependency override.
If you believe that you fall into this category, please read, and if appropriate complete the dependency override application. Once complete and all relevant supporting data has been collected, please submit to the UNSW FAD.
Your award notification and confirmation from UNSW You will be advised via an award letter as to the determination of your eligibility for need based aid and non-need based aid, as well as PLUS (if eligible) or private loans. You will be required to confirm your intent to take this amount, or any other lesser amount prior to certification taking place. Confirmation will need to be in writing and contain your original signature as acceptance of the amount desired.
This award letter can then be used in your visa application to prove that you have access to sufficient funds.
If you are a dependant student, the award letter will also stipulate how much money your parents can draw down for this award year as a PLUS Loan.
UNSW recommends that all students use the figures contained in their award letter to help them in creating a budget, and using that budget to plan f or their financial security during the upcoming academic year. Click here to be directed to our budget worksheet
It is strongly recommended that you plan on having sufficient funds available for accommodation, books, supplies, and any other personal expenses during the first six to eight weeks of classes in the event that there is some delay in your financial aid arriving from the US.
What impact does this have on my application to study at UNSW?
If you have been approved for Stafford funds then you are required to pay a deposit of AUD $4000.00 to UNSW to confirm acceptance of your program offer. This deposit will be deducted from your outstanding UNSW fee amount in your first session. If you are unable to cover this amount then please let us know and UNSW's Financial Aid team will be able to assist to ensure that your application is not hampered by not being eligible to obtain these funds prior to arrival in Australia.
When can I access the funds? Disbursement Methods and Dates
In accordance with US Federal policy, UNSW will not disburse funds to students prior to the commencement of classes. This is the date your cheque is posted from the guarantee agency in the US to UNSW. If this is your initial application you should not expect to receive Stafford loan funds prior to arriving in Australia.
The Stafford loan funds will be sent directly by the guarantor to the Financial Aid Office of University of New South Wales. When the cheque(s) arrive at UNSW they are made co-payable to you and UNSW. You will be notified via email when the cheques have arrived and are ready for your signature. Please bring the Cheque Reconciliation Form with you; ensuring that you have completed all the segments, and signed it. Once you have counter-signed the cheques, they will be converted from US dollars into Australia dollars, and credited towards your tuition fee account at UNSW and the remainder will be forwarded into your living account (or in accordance with your disbursement options).
If your parents have requested a PLUS loan on your behalf (dependant students only), the cheque will be sent direct to their address in the US . Your parents will then have 7 days to pay your outstanding tuition expenses.
Disbursement of US Federal loans will be on dates coinciding with the first day of classes if you are undertaking a semester / trimester based or Doctoral program or 30 days after the commencement of classes for first year borrowers. This is to allow, the academic monitoring requirements mandated by the
US Department of Education prior to the commencement of the next educational period.
If you are commencing in Semester 2, as a result of advanced standing or previous credit, the initial assessment will be for a six (6) month period only. The reasoning for this is that as of Semester 1 the following year you may be eligible and apply for additional aid.
You are encouraged to actively manage your loan funds - please take the time to review the information contained in this booklet - either download it or stop by the Financial Aid Office and we will provide you with a copy.Exchange Rates
Studying at a foreign institution means that there will always be some difference in exchange rates between the date of calculation and issue of your COA and actual receipt of your loans funding at UNSW. UNSW Financial Aid will not adjust Cost of Attendance documents due to the minor day-to-day fluctuation in exchange rates.
We generally advise that students apply for their COA to be assessed and issued from UNSW close to, but a reasonable amount of time before, the commencement of their session of study. Should there be a major** readjustment of in exchange rates between the Australian and US dollars that disadvantage a student, you are invited to appeal to UNSW Financial Aid to have your COA updated. This should be requested shortly prior to the scheduled receipt date of your session's cheques.
*UNSW will assess each application for a loan individually and therefore each COA will be slightly different, based on the program and details of the student. The living and related expense amounts noted above however will not generally be changed for individual circumstances. If, after you receive your COA calculation from UNSW, you can demonstrate that your education related expenses will be more than the amount you were advised, you may appeal formally to the UNSW Financial Aid Office. This can be done by downloading and completing a COA Appeal Form from the UNSW International Financial Aid web page and attaching written proven details of any additional direct study related expenses. This should then be sent to the UNSW Financial Aid Office. For further advice or queries please email financialaid@unsw.edu.au
**Major readjustment is generally defined as over 25% change in exchange rates. Each appeal will be considered on its merits on a case-by-case basis using the above processes.
What happens if the cheque does not arrive in time?
