Disbursement of direct loan funds
Disbursement dates and direct loan funds 2016/17
Direct loan funds are subject to multiple disbursements in equal amounts. Undergraduate students will have two disbursements (covering two semesters of teaching and examinations) and postgraduate students will have three disbursements, covering two semesters of teaching and one semester of research (writing up the dissertation). The disbursement dates are as follows:
- 2 October 2017
- 5 February 2018
- 4 June 2018 (for postgraduate students starting in September only)
Please note that postgraduate students starting in February 2017 will receive disbursements on:
- 5 February 2018
- 1 October 2018
- 4 February 2019
* Subsequent disbursements will only be released subject to satisfactory academic progress.
Receipt of loan funds
Please note that all loan funds are sent directly to London Metropolitan University and are only available to you after enrolment. Federal regulations stipulate that direct loan funds are disbursed directly to the school. Upon receipt from the US Department of Education, they are placed in your student account on, or just after, the above dates. We make every effort to have your loans available in your student account as soon as possible. Upon receipt and posting of your loan funds, any outstanding tuition fees will be paid first and any available GBP credit balance will be returned to you (to a UK bank account) within 14 days* only after tuition is paid. You will therefore not have immediate access to your loan funds when you arrive in the UK so you will need to prepare for this by bringing sufficient money with you to cover your expenses for the first two to three weeks after enrolment.
*Please note that University is required by federal regulations to disburse credit balance funds to students within 14 days. If it has not been possible to disburse your credit balance within the required time frame due to any unforeseen delay, the University will return funds allocated to you to the US Department of Education unless you provide us with written permission to retain funds after your enrolment.
The £:$ exchange rate fluctuates. Consequently your loans may not give you as much money as originally planned, so it is advisable to use a weaker $ exchange rate for your budget.
Loan origination fees
Subsidised and unsubsidised direct loans are subject to a 1.068% origination fee and PLUS loans are subject to a 4.272% origination fee. You will be informed of the net amount (your loan amount minus the origination fee) in your award letter.
Borrower's right to cancel
You will be notified when each loan disbursement is requested and of your right to cancel. You have 14 days to change/cancel any expected loan disbursements. After this period has expired, you will be responsible for returning any disbursed unwanted funds to either the US Department of Education or the loan servicer.
Payment of tuition fees (your payment plan) and disbursements
Postgraduate tuition fees are split into three equal payments, made at the start of each semester. The payment of your tuition will be divided into three equal instalments in line with your loan disbursements. Any credit balance available after your tuition fee instalment has been paid will be transferred into your UK bank account.
Undergraduate tuition fees are split into two equal payments made at the start of each semester. The payment of your tuition will be divided into two equal instalments in line with your loan disbursements. Any credit balance available after your tuition fee instalment has been paid will be transferred into your UK bank account.
UK bank account
You will need to open a UK bank account in order to receive the balance of your loan money, once tuition has been paid. Opening a bank account can take up to three weeks, so you should ensure that you have access to alternative funds to cover this period. Please see our section on opening a British bank account.