Sometimes money may be left over from loans, scholarships and grants to help you pay for other expenses than tuition and fees. Whether any money will be left over and how much will depend on your personal circumstances, including the cost of your courses and amount of your aid.
Considerations
Money left over from your financial aid package usually does not return to the scholarship or grant organization. Neither does the bank take back the money it loaned you. Understand, however, that some financial aid may stipulate that the money not be returned to you if you do not use it. This may be the case with need-based financial aid. Talk to your school's financial aid office to find out the details of your specific financial aid package.
Notification
Your school will notify you sometime toward the beginning or middle of the semester in most cases that you have funds left over from your student financial aid. The school will need time to process your tuition and fees payments before it can calculate how much, if any, money is to be returned to you.
How it is Refunded
The money is usually given to you in the form of a check or deposited directly into your bank account. Which method is used to return your money to you will depend on specific arrangements you have made with your school. Checks are made out in your name, and an electronic transfer of funds will go to your personal bank account to be used as you see fit.
Use It
If you have money left over, consider paying down any student loans you have with it. Your loans, unless they are subsidized federal Stafford loans, will continue to accrue interest while you are in school. The leftover funds from your financial aid can significantly reduce the amount of money you have to pay back after your graduate. You can also use the money to pay for supplies like a computer or to purchase textbooks.
Other Options
Buy used textbooks, if at all possible, to save even more of that extra financial aid money. You might also pay your rent out a couple of months to relieve the worries of finding a job immediately. You might ask if your school would consider holding the money in your account to pay for future semesters. However you decide to spend your money, use it for purposes as closely related to your education as possible, and keep records of how you spend every dime in case you need to account for it sometime in the future.
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