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Direct loan terms and conditions

The US Department of Education stipulates that the following regulations apply:

Satisfactory academic progress
Your eligibility to continue to receive direct loan funds depends on you making satisfactory academic progress. The Registry will therefore contact your tutor before the Spring and Summer disbursements are requested to confirm that you are in good academic standing and eligible to receive the next instalment of your loan.

Counseling
Entrance and exit counseling must be completed at the appropriate times. This can be undertaken at StudentLoans.gov. All new students must complete entrance counseling at the time their loan application is being processed. All students must complete exit counseling before the final instalment of their loan is released each year. If a student withdraws early from their course they will need to take the exit counseling when they withdraw.

Changes to enrolment status
If your enrolment status changes you must ensure that the Tuition Fees Manager in the Registry is aware of your change in status. Your loan eligibility will then be recalculated to reflect your new Cost of Attendance based on your new enrolment status and any 'unearned' loan funds may need to be returned to the US Department of Education. The calculation to determine what loan funds need to be returned is called a Return to Tile IV.  

A return to tile IV calculation is required in the following scenarios:

  • A student withdraws from their programme of study
  • A student takes interruption of study which exceeds 180 days within a particular academic year
  • A research student submits their thesis and completes the course or moves to X-Status 
  • A student falls below 'half time' (part time) study 

Other examples of when your loan entitlement will be recalculated, and funds adjusted or returned, include:

  • A move from full time to part time study 
  • A move to writing up status
  • A return to the US to undertake study, e.g. research study leave (RSL), or summer project
  • Changing of split dates for split-study students
  • Additional funding (see further details below)

Course duration
Students must complete their programme within a time frame of no longer than 150% of the published length of the course.

Programs/Study periods based in the US
Any student based in the US for any part of their studies will not be eligible to receive direct loans. Any unit of a programme based in the US for a specific duration will make the student ineligible for direct loans. Research students on research study leave based in the US are not eligible for direct loans. This is non-negotiable and is a regulation set by the US Department of Education, not LSHTM.   

Additional funding
You are obliged to inform the Tuition Fees Manager in the Registry of any additional funding (either expected or received) before and after your loan entitlement is calculated. If this information is provided subsequent to your loan application your loan entitlement will then be recalculated to reflect your new expected financial aid. This may result in future disbursements being reduced or overpayments (where all disbursements have been paid) being returned to the US Department of Education.

Borrowers right to cancel
You will be notified by email before each loan disbursement is requested and have the right to cancel or reduce the loan disbursement within a stipulated period before the loan funds are drawn down. If you wish to cancel your loan disbursement after it has been received you will be responsible for returning the funds to the US Department of Education along with any expected accrued interest.

Distance learning courses
Students on distance learning courses are not eligible for direct loan funding.