What happens if I have leftover financial aid?

If you have financial aid remaining after the college applies it to your tuition and other required expenses, it will disburse the remainder to you. Schools must issue the remaining amount to you within 14 days unless you authorize your school to keep the money to pay for future charges.

What if I have leftover money from FAFSA?

After all the bills at the school are paid, however, there might be money left over. In that case, your school's financial aid office or bursar's office will refund the money to you in a separate disbursement. The office may send you a check, or the money might be deposited in your checking account.

How long does it take to get leftover financial aid money?

If a student's parents hold a loan with overage, they're more likely to receive the leftover money. Also, disbursements may be held for 30 days after the first day of enrollment, especially if the student is a freshman and first-time borrower, according to the Federal Student Aid office.

What happens to unused financial aid loans?

Your school will apply those funds to tuition and fees first. If there are funds left over, it will send you a check, which you can use for education-related expenses like housing, groceries, bills and more. In some cases, students end up with more money than they need.

What can I do with leftover grant money?

Once the fall and spring semesters are complete, you might still have money left over from your Pell Grant that didn't get applied toward your college expenses. If that's the case, your school may issue you a refund of the remaining balance.

Financial Aid FAQ:​ What Happens if I Drop a Course?

Can you keep leftover Pell Grant money?

You can get over $6,000 in financial aid to pay for your education per academic year, and Pell Grants don't have to be repaid. If you're eligible for a larger Pell Grant than you need for school, you could even receive a Pell Grant refund and get the unused money to use for other expenses.

Can I spend my FAFSA money on anything?

Anything pertaining to your schooling is an appropriate use of financial aid. School supplies, a computer, travel costs to and from campus, books, tuition, childcare expenses (if applicable), and tutoring are all reasonable purchases for a serious student.

Can I return unused financial aid?

*You can return loan funds to your servicer more than 120 days after disbursement, but the return will be processed as a pre-payment on the loan, and you'll be charged interest and a loan fee on the amount you return.

Can FAFSA take money back?

College students can have their federal financial aid taken away if they've previously accepted more money in financial aid than the government committed to.

Can you return student loan money you don't use?

If you have leftover loan funds several months after first receiving them, and have already covered all of your school-related expenses, you can still return the unused student loan money after 120 days.

Do student loans go directly to your bank account?

When you apply for a student loan, the lender will let you know if there are student loans that go directly to you. If the funds are paid to you directly, you will need to provide your bank details. If the funds are paid to the school, they will require your school's account details.

Can you use FAFSA money to buy a car?

“This allowance may also include costs for operating and maintaining a vehicle that is used to transport the student to and from school, but not for the purchase of a vehicle.” That means unfortunately you can't use student loans to buy a car., no matter what type of student loan you have.

Can I buy a laptop with FAFSA money?

Does the FAFSA include laptops for college? If you receive federal student aid through the FAFSA, you can use those funds to buy a laptop. FAFSA aid can also be used toward room and board, transportation costs, and textbooks. Most student-related expenses can be paid for with federal funds.

Do I have to pay back FAFSA if I fail?

If you fail a class, do you have to pay back your FAFSA financial aid? No, failing a class doesn't mean that you'll be forced to pay back any money that you received for that class. It could mean that you'll lose out on future money because you didn't perform well, though.

Is FAFSA a loan or free money?

It is not the financial aid itself. However, the FAFSA enables the student to qualify for many types of financial aid from several sources. Some of this money is free money, some must be earned through work, and some must be repaid. There are three main types of financial aid.

Do I need to pay back financial aid?

Once you graduate, drop below half-time enrollment, or leave school, your federal student loan goes into repayment. However, if you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, you have a six-month grace period before you are required to start making regular payments.

Can you use FAFSA to pay bills?

Federal student financial aid (subsidized, unsubsidized, PLUS, Pell Grant, etc.) is eligible to pay tuition, housing, and meal plan charges. Students have the ability to authorize the use of federal funds to pay charges other than tuition, housing, and meal plan when signing the Billing and Payment Student Agreement.

Can you buy clothes with FAFSA money?

When you take out federal student loans, the government expects you to use the proceeds on certain types of expenses. Tuition, fees, supplies and textbooks are among the expenses approved by the federal government, while things like vacations, clothing and some other personal expenses are prohibited.

What is the maximum fafsa will give?

Federal Pell Grant

The maximum Pell Grant for the 2023-24 award year is $7,395. The maximum Pell Grant per term is $3,698 for Fall/$3697 for Spring. The Expected Family Contribution (EFC) range for 2023-24 Pell Grant eligibility is 0 – 6,656.

Can you spend Pell Grant money on other things besides tuition?

A Pell Grant is a form of need-based federal student aid available to college students in the United States. Pell Grants can cover all or a portion of qualifying academic expenses, like tuition costs, books, supplies and even personal academic expenses like room and board.

Can you buy a phone with FAFSA money?

You can only spend your federal financial aid money on purchases that are necessary for you to continue your studies, i.e. expenses that are directly related to your education, such as tuition and fees, transportation, books, room and board, supplies and related expenses like child care.

Do I have to accept FAFSA money?

If your living expenses are not going to be as high as the amount estimated by your school, you have the right to turn down the loan or to request a lower loan amount. Your school will tell you how to do this in the aid offer.

Can you use FAFSA money for gas?

No, you can't use student loan funds to make car loan payments. Transportation expenses to get to and from school are an approved expense, but you can't use the loan money to buy a car. You can, however, use student loan funds to pay for gas and vehicle maintenance.

What happens if you don't use all of your Pell Grant?

If there are additional funds left over, a student will be issued a credit. The form of this credit varies depending on the institution. The credit can be used to pay for books, up to a certain amount, and other educational expenses.