Paying back financial aid?!?


Question:
Ok three years ago when i dropped out of college department of education said i had to pay back a percentage of the financial aid. I was wondering would that affect me approving for financial aid in the future? I need help getting into school and financial aid i believe is my only option.

Answer:
The school did a "return to title iv refund" (r2t4). When you withdraw from college, a percentage of your aid may be returned to the feds. When that happens, you will owe the college/university. You may also have an overpayment on record. You can find out if you have an overpayment by going to www.nslds.ed.gov. You will need your PIN. You may also be able to contact the federal processor. The number should be on the Contact Us button.

If you don't have an overpayment, you will be eligible for financial aid. If you do have an overpayment, you will not be eligible for financial aid until you repay the amount to the feds. They will tell you how to do that. If you owe the school but don't owe an overpayment, you will still be eligible for aid. However, the school will withold your transcripts until you pay what it is owed.

Reminder: you will go into repayment on your student loans once you've been out of school 6 months.
Once you start going to school again, your student loans and such should go into a holding pattern (waiting for you to be out of school again.)
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