Students who experience a delay and can not afford to live for interim will have access to UNSW's Limited Emergency Student Loans Services. We will assess your situation on a case- by - case basis on information provided by you and the Financial Aid Office, and they will determine a students eligibility to emergency funding, or assist you with delayed fee payment etc.
There will be no academic penalty placed on the student for failure to pay the University within the stipulated time, if the reason for the funds not arriving is outside their control.
What if I need more money?
The difference between the amount of your COA and your awarded subsidised or unsubsidised aid, is what you are eligible to drawdown as either a private loan ( www.iefc.com ), or if you are a graduate student take as a GRAD PLUS loan. Financial Aid and the US Tax implications
There are a number of ways that attending education may be able to be claimed against income earned in the US. The most common two are the Hope Credit and the Lifetime Learning Credit. The requirements for these credits and the deduction can be found in IRS Publication 970, Tax Benefits for Education.
The Hope Credit covers up to $1,650 in calendar year 2006 (up from $1,500 in 2005) per eligible student. This credit can be claimed for only the first two years of postsecondary education and applies to study of part-time and higher in a qualified program. The Hope Credit allows you to claim 100% of the first $1,000 plus 50% of the next $1,000 you pay for qualified tuition and related expenses.
The Lifetime Learning Credit offers up to $2,000 each year for the total qualified tuition and related expenses paid during the tax year in eligible educational institutions. Unlike the Hope Credit, the Lifetime Learning Credit is not based on workload and is not limited to the first two years of postsecondary education. Expenses for graduate-level degree work are eligible.
Alternatively you may be eligible to apply for a tuition and fees tax deduction. This deduction may benefit taxpayers who do not qualify for either the Hope or Lifetime Learning Education Tax Credits.
There are a range of pro-taxpayer benefits relating to education that members of the Armed Forces can incorporate into their financial planning. A professional US tax preparer can assist those interested in exploring the tax significance of the various educational bills, credit and deductions available.
Satisfactory Academic Progress Requirements for FFELP Students University of New South Wales is required by US Federal law (34CFR 668.16) 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 program for which aid is received.
If you receive Stafford loan funds you will be evaluated at the end of each semester. This evaluation process will consider the students progress under the following criteria:
1. Academic Standing
2. Maximum Timeframe
In order to receive US Federal funds, students must meet minimum standards for both the above mentioned components, whilst simultaneously adhering to academic progress rules and to Australia Immigration legislation.
Undergraduates and Post-graduates by Coursework
Students in receipt of Stafford aid are entitled to modify their enrolment within the first two weeks of each semester and retain eligibility for aid, provided they maintain a full-time enrolment whilst on-shore and do not drop below half-time whilst they are off-shore. Students who drop below a half time load are not eligible for Stafford funding
Academic Standing
Students with course duration of 4 years or less:
(i) Students must have a Grade Point Average (GPA) of 2.1 or greater at the end of each semester
Students with a course duration of 5 years or more:
(i) Students must have a cumulative GPA of 1.8 or greater at the end of the first year
(ii) Students must have a cumulative GPA of 2.1 or greater at the end of each semester after they have completed their first year.
University of New South Wales shows its grades in a fail to high distinction level. The following table has been provided to allow you to manually calculate your grades.
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Sum of (Credit points x GPA value of grade)
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Sum of Credit Points
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GPA Values for grades are as follows:
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High Distinction (HD) 4
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Distinction (D) 3
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Credit (C) 2
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Pass (P) 1
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Conceded Pass (CP) 0.8
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Fail (N) 0
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For the purposes of US Federal Aid
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UP (a cross institutional assessment) will be viewed in terms of the alphanumerical grade awarded by the institution that undertook the assessment.
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UP (practicum based assessment) will be viewed as a (C) grade
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W Will be assessed individually to ascertain whether there are any exceptional issues behind the withdrawal, and will include the timing of the withdrawal (including drop periods, university protocols) and whether the student is attempting to maintain the required GPA by withdrawal from courses,
Maximum Timeframe
An undergraduate student is entitled to receive aid for 150% of the allocated course time frame
(i) 3 year degree - eligibility for aid 4.5 years
(ii) 4 year degree - eligibility for aid 6 years
(iii) 5 year degree - eligibility for aid 7.5 year.
Students should be advised that whilst US federal eligibility may allow them to continue - individual academic progress rules and Australian student visa restrictions may impact on the students' ability to continue within the program.
