Federal Direct Loans
The RNCM participates in the William D Ford Federal Direct Loan (Direct Loan) Program.
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.
US Dept of Education
T (202) 377 3168 or (213) 345 2104
RNCM Student Enquiries
T 0044 161 907 5314
RNCM School code: G23205/023205
Types of Loan Available
Subsidised Loans: Available to undergraduate students in financial need. The US government cover the cost of the accruing interest on the loan whilst you are enrolled for at least half-time study.
Unsubsidised Loans: Available to undergraduate and postgraduate students who do not qualify for subsidised loans or students whose cost of attendance is greater than other financial aid received.
The US government does not cover the interest that accrues on the loan whilst you are enrolled at the RNCM, or during the 6 month grace period following the completion of your studies.
Students may pay the interest that accrues on their loan on a monthly basis, or choose to defer the payments until they graduate, or drop below half-time study.
PLUS Loans: GradPLUS and ParentPLUS loans are also direct loans. They can be used to bridge the gap between the cost of attendance and the financial support already received; and/or helps pay the expected family contribution (EFC).
A parent of an undergraduate student may apply for a ParentPLUS loan to help support their child financially. GradPLUS loans are for independent postgraduate students. Independent undergraduate students are not eligible for PLUS loans.
As interest rates are lower on the Unsubsidised loans, graduate students must take out the full unsubsidised allocation before requesting a PLUS loan. If the full allocation is not taken, and a PLUS Loan is still requested, a confirmation statement must be provided to the College, which acknowledges that you have requested a PLUS loan, even though Unsubsidised loans are available to you.
The application for a PLUS loan includes a credit check that is valid for 90 days. The College will begin to process loan originations in August, so don’t apply too early.
Direct Loan Counselling
You must complete Direct Loan Entrance Counselling each year before you can receive a Direct Loan.
- You may complete Direct Loan Entrance Counselling electronically via the StudentLoans.gov website.
- To complete Direct Loan Entrance Counselling electronically, you must have a Federal Student Aid PIN. This is the same PIN used to complete the FAFSA.
- After you complete entrance counselling, we will be notified electronically.
- You will need to complete Entrance Counselling for each type of Loan you borrow (e.g. Stafford and PLUS).
- Parents are not required to complete Entrance Counselling for a Parent PLUS loan.
You will also be required to complete Exit Counselling shortly before you complete your studies. Federal Student Aid also have Financial Awareness Counselling. Whilst this is not compulsory you may find it of use when planning your borrowing and spending.
Satisfactory Academic Progress
Students in receipt of Aid are expected to maintain satisfactory academic progress. Please refer to the Return of Title IV Funds and Satisfactory Academic Progress Policy.
If you have any questions, please contact [email protected]