Loan Types for students coming from the US

Available Loans

If you are interested in applying for a private US student loan, please refer to the information on applying for Private Student Loans.

The One Big Beautiful Bill Act was signed into US law in July 2025, and this will result in changes to federal student aid for those studying in the 2026/27 academic year. The information below is subject to change based on any further updates from the US Department of Education Federal Student Aid website.

Enrolled on a course at Swansea University before 1 July 2026, and received a federal loan for that course before this date ➡️

Loan Types for Graduate Students

	Direct Graduate Unsubsidized loan	Direct Graduate PLUS loan	Private loan
Who is eligible?	Most US citizens (or eligible non-citizens) on eligible graduate courses.*	Most US citizens (or eligible non-citizens) on eligible graduate courses.* A credit check is required.	Most US citizens enrolled on courses the lender considers eligible. Good credit history is likely to be necessary. A co-signer may be required.
Maximum *loan amount per year	$20,500	Total amount remaining after all other funding has been deducted from the COA.	Total amount remaining after all other aid/loans have been deducted from COA.
Aggregate loan limit (how much you can borrow over your lifetime)	$138,500 - no more than $65,500 of this may be Direct Subsidized loans.	No limit.	Depends on the lender.
When do repayments start?	Usually six months (known as the 'grace period') after your course finishes or you become less than half-time.	Repayment period begins on the date of the final disbursement. Unless you receive a deferment or forbearance, the first payment will be due within 60 days of the final disbursement date.	Variable. Repayment options tend to be less flexible than for federal loans.
How do repayments work?	No payments as long as you are enrolled on an eligible course at least half-time. Interest accrues while you are studying.	No payments as long as you are enrolled on an eligible course at least half-time. Interest accrues while you are studying.	Variable. You should check the terms and conditions provided to you by your lender. Repayment options tend to be less flexible than federal loans.
When do repayments start?	Usually six months (known as the 'grace period') after your course finishes or you become less than half-time.	Repayment period begins on the date of the final disbursement. Unless you receive a deferment or forbearance, the first payment will be due within 60 days of the final disbursement date.	Variable. Repayment options tend to be less flexible than for federal loans.

*Some courses are not eligible for federal loans. Please read our Eligibility guidelines before starting your loan application.

Loan Types for Undergraduate Students

Before completing a federal loan application, you will need to determine whether you are a dependent or an independent student and this will establish which loan types and amounts you are eligible to borrow. Definitions on how to determine this can be found on the Federal Student Aid website, but if your circumstances are unusual and you need advice, please email the US loans team.

Independent

For the purposes of federal aid, a student is considered independent if they meet one or more of the following criteria:

the student is at least 24 years old by 31 December of the award year;
the student is an orphan or ward/dependent of the court, or was a ward/dependent of the court until he or she reached age 18;
the student is a veteran of the US Armed Forces;
the student is working on a master's or doctorate programme at the beginning of the award year for which the FAFSA is completed;
the student is married as of the date the FAFSA is completed;
the student has at least one child who receives more than half of his or her support from the student; and/or
the student has a dependent, other than a spouse or a child, who lives with the student and receives more than half of his or her support from the student at the time the FAFSA is completed and through 30 June of the award year.

Dependent

The student is considered dependent if they do not meet any of the preceding criteria for an independent student unless the financial aid administrator determines that the student is independent on the basis of special circumstances and performs a dependency override.