REMEDIAL, NON-CREDIT COURSES AND INCOMPLETES
Non-credit courses will not be counted in assessing full-time hours. A student is required to achieve a grade on any deferred or supplementary assessment within 6 months of completing a class
Postgraduate by Research
Students undertaking postgraduate study via research mode are also bound by the same criteria in relation to time in which they are able to access aid and successful progression towards completion of their research. For students studying in this mode, you will need to achieve the 'good standing' criteria awarded by the research office to students.
Notification
Satisfactory Academic Progress (SAP) will be assessed for each student at the end of each academic period, to determine your eligibility for continued award or disbursement of aid. You will be notified in writing (by both email and hard copy) if you are placed on Financial Aid warning or if your Financial Aid eligibility has been suspended.
Financial Aid Probation and Suspension
Students who fail to achieve the required GPA level commensurate with the longevity of their degree program, and their academic level within that degree structure, will be placed on Financial Aid probation for six months.
Students who have been placed on probation and subsequently meet the GPA requirements in the next semester will be placed back into good Financial Aid (SAP) standing.
Student 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 GPA.
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 program before re-establishing eligibility to receive aid.
Financial Aid Appeals
A SAP Appeal for verifiable extenuating or unforeseen circumstances is available, if you believe that you meet the appeal criteria. University of New South Wales cannot automatically waive the Satisfactory Academic Progress (SAP) requirement for any student to receive financial aid.
Students who have their eligibility for US Federal Aid suspended may appeal the suspension if one or more of the following circumstances exist:
a. Death of a family member (parent, spouse, sibling, dependant child etc)
b. The extended illness of the student - extended illness as defined as a documented chronic or recurring medical or emotional illness that causes the student to be absent from class at least 15 days or more
c. The extended illness of a family member that places hardship on the student. Immediate family member includes parent, spouse, sibling, dependant
d. Mitigating circumstances as determined by the Financial Aid Appeals committee.
All appeals must be received within ten days of receipt of the Notice of Suspension.
Students must submit all documentation to:
UNSW FA Appeal (FA Office)
UNSW International
Level 3, East Wing, Red Centre Building
University of New South Wales
NSW 2052
Australia
Students must indicate in writing to Pro-Vice Chancellor (International) the reason(s) for failure to meet the necessary Financial Aid SAP requirements and why financial aid should not be suspended. All documentation to support the appeal is required at time of appeal submission. The appeal will be considered on its merits and a response to the appeal will be provided with 14 days.
Reinstatement of Eligibility
Students who have been denied access to aid as a result of their failure to maintain the appropriate level, are required to monitor their individual academic progress, and when the student believes they have regained eligibility are required to submit the UNSW FA Application along with all supporting documentation to the FAA. Students who are re-instated will automatically be placed on FAA probation.
Medical Students
Medical students are required to achieve a minimum academic Performance equivalent to a WAM of 55% every semester.
Medical students performing below 55% WAM each session will be placed on SAP probation for one semester. Medical students must achieve above this WAM the subsequent semester to continue to receive funding. Students who are on probation and achieve a semester WAM under 55% again (i.e. achieve a under 55% for two consecutive semesters) will be ineligible for further funding until their WAM is again over this minimum requirement.
Finacial Aid and the UNSW Refund Policy University of New South Wales has a clear refund policy for international students attending this institution. The following is an addendum for students who are utilising US federal student aid funds.
If a student who receives financial aid and withdraws from the University and is eligible for a refund of fees paid for that period of enrolment - a determination must first be made as to whether any of the refund money must be returned to the US Federal aid program. If it is determined that refund money must be returned to the aid program, the distribution of Stafford money will be as follows
1. Federal Stafford Unsubsidized
2. Federal Stafford Subsidized
3. Federal PLUS
Pro-rate refund calculations apply for any international student who is attending UNSW and who withdraws within 60% off the payment period.
If UNSW is required to pay money on your behalf to the US Dept of Education as a result of your early withdrawal, you may be required to repay that money to the institution. Additionally if you withdraw from the University whilst in receipt of aid, you may also be required to pay back money to the US Federal government.
Only after these calculations and payments are done, will any remaining funds be returned to you or your parents (Parent PLUS only)
Please see the following links for further information in regards to UNSW policies, procedures and guidlines.
Guarantors & Lenders for loans Usage of Stafford loans at UNSW provides substantial borrower benefits at the same time as streamlining delivery of funds to you in a timely and efficient manner.UNSW prefers to work with guarantee agencies and lenders that are recognised for their excellent service levels to students attending foreign universities and who have streamlined the delivery of funds to you the student borrower.
Guarantors
For fast and efficient loan processing, University of New South Wales has chosen American Student Assistance (ASA) as it's preferred guarantor. ASA is the oldest not-for profit and leading loan guarantors. ASA has the largest dedicated foreign schools processing areas, which means that you have a dedicated support group to assist you. Click here to visit ASA's web site.
