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I got my tuition bill today for fall, and with the loan money figured in for this semester, I have $3,816 left over as credit. My question is, should I tell my guarantor that I don't want this money (the $3,816), or do I need to save that money to use to pay my tuition next summer? If I do, I figure that I will put it in a separate savings account or a short-term cd so I won't touch it expcept for summer tuition.

It all depends on whether you'll elible for a new loans for next summer. This depends on a number of things that are determined by your school and/or attendance. You need to ask your financial aid officer what you can expect as far as loan eligiblity for the year ahead. Depending on when your summer session starts and when you've made satisfactory progress to get to the next year of loans, you may or may not be able to get another loan to pay for summer tuition.

The reason that your loan amounts are higher than your tuition, is because the Cost of Attendance also includes housing, food, utilities, etc. It sounds like you don't need the loan money for these. If you really have extra loan money and can get another loan for summer, it is better to return the money and take out a new loan then. You will save all of the interest that will accrue on the loan between now and then. Return the extra portion to your Guarnator specifying that you want it returned to your UnSubsidized loan and that you do not want your 2nd disbursement of this loan. If you do this within a certain time frame (I think 30 days) they have to refund some of the fees as well.

There is no reason to "hold on" to or take out extra Unsubsidized Loans if you don't need them. Interest is accruing on them and they do have origination and guarantee fees that were already taken from your disbursements. However, if you will need it for other expenses or for future tuition, you are not obligated to return it, and if you did and later discovered you really needed the loan, it would be a real hassle to "re-apply" for it.

Hope this helps.
NellieD
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