Paul asks…
Are federal student loans automatically applied for when you complete your Fafsa?
And you just have to accept them? They’re not the same thing as Direct loans, are they?
Nagesh answers:
The FAFSA is the application for all forms of federal student aid, including Direct Stafford loans, so yes, federal student loans are the same as Direct loans, and yes, you automatically are considered for them when you complete the FAFSA. But no, you don’t have to just accept them. You can choose to borrow any portion of what you are offered, or none at all. Many students will refuse the loans and only accept any grant money they receive. Or they will only accept the subsidized loans. Or they will only accept the amount needed to pay the tuition at their school.
Your school is obligated to tell you how much you qualify for, and you are entitled to borrow the entire amount if you choose, but you can also choose to borrow less.
Laura asks…
What happens to the status of student loans if I transfer undergraduate schools?
I just transferred undergraduate schools and still have some student loans from my previous school (Sallie Mae and Federal Direct loans). Is there some sort of clearing house that my new enrollment status will be sent to so that the loan agencies know that I haven’t just stopped going to school (and thus cause my loan payments to become due)? Or must I obtain enrollment verification from my current school and send it to each loan agency myself?
Nagesh answers:
Although most lenders find out if you transfer schools, it’s best not to wait to hear from them, as they may have you in repayment status, and if you go too long without making a payment, you’ll default which will ruin your chances of federal aid in the future.
Best thing to do is call each loan servicer, inform them that you changed educational institutions, and ask if they need you to provide anything to them to keep your loans in good standing with them.
Try this site
http://free-college-information-usa.blogspot.com/
Free College information on financial aid for students, scholarship, student loans and more.
Ken asks…
What happens to the status of student loans if I transfer undergraduate schools?
I just transferred undergraduate schools and still have some student loans from my previous school (Sallie Mae and Federal Direct loans). Is there some sort of clearing house that my new enrollment status will be sent to so that the loan agencies know that I haven’t just stopped going to school (and thus cause my loan payments to become due)? Or must I obtain enrollment verification from my current school and send it to each loan agency myself?
Nagesh answers:
Although most lenders find out if you transfer schools, it’s best not to wait to hear from them, as they may have you in repayment status, and if you go too long without making a payment, you’ll default which will ruin your chances of federal aid in the future.
Best thing to do is call each loan servicer, inform them that you changed educational institutions, and ask if they need you to provide anything to them to keep your loans in good standing with them.
Good luck with your education!
Lizzie asks…
Is it true that some of your student loans can be forgiven if you work for a nonprofit organization?
I have a direct loans from the government and I have heard that you can get your loans forgiven if you work at a nonprofit organization. Is this true? Where can I find more information about this? Does it only work with certain nonprofit organizations?
Nagesh answers:
The loans are forgiven only AFTER you’ve worked AND PAID for ten years.
George asks…
How do I accept only a portion of the undsubsidized loan amount offered to me?
My offered unsubsidized loan amount was $5500 for the entire year: $1833 for each quarter(fall, winter and spring). I want the $1800 for the fall quarter, but only $600 in winter and $600 in spring. On my personal student page, I am only given the option to accept or decline. When I go to fill out information on the Direct Loans site, will I be able to choose how much I want each quarter?
Nagesh answers:
On your school’s website you can usually accept a loan and then enter the portion that you want to receive.
If you do not see that option go to the financial aid office and have them do it for you.
The direct loan website can’t do this and won’t be any help. You need to work w the school.
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