InternationalFuture students

kristen USA

Name: Kristen
Degree: Bachelor of Veterinary Science
Country: USA

"Melbourne University has made my journey from the United States a worthwhile adventure. I wanted to travel to a different part of the world to finish my education and this university has lived up to its outstanding reputation overseas. The quality and dedication of the Faculty, as well as the welcome environment of Melbourne as a city has reassured me that I have made the right decision to study here."

Financial aid for USA students

General information

As a US citizen you may be eligible to apply for a Federal Stafford loan, PLUS loan.  You can apply for a federal Stafford or PLUS loan if you will be enrolling in a Bachelor, Masters or Doctoral program at The University of Melbourne.

A student loan is a loan that the US federal government insures. In other words, you do not need collateral as in a traditional loan. In addition, the interest rates are often lower and in many cases, the government will actually pay the interest on the loan for the entire time you are enrolled full time in college.

The most common type of federally supported financial aid program is the Stafford Loan. The Stafford loan is a low-interest loan and comes in two categories:

  1. Subsidised Stafford Loan -- in which the federal government pays the interest while you are enrolled at least half-time in university, during your grace period, and during authorized deferments. Subsidized Stafford loans are based on financial need.
  2. Unsubsidised Stafford Loan -- in which you are responsible for all the interest that accrues on the loan from the time the money is disbursed. Interest may be paid as it becomes due or payment may be postponed and allowed to accumulate while studying at university and for the 6 month grace period after you leave university. Unsubsidized loans are not based on financial need. Please note that the maximum 6 month grace period may be reduced should you take a leave of absence.

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Eligibility for US Financial Aid

To apply for US financial aid you must:

A student loan is a loan that the US federal government insures. In other words, you do not need collateral as in a traditional loan. In addition, the interest rates are often lower and in many cases, the government will actually pay the interest on the loan for the entire time you are enrolled full time in college.

The most common type of federally supported financial aid program is the Stafford Loan. The Stafford loan is a low-interest loan and comes in two categories:

  1. Subsidised Stafford Loan -- in which the federal government pays the interest while you are enrolled at least half-time in university, during your grace period, and during authorized deferments. Subsidized Stafford loans are based on financial need.
  2. Unsubsidised Stafford Loan -- in which you are responsible for all the interest that accrues on the loan from the time the money is disbursed. Interest may be paid as it becomes due or payment may be postponed and allowed to accumulate while studying at university and for the 6 month grace period after you leave university. Unsubsidized loans are not based on financial need. Please note that the maximum 6 month grace period may be reduced should you take a leave of absence.

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Choosing a lender or guarantor

Guarantors

A guarantor or guaranty agency confirms your eligibility for a federal loan and provides the insurance for the loans. If you do not repay your loan, the guarantor will pay the lender with funds received from the US federal government and collect the balance from you.

The University of Melbourne works closely with American Student Assistance (ASA) who provide a free guarantee service. Alternatively, you may choose any US state guaranty agency.

Lenders

A lender provides the loan funds. The lender may be a bank or other financial institution. The lender sends the money to the university and may sell or transfer your loan to another lender. If this happens, the terms of your loan will not change and the lender or new loan holder will notify you.

Remember to ask for the lender code when you find a lender.

If you received federal loans previously, you may wish to stay with the same lender. It is wise to shop around for a loan to make an educated decision. Be sure to ask about interest rates, repayment plans, repayment incentives, customer service, economic hardship policies, one-time capitalization and likelihood of your loan being sold.

The University of Melbourne does not have a preferred lender list - we will work with whichever lender you choose.

 

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How to apply for a Stafford Loan

  1. Apply for your personal identification number (PIN) to e-sign a federal student aid application
  2. Complete the Free Application for Federal Student Aid (FAFSA). The University of Melbourne's federal school code is G08505 (If you have applied for a federal student loan last year, you may be able to complete a Renewal FAFSA between November and December each year)
  3. FAFSA send your Student Aid Report (SAR) electronically to us. This document provides information on your Expected Family Contribution (EFC). We will use your SAR and EFC to decide how much financial aid you are eligible to receive based on the Cost of Attendance (COA)
  4. First time borrowers at each grade level must complete the Stafford and/or GradPLUS entrance counselling at mapping your future
  5. Complete a Stafford and/or GradPLUS Master Promissory Note (MPN).  The University of Melbourne has an online service with ASA direct to e-sign your MPN. American Student Assistance (ASA) is our preferred guarantor and has a list of preferred lenders
    Alternatively, you may choose your own guarantor and contact them for a hardcopy MPN
  6. Print and complete the University of Melbourne consent form
  7. Forward the completed application and required documentation to:
          
         US Financial Aid Administrator
         c/o International Admissions
         John Smyth Building
         PARKVILLE 3101 AUSTRALIA
        
         or by email:
         international-finaid@unimelb.edu.au

Note: If you are a study abroad or exchange student and your home institution is managing your Stafford Loan application DO NOT submit the form to the University of Melbourne. You must apply through your home university.

