I recently co-signed a loan with my sister for a Sallie Mae Signature Loan. She get fin aid & pell but still has an out of pocket cost of around $1K per sem. She applied for $5K and it was approved. Now the question is
1. whether or not they will send the money to her or the school? It is school certified - so I told her that I didn't know - but I would ask.
2. Also, what are the chances of the school approving the dibursement for the full amount of her loan ($5K) even though she has aid already?
3. Do they generally reduce the amount of the private aid to the amount that she would have to pay out of pocket?
Thanks
Justme2day
Full Version: Question about Sallie Mae Signature Loan
Your sister should know the terms of the loan and if it is disbursed through the school or not.
If it goes through the school and is complete, they release the unusued portion to her. However, if the loan is still in process, the school can adjust the COA to reflect additional funds received. If that happens, she will have the school adjust her COA to receive the full amount. She can always add a PC and other school related expenses not included, such as travel to campus, to receive a higher estimation and the full amount.
If it goes through the school and is complete, they release the unusued portion to her. However, if the loan is still in process, the school can adjust the COA to reflect additional funds received. If that happens, she will have the school adjust her COA to receive the full amount. She can always add a PC and other school related expenses not included, such as travel to campus, to receive a higher estimation and the full amount.
QUOTE(justme2day @ Nov 13 2007, 11:22 AM) 
I recently co-signed a loan with my sister for a Sallie Mae Signature Loan. She get fin aid & pell but still has an out of pocket cost of around $1K per sem. She applied for $5K and it was approved. Now the question is
1. whether or not they will send the money to her or the school? It is school certified - so I told her that I didn't know - but I would ask.
School-certified private loans disburse the funds to the school just like federal loans.
2. Also, what are the chances of the school approving the dibursement for the full amount of her loan ($5K) even though she has aid already?
The school will certify she is eligible for cost-of-attendance (which can include tuition fees books and modest living expenses comparable to the cost of room and board if it's a regular university..."working adult" programs generally exclude living expenses from cost of attendance) MINUS all financial aid she already has.
3. Do they generally reduce the amount of the private aid to the amount that she would have to pay out of pocket?
See above.
Thanks
Justme2day
1. whether or not they will send the money to her or the school? It is school certified - so I told her that I didn't know - but I would ask.
School-certified private loans disburse the funds to the school just like federal loans.
2. Also, what are the chances of the school approving the dibursement for the full amount of her loan ($5K) even though she has aid already?
The school will certify she is eligible for cost-of-attendance (which can include tuition fees books and modest living expenses comparable to the cost of room and board if it's a regular university..."working adult" programs generally exclude living expenses from cost of attendance) MINUS all financial aid she already has.
3. Do they generally reduce the amount of the private aid to the amount that she would have to pay out of pocket?
See above.
Thanks
Justme2day
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