fafsa loans and transferring schools

Paying for College
1

<p>The federal loans im getting (subsidized and unsub) from FAFSA cover about half my tuition, and iv got a private loan for the rest. However im not entirely sure if im staying at my current university or taking the semester off (or even transferring schools to a different university). My question being, what will happen to my fafsa loans if I decide to accept them for now, then ultimately decide to leave the university where the loans are currently at? Will it go straight back to fafsa? or will I get it back in refund and have to pay it back myself?</p>

<p>Also, if I just decide to transfer schools (iv already been accepted, just havent decided if I want to go or not) Will those loans transfer? Will having them, or not having already accepted them affect financial aid at my new university?
basically what im asking is, If I decide to accept the loans from financial aid at one university, then ultimately decide to transfer to a diff university, what happens then?</p>

2

<p>The loans you are offered will not be disbursed until you start school. The loans are paid to the school and they deduct direct expenses before paying you any remaining money. If you do not start at the school the loans should not be disbursed. If you do a semester at the school and get loans disbursed for that semester then the repayment terms for the loans that have been disbursed to you should not change if you change schools.</p>

<p>If you change to another school you will have to apply for aid at that school. All loans and other aid will be offered to you through that school. Any limitations (as far as annual maximums for federal loans) will still apply.</p>

<p>The loans are not from FAFSA. FAFSA is just a form used to apply for aid.</p>