<p>Im about to start college and the VA (veterans Affairs, CH31 VOC REHAB) is going to pay 100% of the tuition and cost. Here is my problem. The college went ahead and did the paperwork for all my grants and student loans for the first term. So I have to wait until 60% of my first term is over before they will reimburse the money to me so I can send it back. They havent made it clear on what part comes back to me. I signed the paper saying any surplus in funds will be forwarded to me. </p>
<p>Does this mean the student loan money that they took out that will be refunded will be sent to me?</p>
<p>What about the grants?</p>
<p>If both grant and student loan money is sent to me how do I go about sending it back to the original loaner without getting interest over the three months the college is holding onto it?</p>
<p>Many schools have you sign a promissory note. You don’t sign it, you don’t get the loans. That may solve the loan problem. As for the grant??? Keep it in safe account and repay it when it’s reimbursed to you. There will be no interest on a grant.</p>
<p>It is not too late to have the loans cancelled. Since the VA is paying your tuition and books, no sense accruing unnecessary interest. You cannot deny the grants, however. The grant money will be sent to you and you can use it for other educational expenses.</p>
<p>Ok. I talked to the school and they said they won’t cancell the loans until the VA starts sending them money. Which will start a little late in the first quarter. They also said that they won’t release the money until 60% of the quarter is over. Are they allowed to hold onto the “surplus” of funds until 60% of the quarter is over? I was told under the rules of Title IV they have 14 days to clear up any surplus funds.</p>