Frequently Asked Questions (FAQ)

The FAFSA is the Free Application for Federal Student Aid. Anyone who requires US federal student aid for college/school/university will need to complete a FAFSA. The form is submitted to, and processed by, a federal processor contracted by the US Dept. of Education and the results are electronically transmitted to the financial aid offices of the schools that you list on your application. The FAFSA is the application used to determine eligibility for federal aid, including grants educational loans and work study programs.

A student Aid Report (SAR) is a summary of information you submitted in your Free Application for Federal Student Aid (FAFSA) and indicates your official Expected Family Contribution (EFC).

The Expected Family Contribution (EFC) is used to determine financial need. It’s shown on your Student Aid Report (SAR), which is generated once you complete your Free Application for Federal Student Aid (FAFSA). We ask undergraduates to add the EFC to their Cost of Attendance spreadsheet. The EFC is used to determine ‘needs’ and limits the amount that can be borrowed as a Direct Subsidised loan.

The Master Promissory Note (MPN) is a legal document under which the borrower promises to repay their loan(s) and any accrued interest and fees to the US Dept. of Education. It also explains the terms and conditions of the loan(s). For instance, it will include information on how interest is calculated, when interest is charged, available repayment plans, and deferment and cancellation provisions.

We begin processing loans for the new academic year at the beginning of June.

The US loan webpages (including cost of attendance spreadsheets) for the new academic year are updated during May. Please wait for updates to be made before applying for federal loans for the new academic year.

We can usually process your loan(s) in around 2 weeks, although during the peak period (June to October) the process can take longer. Please ensure that you apply in plenty of time.

There are several steps to completing a federal loan application, other than completing a FAFSA. Refer to the Application procedure page for the process to follow.  

The maximum amount you can receive in loans cannot exceed the yearly cost of attendance less any other financial aid you may be receiving.  

Refer to the Cost of attendance page for spreadsheets and costs that can be included. You decide how much you want to borrow up to the maximum available. 

You can apply for federal loan(s) before hearing back about applications made in relation to scholarships/awards, etc. However, please ensure that you inform our office as soon as possible if you receive confirmation of any scholarships/awards, etc. after your loan(s) have been certified/approved as we may need to adjust them.

If your course is more than one academic year, you will need to reapply for federal loans for each year of study. This means you’ll need to complete a new FAFSA application, new MPN(s) (your MPN is only valid for one year if attending a school outside the United States), a new PLUS application (if taking a PLUS loan) and a new cost of attendance spreadsheet for the relevant year of study. Please ensure that you use your College’s school code on all documentation completed and attach all required documentation to your e-mail as instructed on the Application procedure page before emailing it to the Student Loans team.

On the University of Cambridge’s Postgraduate Admissions Office Financial Undertaking form there’s a section that says the following: ‘Please tick at least one of the boxes below, as appropriate to your circumstances, and then sign and date the form’.

On this section you need to tick either ‘A’ to confirm that you will be responsible for both the payment of all your fees and for funding your living costs. Or tick ‘B’ only if you have received a part-cost award as listed on that page to confirm that you have received it, and will be responsible for the remainder of your fees and/or living costs.

Colleges are aware of US regulations and special dispensation is made for students funding their studies using US federal loans. Your College will arrange for your fees to be paid in equal instalments in line with your US loan disbursements.

We work with Convera UK Ltd, who convert your funds from US$ to GBP£ and who will also be paying you the living expenses portion of your disbursement to your personal bank account. This is the amount left over after the College has taken any tuition fees/charges owing to them for the payment period. About 2 weeks before your first disbursement, you will receive a request via email from Convera UK Ltd, requesting that you go into their portal and enter your UK bank details so that your living expense funds can be paid to you.

Disbursement of federal loan funds is made in two or three equal instalments. Refer to the e-mail sent to you once your loan(s) were certified by our office for disbursement information. Before the draw down we ask the Colleges to confirm information to us to enable us to comply with US regulations in relation to draw down, including the confirmation of your attendance at the institution. If your disbursement is at the beginning of a term, please ensure that your college is aware that you have remained in Cambridge/returned to Cambridge and respond promptly to any e-mails sent to you by your College’s bursary/finance/accounts office. This is in order to minimise any delay in drawing down loan funds for your college at the beginning of term.