Students can go online and apply for Stafford Loans and complete their MPN electronically through ASA. Click here to apply now.
If you have a previous relationship with a guarantor and you wish to remain with them, then University of New South Wales will work with your nominated guarantor. Please be aware that there is a discretionary charge of up to 1% of your awarded aid, which some guarantee agencies charge students. Your choice of guarantor will determine whether this amount is deducted from your funding or not.
UNSW's preferred guarantor ASA does not impose this charge. Lenders
UNSW has four preferred Stafford lenders that they recommend to students. Those lenders and their respective lender codes are:
- Bank of America (818334) click here to find out more about Bank of America
- Collegiate Funding Services (CFS) (834059) click here to learn more about CFS
- Educaid / Wachovia (830005) click here to find out more about Educaid/ Wachovia
- Citizens Bank (802176) click here to find out more about Citizens Bank
You will need to list a lender and their code on your MPN. If you have a previous student loan(s) with a different lender from those listed above, you may use your previous lender by entering their lender code on your MPN.
Lenders have the option to charge a discretionary fee of up to 3% for the origination of a Stafford loan that they provide to you. This fee is taken from the total amount of your awarded aid.
UNSW's lenders listed above do not charge any origination fees
Borrowers may receive a variety of benefits from their chosen lender, including but not limited to:
a) Interest credit at time of repayment
b) Interest rate reduction for utilizing direct debit facilities (not available for foreign bank accounts)
c) Principle reductions for on-time payments
Lenders websites will details what benefits or offers they offer to students who choose to partner with them.
Whether you're starting university or starting your career, it's your responsibility to know the facts, about not only the degree that you are undertaking, but the funding methods and what and when you are going to be required to pay the money back. You are making a big decision and a big commitment to paying the loan funds back. It is important to know exactly what that commitment is all about.
1. What Your Lender expects from you
Repay your loan. Your obligation to repay becomes legally binding when you sign the Master Promissory Note (MPN) and authorize the electronic transfer of funds to your student account.
Your requirement to repay does not go away because you:
- Don't complete your educational program
- Cannot find employment
- Were not satisfied with the education or other services your received from the university
- Were notified that your loan was sold to another party by your lender
Pay on Time. You must make your payments on time unless you have made special arrangements with the lender or servicer. Many lenders offer repayment incentives to reward you for paying on time.
Make a Minimum Payment. A minimum monthly loan payment is required. This minimum amount varies depending on the amount you borrow and your repayment plan.
Notify University of New South Wales and the lender about changes in any of the following:
a) Change your current address / phone numbers / name
b) Change your Social Security Number
c) Withdraw from University
d) Drop below full-time (for off-shore students only)
e) Change your anticipated graduation date
f) Change your driver's license number
g) Change your references
h) Change your permanent address
i) Change your expected employer
2. What you should expect from your Lender
Master Promissory Note
When you decide to enter into an agreement with a particular lender for your student loan, you sign an electronic Master Promissory Note (MPN). This document explains the terms and conditions of your loan in full detail. It also serves as the legal document requiring you to repay the loan with interest. Read through the entire promissory note before you sign it and make sure you understand your rights and responsibilities. The MPN (either paper or electronic) is only valid for a maximum of one year if you are attending a University outside the US.
Notice of Guarantee and Disclosure Statement
Your lender provides you with a disclosure statement before or at the time your loan is disbursed. This document states the amount of your loan (principal), and any fees deducted from the principal. It also discloses the interest rate, the annual percentage rate, and an estimate of the total amount you will have to repay (including the total amount of interest based on a Standard Repayment plan). Be sure you receive this from your lender and keep it in your files.
Repayment Schedule
During your grace period, your lender or servicer will send you a detailed Repayment Schedule. This document states the number and amount of monthly payments and the date when the first payment is due.
At the same time, you will receive information about other repayment options, such as the Graduated and Income-Sensitive plans, extended and consolidation plans.
Notification of Loan Transfer
If your lender sells or transfers your loan to another lender or servicer and it changes where your loan payments are sent, you will receive a Notification of Loan Transfer. This document contains addresses, phone numbers, and other information needed to make payments and keep in touch with the new lender or servicer of the loan. The terms of your loan will not change if your loan is sold or transferred.
