<p>My daughter is still in college and has some Stafford loans (subsidized and unsubsized). I can repay some of the Stafford loans to help ease her financial burden. If I do so, is there any way her college would find out? And if so, would they consider tacking on more federal loan aid (or some other loan) if they know that her prior loan burden has declined somewhat? </p>
<p>I believe there is a limit to how much money a student can receive in Stafford loans each year, but I don't believe a limit for other loans exist.</p>
<p>I don't think her college would know, or care if some of her loans were repaid early. But, I'd rather not ask the college directly if her aid was to be affected.</p>
<p>Thanks in advance to anyone who knows the answer to the above.</p>
<p>It is a great idea to start repaying loans if you can. Stipulate that the money first go toward the interest on her unsub loans, then toward the principal on the unsub loans. Sometimes it is tough to get the servicer to apply the money to the unsub principal without spreading it out between both the sub & unsub loans, so you need to be very specific. I pay by mail with the information regarding how I want it applied in a letter and on the memo line of the check.</p>
<p>The school won’t know or care. It won’t affect anything on that end. The only time I tell students to repay through the school is if they are returning a refund they don’t need … and they think they might need to borrow more later in the year. If they send it back to the servicer, that amount will still count toward their annual limit. If they send it back through the school, their loan is reduced in a way that will allow them to borrow it back during the year if necessary. Since this is not an issue in your case, send it directly to the servicer.</p>