<p>I have signed up to receive financial aid. My sister in law though wants to put my tuition balance on her credit card to earn points, then when I receive my financial aid, I pay her back. My question is though, if she pays my tuition account off now, before I get my financial aid, will my school disburse my financial aid or not because I have a zero balance now??</p>
<p>You have signed up to receive financial aid? What does that mean? </p>
<p>Well…first of all…most colleges that take credit cards charge a fee to do so. We found that any points we earned were negated by that fee…in other words…we had to pay as much or more in fees as points earned. So…check that first.</p>
<p>Are you in college now? Do you have a current financial aid award? If so, your next bill should reflect your aid if it is school aid, and you would only be billed for the balance. That is all you would need to pay.</p>
<p>It makes NO sense for your sister in law to pay a full cost bill if you are to be credited with financial aid. Let the credit happen first.</p>
<p>Contact your school to ask…but if you do choose to pay in advance of the bill…and there are no fees incolved using a credit card…make sure she checks!!..you will have an excess in your bursar’s account. Most schools will refund that amount, but they have a schedule for doing do…so ask your school. Where my kids went, those refunds actually were sent more than halfway though the semester. In one case, not until the end of the semester. YMMV depending on your school policy.</p>
<p>And lastly, this could very much end up looking like money paid on your behalf…and that would need to be reported on next year’s FAFSA form.</p>
<p>To be honest, I think you are better off waiting for your bill with your aid credited…then doing this Credit card arrangement with your SIL…for the balance…except it doesn’t sound like she wants to PAY your bill…just wants points.</p>
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I agree. However, some schools won’t charge any fees for cc payments. Best to call the school.</p>
<p>It could complicate documenting that your sister-in-law didn’t pay the expenses which would be reportable on future finaid forms as thumper said and it could complicate documenting the expenses you and/or your family paid for the education tax credits. I wouldn’t let a non-immediate family member do this just for points.</p>
<p>At my kids’ school, anytime you charge to a credit card, once any aid comes in then THE MONEY gets credited to the credit card. I don’t know how points would work in this case. </p>
<p>So mom2…in your case, ypunare saying the school sends money to YOUR credit card once aid is disbursed? </p>
<p>I would NOT do this unless I was using my own CC. I would not do it with a SIL.</p>
<p>Have to ask…how did this even come up for discussion between the OP and the SIL?</p>
<p>Thank you everyone for your input. Yes, I do have a financial award, it will be dispersed Jan, 11th. The SIL just wanted to pay it for me early, so she can get points on her credit card so she can get a free flight for herself and go see her husband who will be leaving town soon for business. Then I pay her back with my financial aid, so yes she does not want to pay for my school, she just wants the points on her credit card to get the plane ticket. About the credit card fee, there is none with my school. Also, I am not worried about how this will affect next years financial aid as I am on my last year of college, and so will not be applying for FASFA anymore.
My main worry was if I pay off the college tuition early, would I still get my financial aid even with the tuition balanced as zero.</p>
<p>We ran into this my S first semester of college. The financial aid was dispersed in full (credited to our bank account) even though we had already paid his tuition in full. </p>
<p>Iron will…I would suggest you discuss this with the financial aid folks at your college. We can all guess at how this might or might not work…but your fiancial aid office, and the bursar’s office at YOUR school will know the process.</p>
<p>You need to be aware, as others have pointed out, that even if your loan/grant is disbursed on Jan 11, the refund date might be much later. As an example, my daughter started school Sept 4 and tuition/r&b was due on Sept 19, which was also the drop/add date. Over payments were refunded by whatever method you requested (a check sent to you, ACH into an account you named, or on a University card which is like getting a prepaid credit card), but not for a week or more later.</p>
<p>It could work, but your SIL it taking a risk. Also, how much are you talking about? I paid for both my kids on a credit card and did get the points, but even 15000 points is only enough for a one-way ticket (sometimes). I wasn’t waiting for any disbursements, so when the bill came I just moved money into my checking account and paid, with no risk of interest accruing.</p>
<p>I think the risk is too great for your SIL to take. If you don’t get your check in time, she’ll have to pay interest that will probably be more than the value of the points.</p>
<p>It is true that some colleges don’t refund excess money until the add/drio date is over. She could end up paying interest on it. Sounds like trouble.</p>
<p>I must add, paid tuition in August, reimbursed in December. </p>
<p>This arrangement does not sound good. I think you need to ask your college.</p>
<p>Yes…at my kid’s college…bill was paid in August, and reimbursement came after the term ended.</p>