US Financial Aid

Below you will find the Costs of Attendance (eligible costs for Direct Loans) – all figures are in US$, based on an average exchange rate from 01/2011-01/2019 EUR/US$ of 1.23, and valid for the Academic Year 2019/20. In case you claim higher expenses, you must show proof of it. Additional expenses for students with disabilities will be decided on a case-by-case basis. Please Note: While the rate below are calculated using an exchange rate of 1.23, the amount you receive will be calculated at the current exchange rate on that date minus a transaction fee the US Department of Education keeps. Please take this into account when you are deciding how much you want to borrow.

How the Loans are Disbursed

Generally, your loan will cover a full academic year. The money will be delivered in two payments to you, at the beginning of each semester during the academic year. We will disburse your loan money by crediting it to your school account to pay (tuition and fees). If the loan disbursement amount exceeds your school charges, we will pay you the remaining balance of the disbursement directly to your German bank account. We will receive your money in Euro, so for all transactions the exchange rate $/€ from the day we have received your money will apply. We will notify you in writing each time we disburse part of your loan money and will provide information about how to cancel all or part of your disbursement if you find you no longer need the money. You will also receive a notice from the U.S. Department of Education confirming the disbursement. You should read and keep all correspondence received concerning your loan.

Before Disbursement

In order to be eligible to receive US Student Loans at Frankfurt School, students have to fill out two different forms. The first form is an aid acceptance letter, stating how much the borrower wishes to receive from the amount they were approved, and the second is the US Financial Aid Academic policy. Digital versions of our SAP policy and other policies for US Financial Aid recipients are readily available here. Please note these policies only apply to current students receiving US Financial Aid from Frankfurt School, and do not apply to other students.

Using the Loan for Educational Expenses

You may use the loan money you receive only to pay for your education expenses. Education expenses include school charges such as tuition, room and board, fees and indirect expenses such as books, supplies, equipment, dependent child care expenses, transportation and rental or purchase of a personal computer.

Enrollment Status & Other Changes

It's important to keep your FSA Student profile up to date, so that your loan information is up-to-date. This is your responsibility. You must update your profile if you:

Change your local address, permanent address or telephone number;

Change your name (for example, maiden name to married name);

Do not enroll as a full time student for the loan period certified by the school;

Do not enroll at the school that certified your loan;

Stop attending school;

Transfer from one school to another school; or

Graduate.

Until you graduate or leave school, you must also keep Frankfurt School informed of these changes. A non-scheduled break in enrollment (e.g. vocational semester for a non-for-credit internship), is considered an interruption in your enrollment. When you graduate or withdraw from your academic program, you will receive a six-month grace period for your Direct Subsidized and Unsubsidized Loans. Once your grace period ends, you must begin repaying your loan(s). See "After Graduation".

Paying Interest while at Frankfurt School

You may choose to pay interest on your Direct Unsubsidized or Direct PLUS loans while you are in school. If you choose not to pay the interest while you're in school, the Department will add it to the unpaid principal amount of your loan. This is called "capitalization," and it can substantially increase the amount you repay, especially if you are receiving multiple loans for a multi-year program. Capitalization increases the unpaid principal balance of your loan, and the Department will then charge interest on the increased principal amount. It will save you some money in the long run if you pay the interest as it accrues on your loan while you're in school or during the grace period. This is also true if you pay any interest that accrues during periods of deferment or forbearance after you leave school.

Entrance Counseling

If you have not previously received a Direct Loan, the US Federal Government requires you to complete entrance counseling to ensure that you understand the responsibilities and obligations you are assuming. This counseling can be done online. Please click the links below and complete the appropriate entrance counseling.

If you are completing entrance counseling to borrow a loan as an undergraduate student, then the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans and Direct Unsubsidized Loans.

If you are completing entrance counseling to borrow a loan as a graduate or professional student , the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.

You can complete entrance counseling here.

Withdrawing

Once you are no longer enrolled, you'll receive a 6-month grace period on your Direct Subsidized and Unsubsidized Loans during which you are not required to make loan payments. You must begin repayment at the end of your grace period. If you have an in-school deferment on a Direct Subsidized or Unsubsidized Loan that entered repayment at an earlier date before you returned to school and you graduate or withdraw from school, you will be required to immediately begin making payments on the loan because the 6-month grace period has already been used up; there is no second grace period. Make sure that both Frankfurt School and your loan servicer know that you are no longer enrolled. If you don't begin making payments when required, there is the possibility that you will lose repayment incentives you may have received or even go into default. 

Grace periods

When you graduate or withdraw from your academic program, you will receive a six-month grace period for your Direct Subsidized and Unsubsidized Loans. Your grace period begins the day after you stop attending school. Once your grace period ends, you must begin repaying your loan(s). If you re-enroll in school at least half time before the end of your 6-month grace period, you will receive the full 6-month grace period when you stop attending school. There is no grace period for Direct PLUS Loans—the repayment period for each Direct PLUS Loan you receive begins 60 days after we made the last disbursement of the loan. However, you can defer repayment while you're enrolled in school and (for Direct PLUS Loans first disbursed on or after July 1, 2008) for an additional 6 months after you graduate. Remember, if you choose to defer payment on a Direct PLUS Loan, any interest that accumulates during the deferment period will be added to the unpaid principal amount of your loan. This is called "capitalization," and it increases your debt because you'll have to pay interest on this higher principal balance.