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Loan Certification

Once we have certified your Stafford loan and forwarded the forms to the Lender / Guarantor we will send you an email notifying you of the amounts for which you are eligible and the scheduled disbursement dates.

The University calculates the annual cost of attendance based on typical living costs in Melbourne plus $2,000AUD towards a flight home, overseas health cover and tuition fees.

Please note that if you enrol in a subject that is delivered online or by distance education then you will not be eligible to receive FFELP funding.

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Loan Limits

                                                                                                                                                                                                                       

Year of Study

Annual Subsidised Limits

Annual Total Combined Loans Limits
  (Sub & Unsub)

Aggregate Subsidised Limits

Aggregate Combined Loans (Sub & Unsub) Limits

Undergraduate Dependent Students

1st year

$3500

$5500

$23000

$31000

2nd year

$4500

$6500

$23000

$31000

3rd year and above

$5500

$7500

$23000

$31000

Undergraduate Independent Students

1st year

$3500

$9500

$23000

$57000

2nd year

$4500

$10500

$23000

$57000

3rd year and above

$5500

$12500

$23000

$57000

Graduates & Professional Students

All Years

$8500

$20500

$65500

$138500

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Disbursement

Please note that loan funds can only be disbursed to you a maximum of 10 days before semester starts.  Loan funds will be disbursed twice per semester (4 times a year).  If you are enrolling in a program which operates on a trimester basis (e.g. Master of Business Administration), your loan will be disbursed once per trimester.

The University of Melbourne requests that all funds are disbursed directly to the student. Unfortunately we cannot arrange for the funds to be delivered straight into the University's bank account. Once you have received the cheques, you will have 3 options for banking the funds:

  1. Send your cheque(s) back to the U.S and have a family member bank these for you in a U.S bank account.  You will need to wait for the funds to clear before you can make tuition payment.
  2. Bank your cheque(s) in an Australian bank.  In most circumstances you will be required to open a bank account with the bank you choose.  The banking of a U.S cheque can take up to 6 weeks to clear.
  3. International Admissions have arranged with the Melbourne University Credit Union on the Parkville campus to process your FFELP cheque in a faster time than most other Australian banks. This option should take approximately 2-3 days.  You will need to contact the Credit Union directly for information on banking your cheques with them. More information on the Credit Union can be found at: http://www.mucu.com.au/

Please note the should you choose to deposit the cheques with the Credit Union, you will need to provide the Credit Union with the signed cover letter which will be enclosed with your cheques.

When deciding upon the above options or when choosing to bank with an Australian bank it is your responsibility to investigate exchange rate policies and choose the bank and account that is most appropriate for you.  International Admissions is not able to provide financial advice in this respect.

Once your funds are disbursed you will need to pay your tuition fees by the time you enrol (newly enrolling students) or by the date indicated on your Statement of Liability (continuing students).

Please be aware that your loan funds will not be available when you arrive in Australia.  You should ensure that you have access to funds to cover your expenses until the loan funds are received.

Please note: Your very final disbursement of funds WILL NOT be released until exit counselling has been completed. Exit counselling can be completed here.

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Information regarding PLUS loans

The Federal PLUS loan allows Graduate students, or parents of dependent students, to borrow up to the total cost of attendance, minus any other aid for which the student is expected to receive.

Please note that you must submit an application for Stafford funding prior to submitting your PLUS loan application as a graduate student

The application process is the same as for the Stafford loan.  Once we have certified your loan and forwarded the forms to the Lender/Guarantor we will send you an email notifying you of the amount that you are eligible to receive and the expected disbursement dates.  The loan funds will be disbursed according to the same rules as Stafford loans.

Please note that as per US Federal regulations the cheques will be made payable to the University of Melbourne and the borrower. As soon as the cheques are received the US Financial Aid Administrator will endorse the checks to you and email you to collect the checks. You will need to arrange your own banking of the cheques as the University cannot arrange for the funds to be delivered into the University's bank account.

 

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Additional loans

 

If you are enrolling into one of the following programs, you will not be eligible for federal student loans:

Graduate Certificate
Graduate Diploma
Postgraduate Certificate
Postgraduate Diploma

If you are enrolling into any of these programs you have the option of applying for a private student loan to cover your Cost of Attendance.  Please note that private loans have higher interest rates and are not insured by the US Government.  Students have previously borrowed from Sallie Mae, however you are welcome to select any lender you wish that is currently offering Private student loans for studies in Australia.

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Emergency Loans

If you enter into financial hardship during your studies you may also be interested in applying for the University of Melbourne Emergency Loan. Enrolled students with short-term cash flow problems can apply to borrow up to $600 for a maximum of six months. Alternatively, up to $3000 may be borrowed in any year, and long term loans require a suitable guarantor. For more information please refer to the University of Melbourne Financial Aid Office website.

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Refunds

The University reserves the right to retain tuition fees paid by the recipients of US FFELP funds who withdraw at any stage of the year and any unearned funds must be returned directly to the student's US lender. Any proportion of the tuition fees paid which is not required to be returned to the student's US lender will be refunded to the student.

See also:

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