<p>Son has one more term to go and he is awarded $5500 in subsidized loans split into two terms, $2750 each. He is also awarded a Perkins loan of $1000 for the year. Can he get the college disburse the whole loan amount in one term as he will be graduating early? How does he go about this? </p>
<p>Thank you.</p>
<p>For the Direct Loans, no, he cannot. The entire amount can be disbursed in the second term, but only half in the first. I do not know about the Perkins loan, and he or you should call the financial aid office at the school and ask about it Do let us know My inclination is that it has to be split as well, but I am not sure. </p>
<p>Actually, if he is an undergraduate who is graduating at the end of his first semester of the award year, the school is supposed to prorate his loan based on enrollment. For students taking more than what the school considers full time for financial aid purposes (usually 12 hours per semester, which is 24 credits per financial aid award year), this can mean getting more than 50% in the term. This is how it works: Annual eligibility * (credits enrolled in semester /number of credits for full time for academic year). For example, a student graduating at the end of fall term who was awarded $5500 subsidized loan for the year and taking 16 credits at a school that defines full time for financial aid purposes as 24 credits in an academic year is eligible for a fall loan of $5500 * (16/24) = $3,630. Students who are taking less than 12 credits in their final semester would actually be eligible for less than 50% of their loans in their final semester. Schools are supposed to monitor for students who have applied for graduation at the end of the first semester of the academic year (undergrads only - doesn’t apply for grad students) & reduce loans if necessary (they don’t have to offer more if the student is eligible for more, but the student would get it if he asked for it). </p>
<p>No. Your son can ONLY receive the portion of the loans allocated for this one term…if semesters, then half.</p>
<p>No … read above. If he is taking more than 12 credits, he can get more than half (not the whole amount, but more than half). Little known fact. ;)</p>
<p>Kelsmom…I meant half the amount for the YEAR…not the semester. </p>
<p>He can’t get $5500 for the one fall semester. Only up to half that amount. </p>
<p>No, he can get more than half the $5500 in his final semester IF he has more than 12 credits (assuming his school defines full time as 12 credits). He could get the full $5500 if he took 24 credits in that semester!</p>
<p>^^^</p>
<p>what if he took 18 credits?</p>
<p>If the school’s financial aid full-time credit minimum is 12, and the student took 18 - and he has been approved to graduate at the end of fall term - he is eligible for (18/24)*5500 = $4125. </p>
<p>Yikes! 24 credits? My DD took 20 credits a number of terms, and she said it was NUTS.</p>
<p>But wow…good for this OP to know…if he takes 24 credits, he can get the $5500.</p>
<p>Now…all he needs to find out is if his school charges for credits above a certain number. Many schools do. In fact DDs school charged for over 18 credits…but not if they included orchestra and instrument lessons…which they wanted the students to do.</p>
<p>If the college charges extra for over 18 credits…if this student has to pay for the additional 6 credits…it might be a wash financially!</p>