How to Apply for a Federal Loan

The application process for foreign schools differs from the process for domestic schools in the US. Whilst we are able to access most of the documentation required through the federal system, they are not sent to us automatically and we are not notified when you submit them. As such you are required to confirm to us once you have submitted your FAFSA, via our US Loans Enquiry Form.

Each new academic year requires a new FAFSA to be submitted and students to submit a new US Loans Enquiry Form to obtain new loans. 

Once you have checked your eligibility to receive a US Federal Loan, below are the steps that you need to complete in order to receive US Federal Aid.

Each year, students must complete a new FAFSA. Continuing students are required to complete a renewal FAFSA. You complete your FAFSA electronically on the Federal Student Aid website.

Federal Student Aid

The University of Edinburgh School Code is G06839. This code may also appear as 00683900 and applies to all US students. 

The US Department of Education requires first-time borrowers of Federal Direct Loans to complete a loan entrance counselling session as part of the loan application process to ensure you understand the responsibilities and the terms and conditions of your loan.

Please complete the Entrance Counselling relevant to your situation (undergraduate or postgraduate). The Undergraduate counselling includes information about Direct Subsidized and Unsubsidized loans. The Postgraduate counselling includes information about Direct Unsubsidized and PLUS loans.

We will not be able to proceed with your loan assessment until we have a copy of the counselling confirmation.

Direct Loan Entrance Counselling is completed electronically via the StudentAid.gov website. You need to complete entrance counselling for each type of loan you borrow:

Complete your Entrance Counselling

Parents are not required to complete entrance counselling for a Direct Parent PLUS loan.

Please choose the University of Edinburgh as your school. The University of Edinburgh School Code is G06839 (this code may also appear as 00683900).

All students taking a Federal Direct loan outside of the US (and your parent for a Parent PLUS loan) are required to complete a Master Promissory Note (MPN) annually before loans can be originated and funds disbursed.

You must complete a Direct Loan Master Promissory Note (MPN) (Loan agreement) for each type of loan that you wish to borrow. The MPN is a legal document through which you promise to repay your Direct Loans and any accrued interest and fees to the US Department of Education. It also explains the terms and conditions of your loan and your rights and responsibilities as a borrower.

• The electronic MPN process must be completed in an entire session. If you exit the website without completing the MPN, you will need to start over. The session should take about 30 mins to complete online.
• You will require your Federal Student Aid ID to log in and to E-sign your Federal Direct Loan MPN. Follow the 5-step process to sign your MPN, either as an Undergraduate student; as a Graduate / Professional student or as a Parent of a Dependent Undergraduate Student.
• For Graduate PLUS or Parent PLUS loans, a separate MPN is required, if applicable. As PLUS loans are subject to a credit check, MPNs for PLUS loans must be signed using a US postal address. An overseas address will automatically result in the credit check being pended.

Complete your MPN

If your credit check is declined when the loan is originated you must either appeal the credit check decision based on extenuating circumstances or find an endorser for the loan.

You must also complete PLUS Credit Counselling. PLUS Credit Counselling can be completed voluntarily at any time. If PLUS Credit Counselling is completed voluntarily and you are determined to have an adverse credit history by the US Department of Education within 30 days of PLUS Credit Counselling completion, your PLUS Credit Counselling requirement will be considered to be fulfilled.

PLUS Credit Counselling

Please read the Types of Federal Loan and Loan Limits section of our webpages so you are aware of the maximum amount of loans that you may be eligible for.

The Cost of Attendance (CoA) is part of the University of Edinburgh application process. The CoA is an estimate of your education-related costs for the academic year. The CoA will specify the maximum amount you may be eligible to borrow minus any other aid you might be receiving such as bursaries, scholarships or other loans. The amount calculated in the CoA is based on:

• Information provided in your FAFSA
• Duration of your programme of study
• Tuition fees
• VISA and Health Immigration Surcharge Costs (for students starting their first year of study)
• Flights
• Living expenses  

From the information above, US Loans staff will provide this information to you in our Financial Aid Package.

The CoA for students studying at the University of Edinburgh is based on local average costs. This will increase in line with inflation for each academic year. These educational costs relate only to you, the student. These costs cannot include costs for partners or children (other than childcare or nursery costs).

Whilst our CoA does include travel, we cannot issue loan payments before the beginning of the academic year, so you should not rely on your first loan payment to finance your travel to the UK.

Please note, the maximum borrowing amount on your CoA may vary each academic year, due to a change in theoretical exchange rate, a change in programme number of weeks and visa and health immigration surcharge cost being included for new students.

If you are in receipt of private loans, scholarships, or bursary funding either from the University of another source, you must inform us so that this can be factored into your Cost of Attendance. Failure to do so will result in a recalculation and reduction of your loan later in the academic year when it is evidence you are in receipt of additional sources of funding. 

Example Cost of Attendance for 2026-2027 will be added in due course

If you have submitted your FAFSA, applied to the University of Edinburgh and received either a conditional or unconditional offer, we will carry out a provisional loan assessment prior to the start of your studies.

When this assessment has been completed, we will email you with your Financial Aid Package. This will contact the following information:

• The maximum loan entitlement that you may be eligible for
• Terms and Conditions of the loan(s)
• Cost of Attendance Information

If you are not eligible for Federal Loans based on your programme of study, or have applied only to receive loans through a Private Loan lender, we will email you a Financial Aid Package for private student loans.

Private US Student Loans

If you wish to accept your Financial Aid package, please follow the instructions provided in the Financial Aid Package that is provided to you.

If all steps have been successfully completed and you have accepted your offer of a place at the University of Edinburgh, we will finalise your loan application by originating your loans with the US Department of Education. Once your loans have been originated, you will receive a Financial Aid Award Letter from the US Loans Team which details the loan amounts and estimated disbursement dates.

Origination Fees

Federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each gross loan disbursement you receive whilst enrolled at the University of Edinburgh. This means the money you receive will be less than the amount you actually borrow. You are responsible for repaying the entire amount you borrowed and not just the amount you received. Origination fees may change each year.

Information on origination fees for all Federal loan types is available from:

Fees for Federal Student Loans

The University's Cost of Attendance takes origination fees into account for Direct Loans so that maximum net borrowings are sufficient to cover educational costs.

Interest Rates

The interest rate varies depending on the loan type and the first disbursement date of the loan. Interest rates change each year from 1st July.

Federal regulations provide financial aid administrators with the authority to use their discretion or professional judgement on a case-by-case basis and with proper documentation to adjust the data elements used on the Free Application for Federal Student Aid (FAFSA), a student's dependency status, or the Cost of Attendance.

For such decisions to be considered, the student must demonstrate unusual or special circumstances which justify an adjustment.

It is important to note that a professional judgement review does not guarantee additional funding, federal or otherwise. Professional judgement decisions are final and cannot be appealed.

Please contact usloans@ed.ac.uk for further information regarding your particular case and we can work with you to advise what is required.