Janice Lozano
Transferring colleges can be a complicated process, especially when it comes to managing your student loans and financial aid. Student loans do not automatically transfer between schools, so you will need to resubmit your FAFSA form and review your financial aid package to understand how your loans and aid will be affected. It is important to stay in touch with both your old and new schools to ensure a smooth transition and avoid any unexpected costs or changes to your loan status.
| Characteristics | Values |
|---|---|
| Student loans transfer between colleges | No |
| What to do before transferring colleges | Keep your current school updated on your intention to transfer, get your transcripts and other information sent to the new school, participate in exit counselling for your loans |
| What to do after transferring colleges | Keep your new school in the loop, review your financial aid package, determine your best approach for paying the bill |
| What to do if your financial aid doesn't cover all your new college costs | Apply for private scholarships, specifically those for transfer students |
| What to do if you transfer in the middle of a school year | Update your FAFSA form for that current school year to include your new school's information |
| What to do if you transfer at the beginning of a semester | Double-check your paperwork to ensure that the aid moves, contact your lender to find out what steps you need to take to get your disbursement sent to a different school |
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What You'll Learn
Federal student loans and transferring
Transferring colleges can be a complicated process, especially when it comes to managing your student loans and financial aid. Here are some key things to keep in mind regarding federal student loans and transferring:
Federal Student Loans
Firstly, understand that federal student loans are not tied to a specific college or university. Unlike private student loans, federal loans are borrowed directly from the government, and you are obligated to repay them regardless of whether you transfer schools or complete your degree.
Transferring Schools
When transferring colleges, it is essential to ensure that your new school participates in federal student aid programs, as not all colleges do. Ask the school if they participate in "Title IV" federal student aid programs under the Higher Education Act of 1965. If your new school does not participate, you may not be eligible for federal grants or student loans at that institution.
FAFSA and Financial Aid
You will need to complete and submit the Free Application for Federal Student Aid (FAFSA) to determine your financial aid package. If you are already in the process of transferring, you don't need to start a new FAFSA form. Instead, you can access your existing FAFSA and update it with your new school choice. Your financial aid package may differ from your previous school, so review the offer carefully.
Loan Servicers
Be prepared for the possibility that your federal student loans may be transferred to a new loan servicer when you switch colleges. This means that a different company will handle the servicing of your loans on behalf of the government. You should receive a notification with a transfer date, and you can then log in to the new servicer's website to verify your information.
Exit Counseling and Enrollment Status
Before officially leaving your old school, participate in exit counselling for your loans. This informational session will guide you on managing your student loans after transferring. Additionally, ensure that your old and new schools report your changing enrollment status to your loan lenders to avoid any impact on the repayment status of your loans.
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Private student loans and transferring
Transferring colleges can be a complicated process, especially when it comes to managing your student loans and financial aid. Here are some key things to keep in mind regarding private student loans and transferring:
Private Student Loans:
Private student loans are issued by private lenders, and the terms and conditions can vary. Private lenders often require borrowers to start making payments while still in school, and there may be variable interest rates, which can increase over time. It is important to carefully review the loan agreement and understand the potential financial risks. Private student loans may also have limited options for deferment or forbearance compared to federal loans.
Transferring Private Student Loans:
It is generally not possible to transfer private student loans from one person to another. Each borrower is responsible for repaying their own loans. However, there are a few options for managing private student loans when transferring colleges:
- Refinancing: You can refinance private student loans by taking out a new loan from a different lender to pay off the existing loan. This may allow you to secure better interest rates or repayment terms. However, it is important to consider the potential loss of federal benefits if you refinance federal loans with a private lender.
- Direct Consolidation Loan: You can consolidate multiple federal student loans, including private student loans, into one new loan with a fixed interest rate and a single monthly payment. This option allows you to retain access to federal benefits such as income-driven repayment plans, deferment, and loan forgiveness.
- Credit Card Transfer: In some cases, you may be able to use a credit card to pay off your private student loan debt and transfer the balance to the credit card account. However, this approach should only be considered if you can qualify for a 0% introductory interest rate and have a plan to pay off the balance within that timeframe.
Impact on Financial Aid:
When transferring colleges, it is important to understand how your financial aid package may change. The cost of attendance, available scholarships, and the transfer of college credits can all impact your financial aid and loan eligibility. Keep in touch with both your old and new schools to ensure a smooth transition and to avoid any unexpected charges or changes to your loan status.
Private Scholarships:
In addition to managing your private student loans, transferring colleges may also affect your eligibility for private scholarships. There are numerous scholarships available specifically for transfer students, and it is worth researching and applying for these to help finance your education.
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Scholarships for transfer students
Transferring colleges can be a complicated process, especially when it comes to managing your student loans and financial aid. It is important to note that your financial aid does not automatically transfer with you, and you may be at risk of losing some awards. However, there are scholarships specifically for transfer students that can help you secure funding for your new school. Here are some things to keep in mind and steps to take when searching for scholarships as a transfer student:
- Check with your new school: Inquire about transfer scholarships and financial aid packages offered by your new school. Many universities offer scholarships specifically for transfer students, and your admission transfer counselor can guide you through the process.
- Review the requirements: Scholarships for transfer students often have specific requirements, such as a minimum GPA of 3.0 and a certain number of transferable credits from an accredited institution. Make sure you meet the eligibility criteria before applying.
- Explore external scholarships: In addition to university-specific scholarships, there are numerous external scholarships available for transfer students. These include scholarships offered by organizations like the Jack Kent Cooke Foundation, the Tau Sigma Honor Society, and private scholarships.
