Wondering how student loans will work...

Hello All!

I am writing with a question about financial aid, it's disbursement, and getting into the country.

I am going to attend Graduate School at the University of Surrey next year. I plan on getting the full $18,500 in stafford loans from the US. I also plan on getting a little extra cushion with the Graduate Plus loan now offered.

My question is, if I plan to survive solely on the loans I take out, how am I going to prove upon entering the UK that I have enough money to be there? How much do they expect you to have? And how will I prove this, if my loan money most likely won't be disbursed until a few weeks after I get there?

Anyone with any insight on student loans, they're disbursment, and getting into the country... I would really appreciate hearing any advice or suggestions you have for me!

Happy Friday!

Shea

you'll need to provide the original student loan approval letters as proof of funds when you apply for your visa.  You'll be applying under the new Tier 4 regime, and UKBA has published draft guidance here:

http://www.ukba.homeoffice.gov.uk/sitecontent/applicationforms/pbs/tier4

with the final official guidance due to be published next week.

I'm not sure that would be enough for you live for a year.  I think the full amount of the Stafford loans are $20,500 (that's what they are for me).  At the current exchange rate (lowest it's been in a very long while), that's only £14,400.  At the very least, you'd need £7000 to survive on bread and water living in a cardboard box.  If you're getting a bursary/scholarship (or if you are getting free housing), you'll have enough.  All you'll need is to give evidence of that with written and signed letters.  For your loans, the standard letter detailing the disbursement dates and amounts are enough.  Typically, the first disbursement is in late September, so you'll have to fend for yourself until then.

you'll need to provide the original student loan approval letters as proof of funds when you apply for your visa.  You'll be applying under the new Tier 4 regime, and UKBA has published draft guidance here:

http://www.ukba.homeoffice.gov.uk/sitecontent/applicationforms/pbs/tier4 [nofollow]

with the final official guidance due to be published next week.

Thank you! This information helps a lot. I appreciate it!

I'm not sure that would be enough for you live for a year.  I think the full amount of the Stafford loans are $20,500 (that's what they are for me).  At the current exchange rate (lowest it's been in a very long while), that's only £14,400.  At the very least, you'd need £7000 to survive on bread and water living in a cardboard box.  If you're getting a bursary/scholarship (or if you are getting free housing), you'll have enough.  All you'll need is to give evidence of that with written and signed letters.  For your loans, the standard letter detailing the disbursement dates and amounts are enough.  Typically, the first disbursement is in late September, so you'll have to fend for yourself until then.

I am taking out the full amount, PLUS some in the form of a Graduate Plus loan. While we're on that subject, how much would you recommend I take out in addition to the $20,500?

Thank you both for your help! 

I am taking out the full amount, PLUS some in the form of a Graduate Plus loan. While we're on that subject, how much would you recommend I take out in addition to the $20,500?

I took out a $13,000 loan above and beyond the maximum Stafford Loan when I applied 2 years ago, and it was barely enough for a full year of living expenses in Manchester (but admittedly, this was back when the exchange rate was £1.85 to $1!) 

One of the major differences of Tier 4 compared to the old student visa system is that it will stipulate exactly how much living expenses money you need per month in order to get the visa.  I can't find it on the UKBA site just now as they seem to have moved things around, but I seem to remember it being something like £800/month after tuition fees are paid (possibly higher if you're in London.)  I'm sure the exact numbers will be easy to find once the final version of the Tier 4 guidance is published next week.

As a very rough number though, I would plan on needing about $15,000 above and beyond the Stafford Loan if you're going to be based anywhere near London.

From what I can tell on Surrey's website, tuition is £11,000 a year.  You'll probably need around £10,000 more to make UKBA happy.  As long as the rate stays under 1.8$/£, the Stafford loan will cover tuition.  If it stays around 1.5, you'll have some spare change (between £1500 and £3000 under expected circumstances).  So, I'd say an additional $11,500 (£7000) at the minimum unless you get a bursary or free housing somewhere.  Oh, and that's outside of the London/SE area.  That'll give you £9000 a year (assuming exchange rate of 1.6), which is generally enough if you live on campus, don't travel very much, and eat on the cheap.  I'm in Glasgow and have a wife with me; we live off-campus and cook all of our meals on a meager salary (which does help keep down loans).

