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Consequence of lining up school loans then not attending?

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Consequence of lining up school loans then not attending? [#permalink] New post 01 Jul 2008, 07:54
Hi,
I've never posted before, but I lurk on these forums quite a bit...
Does anyone know what the financial penalty, if any, of lining up school loans for school x, but then attending school y?
I am riding out a waitlist for another school but will have to respond to my eFAN award soon. I'm not quite sure how the loan process works - would I be able to apply my borrowings for school x towards school y (preferred choice) if I get off the waitlist? Or would I have to go through the whole process again and perhaps eat the 1% origination fee?

thanks!
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Re: Consequence of lining up school loans then not attending? [#permalink] New post 06 Jul 2008, 05:52
Are these federal loans you're talking about? Because if they are, I'm pretty sure they have to be certified by the school before they're disbursed.

So if you're not going to that school, then you'll need to go over the process again with the school that you will eventually attend. Stafford/Perkins loans are need-based, so there's a slight chance no more funds might be available if you apply again for them this late in the year. I'm not sure about what will happen to the origination fee.

Of course if you're only taking private or PLUS loans, then switching schools, IMO, shouldn't make a difference.
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Re: Consequence of lining up school loans then not attending? [#permalink] New post 07 Jul 2008, 05:49
I feel this kind of stuff happens all the time. They can't control when school will give decisions so everyone needs to prepare as if they are going to school. I don't think they'll blackball you or anything the next year. Same with scholarship applications.
Re: Consequence of lining up school loans then not attending?   [#permalink] 07 Jul 2008, 05:49
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Consequence of lining up school loans then not attending?

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