01.08.08 | Schools & the Stafford Loan
Happy New Year! I get a lot of questions daily about a school’s role in the Stafford loan. In order to borrow a Stafford loan, the school you attend MUST certify it. There is no way around it. Your school must have an updated/renewed student aid report on file from your FAFSA, and them must certify the loan with the lender of your choice. Yesterday I had a caller that says she attened 75% of her classes in the Fall, and her school would not certify her loans for the Spring because they require an 80% attendance rate. Can they do this? Yes, the school has the right to set policies for the loans they certify. If you do maintain a 2.0 they will not ceritfy loans. If you do not attend your classes, they have the right to revoke your federal loan priveleges. If you are unaware of your school’s policies, I would definitley check with financial aid.
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When the school receives the loan and takes what the student owes, how long can they hold it before they give it to the student. My school received the loan on 01/02/08 and will not release the money until 01/23/08. Is that allowed?
January 12th, 2008 | #
Ok. I understand that my school must certify the student loan, but my financial aid department says they don’t participate in any of the federal student loan progams. Therefore, what would I do in order to receive financial help? My school does except the Pell Grant which ultimately sets the standard on your eligibility for a Stafford Loan. How would I get help?
January 22nd, 2008 | #
I took out a Stafford Loan when I started this semester for the first time. Although my PHEAA grant just about covers my tuition my books and supplies cost a ton. I also had to work part time because I have a full time roster, can I use my loan to off set my expenses?
February 7th, 2008 | #