If I don't accept all loans awarded, can I use the money the next year?

[Redpancreas]

I have received a financial award letter for ~$42,000. My parents will be paying my living costs, I have very partial tuition scholarship and have money from MET (Michigan Education Trust) which is equivalent 24 undergraduate credit hours at the university I am attending medical school at. That being said, I am only looking to take out ~$22,000 from the Direct Unsubsidized Stafford Loan (42k) I have been awarded.


My question is what are the consequences of this? What will happen to the $22,000 I do not accept?

A. Will it roll-over as money I can borrow for the next year so I would have $64,000 assuming I am offered 42K (+22K I didn't use from 1st yr) again the next year in loans that I can borrow?

B. Will it be given to someone else?


My other question is if I only take out 22K in loans this year, will my FinAid office see that as a sign as that's all I need and only award me with 22K for the following year?


Thank you in advance!

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[2010houston]

They won't roll over to next year, but it also won't reduce what you're offered next year. Assuming your financial info and expected contributions are the same on your next year's FAFSA, you will be offered a similar amount as this year and you can again accept or decline.

Depending on your school's fin aid office, if you decline now but decide you need the money in January, I think you might be able to still get it as part of your 2014-2015 disbursement, but that's not a guarantee.

 

[DrMidlife]

If you reject financial aid, it's gone, back into the federal pool. That federal pool is relatively infinite.

If you want more money after first semester, you have to re-apply for it, and negotiate that with the financial aid office. It's a new transaction, not a reacquisition of the money you rejected. You can get paid back for approved expenses (such as medical), but you can't renegotiate the whole year's aid package halfway through.

If you want more money 2nd year, then don't reject aid a year from now. Your med school cost of attendance determines your aid package. It's not use-it-or-lose-it.

Any scholarships or grants you get will be included in your total aid package, in case that didn't happen yet.

I recommend going to, and listening to, the financial aid lectures or counseling during orientation week. You need to be educated. Please take the time.

Best of luck to you.