I have been going to a school for about a year and I am just not happy with it. I have 6000.00 left in student loans and have arranged a refund for the remainder of my courses. I have my loan through Sallie Mae, but want the refund directly disbursed to me.

My school has no problem with this but states that Sallie Mae told them to under no circumstances do this, they are not allowed. They are willing to but my lender is not letting them. I want the funds so that I can take classes at my discretion and also to take care of some other debt. How do I go about getting those loans disbursed directly to me, I am at my wits end and I have no idea what to do!!

I'm not sure I understand, so my questions may be a little off - help me out here:

Are your loans federal or private?

You are leaving school in the middle of a session and want a refund of this session's tuition, right? I think the school has to send it back to the lender - I don't think they're allowed to give it to you. Student loans are specific to the school and degree program (you can't get'em unless you are a degree-seeking student), so they can't just give you the money and then you take classes somewhere else.

You could presumably get student loans for whatever other school or program you are interested in.

It almost sounds like you want the student loan money from next session given to you - they also can't do that. That money isn't disbursed to the school until the session (semester, quarter, whatever) starts and the school certifies that you are indeed enrolled.

Does that answer your question, or have I misunderstood?

I wouldn't waste any more time stressing about finding a way around this. There's simply no way you're going to get these loan funds reimbursed to you to use. Student loans are not to pay "other debt." I also seriously doubt a school would be willing to disperse these funds to you, as it's simply not allowed.

Let the school return what funds they calculate to the lender. You can always apply again for whatever courses in the future you would take.

Its actually a technical school and they have recieved the full 10,000 dollars. Its not actually semesters/sessions, it was a program where you recieve like 9 IT related certifications. I got 3 of them completed and they have been difficult with letting me finish.

They have all of the money they were supposed to get. I believe it was a private loan, I filed for it through the company Sallie Mae. Like I said my school has no problem just giving me my money but Sallie Mae doesnt want that to happen. I dont understand that, because they get their interest money if the school just gives me the money BUT if i pay that lump sum back their interest decreases significantly.

Sallie mae does private and gov't backed loans, so you may want to check.

However, either way, the student loan can only be used for specific education-related expenses. If you withdraw from your program, the school is obligated to return unused loan money to the lender. Any school that doesn't is complicit in fraud and treading on very thin ice.

You'll have to find another way to pay the other bills.

As others have told you, whether this is a private loan or a federally backed loan, SM is not going to allow you to use it for "classes at your discretion and other debt." It was a loan given to you through the school specifically for the purpose of obtaining education at that institution. The school doesn't make the rules about disbursement; on a private loan, those rules are made by the lender.

Thats what I was figuring, but I was hoping there was someone way or loop hole around it.

Possibly they will give me a personal loan in that same amount?

I don't know that SM does personal loans, but you can check it out.

Blah my credit sucks anyways - I was hoping to try to fix it with this money and just take the tests for the other certs with that money.

Uhhh, I think this is exactly why Sallie Mae won't let you get your hands on the money directly. It's an education loan, not a personal loan.

Hum... now there's an interesting take on credit repair

Serioiusly, student loans are not necessarily based on credit score and obviously easier to obtain for educational purposes for this reason. Why not use the funds to complete your education, which will hopefully lead to a higher paying position that will enable you to pay down your debt and resolve the credit issues? It won't happen over night, but persistence and patience will pay off eventually.

Good luck.