Related links
International loan schemes
- Overview
- United States Federal Student Aid (Direct Loan Program)
- United States Veteran Affairs Benefits
- Canadian Student Loans
- Norway Lånekassen loans
- Sweden CSN financial aid
United States Federal Student Aid (Direct Loan Program)
Loans available
Direct subsidised and unsubsidised Stafford loans
The Direct Stafford loan has unsubsidised and subsidised components. The subsidised component is based on financial need, as defined by the US Department of Education. The loan is subsidised because the US Government pays the interest that accrues while you are enrolled at least half time in school (at least 12 credit points per semester for coursework students). The unsubsidised component of the loan is not based on financial need and you are responsible for paying the interest from the time the money is disbursed.
You have the option of paying the interest while you are studying. Alternatively, you can postpone interest payments while you are studying, in deferment, or for six months after you graduate, withdraw or drop below half-time enrolment. If you choose to postpone your payments, the interest accrues and is capitalised. This means the interest is added to your principal loan amount that you will have to repay. It may also increase the amount of your monthly re-payments. Annual loan limits for Direct subsidised and unsubsidised Stafford loans are outlined below.
The US Budget Control Act of 2011 (Pub. L. 112-25) made some important changes. Effective for loans made for periods of enrolment (loan periods) beginning on or after 1 July 2012, graduate or professional students are no longer eligible to receive federal direct subsidised loans. The terms and conditions of direct subsidised loans received by any student for loan periods beginning before 1 July 2012, for either graduate or undergraduate study, are not affected by this change.
Direct unsubsidised PLUS loans
For graduate and professional students
If you’re a graduate or professional student, you’re eligible to borrow additional funds through the Federal Direct PLUS Loan program, which was previously only available to parents of undergraduate students. Graduate students may borrow this Direct Loan on their own behalf.
You are encouraged to apply for a Direct Stafford loan before applying for a Direct PLUS Loan because Direct PLUS is subject to higher fees and interest rates.
You will need to meet credit guidelines to qualify. A credit check will be undertaken once the Direct PLUS loan has been originated. If you don’t pass the credit check, then your loan may be declined. There is an appeal process in place for such circumstances. For more information on the appeal process, please contact our International Loans Team on+61 2 8627 8336 orinternational.finaid@sydney.edu.au.
Parent Loan for Dependent Undergraduate Students
Parents are eligible for the Parent PLUS loan if your child is a dependent undergraduate student, as defined by the US Department of Education. This is not a loan based on financial need.
You will need to meet credit guidelines to qualify. A credit check will be undertaken once the Direct PLUS loan has been originated. If you don’t pass the credit check, then the loan may be declined. There is an appeal process in place for such circumstances. For more information on the appeal process, please contact our International Loans Team on +61 2 8627 8336 or international.finaid@sydney.edu.au.
Direct PLUS loan award limits
Grad and Parent PLUS borrowers are able to borrow their entire cost of attendance minus any other financial aid, such as scholarships or subsidised and unsubsidised Stafford loans.
Loan limits
Direct Stafford loan limits for undergraduate students
| Annual loan limit per stage of the program (not years of study in the program) | Dependent undergraduate student (US dollars) | Independent undergraduate student (US dollars) |
|---|---|---|
Stage one |
$3500 Sub. + $2000 Unsub. |
$3500 Sub. + $6000 Unsub. |
Stage two |
$4500 Sub. + $2000 Unsub. |
$4500 Sub. + $6000 Unsub. |
Stage three, four or five |
$5500 Sub. + $2000 Unsub. |
$5500 Sub. + $7000 Unsub. |
Aggregate limit |
Subsidised Max $23,000 |
Subsidised Max $23,000 |
Note: First time direct loan borrowers who receive a subsidised Stafford amount for more than 150 percent of their official program duration may lose their eligibility to the subsidised portion of the Stafford loan.
Direct Stafford annual loan limits for graduate students
Applies to loans originated ON or AFTER 1 July 2012
|
Subsidised (US dollars) | Unsubsidised (US dollars) |
|---|---|---|
Graduate and Professional Student |
$0 |
$20,500 |
The aggregate loan limit for graduate and professional students remains unchanged at $138,500, not more than $65,500 of which may be in subsidised loans.
Open Learning Environment enrolment restrictions
From 2018, if you are commencing a Bachelor of Arts, Bachelor of Commerce, Bachelor of Economics or Bachelor of Science (or related degree), or combined Bachelor of Advanced Studies, you are required to complete 12 credit points of Open Learning Environment (OLE) units to meet your course requirements.
