SeniorPUL

Hello,

So I got a job this summer and I was planning on paying off my unsubsidized loan from my first year so that it doesn't continue to gain interest throughout my remaining three years. However, I remembered that loan balance is included on the FAFSA somewhere.
My question is whether paying off a small direct unsubsidized loan would make me ineligible to receive the same loan for future years? I do not want FA to think I do not need the loan, but if I have the money now to pay off one of them I'd like to get it out of the way.

Thanks!

swimcatsmom

The loan balance is not included anywhere on FAFSA (unless it was a new thing for 2012-2013 - our final FAFSA was 2011).

Paying off the loan will not affect your eligibility to receive it in the future.

SeniorPUL

It's on the last page of the FAFSA, under "Your Financial Aid History". It lists each type of loan you have, and how much you have left to pay.

swimcatsmom

On the FAFSA form? I looked at the print out of my last one (last year) and there was nothing on it about loan balances. Is it a new thing?

edit: oh wait, do you mean the student aid report? Yes, that does show the loan balance. I thought you meant the actual FAFSA form that we complete shows loans.

Regardless, the school will not care that you pay off some of your loans.