<p>I'm transferring from my old school, a private school, to the local community college. I still owe the private school roughly $600. Are they legally allowed to hold my FAFSA letter and loans until I pay it? </p>
<p>I already dropped their school code and added the new school, I was told to contact my financial advisor at the old school to cancel the loans for the spring semester, all he said was I still owe money, but he never said he will or wont cancel the loan for spring. Just in case, so i know, are they allowed to withhold my spring loans until I pay? which I will pay in March.</p>
<p>If you ask them to cancel your aid for the term, they will do that even if you owe. They are just canceling undisbursed aid - it’s not like it’s taking anything away from them. Request the cancellation in writing, and request a confirmation of the cancellation be sent to you at your school email account. Some schools even have forms you can take to your old school to fill out, saying they have canceled your pending disbursements. If your new school has a form like that, you can take that to the old school.</p>