	Direct Subsidized Loan and Direct Unsubsidized Loan	Parent PLUS Loan	Private loan
Who is eligible?	Most US citizens (or eligible non-citizens) on eligible undergraduate courses.* Available to dependent and independent students who demonstrate financial need.	Parents (biological, adoptive, or in some cases, stepparent) of dependent undergraduate students on eligible courses. Both the parent and the student must be eligible for federal student aid. A credit check is required.	Most US citizens on courses the lender considers eligible. Good credit history is likely to be necessary. A co-signer may be required.
How do repayments work?	No interest or payments as long as you are enrolled on an eligible course at least half-time.	No payments as long as student is enrolled on an eligible course at least half-time. Interest accrues while studying.	Variable. You should check the terms and conditions provided to you by your lender. Repayment options tend to be less flexible than federal loans.
When do repayments start?	Usually six months (known as the 'grace period') after your course finishes or you become less than half-time.	Repayment period begins on the date of the final disbursement. Unless you receive a deferment or forbearance, the first payment will be due within 60 days of the final disbursement date.	Variable. Repayment options tend to be less flexible than for federal loans.
Maximum loan amount per year	Year 1 Dependent Undergraduate: $5,500 - no more than $3,500 can be Subsidized. Independent Undergraduate: $9,500 - no more than $3,500 can be Subsidized. Year 2 Dependent Undergraduate: $6,500 - no more than $4,500 can be Subsidized. Independent Undergraduate: $10,500 - no more than $4,500 can be Subsidized. Year 3 and up Dependent Undergraduate: $7,500 - no more than $5,500 can be Subsidized. Independent Undergraduate: $12,500 - no more than $5,500 can be Subsidized.	For dependent undergraduate students only. Total amount remaining after all other funding has been deducted from the COA.	Total amount remaining after all other aid/loans have been deducted from COA.
Aggregate loan limit (how much you can borrow over your lifetime)	Dependent Undergraduate: $31,000 - no more than $23,000 Subsidized loans. Independent Undergraduate: $57,500 - no more than $23,000 Subsidized loans.	No limit.	Depends on lender.

*Some courses are not eligible for federal loans. Please read our Eligibility guidelines before starting your loan application.

Note: Independent undergraduates have no entitlement to a PLUS loan.

If you will be starting a new course at Swansea University for the 2026-27 academic year, or are a current student who didn't receive a federal loan for your course before 1 July 2026 ➡️

Loan Types for Graduate Students 26/27

Until the academic year 2011-12, Direct Subsidized loans were available to graduate students. However, a change to the Direct Loan Program, as part of the US Budget Control Act 2011, specified that graduate students were no longer eligible for Direct Subsidized loans.

	Direct Graduate Unsubsidized loan	Private loan
Who is eligible?	Most US citizens (or eligible non-citizens) on eligible graduate courses.*	Most US citizens enrolled on courses the lender considers eligible. Good credit history is likely to be necessary. A co-signer may be required.
*Maximum loan amount per year**	$20,500	Total amount remaining after all other aid/loans have been deducted from COA.
Aggregate loan limit (how much you can borrow over your lifetime)	$100,000 lifetime borrowing limit (excluding undergraduate loans)	Depends on the lender.
When do repayments start?	Usually six months (known as the 'grace period') after your course finishes or you become less than half-time.	Variable. Repayment options tend to be less flexible than for federal loans.
How do repayments work?	No payments as long as you are enrolled on an eligible course at least half-time. Interest accrues while you are studying.	Variable. You should check the terms and conditions provided to you by your lender. Repayment options tend to be less flexible than federal loans.

The new aggregate lifetime borrowing loan limit for all students is $257,500 for all federal student loans excluding Parent Plus loans.

Following the One Big Beautiful Bill, or also known as ‘The Act’ being signed into US law in July 2025. Graduate students are no longer eligible for Graduate PLUS loans post July 1^st 2026.

Loan Types for Undergraduate Students 26/27

Independent

For the purposes of federal aid, a student is considered independent if they meet one or more of the following criteria:

the student is at least 24 years old by 31 December of the award year;
the student is an orphan or ward/dependent of the court, or was a ward/dependent of the court until he or she reached age 18;
the student is a veteran of the US Armed Forces;
the student is working on a master's or doctorate programme at the beginning of the award year for which the FAFSA is completed;
the student is married as of the date the FAFSA is completed;
the student has at least one child who receives more than half of his or her support from the student; and/or
the student has a dependent, other than a spouse or a child, who lives with the student and receives more than half of his or her support from the student at the time the FAFSA is completed and through 30 June of the award year.

