<p>Here's a twist on Stafford loans. </p>
<p>D took out an unsubsidized Stafford loan as a freshman last year. For 09-10, S is also attending college so D now qualifies for a subsidized Stafford. </p>
<p>Does anyone know if its possible to have the unsubsidized loan "reclassified" into a subsidized loan now that circumstances have changed and she qualifies for a subsidized loan?</p>
<p>I am confused - where is the twist? Last year she did not qualify for a subsidized loan. This year she qualifies for a subsidized loan. Happens to people every year, and the other way around of course. The loan from last year will remain unsubsidized because it was based on her financial situation for last year. It cannot be reclassified (if that is what you are asking - am not sure I am understanding your question) anymore than someone would become eligible for say a retroactive Pell grant for a previous year because their situation changed this year.</p>
<p>I have never heard of any school reclassifying stafford loans from previous years.</p>
<p>If you do not need all the subsidized funds this year, I think she could take the new one and pay off the old unsubsidized amount</p>
<p>“…anymore than someone would become eligible for say a retroactive Pell grant”</p>
<p>fair point. just wishful thinking, i guess. :)</p>