Financial Aid Confusion

<p>We've known for a while that we made too much money to qualify for financial aid even though my S is enrolling in one of the most expensive schools in the country this fall. Which is why we were suprised to get a letter announcing that he had been "granted" nearly $15K in loans -- loans he didn't apply for to a school he doesn't plan to attend. </p>

<p>Our S just graduated high school from a residence program at a local state university. Good way to earn 69 hours college credit and much more challenging than the local high school. It was that university, the one that costs about $12K a year, that awarded him the loans. What's more surprising is that he had already qualifed for a full scholarship there which we didn't pursue, of course, since he was going some where else. We have no idea how this happened.</p>

<p>Naturally, the $40K+ a year school he's going to didn't offer us a penny. :D</p>

<p>Weird.</p>

<p>Are you sure it is the university that sent the letter -- as opposed to a lender? A loan is not a "grant" - and subsidized financial aid is not in the amount of $15K. If your son would be entering college with junior year standing, the maximum Stafford loan would be $5500 -- plus financially needy students might qualify for extra loans.... but of course that would have to be supported by a FAFSA....which you never filed any where, right? </p>

<p>My guess is that a private lender has picked up a mailing list somewhere that has your son's name on it in some way associated with this university -- and they are sending out a letter that is mocked up to look "official" in some way. It may be a legitimate lender, and they may indeed regularly work with students at that university. But what you probably have received is the "student loan" version of the junk mail you get offering you new credit cards or refinancing for your house.</p>

<p>We filed an FAFSA to prove we didn't need financial aid to be eligible for a particular scholarship at the school he will attend. Probably listed his current school on the FAFSA as at the time he hadn't made up his mind and it was the ultimate safety.</p>

<p>The letter is clearly on the school's letterhead and directs us to go to the school website we know so well to either accept or decline the loans. Perhaps they're cooperating closely with some private lenders?</p>

<p>Colleges generally do work closely with private lenders; the majority do not provide direct loans. Are the loans subsidized? If not - then you really haven't been offered anything, except for the chance to pay the lender a sure-to-increase rate of interest. </p>

<p>It's probably just a paperwork thing - lack of communication between the financial aid office and admissions office, etc.</p>