Can I transfer my stafford loan to a different school if it hasn't been disbursed yet...?

Question

I went to a college for one quarter but I would like to go to a different one. I have a meeting with the FA advisor at my new school next week but my question is... my stafford loan is due to be disbursed next month but I was wondering if they can transfer all of my stafford loans to my new school (which is a million times cheaper than the school I'm at now). I wish I hadn't gotten myself into this mess! Thanks!

Answer 1

You must make sure your new school has been added to your FAFSA. Call you old school tomorrow and ask if they can suspend the disbursement because you you are changing schools.

Answer 2

There is no such thing as transferring a stafford loan between schools.  You must cancel the loan at your old school and then apply for a new loan at your new school.  This is not as simple as it looks.  First, you probably owe tution to your old school and they will want the loan funds which they are entitled to because you attended there.    

Before enrolling in your new school,  I would contact the old school, see how much I owe and decide if you want to pay it or use the financial aid (grants, loans, etc.  Tell them you will not attend anymore and cancel any future loans.  

I would begin your new school with the 2008-09 FAFSA which is usually beginning with the Fall 2008 semester.  I know you want to get into your new school as soon as possible but it gets really tricky transferring between schools in the same award year, especially when one is on quarter hours and the other is on semester hours.  You want to get as much financial aid as possible and it is better to start with a new award year.  

This is the best advice I can give you so contact your schools and get started.  Good Luck.