As most OLE units are offered online, under U.S. Federal Regulations, students in receipt of Direct Loans are not eligible to undertake these units. However, there is a selection of OLE units that have been designed with face-to-face teaching and are eligible units for Direct Loan recipients to undertake. Contact the International Loans Team for a full list of eligible OLE units.
Students commencing in the Doctor of Medicine after March 1, 2019 will not be able to receive U.S. Federal Student Aid and will need to seek funding through personal means or Sallie Mae. If you would like further information, please contact the International Loans Team at international.finaid@sydney.edu.au
Due to US Department of Education regulations effective 1 July 2012, the University of Sydney will no longer be able to provide Federal Student Aid for students studying nursing. The only lending option may be available in the form of a private loan. Please contact the International Loans Team on +61 2 8627 8336 or international.finaid@sydney.edu.au for more information.
Interest rates
The following table provides the interest rates for new Direct Loans first disbursed on or after July 1, 2024, and before July 1, 2025. These rates will apply to all new Direct Loans made during this time.
| Loan | Interest rate |
|---|---|
Direct subsidised loans (undergraduates) |
6.53% |
Direct unsubsidised loans (undergraduates) |
6.53% |
Direct unsubsidised loans (graduate or professional students) |
8.08% |
Direct PLUS loans (parents and graduate or professional students) |
9.08% |
Origination fees
Most federal student loans have origination fees that are charged by the US Department of Education and are deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.
The current origination fees for Direct Loans are:
- 1.057 percent for direct subsidised Stafford loans and direct unsubsidised Stafford loans
- 4.228 percent for Direct PLUS Loans for parents and graduate and professional students.
Cost of attendance and fees
The University's cost of attendance is your full tuition fees and full living expenses, as well as any ancillary costs.
The current cost of attendance is outlined below in Australian dollars for two semesters. If you’re applying for financial aid for one semester only, these figures will be prorated accordingly. The figures are periodically reviewed and subject to changes on an annual basis.
Tuition & fees |
|
Living allowance |
AU$39,000 |
Return airfare |
AU$2,200 |
Computer |
AU$1,500 |
Overseas Student Health Cover |
Varies depending on visa length |
Books and supplies |
AU$1,000 |
Origination fee |
As published on the United States Student Aid website. Origination fees are revised every October. |
*Ancillary costs/program costs |
Ancillary costs apply to some programs only and vary depending on the program. |
Additional expenses
You may be able to have additional expenses added to your cost of attendance, such as dependent care or expenses related to a disability and medical expenses not covered by insurance. You need to submit supporting documents with your application, for example a doctor’s letter detailing specific expenses related to a disability. Once we’ve received your supporting documents, please allow two to four weeks for processing. Contact the International Loans Team if you need more information.
Amounts incurred in US dollars won’t be converted to another currency before being added to your cost of attendance.
Responsible borrowing
The International Loans Team has a duty of care to encourage responsible student borrowing and ensure you are aware that relocation costs are not included as part of the cost of attendance. You need to make sure you have access to other funds to cover your relocation and settlement costs in Sydney while your loans are being processed.
Under US Federal Regulations your cost of attendance must only include costs associated with your education for the time you are in study. If you are funding your relocation costs by other means (such as credit card or line of credit), you will not be certified for any additional amounts exceeding your cost of attendance and relating to relocation costs. In addition, private and federal loans will not be certified to be disbursed before your departure.
Eligibility
To be eligible for the US Department of Education's Direct Loan Program loans, you need to be:
- an eligible US citizen or eligible non-citizen
- not in default or owing a return repayment on a federal student loan
- enrolled in a full degree program (graduate diplomas and graduate certificate programs do not qualify for Direct Stafford and PLUS Loans).
While you are enrolled, to remain eligible, you need to:
- be enrolled at least half time in a degree program
- make satisfactory academic progress
- be on track to complete your degree within 150 percent of the allocated course timeframe (maximum timeframe)
- not enrol in courses offered by online, telecommunication or distance delivery in whole or part.
How to apply
Complete a Free Application for Federal Student Aid (FAFSA) on the FAFSA website to be considered for federal student aid. You will need to include the University of Sydney's US Department of Education federal school code: G30672.
Students and parent borrowers also need to complete a master promissory note (MPN) online. If you are a first-time borrower, you also need to complete entrance counselling online.
After 1–4 weeks, you will receive a Student Aid Report (SAR). You need to view your SAR on the FAFSA website, using a PIN, and check it’s accurate.
You need to advise the International Loans Team once you complete a FAFSA, we are not automatically notified. We will then calculate your eligibility and issue loan award letters to your Sydney Student account.
Log in to Sydney Student and accept your Direct Loan by selecting ‘accept’ in your award letter message. You will be prompted to:
- enter the US dollar amount of each loan you wish to borrow
- upload a PDF copy of your MPN
- enter the date you completed entrance counselling
- provide your Australian bank account details.