Leaving UNSW and entering repayment  Exit Counselling
Complete an Exit Counselling Interview before you leave University or graduate. You will be counseled on your obligations, rights and options under the terms of your loan. This session will cover repayment options, deferments and other important information you may need during your repayment term. During this session you will need to provide the following information:
- Name and address of closest living relative
- Two references (not the same as closest living relative) and with different addresses
Repayment Plans
When you leave university or drop below half-time enrolment, your grace period begins. This gives you up to six months before you must start making monthly principal and interest payments on your loans. If you re-enter university at least half time during your grace period, it is renewed for another six months. So you have the full grace period available when you leave university again.
Before repayment starts, you will be provided with repayment options and a Repayment Schedule from your lender or servicer for each type of loan you have.
If you do not receive these schedules toward the end of your grace period, contact your lender because repayment begins whether or not you're aware of it. Also, all of the borrower benefits will only apply IF you make your first payment on time.
If you plan ahead, the repayment process will go smoothly. Start by knowing all your options. You will have a choice to make regarding the type of repayment plan you would like to use:
- Standard Repayment - Under this plan, your monthly payment will remain the same over the entire repayment period. This repayment plan is the most economical. The term is for a maximum of 10 years.
- Graduated Repayment - As the name suggests, this plan typically begins with smaller payments, followed by a gradual increase in payments at specified intervals. Under this plan you will probably pay more interest over the term of the loan. The term is for a maximum of 10 years.
- Income-Sensitive Repayment - This plan ties the size of your payment to your income level, with adjustments to your payment made annually. The monthly payment must be large enough to cover accrued interest charges. This plan also may increase the amount of interest you pay over the term of your loan. The term is up to 10 years. However, your lender can use forbearance to lengthen the term for up to five additional years (15 years total).
- Extended Repayment - This option is available for those who first borrowed on or after October 7, 1998, and who then accumulated loans that totalled more than $30,000. If you're one of these borrowers, you may extend your Standard or Graduated Repayment plan for up to a total of 25 years.
Download your repayment options information sheet here
Student Debt on Graduation
Students attending University of New South Wales have a variety of differing educational experiences, and the debt levels of each student reflects individual choices and knowledge about the usage of the loan program options.We are committed to ensuring that students leave this institution with the lowest amount of debt possible and we will actively work with you to ensure this. Through your life cycle as a student utilizing US Federal funds we will be actively tracking your debt and benchmarking it with others who have studied in the same method and course that you are enrolled in.Additional debt management information is available to all UNSW's student borrowers. Click here for more Debt Management Information.
Loan Consolidation
By the time you finish university, you may have a number of loans. These loans may be with more than one lender and may have different terms. Repayment can become fairly complicated if you have to make different payments at different times of the month. Consolidation is a way to make repayment of multiple loans less complicated.
You can consolidate all your federal student loans into one loan with a fixed rate and a single, lower monthly payment. You pay no additional fees to consolidate your loans. More importantly, you may reduce the amount of each monthly payment by extending your repayment term. But remember that a longer repayment term increases the amount of interest you pay over the term of your loan.
Consolidation loans offer terms ranging from 10 to 30 years. Repayment options on consolidation loans include: Standard, Graduated and Income Sensitive repayment plans. To be eligible for a consolidation loan, you must be in a grace period, repayment, deferment, or forbearance.
It is important to research loan consolidation very carefully as you may lose some borrower - benefits offered by your original lender. If you are uncertain of your loan amounts (principle and interest) and who owns your loans, you can track down your loans online - Click here
The interest rate on a consolidated loan is determined by taking the weighted average of your current loans interest rates and rounding up to the nearest 1/8 % (this means that the interest rate on a $10,000 loan 'counts' more towards the bottom line than a $5,000 loan's interest rate) This interest rate is fixed, which means it will not change throughout the life of the loan, whereas your current loans are variable and can either increase or decrease on an annual basis.
You should first discuss consolidation with your existing lenders. If your lender does not consolidate, they will most likely be able to recommend another lender.
While interest rates and length of repayment will not vary between lenders, some may offer incentives (such as interest rate reductions for on-time repayments) to their customers that others do not. It is highly recommended that you shop around for those incentives before deciding on a consolidating lender.
As of July 1, 2006 students are not allowed to consolidate whilst they are in-school
Consolidation Loan Terms
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Loan Term
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Amount Owed
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10 years
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Less than $7,500
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12 years
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$7,500 to $9,999
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15 years
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$10,000 to $19,999
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20 years
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$20,000 to $39,999
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25 years
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$40,000 to $59,999
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30 years
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$60,000 or more
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If you want additional information on consolidation please contact the FAA to be provided with the Consolidation package.
Deferment
Postponing payment with deferment
One major advantage of borrowing through the Federal Family Education Loan Program (FFELP) is the option you have to postpone repayment for a period of time under certain conditions. However, it is important to note how interest must be paid or not paid on various loans:
- Federal Subsidized Stafford Loans: interest is paid by the federal government during in-university, grace, and authorized deferment periods.