From what I can tell on Surrey's website, tuition is £11,000 a year.  You'll probably need around £10,000 more to make UKBA happy.  As long as the rate stays under 1.8$/£, the Stafford loan will cover tuition.  If it stays around 1.5, you'll have some spare change (between £1500 and £3000 under expected circumstances).  So, I'd say an additional $11,500 (£7000) at the minimum unless you get a bursary or free housing somewhere.  Oh, and that's outside of the London/SE area.  That'll give you £9000 a year (assuming exchange rate of 1.6), which is generally enough if you live on campus, don't travel very much, and eat on the cheap.  I'm in Glasgow and have a wife with me; we live off-campus and cook all of our meals on a meager salary (which does help keep down loans).

Thanks for your help. I'm not sure what program you're referring to that is £11,000 a year, but mine shows £8,800 for non-EU students for a full time entire year, or roughly $12,500. If I figure an extra £800/month for monthly expenses, that's an additional £9,600, or about $13,500 for the year. So would a total of £18,400, or about $26,000 be enough? These figures seem to be in line with what you suggested, except less for tuition and a little more for monthly living expenses. Thanks again VERY MUCH for your help.

Remember to keep an eye on the exchange rate too - the required maintenance funds will be in GBP, so while £18,400 is currently worth around $26,000, this may change in the next few months (i.e. it may be higher or lower by the time you apply so you will need to allow for that when applying for your loans in dollars) - after all, just 7 months ago, £18,400 was worth about $36,800  !

How does the UKBA determine the exchange rate they use to calculate whether you have enough money for your visa?

I'm not sure which program you're in.  I looked at the research postgraduate fees (at the very top) here*.  It all depends on which program you're in and which degree you are going for.

According to the UKBA here, they will be "using the closing spot exchange rate for the last day of the period for which the applicant has claimed earnings in that currency."

*NB: Why in the world would they list their fees in a Word document?!? Is it really that difficult to copy and paste them into an easier to access webpage?

According to the UKBA here, they will be "using the closing spot exchange rate for the last day of the period for which the applicant has claimed earnings in that currency."

This is in reference to the earnings claimed for Tier 1 points, which is not likely to apply to a student visa (in that most students applying will not have a period of earnings before they apply). In the draft guidelines for Tier 4 Student visas it states:

150. Overseas funds must be converted into pounds sterling so that we can assess them. The official exchange rate we use is the one produced by OANDA.

151. An applicant should use the exchange rate on the OANDA website at http://www.oanda.com/convert/classic for the date the document was issued. This is an independent website, for which we are not responsible.

This is in reference to the earnings claimed for Tier 1 points, which is not likely to apply to a student visa (in that most students applying will not have a period of earnings before they apply). In the draft guidelines for Tier 4 Student visas it states:

150. Overseas funds must be converted into pounds sterling so that we can assess them. The official exchange rate we use is the one produced by OANDA.

151. An applicant should use the exchange rate on the OANDA website at http://www.oanda.com/convert/classic for the date the document was issued. This is an independent website, for which we are not responsible.

So I have to get my banks to provide me with statements wholly converted to GBP?

*NB: Why in the world would they list their fees in a Word document?!? Is it really that difficult to copy and paste them into an easier to access webpage?

...I know!!! Trust me, their website isn't exactly helpful! The student prospectus wasn't either! I have had a harder time than I imagined getting information on the course. It seems the program doesn't even have a course website. 

This is in reference to the earnings claimed for Tier 1 points, which is not likely to apply to a student visa (in that most students applying will not have a period of earnings before they apply).

But the abstract concept across visa types is the same: use the exchange rate on the most recent documented date whatever statement of monies has.  This could be the final paycheck, bank statement, loan guarantee, etc.

Skeat, no you should use your normal bank statements.  You should probably do the math yourself before sending it off to know what the numbers should be, even though UKBA will do the math as well.  If your bank statement is dated 27 Feb 2009 and says you have $10,000, they'll use the exchange rate for that date and come to £7,008.25, regardless of what the exchange rate is tomorrow.

But the abstract concept across visa types is the same: use the exchange rate on the most recent documented date whatever statement of monies has.  This could be the final paycheck, bank statement, loan guarantee, etc.

Yeah, it's the same, but I thought it was worth clarifying in terms of the student visa draft guidelines since if the OP or anyone else reading this thread knows nothing about Tier 1 visa requirements, they might assume that the student visa specifically requires a 'period of claimed earnings' (i.e. a regular income) for the maintenance points... which it doesn't.