What happens if you don't use your FAFSA money?

If there is money left over, the school will pay it to you. In some cases, with your permission, the school may give the leftover money to your child. If you take out a loan as a student or parent, your school (or your child's school) will notify you in writing each time they give you any part of your loan money.

Do you have to return unused FAFSA money?

You can cancel all of or a portion of a loan disbursement within 120 days of the date your school disbursed (paid out) your loan money. If you choose to cancel the amount disbursed, you will return the money you received, and you will not be charged interest or fees. Was this page helpful? Tell us why not.

Do I have to spend my FAFSA money?

According to the Department of Education's Office of Federal Student Aid, "All loan funds must be used for your education expenses." Education expenses include tuition and fees; books and supplies; and general living costs.

What happens if I don't use my financial aid?

If there is money left over, the school will pay it to you. In some cases, with your permission, the school may give the leftover money to your child. If you take out a loan as a student or parent, your school (or your child's school) will notify you in writing each time they give you any part of your loan money.

Can you buy a car with FAFSA money?

No, you cannot use student loans to buy a car! In fact, in many cases, it is written into your contracts that you are legally bound to, that you cannot purchase a car or any other asset with your student loan. The sole purpose of a student loan is to use it to help cover the costs of studying.

3 big FAFSA mistakes that will cost you a lot of money!

How do I return unused financial aid?

It is possible to cancel a portion of your federal student loans, which effectively allows you to return the money you don't need. To do so, though, you'll need to contact your school's financial aid office within 14 days of receiving the notice that your loans are being disbursed.

How do I cancel my FAFSA?

Call the school that you have selected on your FAFSA application. Ask the call operator to direct your call to the "Financial Aid" office. Ask to speak with a "Financial Aid Officer" at the school listed on your FAFSA application. Tell the officer that you would like to cancel your financial aid.

How do I decline a FAFSA loan?

To decline an award, check the "Decline" checkbox next to the award name. Keep in mind that if you choose to decline an award, you are declining it for the whole year.

What happens if I don't use all of my student loan?

But what happens to unused student loan money that's left over? It usually gets sent to you, at which point you can decide whether to keep it for living expenses or return it to your lender.

Can you change FAFSA after submitting?

You can edit your FAFSA even after you submit it. This means you can correct mistakes, update information, and add or delete schools. It's important that your FAFSA is accurate and up to date, so we're here to walk you through any edits you need to make.

Can I create a new FAFSA if I already have one?

If you submitted a FAFSA last year, you may be able to start a Renewal FAFSA using your FSA ID. You must update any pre-filled information that has changed since last year and provide the financial information requested. Only you, the student, can start a Renewal FAFSA using your FSA ID.

How do I cancel my Pell Grant?

Can financial aid 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.

Do I have to pay Pell Grant back if I withdraw?

Federal law requires recipients to pay back overpayments of Pell Grant funds. A student who withdraws from school within the first 60 percent of an academic term is no longer eligible for a Pell Grant and must return a portion of his unearned aid funds to the federal government.

Can you return a Pell Grant?

To decline or return Pell Grant funds, please contact the Financial Aid Office and request the Pell Decline or Return Form. Signature of this form indicates that you wish to decline or return the grant and that you understand these funds may not be available once the award year is over.

Will I lose my FAFSA if I fail a class?

If you can maintain your school's minimum GPA for receiving financial aid, a failed class won't end your aid. It will only hurt if you can't rebound after a big enough drop.

Is FAFSA a grant or a loan?

The FAFSA is not a loan. It is an application form. However, you can use the FAFSA to apply for financial aid and federal student loans. The FAFSA, or Free Application for Federal Student Aid, is used to apply for several types of financial aid, including grants, student employment and federal student loans.

What happens to my Pell Grant if I take a semester off?

Taking a semester off does not affect your Pell Grants for the rest of the school year. Like always, your Pell Grant award next semester will only be based on how many credits you are taking that semester.

How long is FAFSA good for?

To be eligible for federal financial aid and even certain state and school aid, you need to file the FAFSA each academic year. The award or amount of money you're offered for each FAFSA application lasts for one academic year, beginning in the fall. You'll need to reapply for FAFSA each year you plan to be in school.

Who should not fill out FAFSA?

If a family makes $350,000 a year and has over $1 million in reportable assets, and has only one child in a public university the family may not need to fill out the FAFSA. No sense in spending the time and effort filing the paperwork just to find you are ineligible.

Should I fill out the FAFSA if my parents make a lot of money?

MYTH 1: My parents make too much money, so I won't qualify for any aid. FACT: The reality is there's no income cut-off to qualify for federal student aid. It doesn't matter if you have a low or high income; most people qualify for some type of financial aid, including low-interest federal student loans.

Can I delete my FAFSA and start over?

Once you submit your FAFSA application, you can't go back and delete the information submitted or change the Social Security number associated with the application.

Why is my EFC so high?

If your family has accumulated wealth and investments, your EFC can be high, even if your family's income is low. This includes checking and savings accounts, bonds and stocks, and even the student's 529 College Savings Plan. Some kinds of financial assets do not count toward your EFC.

How long does it take for FAFSA to process?

If you submitted your Free Application for Federal Student Aid (FAFSA®) form online, then the U.S. Department of Education (ED) will process your application within three to five days. If you submitted a paper FAFSA® form, your application will be processed within seven to ten days.

How much money does FAFSA give?

The amount of money you can get by filing the Free Application for Federal Student Aid (FAFSA) depends on your financial need. But, the maximum amount can be in the low tens of thousands of dollars per year. Average amounts are about $9,000, with less than half of that in the form of grants.