Financial Aid and withdrawing from a school

[st85]

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If you have already filled out all the financial aid stuff and signed a bunch of promissary notes at a school, then get into another school and withdraw from that school, do you have to do anything to make sure the loans arent taken out? Or does that automatically happen when you write the admissions office and tell them you are withdrawing your seat in the class.

 

[Febrifuge]

It would not be a bad idea, and would be a nice gesture, if you also call or write the lender that was going to handle the loans at School A, and tell them you will instead be attending School B. School B can't actually set up your federal loans if there are still active loans in the system from School A, covering the same period of time.

School A should have a bunch of steps they take when you let them know you won't be attending, and this should be one of them. However for your own peace of mind it could be handy to go over the situation with your new school and your lender.

If it's the same student loan lender for both schools, you're in great shape. It should be fairly easy for them to make the adjustment.

 

[Csv321]

I would go and make sure your loans for the first school are cancelled. I had taken out a loan for the college I thought I was going to attend and then changed my mind. I wrote a letter to admissions telling them I was withdrawing and thought everything would be taken care of since I was no longer on their roster. I got my credit report a year later and it still showed an outstanding loan that was currently collecting interest. So I would make sure for your own peace of mind......