<p>It is July 2011 and my daughter is enrolled to start her first year of college fall 2011. After going through the whole process, and seeing exactly what it is going to cost now that the scholarships and financial aid are all complete, she is having a sudden change of heart. She wants to transfer (if that is what you call it when you havent even started) from the private college to a state college. She already signed the Stafford Sub and Unsub MPNs. What will happen to those loan funds. Can the loan be canceled or applied elsewhere?</p>