Photo credit by 401(K) 2013
The transfer of a student loan between schools is not possible. In case that you need to transfer to another school, you need to re-apply for a federal monetary funding by submitting a Free Application for Federal Student Aid form with the name of the school you will be transferring to. If you want to pay off the loan you received from the first school while still studying and you have applied for another one from your new school, submit a form for deferment. When a student stops attending school, the loan must be repaid after the six months of grace period.
All education institutions have school codes regarding the application and acquiring a federal student loan. It is important to know that there may be certain differences. When you want to continue using a student loan in your new school, be informed well about the school’s code before applying for a financial aid. It is necessary to meet both schools’, the school where you transferred from and to, requirements.
A student transferring to another school must know the following.
1. Inform your current monetary aid administrator. If circumstances push you to transfer in the middle of a school year, cancel all remaining disbursement loans. It is highly suggested that you personally see the academic advisor when trying to obtain a transcript that you need to forward to the school you are transferring to.
2. Get in touch with the monetary aid staff at your new school. Prepare documents that will serve as proof of the scholarships or educational awards in case they need a supporting document while deciding whether or not you can continue to receive monetary assistance. Inquire about the financial aid programs that the school. Get the deferment form signed by your new school’s registrar’s office before sending it back to your credit holder. Also, learn the application process in requesting for a federal student loan in your new school.
3. Before you transfer, inform your current lender about your intention of transferring to another school. As if there is a way to avoid the grace period, or status of repayment. Study hard, even if you have transferred to a new school. This way, your lender will continue to assist you with your monetary problems. Inform your loan service provider with the following.
- Date of your transfer
- Name and address of the new school
- Expected date of graduation
- Show your lender a deferment form as a verification of your enrollment