Additionally, you will be requested to enter your banking details into the Convera UK Ltd - the company that convert your funds from US$ to GBP£ and will also be paying you the living expenses portion of your disbursement into their portal so that your living expense funds can be paid to you.

On the day of your disbursement, the amount left over after the College has taken any tuition fees/charges owing to them will be sent directly to your bank account as living expenses.

When adding your bank details onto the Convera portal, you have the option of either adding in UK banking details or US banking details, the choice is yours. However, please note that if you decide to include US banking details, you may lose out on some funds as when the loan funds are released, the full amount is converted to GBP£ and then any balance needing to be paid to your personal bank account will then be converted back to USD$. Due to the funds having to be exchanged twice, you may miss out on some funding.

Convera UK Financial Limited determine the exchange rate on the day they receive US$ loan funds drawn down from the US Dept. of Education. We’re only advised of the rate being used by Convera when we receive the e-mailed notification on the day they post US$ loan funds to a college’s £’s sterling bank account.

Convera UK Financial Limited don’t charge any additional commission or a transaction fee for processing funds received by them from the US Dept. of Education.

If you intermit or withdraw during a loan payment period for which you have received a federal loan disbursement, having completed 60% or less of that loan payment period loan, funds may be required to be returned to your lender. If the university has to return any of your loan funds, it may be possible that you will be requested to reimburse those funds.

For further information please refer to the items ‘Leave of absence’ and ‘Withdrawing and return to Title IV policy’ on the Terms and Conditions page.

Please inform our office as soon as possible if you are planning on intermitting or withdrawing during a term for which you have received a federal loan disbursement.

If you are taking US federal loans, we will confirm your attendance online through the National Student Loan Data System (NSLDS) as required by US regulations.

Please send an e-mail (minimum of 21 days before your next instalment is due) to StudentLoans@admin.cam.ac.uk  to include an updated cost of attendance spreadsheet listing any additional costs required, along with an e-mail with a brief explanation of any changes made and how much you require. If the increase is approved, the payment of it will be split into equal instalments according to your payment periods. If you have already received one of your disbursements, the first half of your increase will be disbursed to your College about 2 weeks after the approval of the increase and the second half of the increase will be added to your next disbursement.

Please send an e-mail (minimum of 21 days before your next instalment is due) to StudentLoans@admin.cam.ac.uk detailing the amount of the decrease in US dollars and when this is to take effect.

Please send an e-mail (minimum of 21 days before your next instalment is due) to StudentLoans@admin.cam.ac.uk advising that you wish to cancel your remaining loan instalments.

If you still have remaining instalments, you should consider reducing or cancelling these instalments. Loan funds that have been disbursed will have already been received in sterling and will need to be converted back to US dollars at the conversion rate of the day of return (this will not be the same rate that funds were received).

You may need to pay fees and bank charges associated with returning the funds to your loan servicer. You may also need to provide proof of alternative funding to your College, to show that you are still able to pay your fees and living costs in full.

To return loan funds - if reducing/cancelling isn’t an option or you have no remaining loan instalments - please refer to How to Repay Your Loans as you’ll need to arrange to return funds yourself to your Loan Servicer.

Federal loans go into repayment from the date that your enrolment on the National Student Loan Data System (NSLDS) drops to below half-time and any grace periods on your federal loans will also be effective from that date.

Federal loan borrowers are assigned a loan servicer after the first disbursement of their loan. Your loan servicer will contact you directly after you receive your first disbursement.

Private loan applications (with Sallie Mae) must not exceed 180 days between the application and disbursement date. If your course begins in the Michaelmas term, please don’t apply for your loan before the beginning of May and note that the first disbursement will not be made before the start of your first term.

Refer to Private loans for further information.

The University of Cambridge does not currently complete 1098T tax forms for its students.