The University can then originate your loan with the US Department of Education.
If you’re a coursework student, there are two disbursement dates per annual loan period for Direct Stafford and Direct Grad/Parent PLUS loans. These dates coincide with the commencement date of each semester.
If you’re a research student, there are four disbursement dates per annual loan period for Direct Stafford and GradPLUS loans. These dates coincide with the commencement date of each research period.
The University will advise you by email once your loans have been originated. We will deduct the balance of tuition fees for the semester and refund the difference into your bank account.
If you have paid in full for the semester, a full refund will be processed. The refund will take approximately 10 business days.
Academic responsibilities
Satisfactory academic progress for US Federal Aid Students
The University of Sydney is required by United States (U.S.) Federal Regulations (34CFR 668.34) to define and enforce standards of Satisfactory Academic Progress (SAP) for students receiving U.S. Federal Student Aid. The U.S. Federal Student Aid – Satisfactory Academic Progression policy is stricter than the University of Sydney’s progression policies.
All students in receipt of U.S. Federal Student Aid need to achieve Satisfactory Academic Progress to be eligible to continue receiving U.S. Federal Student Aid throughout their studies. The University of Sydney has policies and procedures for identifying and supporting students at risk of not meeting progression requirements and failing academic progression requirements, this process is contained within the University’s Coursework Policy 2021 and University of Sydney (Higher Degree by Research) Rule 2011. Students in receipt of U.S Federal Student Aid will be evaluated at the end of every semester. This evaluation process will consider the students’ progress under the following criteria:
- Academic standing (qualitative, grade-based)
- Maximum time-frame (quantitative, pace-based)
To receive U.S. Federal Student Aid, students must meet minimum standards for both the above-mentioned components, while simultaneously adhering to the University’s academic progress rules and to Australian Immigration legislation.
Application
This policy applies to all students receiving U.S. Federal Student Aid, completing an eligible program at The University of Sydney.
Academic standing
A student enrolled in an award program must meet the progression requirements and all the program requirements for an award program within the time limits for the program.
At the end of each semester, each faculty will identify the students in a program offered by the faculty who are not meeting academic progression requirements.
Triggers for identifying students who are not meeting academic progression requirements:
Coursework students
- the student’s completion rate is equal to or less than 50 per cent of the credit points attempted;
- the student failed a barrier unit of study, compulsory unit of study, field work, clinical work, practicum or other professional experience specified in the award course rules for the first time;
- second failure in a barrier unit of study, compulsory unit of study, field work, clinical work, practicum or other professional experience;
- having reached the mid-point of the maximum time limit for completion of the award course, the student has not attained 50 per cent of the credit points necessary to obtain the award;
- the student has not met other required standards set out in applicable faculty resolutions or local provisions;
- the student has made recurrent applications for late discontinuation under special circumstances; or
- there are reasonable grounds for considering that the student may not be a genuine student.
Higher Degree by Research (HDR) Students
- Receive an outcome of ‘unsatisfactory progress’ in their progress evaluation meetings.
- Receive an outcome of ‘Show good cause’ in their progress evaluation meetings.
If a student is enrolled in a program of more than two academic years, at the end of the second year the student must be meeting academic standards consistent with the University’s requirements for graduation.
Maximum timeframe
U.S. Federal Regulation (34 CF 668.34) requires students to complete their educational program within 150 per cent of the minimum full-time duration for their award program. This is considered the maximum timeframe for completion for both undergraduate and postgraduate degrees. This is a measure of the number of credit points attempted, including transfer credits. As a general guideline, this will equate to:
- 2 year program, maximum timeframe for completion is 3 years (2 x 1.5)
- 3 year program, maximum timeframe for completion is 4.5 years (3 x 1.5)
- 4 year program, maximum timeframe for completion is 6 years (4 x 1.5)
In a review at the end of each semester, a calculation will be made where the completed credit points to date will be divided by the total credit points attempted to date to determine if the student has completed enough credit points to complete the program within the maximum timeframe.
A student becomes ineligible via the maximum timeframe criteria component when it becomes mathematically impossible for them to complete the program within 150% of its published minimum full-time duration.
All periods of enrolment are included in this calculation, including periods where a student did not receive U.S. Federal Aid, repeats a unit of study or receives incomplete and fail grades including grades of FA, AF, CN, DC, DF and FR, as defined in Schedule 1 of the University’s Coursework Policy 2021
Periods where students are not enrolled, for example, a leave of absence, will not be included in the calculation.
Pursuit of a second program resets the maximum timeframe for completion to the length of the new program, taking into account any credit as per the next clause.
