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Paying off Stafford unsubsidized loan

acooperfanacooperfan Registered User Posts: 34 Junior Member
edited September 2012 in Financial Aid & Scholarships
If my son (actually I) pays off his previous year's Stafford unsubsidized loan, does his university notice it?
Post edited by acooperfan on

Replies to: Paying off Stafford unsubsidized loan

  • Classof2015Classof2015 Registered User Posts: 4,326 Senior Member
    I don't know how they'd know -- we were thinking of doing the same thing for our daughter. The university would have already received the funds; you have the debt; if the debt is paid off, they still have the funds.
  • Erin's DadErin's Dad Super Moderator Posts: 35,283 Super Moderator
    The school won't know at all. They already have their money. The loan is a contract between your son and the funds provider. The school is no longer involved.
  • 4kidsdad4kidsdad Registered User Posts: 4,602 Senior Member
    I think the school would know. They may need your son's information to calculate his future aid eligibility.

    See
    National Student Loan Data System for Students

    The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid.

    Grant information is reported to NSLDS daily. New loans are reported to NSLDS within 30 days of receipt of funds. If you have been making payments on a loan, the outstanding principal balance listed by NSLDS may be as much as 120 days old.

    The only people who can access NSLDS are those individuals that need the information to calculate your future aid eligibility, or to resolve questions about your loans or grants on a need-to-know basis.
  • sylvan8798sylvan8798 Registered User Posts: 6,423 Senior Member
    Why would it matter?
  • momofthreeboysmomofthreeboys Registered User Posts: 16,197 Senior Member
    ^^I agree I don't think it matters one way or the other unless the student somehow has a pile of money in a savings account, pays off the Stafford and minimizes the student income reportable before filling out the next year's FAFSA.
  • kelsmomkelsmom Registered User Posts: 14,871 Senior Member
    The university does not care one way or the other. They will "know" in that the next time you do FAFSA, your loan total will be lower. However, if they actually look for that, they are phenomenally overstaffed! It's just not something a school cares about.
  • aunt beaaunt bea Registered User Posts: 9,023 Senior Member
    We paid off our daughter's loan from last year. We received a thank you note for paying off from the govt. Nothing from the university.
  • 4kidsdad4kidsdad Registered User Posts: 4,602 Senior Member
    aunt bea wrote:
    We received a thank you note for paying off from the govt.
    Was that an email or actual mail?
    My son did not received anything since he paid off his loans 4 months ago.
  • kelsmomkelsmom Registered User Posts: 14,871 Senior Member
    Each loan servicer handles things differently. Your son's may not send any acknowledgments. You might have him check NSLDS just to make sure everything shows paid in full, though.
  • OhioMom3000OhioMom3000 Registered User Posts: 2,063 Senior Member
    Thank you 4kidsdad's son!

    PS No one sent me one either over 20 years ago.
  • aunt beaaunt bea Registered User Posts: 9,023 Senior Member
    4 kids Dad: we got both an email and snail mail, but in completely different months.
  • sblake7sblake7 Registered User Posts: 1,691 Senior Member
    We recently helped our daughter pay off her unsubsidized loans; she's keeping her subsidized loans for now. It didn't involve the school at all-- we were able to arrange an electronic transfer from checking account to her loan processor (Great Lakes).

    The only bump in the process was this. Because she had recently received a subsidized loan disbursement (in the past 45 days, as I recall), their system automatically uses the payment (intended to pay off her unsub loans) to first pay off the recent subsidized loan. The staff said this was just the way the system worked, and she had to send them an email requesting that the funds be reapplied to pay off the unsub loans. That's what happened, eventually.
  • 4kidsdad4kidsdad Registered User Posts: 4,602 Senior Member
    she had to send them an email requesting that the funds be reapplied to pay off the unsub loans.
    Thanks, good to know that.
This discussion has been closed.