Accept Your Financial Aid It’s important to know that you’re under no obligation to accept all the federal student loan money that’s made available to you. You can accept all, some or none of the federal student loans you’re offered.
Should I accept all financial aid?
Although it can be tempting to accept all the loan money offered in a school’s financial aid offer, experts say students should only take what they actually need for tuition, fees and living expenses.
What happens if you don’t accept your financial aid?
However, student loans that are not accepted will not be replaced with grants or work study. It will simply leave a gap between what you can pay, how much the college costs, and the financial help that you were awarded.
Do I have to decline financial aid?
If your living expenses are not going to be as high as the amount estimated by your school, you have the right to turn down the loan or to request a lower loan amount. In the aid offer, your school will tell you how to do this.
What happens if I accept more financial aid than I need?
What if I Take Out More Loan Money Than I Need? It is possible that you miscalculated your expenses for the year and asked for more money in student loans than you actually need. Your school will still send you a refund check in this case, but keep in mind that the money you receive is still borrowed money.
How much aid should I accept?
Only as much as you need! While this should go without saying, I’m going to say it anyway: You should only accept as much financial aid as you need. Period. It isn’t uncommon for a student to receive a financial aid package that includes a lot more money than you need to pay for college.
Do I have to pay back financial aid if I drop out?
The federal government dictates if you drop out before the 60% point of the semester, you will have to repay part of the grants you’ve received. If you wait until the 60% mark or after, you won’t have to repay any grants you’ve received.
Do I have to pay back financial aid if I drop a class?
Federal regulations require you to repay a portion of financial aid funds if you withdraw from all classes before satisfying the 60 percent completion rule for the enrollment term. (See the current 60 percent dates for the financial aid award year.)
Can you keep extra FAFSA money?
If there is money left over, the school will pay it to you. In some cases, with your permission, the school may give the leftover money to your child. If you take out a loan as a student or parent, your school (or your child’s school) will notify you in writing each time they give you any part of your loan money.
Should I accept an unsubsidized loan?
You should accept the subsidized loan first because it has more benefits. If you have to accept an unsubsidized loan, remember that you’re responsible for all the interest that accrues on that loan.
How do you cancel financial aid?
Generally, you may cancel all or part of your loan within 120 days of receiving it and no interest or fees will be charged. If you must repay federal student loans, complete Exit Counseling to understand your responsibilities and learn how to plan affordable repayment of your loan(s).
What happens if I don’t use all of my student loan?
But what happens to unused student loan money that’s left over? It usually gets sent to you, at which point you can decide whether to keep it for living expenses or return it to your lender.
Can I buy a car with FAFSA money?
You also can’t pay for the purchase of a car with financial aid funds. In particular, a qualified education loan is used solely to pay for qualified higher education expenses, which are limited to the cost of attendance as determined by the college or university.
Can I use my financial aid refund for anything?
This amount that you receive as a financial aid refund may be paid as a check, credited to your account or deposited into your bank account directly. You can accept the money and use it for whatever you want. This is still considered as money loaned to you and it will attract interest.
Can I use my FAFSA money for clothes?
Personal expenses – Funds can be used to purchase groceries, cleaning supplies, clothing and other personal items. Transportation – Your financial aid can help to pay for your car and gas, to purchase a bus pass, to pay subway fees, to buy a bicycle, or to fund any other type of transportation you may need.
When should I accept my financial aid package?
If you mailed your FAFSA, it can take approximately 7 to 10 days for it to process once it’s received. While your application is being processed, the U.S. Department of Education will send your information to the schools you applied to and will verify your family’s financial standing.
What can I do if the financial aid I receive is not enough to cover the cost of attending college?
Your school may offer an option to advance your financial aid, offer a school-based loan program, or have an emergency aid procedure. Several schools now offer emergency aid opportunities if you experience unexpected expenses or challenges that are making it difficult for you to complete the semester.
What order should you accept different types of financial aid?
“The rule is: free money first (scholarships and grants), then earned money (work-study), then borrowed money (federal student loans),” the US Department of Education writes on its website, adding that private loans should be the last resort.
Do I have to pay back Pell Grants if I fail?
As long as you keep up with your school’s overall satisfactory academic progress criteria, you can hold onto your Pell Grant and not have to pay the money back. If failing grades pull you below academic standards or part-time student status, you can lose future Pell Grant funding.
Do I need to pay back Pell Grant?
The Pell Grant is a form of need-based federal financial aid that typically does not have to be repaid, which makes it highly desirable. It is awarded by the U.S. Department of Education to help eligible low-income students pay for college costs, including tuition, fees, room and board, and other educational expenses.
Will I lose financial aid if I fail a class?
If you can maintain your school’s minimum GPA for receiving financial aid, a failed class won’t end your aid. It will only hurt if you can’t rebound after a big enough drop.
