When You Leave
Direct Loan Exit Counseling Completion
Exit counseling must be completed if you are graduating, submitting your thesis, dropping below half-time attendance or withdrawing from your course. The counseling will provide important information on loan repayment and your rights and responsibilities as a borrower.
Direct loan exit counseling is completed electronically via the StudentLoans.gov website. Click on the Exit Counseling link under Tools and Resources and follow the instructions.
You must then notify the Student Funding Team by email (M.A.Hopkins@sussex.ac.uk and A.Cleveland@sussex.ac.uk) that you have completed the counseling. A report can then be obtained by the Team which shows that you have met the Department of Education’s requirement.
If you withdraw
A loan is awarded under the assumption that you will attend university for the entire period for which funding was granted. If you withdraw or take a break before completing 60% of a payment period, the university will inform the Department of Education and calculate the amount of funding that has been earned (the portion that you are entitled to) based on your period of attendance. If more financial assistance has been received than was earned, the excess funds must be returned to the Department of Education.
If you have any outstanding debts with the University including any debts that arise due to the return of your financial aid, then these sums must immediately be repaid to the University. You can do this by either paying online through your Sussex Direct account or, by contacting Student Accounts, Sussex House, in person or by phone +44 (0)800 849 4979.
Download the University of Sussex Return of Title IV (R2T4) Policy [PDF 60.83KB]
Temporary Withdrawal
A student in receipt of Federal funds who takes temporary withdrawal will be classed as withdrawn for financial aid purposes. Under Federal funding rules, students cannot apply for retrospective temporary withdrawal. Therefore, any period of temporary withdrawal must be requested and approved in advance (once a loan has been disbursed for a given payment period, temporary withdrawal cannot be approved after that point).
Repayment of your loans
Student loans are borrowed money that must be repaid just like car loans and home mortgages. Student loans cannot be cancelled because you didn’t like the education received, didn’t get a job in your field of study or are having financial difficulty. Loans are legal obligations and are not easily written off in bankruptcy.
There are a number of repayment options available. You should discuss them with your loan servicer to determine which will be the best for you. If you do not select a repayment plan you will be placed under the Standard Repayment Plan (with fixed payments for up to 10 years). Details of the servicer of your loan(s) are available on the NSLDS website.
Further details about repayment including repayment plans and amounts can be found on the Federal Student Aid website (interactive calculators are available).
After you graduate, withdraw or drop below half-time status you will enter your grace period. After your grace period you must begin repaying your loan(s):
- The grace period for Direct Stafford Loans is six months
- Direct PLUS Loans do not have a grace period but borrowers can defer repayment for six months. The repayment period begins when the loan is fully disbursed and the first payment is due 60 days after the final disbursement.
Under certain circumstances you can receive periods of deferment or forbearance allowing you to postpone loan repayment. You must apply through your loan servicer. Details regarding deferment and forbearance options can be found on the Federal Student Aid website.
You may be able to combine one or more of your federal student loans with various repayment schedules into one Direct Consolidation Loan with one single monthly payment. You should discuss the implications of consolidating with your loan servicer first.