Confused about my Stafford loan

[Koda33]

Hi Everyone!

I'm going through a very confusing situation that just doesn't make sense to me. In late June of last year, I decided to finally get on the ball and pursue a degree (been in the tech field for 20+ years and am ready for a change). I did my research, and found a school (brick and mortar with a good online program) and started towards a B.S. in Accounting. So far, so good...maintaining a 3.8 GPA (hard to do with 12+ hour workdays).

 

When I applied to the school, I spoke with the FA advisor, who gave me the requisite info. Sent me the link to FAFSA, etc. Within a week, I got an award letter from the school that I qualified for $7,500 in Stafford loans. Signed my MPN, and was on my way with school. When the paperwork was completed, the FA advisor sent me a breakdown of cost. Basically, it showed that $1,875 would be applied to module 6, 1, 2 and 3. Module 3 started on January 7th (am in it now). Based on the document she sent me, it showed that I had a small out of pocket cost for those previous modules, then beginning next module (4 and then 5) I would be paying "full amount" (or so it appeared).

 

Well, I applied to my credit union for a supplemental loan, which they approved. The stipulation is that I have to provide them bills, and the checks get sent to the school directly. I contacted the accounts/aid office to request a bill for the next module...the one I thought I'd be paying entirely out of pocket. The FA advisor sent me an award letter yesterday, and asked me to sign and return it. The award letter shows $7,500..and shows the period of March (next module) through July.

 

I'm completely confused, and the FA advisor doesn't seem to understand my question. When I was approved for $,7500 in Stafford loans back in late June of last year, is that $7,500 disbursed twice? She just called me, and I just didn't understand her answer. She told me the letter she sent me was for the January disbursement...then in July I would be getting the 2008/2009 disbursement. In other words, and this is what I asked her, I would in fact have funds for the entire year (when I thought I was going to incur out of pocket at least part of it). I guess I'm trying to make heads or tails of it. Granted, it would be great if that were the case, but on the other hand, I don't want a suprise down the road if it turns out she made a mistake.

 

If anyone could shed light on this, I would really appreciate it.

 

Thanks in advance!

[GrandWorks]

Do you go to a school that uses several terms instead of semesters? Is that what you mean by module.

 

Usually a school lists the total amount, which is split evenly between semesters, trimesters or whatever other term the school uses.

 

Hope that helps.

[Koda33]

Do you go to a school that uses several terms instead of semesters? Is that what you mean by module.

 

Usually a school lists the total amount, which is split evenly between semesters, trimesters or whatever other term the school uses.

 

Hope that helps.

 

Thanks for the info. Yes, it's broken down a little differently as there are 6 modules a year (each module is 8 weeks in length).

 

I think I sort of figured out what is going on. I called FAFSA who looked up my account. They told me that I was able to reapply January 1st and that would be funds for March through the fall. She told me that in the fall, everything resets and I get funds again for the new year. So, based on that, it looks like I'm ok for now. I know that I'm covered for at least the next 2 modules, then I will see after that.

 

Thanks again!