Unsubsidized Loans

[joro]

I will have to use a loan for my first semester of school. I will have to tap into unsubsidized loans and I would like to know if I can take decline some of it now and ask for it later? I know interest accumulates each month and I think it would be in my best interest to only take what I need. I also don't want to take more than I actually need. They gave me 3 options: Accept, Decline, Reduce. With those 3 options, can I reduce the reward and ask for the rest later if I need it?

[nescafe]

I could be wrong (e.g. I think you should also direct this question to the Financial Aid Office of the school in question), but I think that if you decline a portion of your aid in the Fall, you cannot go back in the Spring and reclaim it. Accruing interest is not fun, for sure, but your best bet is to take the money, and repay it on the principle if you do not wind up spending it. You can do this at the end of each calender year.

Alternatively, if the interest issue concerns you- you can pay your annual interest off each January, even while you are in school.

So my opinion is to take the money and hold onto it if you think you will need it. You can return it later if not. Think of the interest as your insurance against being broke later.

Edited June 17, 2010 by nescafe

[aginath]

When you accept a financial aid offer, it is for the noted academic year and typically valid for fall and spring (summer is a separate request). You cannot change the amount once you accept it and you cannot dictate how much to take in the fall versus the spring. It is evenly applied to both semesters. Any requests for aid for subsequent years is generally considered independent of previous years in that if you don't accept the full amount this year, you cannot request more than the offered amount the following year.

I'm sure it's clear as mud.

[joro]

I was actually trying to say that if I decline a portion of it now and need more of it during that same semester, can I ask for the other portion? I did shoot off an email to the school, but I'm waiting on a reply.

[nescafe]

I was actually trying to say that if I decline a portion of it now and need more of it during that same semester, can I ask for the other portion? I did shoot off an email to the school, but I'm waiting on a reply.

As far as I know, you cannot do this. If you decline part of your award, that is it. You receive one offer per academic year (unless you borrow for the summer- but that's a whole other ball game). You will be offered the loan again the following Fall, but not before then.

The up-side is that the amount of interest you would accrue during the span on a single semester is so little that, should you decide to return a portion of the award later, it will not hurt too much.

[joro]

If I accept the award and have unused funds left over during my Fall semester, can I just pay the principal amount plus any interest?

[joro]

I just received an email from the school yesterday and you're allowed to ask for the remainder of the loan if you asked for a reduced amount initially.