- Federal Unsubsidized Stafford Loans: the borrower is responsible for paying the interest that accrues during in-university, grace, and authorized deferment periods.
SOME COMMON DEFERMENT OPTIONS (FOR BORROWERS WHOSE FIRST LOAN WAS DISBURSED ON OR AFTER JULY 1, 1993)
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Type of Deferment
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Deferment Period
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Loans Eligible
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PDF Application Forms
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In-university at least half time
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No time limit (however you must still be progressing toward a degree)
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Federal Subsidized Stafford, Unsubsidised Stafford, SLS, PLUS, Perkins, and Consolidation loans
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|
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Temporary Total Disability Deferment Request
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Federal Subsidized Stafford, Unsubsidised Stafford, PLUS, Consolidation loans
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|
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Parental Leave / Working Mother Deferment Request
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Federal Subsidized Stafford, Unsubsidised Stafford, PLUS, Consolidation loans
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|
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Public Service Deferment
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Federal Subsidized Stafford, Unsubsidised Stafford, PLUS, Consolidation loans
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|
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Unemployment
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3-year limit (granted for 6 months at a time to a maximum of 36 months)
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Federal Subsidized Stafford, Unsubsidised Stafford, SLS, PLUS, Perkins, and Consolidation loans
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|
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Economic Hardship
(earning less than minimum wage, poverty level wage, or other specified criteria)
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3-year limit (granted for no more than one year at a time)
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Federal Subsidized Stafford, Unsubsidised Stafford, SLS, PLUS, Perkins, and Consolidation loans
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You may need to complete and submit separate deferment forms for different types of loans. With FFELP loans, one deferment form is usually all that is necessary.
You should always continue making loan payments until you have been notified in writing that the deferment is granted.
Keep copies of all forms and correspondence related to your deferment.
Click here if you wish to find out more about deferment.
Forbearance
If you find yourself in temporary financial difficulty and no deferment option applies to you, you can request forbearance from your lender or servicer. Forbearance is granted at the lender's discretion and allows you to have months added to the term of your loan, temporarily reduce the amount of your monthly payment or temporarily suspend monthly payments.
There are several forbearance options available. The two most common types of forbearance are:
- Economic Hardship Forbearance: If your student loan payments exceed 20% of your total monthly income you can apply for this type of forbearance. It is given in 12- month increments for a maximum of three years.
- Administrative Forbearance: May be granted by your lender if you are delinquent on payments prior to entering a period of deferment.
Note that interest continues to accrue on your loan during forbearance. That interest must be repaid, which can result in higher monthly payments once the forbearance has ended. The federal government does not pay the interest on Subsidised Stafford loans while your loans are in forbearance.
Click here to obtain m ore information about forbearance options
Delinquency and Default
When your monthly payment is 30 days or more overdue, you are considered to be delinquent on your loan. Most lenders and servicers will contact you directly about delinquent payments and begin collection activity. Your delinquency may be reported to a credit bureau which could damage your credit rating.
If you expect to have a problem making a monthly payment, contact your lender immediately. It is always easier to discuss alternatives before the due date rather than after a payment is late.
If you fall 270 days behind on a scheduled payment, you are legally in default on your loan agreement. The lender can assume that you are not going to repay; and the lender may declare the entire amount you owe, including interest, as immediately due and payable.
Defaults are reported to credit bureaus and stay on your credit record, whether or not you eventually pay off the loan. The consequences of default are severe.
- You are liable for late charges which can be added to the principal of your loan, and on which you will then pay interest.
- When your loan is in default, your US federal income tax refunds can be withheld to repay the loan.
- Your wages may be garnisheed (a portion withheld for repayment).
- You may have to pay attorney’s fees and court costs.
- You lose eligibility for all federal and state financial aid until you have made satisfactory repayment arrangements on the defaulted loan.
In a profession that requires a license to practice, that license can be denied renewal until you make satisfactory payment arrangements on your student loan.
MPN
Deferment
General Information
Glossary of terms for US loans Accrued Interest
If you choose not to make interest payments while in university, in your grace period, or during an authorized period of deferment, the interest will accumulate, and be added to your principal amount at repayment.
Award Letter
This is an official document issued by the Financial Aid Office. It lists all of the amounts, and types (subsidised and unsubsidised) of aid in your financial aid package. The Award Letter also includes the terms and conditions of your financial aid.
Award Year
The 12-month period during which you attend university, and for which your aid has been awarded.
