In the past, it was my understanding that first time borrowers of federal sub & unsub loans had to wait 30 days for the credit balance to be refunded to them from their school. Is this the same with the new Federal Direct Lending program?
I changed schools. I've had Federal loans (sub & unsub) for 3 years now - always going through Sallie Mae to get them. When I asked the FA office at my new school if I would be considered a 1st time borrower, I was told yes because I switched lenders from Sallie Mae to Direct Lending. Therefore I would have to wait the 30 days before getting my refund.
It is my understanding that Sallie Mae can no longer offer federal loans & that all federal loans must go through Direct Lending. If this is true, then won't every student with federal loans have technically "switched" lenders? Does that mean every student with federal loans will have to wait that 30 day period for their refund this semester?
I guess I'm confused as to if the 30 day wait is a federal regulation or a school rule. I always thought it was mandated by federal regulations. When I read my MPN (yeah, I actually read it
it states that the school has 14 days to refund any credit balance created by my loans.
I'm totally confused. I have some school supplies that HAVE to be purchased before class & I'm trying to figure out how to budget for them. Not knowing when my loan $$$ will arrive is making this difficult.
Ideas? Thoughts? Suggestions?