Edited, thanks to @thumper: If the loan amount is listed as $5,500 it’s for a year - which leads me to believe that the grant is an annual amount, as well. She is currently classified by the school as a freshman (not all credits evaluated yet?), so she can only borrow half the $5,500 until she becomes a sophomore or a junior (based on the school’s determination). As soon as she reaches junior level, she can request the additional $2,000 that she is able to borrow annually as a junior. If she ends up only being classified as a sophomore, she’ll be eligible for half of $6,500 while classified that way. It’s not about being in her third year of school, but rather it’s determined on credits. Even if it’s second semester, she can still receive the entire $1,000 or $2,000 at that time as long as her aid for second semester doesn’t exceed her need for second semester. She just needs to talk to the financial aid office once she is granted junior standing.
She will need to reach out to the financial aid office to increase her loan as her standing changes. They most likely won’t proactively tell her.
When my D transferred, the process of evaluating and posting credits took time. She wasn’t borrowing loans, so that wasn’t an issue for her … but she had to be a sophomore to get a parking pass & they were gone by the time she got her credits posted. At least with loans, it can be increased as credits are posted.