The application process with foreign schools differs from the process with US-based schools. Whilst we are able to access most of the documentation required through the federal systems, they are not sent to us automatically and we are not notified when you submit them. Therefore, you must confirm to us once you have submitted your FAFSA via email to federalaid@derby.ac.uk
After confirming your eligibility for US Federal Loans, you will need to complete the following steps in order to receive your funding.
Assessment of FAFSA applications for the 2026/2027 academic year will start in June 2026.
Step-by-step process of applying for Federal Direct Loans
Step 1: Complete the Free Application for Federal Student Aid (FAFSA) for the relevant academic year
You must complete an online application called the Free Application for Federal Student Aid (FAFSA) in order to apply for loans. This form must be completed every year and is done electronically on the Federal Student Aid website.
The Federal School Code of the University of Derby is 037283, which needs to be added on the FAFSA.
Step 2: Notify the Federal Aid Team and receive loan eligibility
Once you have completed the FAFSA, you must email federalaid@derby.ac.uk to notify us. We will then begin the review of your FAFSA to determine your eligibility and Cost of Attendance (COA). Once your eligibility has been reviewed, you will receive an email from the Federal Aid Team with the loan amounts you are eligible for each loan as well as information regarding the next steps you need to follow.
Find out how much you can borrow
Step 3: Cost of Attendance
The Cost of Attendance (COA) is based on local average costs and is the estimated amount of money it will cost students to study at the University of Derby. This will increase in line with inflation for each academic year.
Please note: the Cost of Attendance is an estimate of your maximum costs, actual expenditure may vary.
Although the COA is calculated using a fixed exchange rate, the actual amount that you will receive in GBP (British Pounds) will depend upon the exchange rate available to University of Derby's bank or currency exchange service provider on the date that the loan funds are disbursed.
Your COA will include travel costs, however, we are unable to issue loan payments before the beginning of the academic year, so you should not rely on your first disbursement to finance your travel.
Find out more about the Cost of Attendance
Step 4: Completing relevant paperwork
When you receive the eligibility email, it will outline the relevant paperwork you will need to complete before we can proceed any further with your loan application.
- Confirm how much of the loan eligibility you wish to borrow
In the eligibility email, you will receive a Confirmation Letter for you to complete (for undergraduate students it will be two letters, one for the student to confirm Subsidized and Unsubsidized loan amounts and one for the parent to complete the Parent PLUS loan amount), which you will need to complete and send back to the Federal Aid Team. You have the choice to borrow either the full eligibility up to the COA or borrow less if you choose.
- Complete your Master Promissory Note(s)
You, along with your parents if applying for a Parent PLUS Loan, are required to complete a Master Promissory Note (MPN) each year prior to loan origination and disbursement.
A separate Direct Loan MPN must be completed for each type of loan borrowed (Subsidized, Unsubsidized, PLUS). The MPN is a legally binding agreement in which the borrower commits to repaying all borrowed funds, including any applicable interest and fees to the US Department of Education. It also outlines the terms and conditions of the loan, as well as the rights and responsibilities of the borrower.
For Graduate PLUS and Parent PLUS loans, a dedicated MPN is required. As these loans are subject to a credit check, applicants must provide a valid US postal address when completing the MPN. Use of a non-US address will result in the credit check being placed on hold, which may delay processing.
- Complete Entrance Counselling
If you are borrowing Federal Direct Loans with the University of Derby for the first time, you must complete Entrance Counselling before your loan can be originated. This must be done for each loan type as well. Entrance Counselling explains the borrower's rights and responsibilities, repayment obligations, and other important information about Federal Student Loans. You will be notified if you are required to complete Entrance Counselling in the eligibility email that will be sent to you and you should aim to complete this as soon as possible to avoid delays in the processing of your loan.
Continuing students who are already in receipt of Federal Direct Loans are not required to complete Entrance Counselling before their loans can be originated for subsequent years.
Step 5: Loan Origination
Once you have completed the MPN and Entrance Counselling, you must email federalaid@derby.ac.uk to let us know. We will then originate the loans and provide you with an Award Letter, which will confirm the total loan amounts, disbursement dates and disbursement amounts.
These steps must be repeated each academic year that you wish to borrow Federal Direct Loans.
Federal Direct Loans and the CAS issuance process
Tuition Fee Deposits and US Federal Aid
Overseas applicants are required to pay the tuition fee deposit specified in their offer letter before a Confirmation of Acceptance for Studies (CAS) can be issued.
If you intend to fund your studies through US Federal Direct Loans, you may be eligible for a tuition fee deposit waiver. This will be considered where your Federal Aid has been fully processed and originated, and the confirmed loan amount is sufficient to cover your full tuition fees for the academic year. In such cases, your Federal Aid Award Letter can be used as proof of funding for your visa application.
In cases where your Federal Aid has not yet been originated and the CAS deadline is approaching or you require the CAS urgently, you will need to pay the tuition fee deposit in order to meet CAS requirements. Please note that any deposit paid will be included within your Cost of Attendance (COA) and therefore treated as part of the overall educational costs covered by your Federal Aid.
If you are unsure whether you qualify for a tuition fee deposit waiver, please contact us on federalaid@derby.ac.uk
Visas and Proof of Funding
The University issued Award Letter can be used as proof of funding for your student route visa application as it confirms loan and disbursement amounts.
Please visit GOV.UK to confirm whether you are required to submit your Award Letter with your student visa application.
Find out more about CAS issuance
Professional Judgement
We understand that your financial situation may not always be fully reflected in the information provided on your FAFSA. If your circumstances have changed or there are factors not captured in your application, you can contact us to discuss your situation.
In some cases, our Federal Aid Team can review individual circumstances and apply what is known as Professional Judgement, in line with US Federal Regulations. This allows us to consider adjustments to your financial aid assessment based on documented, exceptional situations.
Examples of circumstances we may be able to review include:
- A significant reduction in income
- Loss of employment
- High medical or dependent care costs
- Other situations that affect your ability to meet the cost of study
Each request is considered on its own merits. You will need to provide supporting documentation, and while we will review your case carefully, we cannot guarantee that an adjustment will be made or that additional funding will be available.
If you think your circumstances may affect your eligibility, please email federalaid@derby.ac.uk as soon as possible. We can then advise you on the next steps and the documentation you will need to provide.