Changes to US Federal Student Loans are expected from 1 July 2026 under the 'One Big Beautiful Bill Act' (H.R.1), particularly affecting graduate students, parent borrowers, and repayment plans. The University of Otago is reviewing this legislation and awaiting guidance from the US Department of Education. Updates will be provided as more information becomes available.
The University of Otago has been approved by:
- The US Department of Education to participate in the Federal Student Aid programme (also known as Direct Loans, Stafford Loans, or US Financial Aid)
- The US Department of Veteran Affairs so that eligible students can access their educational benefits to pay for their studies at the University
- Sallie Mae, a private financial institution
US Federal Student Aid at Otago is available to eligible US citizens and eligible non-citizens enrolled in approved, on-campus degree programmes. Eligible students may also access Veterans Affairs education benefits or private loans while studying at Otago.
The Financial Aid Administrator is located at the International Office in the Clocktower. Contact them via email: us.financialaid@otago.ac.nz
US Federal Student Loans (Direct Loans)
The University of Otago participates in the US Department of Education’s William D. Ford Federal Direct Loan Program. To be eligible, you must:
- Be enrolled on campus at least half-time in an eligible degree programme (bachelor’s, master’s by coursework or research, or doctoral)
- Note that Immigration New Zealand requires international students to study full-time while in New Zealand
- Be enrolled in a programme with no online or distance-learning components
Eligibility is subject to change. You should confirm your intended programme with the Financial Aid Administrator.
Types of Direct Loans
Direct Subsidised Loans
These loans are based on financial need. The US government pays the interest while you are studying at least half-time. Repayment begins after a six-month grace period once you leave university or drop below half-time enrolment.
Direct Unsubsidised Loans
These loans are available regardless of financial need. You are responsible for paying interest from the time the loan is disbursed.
Parent PLUS Loans
Eligible parents of dependent undergraduate students may borrow to help cover their children’s study costs, provided they do not have an adverse credit history.
Graduate PLUS Loans
Eligible graduate students may borrow to help cover study costs, provided they do not have an adverse credit history.
Veterans Affairs and private loan
Eligible students may also access US Veterans Affairs education benefits or apply for Sallie Mae private loans to support their studies at Otago.
Further information
United States (US) student loans
US Veterans Affairs education benefits
Sallie Mae private loans