How to apply for a loan

The first step in applying for a Direct Loan is to complete the Free Application for Federal Student Aid (FAFSA). This is available online at Federal Student Aid from 1 October. If you list the University of Reading as one of your choices, you will be asked for our School Code. This is G10143. Once you have completed the FAFSA, this in turn will create a Student Aid Report (SAR). As a foreign school we do not receive automatic notification direct that you have completed the process so you will need to email us at USLoans@reading.ac.uk to let us know. The University will then download your SAR from the FAFSA website as it will contain information regarding your eligibility.

Have a look at our handy flow chart for loan origination regarding how your loan is processed and information needed.

Application Process

Entrance Counselling

The US Government requires you to complete online entrance counselling for all loans except Parent Direct PLUS loan borrowers. This process is mandatory and must be completed before the University can originate your loan. The purpose of the entrance counselling is to ensure that you understand the responsibilities and obligations you are undertaking. Please visit www.studentloans.gov to complete this counselling. Once you have completed the counselling, please save a screenshot and email it to USLoans@reading.ac.uk.

For more information

Free Application for Federal Student Aid (FAFSA)

Please complete the FAFSA at www.fafsa.ed.gov. Information on how to complete the FAFSA is also available using the same link. This is your application to the US Department of Education for a Direct Loan. The University of Reading’s school code is G10143. You will need to include this on the FAFSA in order for us to receive your Student Aid Report (SAR).

It is your responsibility to complete the FAFSA, and please note that you will be required to complete a new FAFSA for each year of study at the University of Reading.

Loan Origination

This means that the University will set up your loan on the US Government’s system, complete with details of the amounts, loan types, disbursement dates, etc. At this point the US Government might carry out a credit check if you have requested a PLUS Loan. If the credit check fails, you would not be able to receive a PLUS Loan, and we would advise you of this as soon as possible.

Your award letter will include specific details on what loans we plan to disburse as well as the expected disbursement dates and amounts. Please read your award carefully and remember that it is your responsibility to pay back any amount that you borrow plus interest. You have a right to either decline the loan or request a lower amount if you believe your cost of attendance to be lower than our calculation.

Master Promissory Note (MPN)

The Master Promissory Note (MPN) is your loan agreement. It is a legal document which explains the terms and conditions of your loans and holds you accountable to repay all loans and any associated fees and interest to the Department of Education. Please complete your MPN at www.studentloans.gov. If you want a Parent PLUS Loan, your parent will have to complete the MPN. Once you have completed and saved your MPNs, please email the signed copies to USLoans@reading.ac.uk. Without copies of your signed MPNs, your loan will be rejected.

Please Note: A new MPN is required for each year you receive Federal Student Aid. As the applicant you are responsible for ensuring a new MPN is sent to us each year.

Student Aid Report (SAR)

Once you have completed the FAFSA, a Student Aid Report (SAR) is produced. As a foreign school, we do not automatically receive your SAR. Once you have completed your FAFSA, please email us at USLoans@reading.ac.uk quoting your student and social security numbers and this will allow us to access your SAR. Please remember to use our school code G10143 when completing your FAFSA.

Once we have received your SAR, we will check that you meet all of the eligibility requirements and we will contact you as soon as possible if there are any problems.

We will also check that the loan amount requested in your Cost of Attendance (COA) is within the published guidelines. We will contact you to discuss if there is any adjustment required.

Once we are satisfied that all of the requirements have been met, we can proceed with originating your loan.

For students commencing September 2019, please note the earliest you will receive notification of your loan entitlement for the 2019/2020 academic year is May 2019.

Visa Letter

If you are applying for a UK Tier 4 (Student) Visa, you will be required to evidence that you have sufficient funding in place before the visa can be issued. The University of Reading will provide you with documentation confirming that you will be receiving Federal Aid funding for the year ahead and you will be able to use this letter as evidence to support your application. Once we have confirmed and originated your loan(s) we can arrange for you to receive the necessary official documentation.

The United States is classed a low-risk country by UKVI. Therefore, you are strongly advised to ensure you have evidence of qualifications and money, even though you do not necessarily need to send them with your visa application. However, UKVI may request this evidence as part of their decision process and they will refuse your application should you fail to provide it within a specified timeframe. This is why it is crucial to your application that you obtain, and be able to provide, the appropriate evidence if it is requested by UKVI.