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

kelsmom
Wed, 20 Apr 2011 23:13:10 +0000

Schools are required to split loans into two equal parts across the two semesters. Unless the student specifies that he only wants the amount attributed to the second term, the school will split even the amount borrowed during the second term across both terms. If he does ask for it to only be attributed to the latter term, the school has to document that he is eligible to receive that amount based on the single term cost of attendance/aid.