federal student loans

[futureFNP2015]

I am looking for some help in regards to student loans. I have just started an online program for RN to BSN. The program runs from April 2012 to November 2013. I am eligible for $12,500 for student loans. My concern is that the tuition for the remainder of 2012 is less than $12,500. If I take the balance to use for other school related uses like child care & transportation, how do I know I will receive another $12,500 for Jan to Nov 2013? I have done my FAFSA for 2011-2012 and 2012-2013. Should I take the balance and put it in a savings account just in case? I'm afraid if I go ahead and use that money towards other expenses that I'll then find out that I'm not getting any other funds for 2013. Any information is appreciated! Thanks.

[KelRN215, BSN, RN]

Any loans I had in school, whether federal or private, the loan was sent directly from the bank to the school. Most lenders will not allow you to borrow more than the cost of the program. So, just because you qualify for $12,500 doesn't mean that's what you get. Per my FAFSA, I qualified for infinitely more money than I was ever awarded from the federal government.

[TheCommuter, BSN, RN]

When I received federal student loans, the funds were disbursed directly to the school and the money never touched my hands. When I received private student loans through Sallie Mae, the loan company also sent the checks directly to the school that I had been attending.

[sunnyd_83]

The money goes to the school and if there is any left over they will refund it to you in the form of a "refund check." Your school should give you a financial aid award letter telling you how much you will receive in student loans, not just how much you are eligible for. They usually give you part of the award one semester and the other half the second semester. If you haven't used your total annual loan limit at that point, the rest can be awarded for Summer School. You have a max loan amount for the school year (2012-2013 Fall-Summer) If 12,500 is your total for the year, they will prob break it up and disperse some each semester. I would check with the Fin aid dept. at your institution. They should be able to tell you how much you will get each semester. Once again, if there is any money left over after tuition and fees are paid, they will refund the difference to you.