<p>I received a scholarship that covered my entire tuition. My school received the check in September and told me that they refunded my student loans (Direct Loans). So yesterday I receive a balance statement from Direct Loans with the entire tuition amount. It shows no record of the refund. Needless to say I'm freaking out. </p>
<p>So I call the school and they tell me it can take awhile to process a refund through Direct Loans. 4-5 months? Would it take that long to process a payment? It doesn't sound right to me. I called Direct Loans and spoke to someone directly. Still no record of the refund and the individual didn't seem to know why it wouldn't be showing up. He told me to talk to my school. I explained that I already did and they said it could take a long time to process. He said that's possible. </p>
<p>I've searched all over the internet and can't find anything. Anyone else had this issue? I think I'm getting the run around by my school. </p>
<p>4-5 months is too long for any money to be in limbo; there's got to be a paper trail for this refund.</p>
<p>If I were you, I would ask your FA officer to track down the refund and let you know where the money and the paper work is right now. If you don't get a satisfactory answer, get the name of the highest ranking person you can get your hands on at the FA office and at Direct Loans and write a letter to both, explaining the situation and asking for their help in resolving this matter. Keep good records of all communications from now on.</p>
<p>Canceling loans can sometimes take a backseat to processing increases. However, if it has been 5 months, it is possible your file fell through the cracks. Have you actually visited your financial aid office? If not, please do so. Some offices use phone reps who are not actually actively involved in the day to day financial aid operations. They may think things are fine, even though your request may have been overlooked.</p>
<p>Do you have a negative balance on your student account? If the loan funds are not on your student account, they SHOULD be showing as returned to the lender. The process of backing the funds off your student account & returning them to the lender should happen at roughly the same time. Did you receive a refund that you need to pay back in order to have the loan canceled?</p>