You’ve borrowed more than you need for college. What do you do?
Many borrowers don’t realize they can return unused federal-loan dollars. Or why they would want to.
“I wish it was a common practice for students to return excess funds,” says Sara Cyrus, financial-aid administrator in the office of financial aid at the University of Michigan-Flint. “It helps borrowers out in the long run.”
Here are some answers to questions borrowers may have about unused loan money.
Why would I end up with unnecessary loan money?
This can happen for a few reasons. Sometimes, students check all the applicable boxes for loans on their financial-aid offer, without realizing they can choose just some of the money offered. Students also sometimes accept a federal loan expecting to need it, but later receive a scholarship or obtain a summer job.