Capitalization
The process by which interest is added to the principal loan amount if you choose not to make interest payments while in university or in forbearance (See question 12 on the MPN). This process increases the amount that must be repaid and will make your monthly payment larger
Cost of Attendance (COA)
These expenses include tuition, room and board, books and supplies, fees and the student's living costs while attending university. The COA is determined by the University, using federal guidelines.
Cohort Default Rate
The percentage of a UNSW's students who borrowed money under the Stafford program and defaulted before the end of the fiscal year in which they entered repayment on their loans. The US Department of Education calculates this rate annually to determine the default experience of students who attended a particular school during a particular period of time.
UNSW's has a Coh ort Default rate of 3.0
Default
The failure of a borrower to make installment payments when due or to meet other terms of the promissory note or other written agreement(s) with the lender under circumstances where ED or the guarantor of the loan reasonably concluded that the borrower no longer intended to honour the borrowers obligation to repay a loan, provided that this failure persists for the most recent consecutive 270 day period or the most recent 330 day period.
Deferment
A period during which repaying loan principle is suspended as a result of the borrower meeting one or more of a number of situations or categories established by law. The borrower does not pay interest on subsidized loans during deferment; interest continues to accumulate during deferment of an unsubsidized loan.
Delinquency
The status of a loan when payment is late. Delinquency may be reported to a credit bureau after 30 days.
Disbursement
The lender's payment of loan funds to the University. Payment is made by cheque. Disbursement is usually made in two or more installments during the year
Expected Financial Assistance (EFA)
The Expected Financial Assistance is the amount of all other awards, scholarships, sponsorships etc that a student (or the parents on behalf of the student) may be in receipt of. This amount is included in the Cost of Attendance (COA) calculations.
Expected Family Contribution (EFC)
The Expected Family Contribution is the amount that a student and family (if required) are expected to contribute toward the Cost of Attendance (COA). This amount is based on the students or the family's income and assets.
Federal Family Education Loan Program (FFELP)
Federal Family Education Loan Program is made up of Federal Stafford Loans (Subsidized and Unsubsidized) Federal PLUS loans (for parents) and Federal consolidated Loans. All of these are long-term loans insured by state or non-profit guaranty agencies that are reimbursed by the US government for all or any part of insurance claims paid by lenders.
Federal Graduate PLUS Loan (Grad PLUS)
Beginning July 1, 2006, graduate and professional students are eligible to borrow through the Federal Direct PLUS Loan program. Previously this loan was only available to parents of undergraduate students. Graduate students may borrow this FFEL loan on their own behalf, to cover the difference between COA and all other awarded aid, after applying for other Stafford aid. Although the new legislation authorizing this change is in place, most references to the program on the federal web sites and official notices still refer to the PLUS Loan being a program for parents of undergraduate students. This loan does go through a federal credit check process. This review looks for bad credit only. You do not have to meet other financial standards as with other private alternative loans.
Federal Stafford Loan (Subsidised)
A FFELP loan that provides federally subsidised, low interest loans to students in undergraduate, graduate or professional programs. Subsidised loans are awarded on the basis of financial need.
Federal Stafford Loan (Unsubsidised)
A FFELP loan that provides low interest loans to students in undergraduate, graduate or professional programs. Unsubsidised loans are not awarded on the basis of financial need.
Financial Aid Office
The office within University of New South Wales who works with you and your parents to determine eligibility based on federal guidelines for different types of financial aid such as scholarships, loans and more. The Financial Aid Office also certifies or approves your federal loan application and the amount you can borrow. The FA office contact details are available here.
Financial Need
The difference between the students Cost of Attendance (COA) and the Expected Family Contribution (EFC) plus the students estimated financial assistance.
Forbearance
The process by which a repayment schedule can be restructured under certain conditions. The amount of the monthly payment may be temporarily reduced or suspended, or months may be added to the repayment term. You must contact your lender directly to receive forbearance.
Free Application for Federal Student Aid (FAFSA)
This is the application that a student must file to apply for financial aid. The FAFSA is printed and distributed free of charge by the U.S. Department of Education. It is also available online at www.fafsa.ed.gov.
Guarantee Fee
This is an optional fee charged by some guarantee agencies and deducted from loan proceeds prior to disbursement. This fee helps offset the administrative costs, and equates to up to 1% of your student aid. UNSW's preferred guarantor ASA (American Student Assistance) does not charge this fee under the normal Stafford loan program
Guarantee Agency
The agency approved by the US Department of Education to verify your eligibility for a particular federal loan program and provides the insurance for those loans. If you do not repay your loan, the guarantee agency will pay the lender with funds received from the federal government and collect the balance directly from you. University of New South Wales has chosen to partner with ASA who have the biggest foreign university division and an established history of responding quickly to questions from US student studying in foreign countries.
