When I started college I had loan eligibility but decided to wait until my bill was final and my funds were low. A day or two before financial aid was disbursed I applied for tribal funds and then went to apply for a loan. I was then told I had no loan eligibility until my tribe got back to them about their funds. They said my tribal funds would offset my eligibility. I also work at the school doing work study but those funds just go against my account still in the red. My problem is can they do this? Their starving me out of the dorms for my own good is what I’m hearing. My tribe hasn’t gotten back to them and I need money.
Yes, it is possible. The maximum amount a student can get for any year is established by the school’s official Cost of Attendance as reported to the federal government. Once you hit that amount, you are no longer eligible for federal aid, including Direct unsubsidized loans and Parent loans (PLUS). Also, you cannot get a penny of federal funds, including unsubsidized loans unless you are down for paying your FAFSA EFC for the year. That EFC is the very minimum you have to pay before getting any federal money. If you are already close to or at EFC being paid, any excess money could even mean having to return federal monies already given even.
But that is just one thing that comes right to mind. You need to understand your particular situation completely, so I suggest that you talk to your financial aid officer and find out exactly what the issue is.
The problem with a work study award is that the amount you accepted for the year is put towards your whole year allocation, even as you have not earned it yet.
If the issue is as I have described, not only can the school do this, they must do it under federal rules. A student cannot get federal funds once over COA, nor if EFC is not yet met, another possibiity.
Can you contact the tribe and see if there’s a hold up for some reason?