Is accepting aid/merit scholarship offer binding?

[voxveritatisetlucis]

does anybody know what a school means when it offers you merit scholarship/other aid, but says “accept your aid offer” in the portal. This seems like more of a binding commitment, but I haven’t received financial info from the other school and am still waiting on some decisions. On the other hand, I don’t want to wait to accept it and then lose it. What happens if I accept it then another school accepts me? Would I be unable to go to the school where I was accepted most recently?

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[voxveritatisetlucis]

1) accepting the aid offer is not, repeat, not committing to matriculate
2) no school is required to provide financial aid information prior to committing to matriculate

I know they aren’t required but isn’t it always good to wait and see both if both provide financial packages before choosing if possible?

 

[KnightDoc]

I know they aren’t required but isn’t it always good to wait and see both if both provide financial packages before choosing if possible?

Yes. @gonnif keeps saying this, ad nauseum, every cycle, because technically it is true. In my observation, however, all ethical and even most only marginally ethical schools will liberally grant extensions to deadlines to allow you to gather the information necessary to make an informed financial decision.

To quote from the AAMC Admission Officer Application and Acceptance Protocols: "Recognize and respect the challenges of applicants with multiple acceptance offers, applicants who have not yet received an acceptance offer, and applicants who have not yet been informed about financial aid opportunities at schools to which they have been accepted." (Emphasis added.)

The answer to your original question is, yes, while the language certainly can lead you to believe that "accepting" something is binding, nothing at an AMCAS school is binding until you select CTE and formally tell the school you will be enrolling. Accepting your aid offer, or accepting an acceptance when it is first issued, is just telling them you are still interested.

By the way, congratulations on the scholarship. You certainly have come a long way since packing it in and deciding you couldn't be a doctor! 🙂

 

[voxveritatisetlucis]

What about the master promissory note for FAFSA? Is that binding or can I sign it for multiple schools (or transfer it if I decide to switch schools? Or is okay to not sign the note until I select plan to enroll.

Thanks!!!

 

[KnightDoc]

What about the master promissory note for FAFSA? Is that binding or can I sign it for multiple schools (or transfer it if I decide to switch schools? Or is okay to not sign the note until I select plan to enroll.

Thanks!!!

First off, it's not FAFSA. That's just the federal aid application. You'll be signing the note directly with the Department of Education, who is the lender, not the school, even though you will be receiving any money you are borrowing above tuition and fees as a refund from the school.

My understanding is that you CANNOT sign for multiple schools, since you can only attend one school at a time and that school needs to certify your attendance for you to receive funding, which goes through the school.

As far as I know, nothing is "binding" insofar as you would owe nothing until funds are released. Once funds are released you ARE responsible for repaying them, just like with any other lender. If money is released to one school and you decided to switch to another, you'd have to figure out how to get that money refunded back to the Department of Education, less whatever they would keep as their cancellation fee. You would presumably then owe accrued interest and the origination fee that was deducted from the loan disbursement, and then reapply for new money at the new school. I don't think there is a mechanism to transfer money, once disbursed, from one school to another, but I could be wrong about that.

For this reason, and because I'm not sure whether or not you'd be responsible for multiple origination fees if you had to apply for multiple loans, I'd hold off on signing the note until you are sure you won't be switching schools (i.e., you have selected CTE at your final destination, or at least have a pretty clear indication that your WL call won't be coming).

TBH, you're most likely worrying about nothing, because whatever moves you are going to make are going to happen before you will be FORCED to sign the note. Beyond the deposits, which will be non-refundable after 4/30, no money should be due until shortly before matriculation, which should give you adequate time to make whatever moves you think you might be making. In case you were unaware, the vast majority of WL action happens in May, and orientation doesn't begin until July/August.

 

[voxveritatisetlucis]

First off, it's not FAFSA. That's just the federal aid application. You'll be signing the note directly with the Department of Education, who is the lender, not the school, even though you will be receiving any money you are borrowing above tuition and fees as a refund from the school.

My understanding is that you CANNOT sign for multiple schools, since you can only attend one school at a time and that school needs to certify your attendance for you to receive funding, which goes through the school.

As far as I know, nothing is "binding" insofar as you would owe nothing until funds are released. Once funds are released you ARE responsible for repaying them, just like with any other lender. If money is released to one school and you decided to switch to another, you'd have to figure out how to get that money refunded back to the Department of Education, less whatever they would keep as their cancellation fee. You would presumably then owe accrued interest and the origination fee that was deducted from the loan disbursement, and then reapply for new money at the new school. I don't think there is a mechanism to transfer money, once disbursed, from one school to another, but I could be wrong about that.

For this reason, and because I'm not sure whether or not you'd be responsible for multiple origination fees if you had to apply for multiple loans, I'd hold off on signing the note until you are sure you won't be switching schools (i.e., you have selected CTE at your final destination, or at least have a pretty clear indication that your WL call won't be coming).

TBH, you're most likely worrying about nothing, because whatever moves you are going to make are going to happen before you will be FORCED to sign the note. Beyond the deposits, which will be non-refundable after 4/30, no money should be due until shortly before matriculation, which should give you adequate time to make whatever moves you think you might be making. In case you were unaware, the vast majority of WL action happens in May, and orientation doesn't begin until July/August.

Thank you! Very helpful!

 

[UsernameChecksOut]

That money is not going to be released to any school before you matriculate. The Dept of Education has no reason to part with their funds early and/or before the school verifies your enrollment, and the school will be in direct contact with the Dept of Education for that purpose.

Congratulations on the scholarship offer!

 

[KnightDoc]

Thank you! Very helpful!

I thought you were talking about taking margin loans against your investment portfolio? It looks like we are all going to be in for quite a shock to the system when we see the new federal loan interest rates, given what has been happening in the credit market and is sure to continue between now and June, when rates will be set to go into effect on 7/1 for 2022-23.

 

[voxveritatisetlucis]

I thought you were talking about taking margin loans against your investment portfolio? It looks like we are all going to be in for quite a shock to the system when we see the new federal loan interest rates, given what has been happening in the credit market and is sure to continue between now and June, when rates will be set to go into effect on 7/1 for 2022-23.

If I do, it will probably only be for living expenses to keep the debt to equity ratio as low as possible. If you get too high a ratio and then the holdings decrease below a certain threshold in value, the brokerage I used automatically liquidates holdings. Even then, it will depend on a variety of things. Ideally, I will take out as the expenses come due if need be. Don’t want to take out a huge lump sum margin loan

 

[voxveritatisetlucis]

That money is not going to be released to any school before you matriculate. The Dept of Education has no reason to part with their funds early and/or before the school verifies your enrollment, and the school will be in direct contact with the Dept of Education for that purpose.

Congratulations on the scholarship offer!

Thank you!!!