Grace Period
A feature of Federal Stafford loans that gives you six months after you leave university or drop below half-time status before you must start making monthly payments on your loan.
Interest
The fee that is charged by the lender in exchange for lending the money, the interest rate, usually expressed as a percentage of the loan amount, may stay the same for the term of the loan (fixed rate) or it may change periodically (variable rate).
Click here for the current rates
Interest Rates for Loans First Disbursed on or After July 1, 2006
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Loan Type
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Status
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7/1/2006
to
6/30/2008
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7/1/2008
to
6/30/2009
|
|
|
|
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FFEL
|
|
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Subsidized Loans
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Repayment or Forbearance
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6.80
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6.80
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In-school, Grace, or Deferment
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6.80
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|
|
Unsubsidized Loans
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Repayment or Forbearance
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6.80
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6.80
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In-school, Grace, or Deferment
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6.80
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|
|
PLUS Loans
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All
|
8.50
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8.50
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Interest Rates for Loans First Disbursed Between July 1, 1998 and June 30, 2006
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Loan Type
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Status
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|
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FFEL
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|
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7/1/2007
to
6/30/2008
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7/1/2008
to
6/30/2009
|
|
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Subsidized Loans
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Repayment or Forbearance
|
7.22
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4.21
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|
|
In-school, Grace, or Deferment
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6.62
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3.61
|
|
|
Unsubsidized Loans
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Repayment or Forbearance
|
7.22
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4.21
|
|
|
In-school, Grace, or Deferment
|
6.62
|
3.61
|
|
|
PLUS Loans
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All
|
8.02
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5.01
|
|
Generally, interest rates on Consolidation Loans are fixed rates calculated as the weighted average of the loans being consolidated rounded up to the next higher 1/8 percent, not to exceed 8.25%. )
Lender
The lender is the organization that actually provides the funds for you to use. The lender may be a bank or other financial institution. The lender sends the money to the university. This money is applied first to any balance due on your student account. Any excess funds are given to you as a living allowance. The lender may sell your loan to another party. When this happens you will be notified by the lender and the new loan holder.
Master Promissory Note (MPN)
A legally binding document between the borrower and the lender that obligates him or her to repay the loan according to its terms.
Origination Fee
A fee charged by lender with the approval of the federal government and deducted from the loan funds prior to disbursement. The fee is used to offset administrative costs. UNSW's preferred lenders do not charge these fees to their student borrowers.
Parent Plus Loan
The PLUS Loan is a federal loan and is available to the parents of dependent undergraduate students. It features low interest rates that change annually and long-term repayment options. While parents of all income levels are eligible, a credit-worthiness evaluation is done by the Federal Loan Servicer.
Parents may borrow up to the cost of attendance minus any other aid received by the student annually.
Plus Repayment
The interest rate on PLUS Loans is a variable rate that changes annually. Interest rates are reset each July 1 by the government. The interest rate cannot exceed 9%. Effective July 1, 2006, the interest rate on PLUS Loans will be a fixed rate of 8.5%. The minimum monthly payment on a PLUS Loan is $50 per loan, but could be higher depending on the amount you borrow. Repayment of the PLUS Loan is not deferred until after the student graduates. Repayment begins 60 days after the PLUS Loan is fully disbursed (60 days after the second disbursement).
Principal
The amount borrowed. This is the amount to which interest is charged.
Student Aid Report (SAR)
The report sent directly to a student from the US Department of Education's Central Processing System (CPS) that summarizes information submitted on your FAFSA. It also provides figures used in financial-need calculations, including the students EFC.
Satisfactory Academic Progress (SAP)
The achievement of required Grade Point Average (GPA) within the defined timeframes, to ensure continued access to Financial Aid
Servicer
A Servicer is a company contracted by a lender to handle administrative aspects of the loan such as collection of payments, correspondence with borrowers, address changes, loan status updates and more. It is important to know the name of your servicer since quite often all communication regarding your loan will be with the servicer.
US Department of Veterans Affairs Education Benefits Programs
UNSW can also assist students who are eligible under the US Veterans Education Benefit programs sponsored by the US Department of Veterans Affairs. Please click here for information on US VA Loans programs. (hyperlink to VA information below)
Disclaimer
This information contained on the UNSW Financial Aid web pages is not financial product advice and has been prepared for general information purposes only in compliance with US legislation. Before acting on any information contained in the UNSW Financial Aid guide, you should seek specific professional advice. The information should not be considered specific to your particular needs
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