<p>In 2013 I was going to a private school (UMHB), but ended up withdrawing because I couldn't afford tuition. While trying to get money I took out a loan. I also withdrew before classes started. I also asked the FA office to cancel my loan, but when they did that I was told that "A portion of your loan was not able to be sent back. $325 was the amount that is still in your name, but everything else was canceled." That doesn't even sound right. My confusion is I've never received any money or used any of the loan money at all for anything. So why do I have to pay back money that I've never seen or used. Is there any way I can get out of this, and will this affect me while trying to get aid from another school?</p>
<p>If you owe the money, you must pay it. If it was a student loan, it was disbursed to your school. Apparently you had $325 worth of things you owed the school which were paid for with that loan. That isn’t a very large amount. Pay it back. </p>
<p>Contact the school and see what the $325 was used for. Probably some kind of billed fee that isn’t refundable when you withdraw and the loan was applied to it. $325 is a lot of money to some, so check it out but you likely won’t get it changed.</p>
<p>Was the $325 some sort of fee for processing the loan? </p>
<p>I’d bet it’s the 1 percent processing fee. You would have to pay it back. </p>
<p>I doubt it. For $325 to be 1% of the loan would mean the loan was $32,500. </p>
<p>Sorry I meant 4 percent </p>
<p>I’ve went up there before and they dodge the question, I might just have to suck it up and pay it. Lesson learned.</p>
<p>You are entitled to a full explanation and accounting. Try again and if you don’t get satisfaction then ask to speak to higher levels until you get an answer.</p>
<p>Go to the bursars office and ask to see your billing history. That should show you if there ere any outstanding charges that the $325 was used for. The FA people won’t necessarily know that.</p>
<p>Whenever a student is enrolled for even a day after the formal start date of the semester, he “earns” a portion of his financial aid. If the student has incurred costs during that time period, the school is entitled to keep a portion of that amount to cover institutional costs. This is all determined by a Return of Title IV Funds calculation (R2T4), as mandated by the federal regulations. </p>
<p>What does not make sense here, though, is that you state that you withdrew before classes started. If you FORMALLY withdrew prior to the first day of class, you did not earn any of your aid. The school would be required to return all of it to Direct Loans. Please contact your aid office to find out what date they used on your withdrawal. If it is BEFORE the first day of classes, they are required by law to return 100% of your loan. Let us know what you find out.</p>
<p>P.S. Loan fees are returned if the student cancels the loan within 120 days of borrowing.</p>