<p>Background: So here's my dilemma and its got my me freaking out majorly. I was a undergrad in the spring and went through graduation and enrolled for 9hours of graduate study this semester at another university. Just about a week ago I was sent an email from my grad program that I couldn't enroll in spring classes and I needed to contact my undergrad school. I contact them and they say for some reason I wasn't told I hadn't met my degree requirements for my BA. After going to meet with fin aid at my undergrad school it was suggested that I come back full time in the spring and finish my degree. Which I'm totally ok with. </p>
<p>Problem: So heres the part that freaks me out. As a grad student I took out $8434 in unsub Stafford to pay for the program. The fin aid program at my undergrad has awarded me this aid package for the spring
-Pell- $2550
Substaffford- $2660
UnsubStafford- $3550. </p>
<p>I'm worried that im gonna get screwed and wont be able to take out my loan amounts because of the graduate level loan I took out in the fall. Which I know grad students can take out$20500.00 in unsub a year but Undergraduates can only take out $12500 a year if independent which I am. The new fin aid director at my school said it shouldn't be a problem because the loans where taken out at the graduate level and wont effect me and I can take out my Stafford amounts in the spring. Shes new and just got the job and I'm not so sure. Any advice would help me so much. Sorry for the long post.</p>
<p>You are eligible for a total of $12,500 for the year as an undergrad, so you are only eligible to borrow another $12,500-8434=$4066 for the year. You would be eligible for $2660 sub and $1406 in unsub — your undergrad school did not do transfer monitoring before it awarded the loan amounts, and they will adjust them after they do so. If the money is disbursed first, they will be obligated to send it back — meaning you would owe them money. You absolutely should make sure that they adjust your award BEFORE school begins.</p>
<p>Assuming they did a check on your Pell aggregate first, you should be eligible for the Pell. However, if you are close to 600% for Pell, that award might also be adjusted later.</p>
<p>The thing is, when you apply, larger schools automatically package your aid. Later, they will have to review your personal situation & adjust aid accordingly. That can be an issue for transfer students (or students who go to another school during the award year). </p>
<p>Also … remember that you are not eligible for ANY loans if you are less than half time for the term. That is important to note — half time is most likely 6 credits, but that can vary by school policy. In addition, your Pell award is probably based on 12 or more credits … if so, it will be adjusted based on the number of credits you will be taking. If they awarded you on a semester basis, rather than automatically awarding you for a year, you will be eligible for 75% of the Pell amount at 9-11 credits, 50% at 6-8 credits, and 25% at less than 6 credits. </p>
<p>Another thing to watch for … make sure they use your undergraduate FAFSA to award aid. If the school uses the grad transaction, the Pell will reject & you’ll have problems. All info on the undergrad FAFSA needs to be consistent in indicating undergrad program, as well as “no prior bachelors degree.”</p>
<p>At least I have an idea where I stand now, although its a bit depressing. Im not sure why she told me that the loans I took out as a graduate student wouldn’t count against the $12500.00 I could take out as a undergraduate. Now my fear is finding the money to make up the gap since my school doesn’t really do perkins. Im worried to say the least.</p>
<p>At least I have an idea where I stand now, although its a bit depressing. Im not sure why she told me that the loans I took out as a graduate student wouldn’t count against the $12500.00 I could take out as a undergraduate. Now my fear is finding the money to make up the gap since my school doesn’t really do perkins. Im worried to say the least.</p>
<p>Kelsmom- thanks for answering. I went to the school today to fill out all the paper work and to make sure that the grad school had canceled out the spring loan amount so I could use it at the undergrad school for the spring. I went to fill out the paper work for the stafford loans and was told that the amount taken out in the fall as a graduate student wouldn’t effect the amount I could take out in the spring as a undergraduate so I would be fine with the $3500.00 unsub for the spring. It was a confusing conversation but she said as long as I’m a undergrad imagine the $8430.00 graduate didn’t exist. She sent me a link and cited this from the fed fin aid hand book
“Transfer from graduate to undergraduate program during an academic year
If a student transfers from a graduate program to an undergraduate program in the middle of an academic year, the undergraduate annual loan limit for the students grade level applies, but amounts previously borrowed at the graduate level within the same academic year do not count against the undergraduate annual loan limit. The total amount awarded for the academic year may not exceed the higher (grad/professional) annual loan limit”
<a href=“http://ifap.ed.gov/fsahandbook/attachments/Vol3Ch51213Jun14.pdf[/url]”>http://ifap.ed.gov/fsahandbook/attachments/Vol3Ch51213Jun14.pdf</a></p>
<p>She is correct, although she is not correct that the grad money is treated like it doesn’t exist. The grad money must be considered in that the total of all sub/unsub for the year cannot exceed the $20,500 annual limit for a grad. I was wrong about not being able to exceed the undergrad amount for the year, but the regs do say that you cannot exceed the grad amount. So you would be eligible to receive up to $20,500-8,430=12,070 for the rest of the year. One really important thing: Your undergrad loan for spring has to be paid on an undergrad FAFSA … have your school help you with that, so that it all works smoothly. If you do not qualify as an independent student at the undergrad level, you will have to add parent info … you may be automatically independent as a grad student & have to include parent info as an undergrad.</p>
<p>Oh, and another thing … have her look at your sub amount. I would bet you can have more sub & less unsub. As a grad, you didn’t get any sub, so you can get up to $5,500 sub at senior level (as long as you don’t go over your need for the term and your undergrad aggregate sub amount).</p>