<p>What happens to the financial aid situation if a student stops attending college for one semester because a transfer is in process and could not be facilitated in time for spring semester? The current school clearly does not get the federal aid that had been allocated for the student, however what are the ramifications in terms of securing aid for fall 2011? </p>
<p>Also, am I correct that the student's fall semester loans will need to begin to be paid back immediately and if so, does this process stop once the student resumes full-time study? Any guidance on this appreciated.</p>
<p>There should be no ramifications as far as federal aid is concerned.</p>
<p>Federal student loans have a grace period before they go into repayment. Stafford loans have a 6 month grace period after the student graduates or drops below 1/2 time. Perkins loans have a 9 month grace period. If the loan does go into repayment (which a Stafford will if it is fall before he is a student again) then they can be put back into deferment once the student starts school again. But I believe the grace period for those particular loans will have been used up so next time the student drops below half time (or graduates) there is no grace period and they are in repayment immediately. Though any new loans should still have the grace period. </p>
<p>The student will probably have to do exit counseling for his loans at the current school.</p>
<p>First of all, fall 2011 is a new year, so an 11-12 FAFSA must be filed in order to be considered for fall 2011 aid. What happens in 10-11 has no impact on 11-12.</p>
<p>Loans must be repaid 6 months after the last date of attendance, so the loans would go into repayment in this scenario. Once the student is back in school, the loans are eligible for in-school deferment. Some schools automatically report the student’s attendance to the national clearinghouse & deferment is reported this way … other schools do not, so students need to check to see if they must have a deferment form completed by their school (once they return to school).</p>
<p>(cross posted with swimcatsmom)</p>
<p>Thank you – and kelsmom – for this input. Completely forgot about the fact that the new FAFSA is like a “new beginning” in terms of financial aid for 2011-2012.</p>
<p>When the student transfers, does the fact that the student attended college for one semester and then stopped have any bearing on how a school (in terms of school scholarships or aid – not federal) evaluates the student? For some reason, I recall (and have searched the archives) that there are some real risks if a student stops attending for a semester. Am I missing things? Thanks.</p>
<p>Being a transfer will certainly impact scholarships. Most schools offer much more generous scholarships to freshmen than they do to transfers. I know at my daughter’s college the top 3 freshman scholarships are full tuition waivers plus varying amounts of cash. The highest transfer scholarship is a partial tuition waiver that nowhere near matches the freshman scholarships.</p>
<p>As far as institutional need based aid, eligibility for aid for transfers would probably vary from school to school. </p>
<p>I wouldn’t *think * that missing a semester would make a difference (but that is just my opinion). I know there are some freshman scholarships that require a student to start the fall following HS graduation (the one my daughter has had that requirement). But as you are talking about a transfer those scholarships would probably be unavailable.</p>
<p>I think you really need to check with the potential schools.</p>
<p>Our son finished undergrad in Dec and started grad school the next Sept.
His Staffords from undergrad went into repayment after 6 months, in July-ish.
He had to pay two months on them before he asked for them to go into inschool deferment.</p>
<p>As I recall, it was far from ‘automatic’. It took him several phone calls and emails to get his loans back into deferment.</p>