Where a student has been awarded credit for previous study, U.S. Federal Regulation (34 CF 668.34) requires the credit to be counted as both credit attempted and credit completed.
Where a student pursues two separate programs concurrently, each degree will be assessed individually based on the criteria in this policy. This could mean a student may become ineligible for U.S. Federal Student Aid in one program yet remain eligible for the other program.
Students who receive approval from the University to reduce their study load in one or more semesters are required to complete their program within 150 per cent of the published full-time duration of their program to remain eligible to receive US Federal Student Aid.
A student may appeal a determination they have reached the maximum timeframe requirement per the appeals section of this policy.
Unsatisfactory Academic Progression Procedure
A student identified as not meeting academic progression requirements will be subject to the following procedure.
Financial Aid Warning
Recipients of U.S. Federal Student Aid, enrolled in a coursework program, who have been identified by the University with an academic progression status of “At risk” will be placed on a financial aid warning status.
Recipients of U.S. Federal Student Aid, enrolled in a HDR program, who have received a progress evaluation meeting outcome of ‘unsatisfactory progress’ for the first time will be placed on a financial aid warning status.
Eligible students who are placed on a financial aid warning status will continue to receive U.S. Federal Student Aid as long as they meet satisfactory academic progress in all future studies.
Financial Aid Suspension
If a coursework student is identified as not meeting academic progression in a subsequent semester and given an academic progression status of “academic caution” or “show good cause” (for students whose course duration is two years or less) by the faculty in accordance with the Course Work Policy 2021 and University of Sydney (Higher Degree by Research) Rule 2011 (as amended), they will lose their eligibility for U.S. Federal Student Aid and their aid will be suspended.
If a research student receives a subsequent progress evaluation meeting outcome of ‘unsatisfactory progress’ or a first outcome of ‘show good cause’, they will lose their eligibility for U.S. Federal Student Aid and their aid will be suspended.
A suspension may be appealed under the appeals section of this policy.
Appeals
Students may appeal a loan suspension or maximum timeframe requirement if the appeal is based on illness, medical, compelling, compassionate and/or other mitigating circumstances. Students will need to appeal in writing, explaining the circumstances and addressing what has changed in the student’s situation that will allow the student to meet satisfactory academic progression in the next semester or research period. All relevant and supporting documentation, such as medical and police reports, need to be included in the appeal application.
The appeal needs to be addressed to the International Loans Manager and submitted via email to international.finaid@sydney.edu.au.The appeal will be assessed and the outcome will be provided to the student, in writing, within 10 days of the lodgement of the appeal.
If the appeal is successful, the student will be placed on financial aid probation. A student may remain on financial aid probation and receive U.S. Federal Student Aid for one semester only or one research period only for research students. After the financial aid probation period, a student must meet one of the following criteria to regain eligibility for U.S. Federal Student Aid:
- maintain satisfactory academic progress to continue to receive U.S. Federal Student Aid OR
- follow an academic plan devised by the relevant faculty or supervisor (this must also be approved by the International Loans Office) to ensure the student meets satisfactory academic progress by a specified time. The student’s progress will be reviewed at the end of each semester/research period to determine if they are meeting the requirements of the academic plan. If the student is meeting the requirements, the student is eligible to receive U.S. Federal Student Aid as long as they continue to meet those requirements. If the student fails to meet the academic plan, the student will be placed back into suspension until further action is taken that will bring the student into compliance with the academic progression requirements.
If the appeal is unsuccessful or a student chooses not to appeal the U.S. Federal Student Aid suspension, financial aid eligibility will be reinstated once the student meets satisfactory academic progress in a subsequent semester, as per the University’s Coursework Policy 2014 or University of Sydney (Higher Degree by Research) Rule 2011.
Remedial, Non-Credit Courses and Incompletes
Non-credit courses will not be counted in assessing full-time hours.
A student is required to achieve a grade on any deferred or supplementary assessment within 6 months of completing a class.
Reestablishing aid eligibility
For students who have decided not to appeal a suspension, had their appeal denied or who have lost access to funding by not meeting the progression criteria of probation, they can re-establish eligibility by passing academic progression, as per the University's Coursework Policy 202 or University of Sydney (Higher Degree by Research) Rule 2011 in the subsequent semester.
Cohort default rate
The University of Sydney's 2021 Three Year Cohort Default Rate is 0.
Consumer information
To ensure you have all the information you need to make a decision about studying here, use the links provided to view current information about the University and our policies and procedures.
You need to know the current requirements and procedures for students and the University of Sydney, under the Higher Education Act of 1965 (HEA), as amended by the Higher Education Opportunity Act of 2008. Our website provides the latest information (and we have summarised with a list of links below) but if you cannot find the information you need, please contact us.
Last updated: 30 October 2024
