<p>Hello. I am a 3rd-year PhD student in the humanities at a private school in Los Angeles. I borrowed some Stafford Loans (for some reason, I am not eligible for Gradplus loans) this year and last fall. This summer, my Financial Aid Office (FAO) informed me that I borrowed to much this spring (a mistake that they acknowledged was on their end), so they canceled all of my summer loan eligibility and passed the 2000.00 difference onto my student bill. As such, I have a freeze on my account, a freeze on my fall financial aid, a freeze at the library, and collections has been calling me non-stop. </p>
<p>This is the second year that this has happened. Last year, the difference was smaller, so I payed it off with a credit card, but this is a little tough to pay back while I am in school full-time. Note: you do not get an opportunity ot speak with a full-time Loan councilor at the FAO, but just an 18-20 work-study student who cannot shed much light on anything. Moreover, if you ask to speak to a supervisor, they decline you and simply explain that you are "not allowed". </p>
<p>Apparently I am not the only one in this circumstance. However, nothing about this situation seems ethical, right, or legal. </p>
<p>It depends on what made the loan “too much”.
For grad students, the annual Stafford limit is $20,500 (with no more than $8500 subsidized). If you received more than 20,500, the school MUST return the overpayment and you would be left owing the school. In that case, you may be eligible for a Grad PLUS loan.
The other factor is your budget (COA). You cannot receive funds (all types combined) exceeding the budget. (Did you receive a scholarship or stipend?) However, many schools have policies that allow students to increase their budgets. Some reasons might be higher rent than what was budgeted, childcare expenses, etc. If your Stafford loan is less than 20,500, ask the FAO if you can increase your COA.</p>
<p>Overawards do occur, and they must be resolved. However, I am not sure what has happened in your case. Did you receive ANY other aid in addition to the loans? Why are you not eligible for grad plus loans? Why were you not offered grad plus for the summer term? I am wondering what you left out of your explanation …</p>
<p>Thank you for your responses! I really appreciate it. </p>
<p>To answer some of your questions: </p>
<p>*Yes, I am on an assistantship, where I teach (not TA) freshman writing. About 20k annual. I am a full-time graduate student ( no coursework anymore, just pre-qual studying units). </p>
<p>*I am not eligible for Gradplus because, quoting the FAO, it would exceed my COA. </p>
<p>*They will not increase my COA to rectify this situation. </p>
<p>*I just don’t understand why I would be left with the burden of a mistake made by the FOA. I would not have borrowed what I should not have been able to. </p>
<p>By the way, The FAO at this school is so hard to get in touch with. Cannot call them. Cannot email them, even though they have numbers and email addresses on their website. The phone number plugs into a voice message and will not allow me to leave my message. The email bounces automatically to the Office of Admissions. Only one person working the desk–typically an 18-20-year-old work-study student who cannot and will not get you in touch with a supervisor. And, they are only open from thurs-fri during the summer semester when all of this transpired. Now I owe the school 2k by 7/24. </p>
<p>Here is an explanation given to me by my dept. adviser from her contact at FAO: </p>
<p>As for C, the short answer is that a big chunk of his Stafford</p>
<p>That’s an odd response. However, what I am reading into it is that they are still in the process of figuring out what they did wrong. It sounds like <em>maybe</em> you won’t end up owing what you see right now as being your balance. Hang in there until someone figures out how to do math … then see how it shakes out. We don’t count assistanceships the way your schools does, so I am not familiar with what might be happening.</p>
<p>The bottom line is that even if the aid officer is the one who overawards you, the loan still must be reduced. That’s just the way it is, because the loans are governed by federal rules that cannot be broken.</p>