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US Federal Loans

Overview 

The University of Derby is approved by the US Department of Education to certify loans under the William D. Ford Direct Loan Program, enabling eligible students to access US federal student loans while studying in the UK. 

As the University is classed as a foreign school, it is not eligible to certify Pell Grants or Perkins Loans.

Eligible students may apply for the following loan types:

Eligibility Criteria

For a student to be eligible for Direct Loans they must meet the following eligibility criteria:

Programmes eligible to receive Federal Direct Loans

Most degree programmes delivered at the University of Derby are eligible for Federal Direct Loans. These include undergraduate (Bachelor's), postgraduate (Master's) and doctoral (PhD) degrees delivered across all our Derby campuses: Kedleston Road, Markeaton Street, Britannia Mill, One Friar Gate Square and the Cavendish Building. 

Programmes not eligible to receive Federal Direct Loans

Federal loans cannot be issued for:

If your programme of study is not eligible, you may wish to apply for private loans to cover your Cost of Attendance. 

If you are unsure whether the programme you have applied for is eligible for Federal Direct Loans, please contact the Federal Aid Team by emailing federalaid@derby.ac.uk 

Student Dependency Status

When you complete your FAFSA, you will be asked to provide financial information based on your dependency status. Dependent students must include both their own information and their parents’ details. Independent students only need to provide their own information, and their spouse’s information if they are married.

Being classed as a dependent student does not mean that your parents are required to contribute financially to your studies. Your dependency status is simply used to determine your eligibility for Federal Student Aid.

Independent Student Status

For Federal Aid Purposes, you will be considered an independent student if you meet one or more of the following criteria:

Dependent Student Status

If you do not meet any of the criteria listed above, you will normally be considered a dependent student for Federal Aid purposes. In some cases, a Federal Aid Team may review individual circumstances and determine that a student should be treated as independent. This is known as a dependency override and is only granted in exceptional situations.

Returning to the United States

Students in receipt of Federal Direct Loans are not permitted to return to the United States to undertake fieldwork, research placements, internships, externships, or to complete their thesis, as per US Federal Regulations.

An exception applies only to doctoral (PhD) students undertaking independent research during the write-up period, where the research must be conducted in the US and is supervised by faculty. Approval must be obtained from the Federal Aid Team, and permission is limited to a maximum of one academic year.

This restriction does not prevent students from returning to the United States for holidays or vacations.

Private US Student Loans

The University of Derby does not currently have arrangements in place with private US student loan providers. However, we are in the process of onboarding Sallie Mae and Earnest as approved lenders starting from the 2026/2027 academic year.

Further information will be published on this page in due course.

Additional Resources

The One Big Beautiful Bill Act (OBBBA) was enacted in the United States on 4 July 2025, introducing significant changes to Federal Student Loan programmes as part of broader fiscal policy reforms. There will be no changes affecting Federal Student Loans for the 2025/2026 academic year. However, provisions introduced under this legislation are scheduled to take effect from 1 July 2026 and will affect students starting their studies in the 2026/2027 academic year.

Disclaimer: The information provided on this page is intended to help students understand recent changes to US Federal Student Aid programmes and how these changes may affect borrowers studying at the University of Derby. This information is for general guidance only and reflects our current understanding of federal legislation and guidance. Federal regulations may change, and individual eligibility and borrowing options will depend on personal circumstances. For the most current information, please refer to Federal Student Aid

Undergraduate Loan Limits (Subsidized and Unsubsidized)

  • There are no changes to the annual borrowing limits for undergraduate Subsidized and Unsubsidized Direct Loans. However, these loans will count towards the new aggregate lifetime borrowing limits.

Undergraduate Loan Limits (Parent PLUS)

  • From 1 July 2026, new borrowing limits will apply to Parent PLUS Loans. Parent borrowers will generally be limited to borrowing up to $20,000 per student, per academic year, subject to a lifetime limit of $65,000 per dependent student.
  • Parents who borrowed a Parent PLUS Loan for the same student before 1 July 2026 may qualify for transitional (grandfathered) provisions. Under current guidance, eligible borrowers may continue to borrow under the previous rules for up to three academic years after 1 July 2026 or until the student completes their programme of study, whichever occurs first.
  • At present, it remains unclear how these transitional provisions will apply in certain circumstances, including where a student has repeated a period of study, taken a break in enrolment, or transferred to a different programme. We will update this information as further guidance becomes available from the US Department of Education.

