How does FInancial Aid work?

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How does FInancial Aid work?

Postby Texascot » Thu Mar 09, 2006 11:33 pm

Can someone direct me to a resource which explains the financial aid process for Grad students?

I've completed my FAFSA and school has been passed the information to make a determination.

As I studied at undergraduate level in the UK and paid my own way through school - I am not sure how things work here in the US. I'm interested in the process of how my course fees are handled if I am successful in getting a Loan.

In my mind it goes something like this:

1.The school/loan company gives me a maxmimum amount I can borrow each term/quarter/year (to cover tuition and books etc. for a student enrolled at least half time)
2. I enrol for my courses, and the school sends me an invoice each quarter/term.
3. I tell the school/loan company how much I want for that term/quarter/year.
4. The school/loan company sends me a check for the amount I asked for, less a processing fee.
5. I pay my course fees to the school, and spend the rest on beer - sorry I meant to say books!
Texascot
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Re: How does FInancial Aid work?

Postby tcnixon » Sun Mar 12, 2006 2:54 am

Texascot wrote:
1.The school/loan company gives me a maxmimum amount I can borrow each term/quarter/year (to cover tuition and books etc. for a student enrolled at least half time)
2. I enrol for my courses, and the school sends me an invoice each quarter/term.
3. I tell the school/loan company how much I want for that term/quarter/year.
4. The school/loan company sends me a check for the amount I asked for, less a processing fee.
5. I pay my course fees to the school, and spend the rest on beer - sorry I meant to say books!



It's exactly nothing like that. 8) Typically, the school determines how much your need is based on your FAFSA. It then looks at all of the financial aid options open to you. Deciding, of course, that it would rather you spend your money than they spend their endowment, it then producess the loan forms for you to sign based on that FAFSA amount. Alternatively, they might give you loan forms to apply directly to the company.

The school doesn't let you get very close to that check. Commonly, the student loan company sends it directly to them. They will then have you come in and sign over the amount. If there is excess, they will either apply it to your account or cut you a check for the difference.

While this can vary depending on the school and the company, that is close to how it usually works. With your way, the amount of student loan defaults would increase exponentially.


Tom Nixon
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Re: How does FInancial Aid work?

Postby tcnixon » Sun Mar 12, 2006 2:55 am

Texascot wrote:
1.The school/loan company gives me a maxmimum amount I can borrow each term/quarter/year (to cover tuition and books etc. for a student enrolled at least half time)
2. I enrol for my courses, and the school sends me an invoice each quarter/term.
3. I tell the school/loan company how much I want for that term/quarter/year.
4. The school/loan company sends me a check for the amount I asked for, less a processing fee.
5. I pay my course fees to the school, and spend the rest on beer - sorry I meant to say books!



It's exactly nothing like that. 8) Typically, the school determines how much your need is based on your FAFSA. It then looks at all of the financial aid options open to you. Deciding, of course, that it would rather you spend your money than they spend their endowment, it then producess the loan forms for you to sign based on that FAFSA amount. Alternatively, they might give you loan forms to apply directly to the company.

The school doesn't let you get very close to that check. Commonly, the student loan company sends it directly to them. They will then have you come in and sign over the amount. If there is excess, they will either apply it to your account or cut you a check for the difference.

While this can vary depending on the school and the company, that is close to how it usually works. With your way, the amount of student loan defaults would increase exponentially.


Tom Nixon
tcnixon
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Posts: 59
Joined: Wed Jan 18, 2006 5:59 am
Location: California


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