How long can my college hold funds legally

[Ems237]

California

I have been attending a private college since march. Applied for a private student loan and the funds of 22,000 were dispersed to the school may 18th. There is a credit balance of 11,00 that i need to pay for expenses. The school told me i would receive the money by the end of June. Here it is the end of july and no money yet. I have called the school numerous times and i cant get a straight answer. How long can they hold the money? I’m a full time student 4.0 gpa and have no holds or sanctions at all. Please help!!!

 

[quincy]

What does the financial aid office say about why the funds are not being disbursed?

 

[Ems237]

First it was the accountant was on vacation for 3 weeks and they are backed up. After one conversation i asked if i could complain to anyone to speed up the process she said it would probably slow things down if i did.

 

[Ems237]

The website states that disbursement usually occurs within 30 days of the start of class

 

[quincy]

Your solution is probably not going to be a legal one. You will need to find answers at the financial aid office.

 

[Ems237]

That’s not encouraging at all. Ive been searching high and low for information on how long a school can hold funds from a student but cant find anything.

 

[quincy]

From where or from what are you getting the private loan?

 

[cbg]

That’s not encouraging at all. Ive been searching high and low for information on how long a school can hold funds from a student but cant find anything.

There's always the possibility that the reason you cannot find a law saying how long a school may legally hold finds is that no such law exists.

 

[Ems237]

I got the loan from Sallie Mae. When i called then they confirmed the loan amount, date payed to the school, and said that i have to contact the same people at the school that have been giving me the run around.

 

[Ems237]

There's always the possibility that the reason you cannot find a law saying how long a school may legally hold finds is that no such law exists.

So a school can just keep the money forever? There has to be rules and regulations somewhere about this right?

 

[cbg]

That's very far from being a legal requirement.

 

[quincy]

Have you reread your loan agreement with Sallie Mae and the documents from your school that relate to loan disbursements? I am sure you have, by the way, but just covering all bases.

Some financial aid offices operate more efficiently and effectively than others. You might find that your only recourse is to keep pestering the student loan servicer at your school.

 

[Ems237]

That's very far from being a legal requirement.

Well I would really like to know if there are or not. Feel free to send me a link to the credible resource that states if there are or are not rules, regs or laws regarding this subject. I dont just believe things just because someone says so. I reached out for advice on the topic i posted about, not to debate my knowledge of legal type terminology.

 

[Ems237]

Have you reread your loan agreement with Sallie Mae and the documents from your school that relate to loan disbursements? I am sure you have, by the way, but just covering all bases.

Some financial aid offices operate more efficiently and effectively than others. You might find that your only recourse is to keep pestering the student loan servicer at your school.

Yes i will continue to do this. Just stressed out about my bills.

 

[quincy]

Yes i will continue to do this. Just stressed out about my bills.

I know this is not a link to information on your school but perhaps in reading through how U of M handles disbursement of financial aid you can discover something that might apply to you and your missing funds (like the leftover money being sent to your parents if they were co-borrowers):

https://finaid.umich.edu/disbursement-of-aid/

Good luck.