Graduate Loan Limits (Unsubsidized)

  • Professional Programmes - up to $50,000 per academic year, with a $200,000 aggregate lifetime borrowing limit.
  • Other Graduate Programmes - up to $20,500 per academic year, with a $100,000 aggregate lifetime borrowing limit
  • At present, the US Department of Education has not yet provided comprehensive guidance on which programmes will be classified as 'professional' programmes for the purposes of these borrowing limits. We will update this information as further clarification becomes available.
  • Students who borrowed Direct Unsubsidized Loans before 1 July 2026 may qualify for transitional (grandfathered) provisions. Under current guidance, eligible borrowers may continue to access loans under the previous borrowing limits until they complete their current programme of study or for up to three additional years after 1 July 2026, whichever occurs first.

Graduate Loan Limits (Graduate PLUS)

  • Graduate PLUS Loans will be phased out from 1 July 2026. From this date, students who have not previously borrowed a Graduate PLUS Loan for their current programme of study will no longer be eligible to take out new loans.
  • However, transitional (grandfathered) provisions are available for some existing borrowers. Students who received a Grad PLUS Loan before 1 July 2026 and remain enrolled on the same programme of study may continue to access Graduate PLUS funding under the previous rules for a limited period while completing their programme. These students are commonly referred to as 'legacy borrowers'.
  • The exact eligibility requirements for these transitional provisions continue to be clarified by the US Department of Education. The University will update this information as further guidance becomes available.

Loan Proration for Less Than Full-Time Study

  • The legislation introduces a requirement for federal loan amounts to be adjusted based on a student’s rate of enrolment.
  • Students studying less than full-time will generally be eligible to borrow Direct Loan amounts that are proportional to their enrolled credit hours compared with the institution’s full-time credit load. This means that students studying at a reduced intensity may receive a lower maximum loan amount than full-time students.

New Repayment Plans

  • For new Federal Loans disbursed on or after 1 July 2026, existing income-driven repayment plans (including Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Saving on a Valuable Education Plan (SAVE)) will no longer be available for those new loans. These will be replaced by a new Repayment Assistance Plan (RAP).
  • Borrowers who take out a Federal Loan on or after 1 July 2026 will generally repay those new loans under RAP or other available standard repayment options. RAP is designed to provide an alternative structure to support repayment, with flexibility to move between repayment options in line with federal rules.
  • Borrowers are not required to remain in RAP for the full repayment term and may be able to switch to a standard repayment plan, typically ranging from 10 to 25 years, depending on their loan balance and repayment structure.
  • Borrowers who do not take out any new federal loans on or after 1 July 2026 may continue to access existing repayment plans, including Standard, IBR, Graduated, and Extended These borrowers may also choose to opt into RAP if eligible.
  • Current borrowers enrolled in Income-Contingent Repayment (ICR), PAYE, or SAVE plans will be required to transition to a new repayment option by 1 July 2028. If no selection is made by this date, borrowers will be moved into RAP in accordance with federal regulations.
  • Further guidance on the Repayment Assistance Plan (RAP) will be published as it becomes available from the US Department of Education.

Find out how much you can borrow

 

As a non‑US institution, the University of Derby is not recognised by the US Internal Revenue Service (IRS) as a tax‑reporting organisation and is therefore unable to complete IRS Form 1098‑T for students (or the parents of dependent undergraduate students) to claim an education tax credit.

The University does not have an Employer Identification Number (EIN), which is a mandatory requirement for this form, and submissions without an EIN will be rejected.

The Federal Aid Team can only provide a letter confirming the tuition fees and Federal Aid loan amounts for the academic year, which students can submit with their tax return. To request this letter, please contact the Federal Aid Team by emailing federalaid@derby.ac.uk