How your loan is paid
Federal and Private Loans processed by LJMU will pay directly into your UK bank account after tuition fees have been deducted. The disbursements are split into three equal payments and the tuition fees are deducted from these disbursements before the money is paid into the UK bank account. (Students studying within the UK).
What are disbursements?
Disbursements (pay outs) are the dates that your funds will be credited against your University fees. From this date you will start to be charged interest on your loan. Check your Master Promissory Note (MPN) for your exact interest rate, as rates will vary across different loans.
Once your loan has been originated you will be sent an award letter to inform you of the disbursement dates. Loan disbursements are subject to satisfactory academic progress and changes in your circumstances.
Will I need to open a UK bank account?
The funds from your loan will be converted into GBP (£). To receive your funds you will be required to open a UK bank account.
Please note the following details about your payments:
- A third party, Convera/Western Union, is used to make payments into your UK bank account
- All payments will be made in pound sterling (GBP)
- You will be contacted by the University once your payments have been authorised
Cancelling your loan
You may cancel all or part of your loan prior to your money being disbursed. You'll need to request this in writing 14 days before the date of disbursement – you'll find this date on your notification letter. Please include the following information on your request:
- Full name
- Social security number
- Student ID number
- Name of the loan you wish to reduce and the value you wish to reduce it to
Send your request to cancel to Student Administration with the subject: 'Cancellation of U.S. Loan'.
After your loan has been disbursed you have 120 days to return the money without incurring any interest charges. You can find out how and where to return the money from your loan servicer. Loan servicer contact information is available from the Federal Student Aid website.
What happens if you want to withdraw from your programme
You must inform Registry Services immediately if you decide to withdraw by completing a Student Withdrawal Form.
The University is required by law to carry out a Title IV calculation to determine how much needs to be returned to the U.S. Department of Education including any refunds of tuition or accommodation fees. For more information about this visit the change of circumstances page.
The date of your withdrawal is also the date that you become responsible for repaying your loan.
