Student loan question

PrincessFiona9

I filled out my FAFSA for next year and got my qualification for my Pell Grant (which I also had this year) which covers my tuition and textbooks, and I also qualified for a subsidized Stafford loan which I planned on using to buy a new laptop and help with living expenses etc. I completed the loan counseling and signed the promissary note online last week, and I was told that I would need to contact the financial aid office at my school to find out when my loan would be disbursed. I went up there today and they're telling me I don't qualify for the loan and basically said I can't have it and to reapply when the fall semester starts. I'm so frustrated! Why would the gov't tell me I can have this loan and then the school tell me I can't?

mrsjengle

If I'm remembering correctly, each school has a "cut-off" that's unique to the school. So even though the gov. might give you money, the school might say you can't have it. For instance, where I went to school I could only borrow/get 20k regardless of how much people were willing to give me.

I'd call the fin. aid office back and ask if that's what happened. If not, I'd ask for an explanation until you understand. 

mrsjengle

Also, check the deadlines. Sometimes the school's deadline is different than FAFSA's.

historychick79

Could it be based on the number of completed credits you have? I know our study abroad students sometimes have issues if it takes too long for the credits from their overseas program to arrive and post on their record and they're trying to finalize amounts for the next semester (but I'm not clear if that's determined when you submit the FAFSA application, or monitored/finalized by financial aid offices).

jcole32444

Have you filled out all the proper paper work with your financial aid office for student loans? I am sure that is a stupid questions but if one sheet of paper being signed saying it is ok for the school to get the money ect. then you can not get a loan. I know here one needs to be filled out for each semester.

But if all your paper work is fine then I would go talk to the financial aid department and ask why until you clearly understand. Perhaps it is what PP's said you have just reached a cap. Is there any other money you qualified for? Like a working credit? I had and the school would not approve a loan until I denied that money.

Keep asking questions until you figure out the reasoning. If all else fails contact the agency that would be giving you the loan and speak with them. But that would probably be my last step.

PrincessFiona9

I feel like I was pretty much brushed off when I went up there. I didn't even get to talk to a financial advisor/officer. It was the lady at the front desk who told me I couldn't get the loan, and I don't think she was even looking at my account. I only got a $2k grant for the tuition, so I'm pretty sure I haven't met any caps yet. I told her I needed the money for the summer session and she told me my grant would have covered that, but it didn't. It only covered fall and spring. I guess I will have to go back and make sure I talk to someone else.

PrincessFiona9

GhostMonkey:

Have you signed up for the summer session yet? Money usually isn't disbursed until they can see that you are actually taking classes (and are at least half time). How long have you been in school? There are caps on that as well that they don't tend to tell you about.

Definitely talk to someone other than the person at the front desk.

 

Thanks for the input ladies! I have talked to someone who said I can get the loan money once I enroll in summer classes. I am glad I don't have to wait until the fall semester!

RisaRie

I'm a financial aid counselor so I'll try to give my professional answer but each school is unique.

The most likely reason why FAFSA would state you qualify for a subsidized loan but the school says you dont is based on the Cost of Attendance (COA) for the school your attending. As someone has mentioned, each school as a specific limit on how much aid can be awarded to a student within a given academic period. If you just started this spring semester your COA is calculated based on one semester attendance. The COA is made up for direct cost to the school i.e. tuition, fees, and possibly books. It's also using expected expenses a student might incurr such as transportation costs and off-campus living expenses but these are just estimated numbers.

If you PELL grant more than covers your tuition and books there may not be enough room to also award you a subsidized loan. COA=$2800 and PELL=$2775 so there is no room to also add a loan to that because the minimum disbursement amount for a Stafford loan is $100.

But in that situation if your PELL grant is close to your COA you should be receiving some sort of a refund, but maybe that's what you were using for book expenses.  

Now if you went to a more expensive school you'd very likely qualify for the Stafford Subsidized loan as well as an Unsubsidized loan but only because it costs more to attend.

HTH