- Complete the FAFSA: The Free Application for Federal Student Aid (FAFSA) is crucial for determining your eligibility for financial aid and scholarships. Make sure your new school has a copy of your FAFSA results, and update it with your new school's information if transferring mid-year.
- Understand the costs: Every school calculates financial aid packages differently, so review the financial aid package offered by your new school and determine your financial responsibilities. This will help you assess your need for scholarships and other financial aid.
- Stay organized: Keep in touch with both your old and new schools to ensure a smooth transition. Participate in exit counseling for your loans at your previous school, and stay on top of your loan status to avoid accidentally entering repayment.
- Lebanon Valley College offers transfer scholarships ranging from $16,000 to $24,000 per year, based on academic achievements.
- The University of Tampa offers scholarships for transfer students with GPAs of 3.0 or higher.
- Colorado Christian University provides scholarships and grants for transfer students, with awards of up to $5,000 per year.
- The Jack Kent Cooke Foundation Undergraduate Transfer Scholarship is a highly selective scholarship for community college students seeking to complete their bachelor's degrees at four-year institutions.
- The Tau Sigma Honor Society offers scholarships exclusively for transfer students, with awards ranging from $500 to $5,000.
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How transferring affects financial aid
Transferring colleges can affect your financial aid in several ways. Firstly, your financial aid package, including scholarships, grants, and loans, does not automatically transfer with you to your new college. The financial aid you receive is typically based on the Cost of Attendance (COA) at your specific school, so the amount you were awarded at your current school may differ significantly at a new one. Therefore, it is important to review your financial aid options at your prospective school and understand how transferring will impact your aid package.
Secondly, transferring colleges can cause a delay in your graduation timeline if your credits from your previous college do not transfer or are not accepted by your new college. This can affect how far your financial aid goes in paying for your entire degree. For example, there are lifetime limits on Pell Grants and direct loans. So, if you need to attend college for an additional year or two to complete your degree due to lost credits, you may run out of eligibility for certain grants or loans.
Thirdly, the timing of your transfer can impact your financial aid. If you transfer mid-year, you may miss out on state grants or other forms of aid that are distributed on a first-come, first-served basis. On the other hand, transferring after completing a full academic year may increase your chances of retaining certain types of aid and loan eligibility as you advance in grade level.
Finally, it is important to ensure that your new college participates in federal student aid programs, as not all colleges do. If your new college does not participate in these programs, you may not be eligible for federal grants or student loans to attend. Therefore, it is crucial to confirm with your prospective college whether they participate in "Title IV" federal student aid programs before finalising your transfer.
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Managing student loans when transferring
Transferring colleges can be a complicated process, especially when managing student loans and financial aid. Here are some key considerations for managing student loans when transferring:
Keep Your Old School in the Loop:
Before officially transferring, maintain communication with your current school. Ensure you are not liable for any outstanding charges, and participate in exit counselling for your loans. This will help you understand how to manage your student loans after transferring or dropping below half-time enrolment.
Understand Federal Student Aid Programs:
Verify if your new school participates in federal student aid programs, such as "Title IV" federal student aid, as not all colleges do. If they don't, you won't be eligible for federal grants or student loans at that institution.
Complete the FAFSA:
Submit the Free Application for Federal Student Aid (FAFSA) with your new school's information. Even if you've already submitted the FAFSA for the upcoming year, you can make changes to add your new school. This will impact your financial aid award, which is determined separately by each school you apply to.
Stay in Touch with Both Schools:
Keep your new school informed about your transfer plans. Follow up on any additional documentation they may require to streamline the process. Understand their financial aid package and any differences in cost compared to your previous school.
Review Your Financial Aid Award:
Once you receive your new award letter, carefully review it to understand the financial aid being offered by your new school. This may include student loans, federal and state grants, and institutional scholarships. Be aware that your total costs may change due to variations in the financial award and the cost of attendance at your new school.
Explore Additional Financing Options:
If your new financial aid package doesn't cover all your college costs, consider other options like private scholarships, which are often available specifically for transfer students. Remember that the application and funding processes can vary for each award.
Notify Your Lenders:
Inform your student loan lenders about your transfer plans to avoid impacting the repayment status of your loans. If transferring mid-year, notify them to cancel any pending funds. If you will be a full-time or half-time student at your new school, lenders may allow you to defer your student loans during your studies.
Understand the Impact on Federal Loans:
If you've accepted federal student loans, you are responsible for repaying them, even if you transfer colleges or don't complete your degree. Transferring within six months of leaving your previous school can help place your student loans in in-school deferment.
Be Mindful of Credit Transfers:
Ensure that your credits from your previous school will transfer to your new school. Transferring credits may impact the duration of your studies and, consequently, the extent to which your financial aid covers your degree.
Plan for Potential Cost Differences:
The cost of attendance at your new school may be significantly different from your current school. This can affect the amount you are eligible to borrow and the overall financial aid package you receive. Speak with a school counsellor to understand how these changes might impact your finances.
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Frequently asked questions
Before transferring colleges, you need to keep your current school updated on your intention to transfer. You should also ensure that you have been accepted by your new college.
Your federal financial aid doesn't automatically transfer with you. You will need to resubmit your FAFSA form, and your new college will determine your financial aid award.
Student loans don't transfer between schools. You will need to contact your lender to find out what steps you need to take to get your disbursement sent to a different school.