Exit Counseling

We are required to ensure that you receive Exit Counseling before you graduate or withdraw. Exit counseling provides important information you need to prepare to repay your federal student loan(s).

If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete exit counseling each time you:

Drop below half-time enrollment

Graduate

Leave School

Please complete the Exit Counseling on the FSA Website: 

Reservists Called to Active Duty

If you are called or ordered to active duty for more than 30 days from a reserve component of the U.S. Armed Forces, the period of your active duty service and the time necessary for you to re-enroll in school after your active duty ends are not counted as part of your grace period. However, the total period that is excluded from your grace period may not exceed three years. If the call or order to active duty occurs while you are in school and requires you to drop below half-time enrollment, the start of your grace period will be delayed until after the end of the excluded period. If the call or order to active duty occurs during your grace period, you will receive a full 6-month grace period at the end of the excluded period. If you are a reservist called to active duty with the U.S. Armed Forces for more than 30 days, contact the Direct Loan Servicing Center to let us know your status.

Choosing a Repayment Plan

You'll have the choice of several plans, and your loan servicer will notify you of the date your first payment is due. If you do not choose a repayment plan, the Department will place you on the Standard Repayment Plan. Most Direct Loan borrowers choose to stay with the Standard Repayment Plan, but there are other options for borrowers who may need more time to repay or who need to make lower payments at the beginning of the repayment period.

Consolidation

If you have multiple federal education loans, you can consolidate them into a single Direct Consolidation Loan. This may simplify repayment if you are currently making separate loan payments to different loan holders, as you'll only have one monthly payment to make. There may be tradeoffs, however, so you'll want to learn about the advantages and possible disadvantages of consolidation before you consolidate. To learn more, visit the Department‘s Direct Consolidation Loan website.

Generally, you'll have from 5-10 years to repay your loan, depending on which repayment plan (there are several) you choose. Your loan servicer will notify you of the date your first payment is due. If you do not choose a repayment plan, the Department will place you on the Standard Repayment Plan, with fixed monthly payments for up to 10 years. Most Direct Loan borrowers choose to stay with the Standard Repayment Plan, but there are other options for borrowers who may need more time to repay or who need to make lower payments at the beginning of the repayment period. You can change repayment plans at any time by going to your loan servicer´s website (log in to your FSA account to find your loan servicer) and logging in to your account.

Automated Payments (Electronic Debit)

When the Department sends your first bill, they will tell you how you can sign up for their electronic debit account (EDA) option and have your bank automatically make your monthly loan payments for you from your checking or savings account. You won't have to write checks, use stamps, or worry if your payment will get to them by the due date. In addition, Direct Loans offers a 0.25% reduction in the interest rate on your loans during any period when your payments are made through EDA.

Trouble Making Payments?

If you're having trouble making payments on your loans, contact your loan provider as soon as possible. Your loan provider will work with you to determine the best option for you. Options include: Changing repayment plans. Deferment, if you meet certain requirements. A deferment allows you to temporarily stop making payments on your loan. Forbearance, if you don't meet the eligibility requirements for a deferment but are temporarily unable to make your loan payments. A forbearance allows you to temporarily stop making payments on your loan, temporarily make smaller payments, or extend the time for making payments. If you stop making payments and don't get a deferment or forbearance, your loan could go into default, which has serious consequences. Your loan first becomes "delinquent" if your monthly payment is not received by the due date. If you fail to make a payment, the Department will send you a reminder that your payment is late. If your account remains delinquent, they will send you warning notices reminding you of your obligation to repay your loans and the consequences of default. If you are delinquent on your loan payments, contact your loan provider immediately to find out how to bring your account current. Late fees may be added, and your delinquency will be reported to one or more national consumer reporting agencies (credit bureaus), but this is much better than remaining delinquent on your payments and going into default.

Consequences of Default

If you default the consequences, which can be severe, include the following:

• The entire unpaid balance of your loan and any interest you owe becomes immediately due (this is called "acceleration").
• You can no longer receive deferment or forbearance, and you lose eligibility for other benefits, such as the ability to choose a repayment plan.
• You will lose eligibility for additional federal student aid.
• The default will be reported to credit bureaus, damaging your credit rating and affecting your ability to buy a car or house or to get a credit card.
• Your tax refunds and federal benefit payments may be withheld and applied toward repayment of your defaulted loan (this is called “Treasury offset”).
• Your wages will be garnished. This means your employer may be required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan.
• Your loan holder can take you to court.
• You may not be able to purchase or sell assets such as real estate.
• You may be charged court costs, collection fees, attorney’s fees, and other costs associated with the collection process.
• It may take years to reestablish a good credit record.
• Your school may withhold your academic transcript until your defaulted student loan is satisfied. The academic transcript is the property of the school, and it is the school's decision—not the U.S. Department of Education’s or your loan holder’s—whether to release the transcript to you.