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

faithfirst2226
Wed, 20 Apr 2011 21:25:54 +0000

Our daughter started her freshman year of college last fall and after we got our financial aid, we didn’t qualify for much aid and only a $950/ semester subsidized loan. We thought it would help and since we wouldn’t have to pay interest, she should go ahead and take it out, then pay it off and it could only help build up her credit. However, TODAY, she got a letter from the college stating that the loan has been changed to subsidezed and we will now be charged interest because they have determined that we don’t qualify for the aid, except for $210.00.

I am so confused…how can they change the loan after we have taken it out. We plan to just pay it off, because we are the type that hate paying interest if we don’t have ot, but now I don’t even know where to send the check to and the school is no help, because they just keep saying that we will get a letter telling us who has the loan now and how much interest we will be charged.

Is this common? Anyone been through this or have advice? Luckily it isn’t a bigger amount, but that still really affects our budget.

Thanks in advance for any help…ugh, 3 MORE YEARS!!!