There are three types of loans available to American students studying at the University of Birmingham; Federal Direct Loans, Federal Direct Plus Loans and Private Loans. What you are eligible to apply for will vary on your study level and the year you commenced your study.
Federal Loans
On 4 July 2025, the One Big Beautiful Bill Act (OBBBA) was signed into US law, resulting in changes to loan programmes. The changes impact students who commence programmes from the 2026-27 academic year, or if you are a current student who has not received a federal loan for your course before 1 July 2026.
Students who are continuing on a programme and have received funding for this before 30 June 2026 will be able to continue to receive funding under the old regulations and limits for a further 3 academic years, or until the end of the current programme, whichever is less, under grandfathered regulations. Enrolment on the same programme must be maintained to qualify, if this changes, new OBBA regulations will apply.
Please note the Funding, Graduation and Awards team endeavour to keep information on this website as up to date as possible, but would always advise to check the Federal Student Aid website for the latest information.
Federal Direct Loans
The Federal Direct Loan has a low interest rate (fixed by the US government) and is available to both undergraduate and postgraduate students. The loan is divided into two parts: subsidized and unsubsidized. There are annual and aggregate limits in place which determine how much you can borrow.
Federal Direct Graduate Plus Loans
PLUS loans for graduate study are being phased out, and will not be available for postgraduate students who commence study from 1 July 2026. For continuing students, old regulations and limits will apply for a further 3 academic years, or until the end of the current programme, whichever is less, providing you have taken funding for your programme before 30 June 2026.
You may wish to use the Student Aid Estimator available through the U.S. Education Department, for a general approximation of your loan eligibility. Please note that students who opt to study at the University of Birmingham will not be eligible for a PELL Grant, as the University is a foreign school.
Federal Parental Plus Loans
Parental Plus loans are changing from 1 July 2026, with a new cap on loans being applied of $65,000 per dependant, with a maximum plus loan per academic year of $20,000. The Funding, Graduation and Award team will apply the $20,000 cap on the students Cost of Attendance (CoA) each year.
For continuing borrowers who have accessed Federal Student Aid for the registered programme before 30 June 2026, Parental Plus loans will continue to be available under the old regulations and limits for a further 3 academic years, or until the end of the current programme, whichever is less.
Private Loans
The only private loans currently available to students attending a foreign university (outside of the USA) is the Smart Option Loan from Sallie Mae and Earnest Loans. There are no origination fees and the interest rate will depend on your credit history and that of a co-signer. For more detailed information, visit our dedicated private loans page.
Students are advised to take any Federal Loan they are entitled to before considering any other type of loan due to the competitive interest rate and repayment benefits they offer. A detailed comparison of Federal and Private Loans is published via the Federal Student Aid website.
To apply for any of the loans listed above, you will need to follow the University's application process.
Other loans and grants
Current Federal legislation prohibits US citizens enrolled at a foreign university (outside of the US) from receiving Pell Grants, SEOG, Perkins Loans and Federal Work Study Funds. The University is also not able to administer Veteran Affairs funding.