Financial Aid Sub. Loan?

Question

Financial Aid was willing to give me 3,500 for spring tuition. If I fill in the promissory note, will they send me $3,500 cash? Even though I paid for the tuition out of pocket?

Answer 1

What they do is they give you a refund check if you have already paid for the tuition. You might need to request for it to be sent to your address because they generally wait for you to pick it up. Then you can cash it or put in your account to cover your expenses!

Answer 2

I'm assuming you're talking about a Subsidized Stafford loan? I've taken out these kinds of loans.

What happened with my loan was they sent my loan money to my college Financial Aid office. I had already had my tuition/fees/books covered with scholarships and out-of-pocket expense, so the loan put my account way into the positive. In about a week, the school sent me a refund check for the ammount that was positive on my account, in my case it was about $2000.

With a subsidized loan, you do not have to make any payments while you are still attending school, but i would still caution you to think carefully about this loan. If you really need the money and have no other options, then go for it. I needed mine for my dorm room expenses. However, if you just want that $3500 to blow on things you don't need, I urge you to reconsider.

But in short, yes, if everything you need for the semester is paid off, the school will cut you a check for the ammount of the loan.