<p>My freshman fall bill is due really soon, but I still need to take out a loan to cover the amount still due. Since my spring bill will be markedly less than my fall bill with the lack of many entrance fees, I don't know if I should take out a full year loan (which would require me to take out more than I need to cover the higher fall bill) or a fall only loan with just the amount I need. My school says that they receive two equal loan disbursements in the fall and spring, so would a fall only loan be sent to them in just one disbursement? I don't want to pick that if it will still be disbursed in halves, causing my fall payment to be lacking.</p>
<p>My son who is a rising sophomore just spoke to his financial aid office and they said that you have to ask for a full-year loan, of which half will be disbursed in the fall, and half in the spring. BUT, before it is disbursed in the spring, you can ask for the (spring) amount to be reduced. So, following that logic, you would request twice the amount you need for fall, and then reduce for spring. (Worst case, you could take the full larger disbursement for spring too, and immediately pay back the part you don’t need. Assuming this is a federal Stafford loan, you’d be out 1% loan origination fee for the part you didn’t need, but that’s fairly minor in the big picture.)</p>
<p>Actually, if you were to take out the larger loan, you can turn around and give it back to the school … the aid office will help you with this … and they will return it. The benefit of doing it this way, rather than sending it back yourself, is that you can get it back if something happens & you need it later. If you send it back, you can’t re-borrow it, as it counts against your annual limit.</p>
<p>But the best way is to reduce the second semester disbursement before it is made. Schools have loan revision forms for this.</p>
<p>That’s great information, kelsmom. If a student reduces the second semester disbursement before it is made, can they still get it back later if needed?</p>
<p>Also is there a good way for a student to take a loan for the Spring semester only? That was my son’s position. He has cash from his summer job to cover his student contribution plus the unsub loans he is “supposed to” take for the fall. But he won’t have quite enough to cover both for the spring as well. So he wanted to take a loan just for the Spring. But because of the even disbursements thing, he ended up taking half of it for Fall, and will just hang onto it until spring. But it is an unsub loan, so he is paying 4 months extra interest. The amounts are small, but of course if there is a better way that isn’t a huge hassle for the student, he’d prefer not to pay the interest. His finaid department seemed fairly helpful talking him through his options but basically said if he declined the loan in the fall, he couldn’t get it in the spring either.</p>
<p>If a student reduces the second semester disbursement before it is made, can they still get it back later if needed?</p>
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<p>Yes, as long as it is requested/processed while the student is still enrolled at least half time.</p>
<p>Also is there a good way for a student to take a loan for the Spring semester only?</p>
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<p>Yes, and I am surprised he was told that he cannot have it for spring if he declines it in fall. What happens if he declines for fall & requests for spring is that the school will determine his eligibility for spring based on a spring-only budget & using all spring aid to determine the eligibility. Sometimes this will result in a second-term eligibility that is more than one-half the annual loan limit.</p>
<p>My suggestion is that your son speak with an aid officer (not a peer counselor, which many schools use). If the aid officer says no for spring-only, he should ask to speak with a manager. I say this because there is no reason he should request now & pay the interest … but if the school has some policy that will mean he must do that or not borrow, he needs to find that out right from a manager.</p>