FutureYearningPA Posted July 30, 2019 Share Posted July 30, 2019 Hi guys! Basically, my father is trying to get the money for tuition through family instead of using loans. Assuming that the money for tuition and housing gets disbursed every semester, what is the proper way to ensure that I do not receive the loan amount per semester when I already accepted the entire loan amount a month ago and school begins shortly? Thank you! Quote Link to comment Share on other sites More sharing options...
dholmb Posted July 30, 2019 Share Posted July 30, 2019 Talk to your financial aid department... Worst case, if the loans get disbursed, you have 120 days to return the funds for a full refund (including any fees and interest).... Quote Link to comment Share on other sites More sharing options...
pastudentw Posted July 30, 2019 Share Posted July 30, 2019 If you don't want to receive the money, elect your award amount as zero or do not accept the aid award. Talk to the fin aid dept at the university. Be careful about trying to return aid money that has already been dispersed. When there is a disbursement, there is an origination fee taken off the top. As stated above and on the federal student aid website, "If your loan is disbursed but then you realize that you don’t need the money after all, you may cancel your loan within 120 days of the disbursement, and no interest or fees will be charged." The money typically must be returned through the university's financial aid department, NOT back to the loan servicer a payment. https://studentaid.ed.gov/sa/fafsa/next-steps/receive-aid 1 Quote Link to comment Share on other sites More sharing options...
dholmb Posted July 30, 2019 Share Posted July 30, 2019 (edited) Sorry for nit picking, student loans are complicated but it's good to have the right info. With 7.08% interest and 4.236% origination fees on the Plus loans that most students rely on, being able to return what you don't need is a nice feature to avoid extra fees/interest. Quote Be careful about trying to return aid money that has already been dispersed. When there is a disbursement, there is an origination fee taken off the top. The origination fee is also canceled. For example, if you borrow 20k and 19k is disbursed after the origination fee, you need to return 19k to cancel your loan for 20k. Quote The money typically must be returned through the university's financial aid department, NOT back to the loan servicer a payment. Yes and no, it depends how long ago the funds were disbursed. Where I went to school, the funds went back to the financial aid department if it was within 45 days. Funds went back to the servicer if it was 45-120 days. Maybe that's different at each school though. Of course, this is for federal student loans (not private loans). https://studentaid.ed.gov/sa/repay-loans/understand Edited July 30, 2019 by dholmb spelling Quote Link to comment Share on other sites More sharing options...
FutureYearningPA Posted July 31, 2019 Author Share Posted July 31, 2019 Thanks for the helpful responses! My school disburses the loan amount every semester so does that mean that I essentially have 120 days from each semester disbursement date to return the money? Quote Link to comment Share on other sites More sharing options...
dholmb Posted July 31, 2019 Share Posted July 31, 2019 (edited) 1 hour ago, FutureYearningPA said: Thanks for the helpful responses! My school disburses the loan amount every semester so does that mean that I essentially have 120 days from each semester disbursement date to return the money? Yes, that's correct. It's one more thing to keep track of though and I'm not saying it's the easiest thing in the world to do, but it's good to know about. For example, when I made a payment to my loan servicer to return some funds, I had to make sure that the payment was applied to that specific loan and not split between ones from previous semesters. It would just take a phone call or two to your financial aid office and/or servicer to avoid any mistakes. The other thing is that during the semester you should be able to receive funds that were offered but declined going into the semester. Edited July 31, 2019 by dholmb 1 Quote Link to comment Share on other sites More sharing options...
KevinMcCabe Posted August 15, 2019 Share Posted August 15, 2019 I know many students struggle with their fees. They might even work a few side jobs to survive. Tuition fee, accommodation, food and healthcare all have costs and on the top of that you have to study hard to graduate. Have you thought about applying for scholarships? Or starting a side job at your spare time? Gaining some related work experience? Quote Link to comment Share on other sites More sharing options...
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