How Do I Get Student Loans in Aid Package after Rejecting?

Financial aid packages come in many different shapes and sizes. Some include grants and work study. Others contain work study and student loans. A few even come with all three. So, what do you do once you’ve received your financial aid package? You may think that what you received is what you get. However, you can actually pick and choose which components of the package you would like to utilize to pay for college. Ultimately, it’s up to you whether you accept the financial aid package as is – or would like to make changes. Unfortunately, mistakes happen when students are selecting which portions of the financial aid package they would like to keep and which they would rather forego. When you make that kind of mistake, is there any way to come back from it?

Making Changes to Your Financial Aid Package

Colleges understand that accidents happen. Often, they will be able to add financial aid components back into your aid package, even if you rejected them at one point. However, there does become a point at which they may not be able to amend your financial aid package, but that will differ by each school. In addition to adding financial aid components back to your package, you’ll also be able to add more aid, if you qualify, due to changes in a financial situation.

How to Re-Accept Financial Aid

If there is a portion of your financial aid package that you accidentally rejected, you must contact your college’s financial aid office as soon as possible to explain the situation. Generally, they will be able to add financial aid components back to your package. There may be times, however, when they cannot amend your package. For example, if you initially rejected federal loans as part of your financial aid, but later want to add them back, the loans may no longer be available to you. In that case, you’ll have to use private student loans. Ideally, you want to have your federal financial aid, including loans, sorted out by June 30. Typically, with private student loans, you can begin borrowing at any point in time. It’s worth nothing that rejecting student loans will not result in receiving more grant aid or work study opportunities. Loans are included in a financial aid package after all grant aid and work study has been distributed. Choosing to forego student loans will only leave you with a gap between what you can afford to pay and what the college costs, which may require you to reassess what should you should attend based on affordability.

Changes in Financial Situation

In addition to rejecting certain parts of your financial aid package, you can also appeal the offer as a whole. If your family experienced financial hardship or a change in circumstances that cannot be reflected on the FAFSA, you should report this to your school. It could drastically affect your financial aid offer – for the better. Job loss, furlough, medical expenses, and caring for extended family, are circumstances that will make students eligible for more financial aid.

Is there a Deadline for Changing Your Financial Aid Package?

The federal deadline for completing the FAFSA is June 30; however, many states and colleges require students to submit the form well before then. Check with your state as well as your top choice colleges for their deadlines. While the federal deadline is June 30, students can make amendments to their package until mid-September for federal components only, according to Saving for College. States and colleges may not be so lenient with amendments. That’s why it’s best to talk with your school’s financial aid office as soon as possible regarding financial aid changes. If your school states that it’s too late to make changes to your package, whether that’s rejecting components or adding them back, you may need to wait until the following year to start the process again. In the meantime, you may need to utilize private student loans or outside scholarships to enable you to afford your education. You can, however, appeal your financial aid package at any time during the school year. This only applies to students who have an extreme change in their financial circumstances, like a parent’s death, serious illness, or job loss.

Differences in Student Loans

The student that posed the question above is wise in accepting an unsubsidized student loan offer back into their package. Federal student loans, both subsidized and unsubsidized, have the lowest interest rates, which means that students will owe less over time on these loans than private student loans.

Subsidized Loans

The U.S. Department of Education provides two types of federal loans for students. The first are subsidized loans, which go to financially needy students and have the interest paid by the government while students are enrolled in school. The only way to qualify for these loans is to fill out the FAFSA. As far as student loans go, these are the best. They typically have lower interest rates, and as mentioned above, the government pays the interest while you’re in school. Ultimately, these will cost you less money over time.

Unsubsidized Loans

Unsubsidized student loans are available to anyone. You just need to fill out the FAFSA to be eligible. These student loans accrue interest while students are in college, meaning your loan amount will be increasing while you’re a student. Like subsidized loans, there is a six-month grace period after college during which you do not have to make payments. This grace period enables students to find a job and begin earning a salary. If, however, you do find a great-paying job quickly after graduation, you can begin making payments early.

Private Student Loans

For students that max out their subsidized and unsubsidized student loan options, private loans are also an option. These help borrowers bridge the gap between what college costs, their financial aid package, and the amount that is still needed to pay tuition, fees, and room and board. You can find a private student loan by asking your college for their preferred lender list. Or, you can find a student loan through Fastweb’s Student Loan Center. Before you take out private student loans, be sure you’ve exhausted your federal loan options.

Appealing Your Financial Aid Package

When you receive your financial aid package, you have every right to negotiate your aid package or ask for an appeal. Students who have had a change in financial circumstances that was not reflected on the FAFSA will likely be successful in receiving more aid. The school may return the request with more grant aid or a work study job that they reserve for financially needy students. You can also use the financial aid package you received from a comparable school to negotiate a better deal. This applies to merit scholarships as well. Ultimately, these colleges want you to attend their school, so they may use scholarships and financial aid to woo you. To begin the financial aid appeal process, you need to gather all relevant documentation. These documents will prove your current financial circumstances, like unemployment papers or hospital bills depending on your family’s situation, or they may be financial aid award letters from other institutions. Once you have these, call your school’s financial aid office to begin negotiating. Are you familiar with the saying, “You’ll catch more flies with honey than with vinegar?” This applies to your conversation with financial aid professionals. You’ll get a lot farther in your financial aid negotiations if you treat them as partners instead of adversaries. Their job is to walk students and their families through the paying for college process, making them a resource and advocate. Treat them with kindness and patience and be willing to compromise in some cases.