Took out a subsidized loan...then school changes it to unsubsidized?! How?

mom6350
Wed, 20 Apr 2011 22:48:33 +0000

What really irked me happened to my son in his freshman year. He was offered the unsub stafford of 5500 but earned enough in the summer to cover the first half of the amount on his first semester bill, so in August, he paid the 2750 in cash and didn’t take out the loan.

Come second semester, he needed to borrow 1250. The school split the amount in half and then back charged a 625 loan to his first semester, and the loan started accruing interest as of September 1 even though he didn’t apply for it until January. Is this legal?