leftover money from Student loans,?

Question by He’s the King to my Queen: leftover money from Student loans,?
If my tuition is 14,000 and i take out a loan for 18,000.. will the extra 4,000 come to me, or would it go back to Sallie mae as ‘leftover’ and if it were to come back to me, how long would it take for it to come back to me, and would it be a check from the school, or Sallie mae (loan company)

Best answer:

Answer by CoachT
It comes to you about 3 weeks after school starts (a little longer for first semester freshmen) most often from the school. We call it “financial aid Christmas”.

Different schools refund different ways. Many write you a check while some have special debit card accounts.

Just remember, that’s part of your loan balance and you have to pay it back one day.

Know better? Leave your own answer in the comments!

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One thought on “leftover money from Student loans,?”

  1. Sallie Mae has a variety of loan types, and the various loans have different features.

    For example, the “Tuition Answer Loan” is disbursed directly to the student, and not the university.

    Whether your loan comes to you or the school depends on which type of Sallie Mae loan you have selected.

    I do hope that you have taken the time to consider the long-term cost of “overborrowing”. You should never borrow more than you absolutely need.

    Let’s take a quick look:

    Suppose you borrow just $ 14,000 and pay it back over 10 years at an interest rate that averages 8.9%. Your monthly payment will be $ 176.59, and your total repayment will be $ 21,190.66.

    Now let’s assume (from your question) that you borrow $ 18,000 and pay that back over 10 years at the same interest rate – your monthly payment in this case will be $ 227.04, and your total repayment will be $ 27,245.46.

    That extra $ 4000 cost you $ 6,054.80, by the time you paid it back.

    Anyway – depending on your loan, the money will either come directly to you from Sallie Mae, or the loan will be disbursed to your school, which will issue a check to you once your student account has been paid in full.

    I hope that helped.

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