Types of US student loans
US students studying at an overseas institution can only apply for Stafford, PLUS or private loans.
Stafford loans
There are two elements to Stafford loans; subsidised and unsubsidised. This refers to the interest related to the loan. If you obtain a subsidised loan, the interest will be paid by the US government while you are in University. If you obtain an unsubsidised loan, the interest accumulates while you are in university.
Postgraduate students
There are fixed limits to the amount of money you can borrow. For postgraduate students the limits are:
| Limits | Total Limits |
|---|---|
| Subsidised Stafford Limit | $8,500 |
| Total Stafford Limit (Subsidised and Unsubsidised) | $20,500 |
Undergraduate students
For undergraduate students the limits depend on whether you are classed as dependent or independent. This classification can be found on your Student Aid Report.
For dependent students the limits are:
| Year of Study | Subsidised Stafford Limit | Total Stafford Limit (Subsidised & Unsubsidised) |
|---|---|---|
| Year one | $3,500 | $5,500 |
| Year two | $4,500 | $6,500 |
| Years three + |
$5,500 |
$7,500 |
For independent students the limits are:
| Year of Study | Subsidised Stafford Limit | Total Stafford Limit (Subsidised and Unsubsidised) |
|---|---|---|
| Year one | $3,500 | $9,500 |
| Year two | $4,500 |
$10,500 |
| Years three + | $5,500 |
$12,500 |
Parent PLUS loans for dependent undergraduates
Parents of dependent students can apply for PLUS loans (Parent PLUS) to fund their children’s education as long as the full Stafford loan has been applied for. These loans are credit based. The maximum that can be borrowed is the cost of attendance minus any Stafford loan the student may have applied for.
PLUS loans for postgraduates
Postgraduate students are also eligible to apply for PLUS loans (Grad PLUS) as long as the full Stafford loan has been applied for. The student will be classed as the borrower rather than the parent. The maximum that can be borrowed is the cost of attendance minus any Stafford loan you may have applied for.
Private loans
Students can apply for private loans either in addition to, or instead of, US Direct Loans. The maximum amount that can be borrowed is the cost of attendance minus any Stafford or PLUS loans you may have applied for. You can apply to any lender that offers private loans to students enrolled at foreign institutions. Some frequently used lenders and management services are: