Federal Direct Loans

Types of loans available

There are three types of loan available to students through the Federal programme. These are the Direct Subsidized, Direct Unsubsidzed and Direct PLUS loans. If you are a graduate you can apply for a PLUS loan in your own right. If you are an undergraduate student you cannot apply for the PLUS, but your parents can apply on your behalf.

The maximum you can borrow through the two schemes is the estimated Cost of Attendance.

The sum of your Federal and any private loans cannot exceed the Cost of Attendance so you should think carefully, should you decide to take out both. See examples of breakdowns and the maximum loans available to you.

PLUS loans are credit based.

Interest rates for each loan type can be found on the US Department of Education page about interest rates.

Eligibility for Direct Loans and application process

Direct Loans are available to all US citizens or permanent residents with a valid social security number who have a high school diploma and are not in default on any previous student loans. 

You will need to complete the Free Application for Federal Student Aid (FAFSA). We will use the information from your FAFSA to assist in determining your eligibility for a Direct Subsidized Loan and/or a Direct Unsubsidized Loan.

• You may complete the FAFSA electronically via the FAFSA on the Web 
• To complete the FAFSA electronically, you must have a Federal Student Aid PIN.
• After the Department processes your FAFSA, you will receive a FAFSA Submission Summary. Please retain this document for your records and be prepared to provide it to us if we ask.
• Goldsmiths' ID is G11765

In addition to completing a FAFSA, you will need to be accepted in a degree-granting program (ie BA, BSc, MA, MFA, MSc, MPhil or PhD) at our school on at least a half-time basis and meet other eligibility requirements such as maintaining Satisfactory Academic Progress (SAP) and being within the borrowing limits for Direct Subsidized Loans and Direct Unsubsidized Loans.

If you are studying on a PGCE, other non-degree course, or are enrolled on a distance learning course you are not eligible to receive Federal Aid from Goldsmiths. You may, however, be eligible for a private loan.

Award notification

After we determine your eligibility for a Direct Subsidized Loan and/or a Direct Unsubsidized Loan, we will notify you of the loans and amounts for which you are eligible. 

This will depend upon your intended program of study, Student Aid Index (SAI), other funding (including any International Scholarships you may have been awarded) and Cost of Attendance. If you do not wish to borrow the full amount on your Award letter you must contact the Financial Aid Office to cancel or reduce your loan amounts.

Depending on your status, we may also include information about a Direct PLUS Loan award for which you or your parent may be eligible. (If you are a graduate/professional student, you may be eligible for a Direct PLUS Loan; if you are a dependent undergraduate student, your parent may be eligible for a Direct PLUS Loan.)

This notification will include the instructions you need to follow in order for your loan to be processed in a timely manner. Please read this thoroughly.

Direct Loan MPN completion

You must complete a new Direct Loan Master Promissory Note (MPN) for each loan type you wish to borrow. Although you may have previously signed an MPN to receive FFEL or Direct Loan Program loans, these MPNs cannot be used to make Direct Loans at our school.

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 StudentAid.gov website
• 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. You do not need to provide us with a copy; we will be notified electronically of your completion.

Note: You also have the option to complete a paper Direct Loan MPN. To do so, call the Department’s Applicant Services staff at 800/557-7394 and then return the completed paper MPN to the Department at the address included in the instructions that will be provided to you. We will be notified of your completion.

You will also be asked if you wish to pay the interest while you are in school. Doing say my save you around $2000 over the course of the loan (depending on the amount you borrow and the length of repayment).

Direct Loan Entrance Counseling completion

You must complete Direct Loan Entrance Counseling each year before you can receive a Direct Loan.

• You may complete Direct Loan Entrance Counseling electronically via the StudentAid.gov website
• To complete Direct Loan Entrance Counseling electronically, you must have a Federal Student Aid PIN. This is the same PIN used to complete the FAFSA.
• After you complete entrance counseling, we will be notified electronically.
• You will need to complete Entrance Counseling for each type of Loan you borrow (eg Stafford and PLUS).
• Parents are not required to complete Entrance Counseling for a Parent PLUS loan.

 You will also be required to complete Exit Counseling shortly before you complete your studies. 

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 (for undergraduates) or 2 Instalments (graduates) 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 email financialaid (@gold.ac.uk) if you have any questions.


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.

Disbursement of funds

Before each disbursement Goldsmiths is required to confirm you are still eligible to receive funds. This includes ensuring you are making Satisfactory Academic Progress, are studying 'at least half time' and you are not conducting any unapproved study or research in the US.

The loans will be disbursed to Goldsmiths 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. For details on how opening a UK Bank Account, please see below.

You will need to ensure you open a bank account as soon as possible. Any loans first disbursed after 1st October may have a higher origination fee associated with it. This may affect the amount that you receive.

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

In order to receive your Federal Funds as quickly as possible, we would advise you to open a UK bank account to use during your time in the UK.

Banks will normally require you to provide proof of a UK address and that you are an enrolled student. 

Online student bank accounts that you can apply for before you arrive in the UK are also available.

If you do not have a UK bank account we will still be able to process your funds to a US bank account. 

If you intend to study a programme that has an option for a period of study abroad or includes a work placement (Internship or Externship) please email financialaid@gold.ac.uk to check that your intended programme of study is eligible for Federal Loans.

Additional information

You should be aware of our return of Title IV funds policy. For further information on Goldsmiths, relating to Federal Aid requirements, please see Goldsmiths' Publication Scheme and our Consumer Information pages.

Goldsmiths, University of London looks forward to participating in the Direct Loan Program and offering the benefits of Direct Loans to our U.S. students. For additional information about Direct Loans, visit Federal Student Aid or contact the Financial Aid Office at financialaid (@gold.ac.uk) +44 20 7919 7481 for more information.

Satisfactory Academic Progress

Students in receipt of Aid are expected to maintain Satisfactory Academic Progress.