Dependent

	Direct Subsidized Loan and Direct Unsubsidized Loan	Parent PLUS Loan	Private loan
Who is eligible?	Most US citizens (or eligible non-citizens) on eligible undergraduate courses.* Available to dependent and independent students who demonstrate financial need.	Parents (biological, adoptive, or in some cases, stepparent) of dependent undergraduate students on eligible courses. Both the parent and the student must be eligible for federal student aid. A credit check is required.	Most US citizens on courses the lender considers eligible. Good credit history is likely to be necessary. A co-signer may be required.
How do repayments work?	No interest or payments as long as you are enrolled on an eligible course at least half-time.	No payments as long as student is enrolled on an eligible course at least half-time. Interest accrues while studying.	Variable. You should check the terms and conditions provided to you by your lender. Repayment options tend to be less flexible than federal loans.
When do repayments start?	Usually six months (known as the 'grace period') after your course finishes or you become less than half-time.	Repayment period begins on the date of the final disbursement. Unless you receive a deferment or forbearance, the first payment will be due within 60 days of the final disbursement date.	Variable. Repayment options tend to be less flexible than for federal loans.
Maximum loan amount per year	Year 1 Dependent Undergraduate: $5,500 - no more than $3,500 can be Subsidized. Independent Undergraduate: $9,500 - no more than $3,500 can be Subsidized. Year 2 Dependent Undergraduate: $6,500 - no more than $4,500 can be Subsidized. Independent Undergraduate: $10,500 - no more than $4,500 can be Subsidized. Year 3 and up Dependent Undergraduate: $7,500 - no more than $5,500 can be Subsidized. Independent Undergraduate: $12,500 - no more than $5,500 can be Subsidized.	For dependent undergraduate students only. Parent PLUS amount is $20,000 per year cap, and a maximum of $65,000 per child.	Total amount remaining after all other aid/loans have been deducted from COA.
Aggregate loan limit (how much you can borrow over your lifetime)	Dependent Undergraduate: $31,000 - no more than $23,000 Subsidized loans. Independent Undergraduate: $57,500 - no more than $23,000 Subsidized loans.	$65,000 per dependent child	Depends on lender.

*Some courses are not eligible for federal loans. Please read our Eligibility guidelines before starting your loan application.

The new aggregate lifetime borrowing loan limit for all students is $257,500 for all federal student loans excluding Parent Plus loans.

Note: Independent undergraduates have no entitlement to a PLUS loan.

Legislation introduced by the U.S. Department of Education will change certain federal student loan borrowing limits from 1 July 2026. While undergraduate students will see no change to their current borrowing limits, some graduate, professional, and parent borrowers may be affected.

The comparison table below provides an overview of the current loan limits and the revised limits that apply to study periods beginning on or after 1 July 2026.

Please note that individual eligibility and remaining borrowing capacity will depend on your previous loan history. Students who are unsure how these changes may affect them should contact the Swansea University U.S. Financial Aid Team for personalised guidance.

Type of Borrower	Loan Limits Prior to July 1, 2026	Loan Limits AFTER July 1, 2026
Undergraduate Student	Varies depending on academic level and dependency status	No change from current limits
Graduate and Professional Students (PLUS Loans)	No Limit	Eliminated for periods of study beginning on or after July, 1 2026
Graduate Student who is NOT and HAS NOT been a professional student (Unsubsidized Direct Loans)	$138,500	$100,000
Graduate Student who is or has been a professional student (Unsubsidized Direct Loans)	$138,500	$200,000 minus the amount borrowed as a professional student
Professional Student who is NOT and HAS NOT been a graduate student (Unsubsidized Direct Loans)	$138,500	$200,000
Professional Student who is or has been a graduate student (Unsubsidized Direct Loans)	$138,500	$200,000 minus the amount borrowed as a graduate student
Parent Borrower (Parent Plus Loan)	No Limit	$65,000 per dependent student without regard to any amounts repaid, forgiven, canceled, or otherwise discharged.