Sunday, July 21, 2013

Do You Get Loan Money Back When You're Dismissed From College?

As a means of paying for college, many students choose to take out loans. These loans can come from a number of sources but are very often provided directly by the U.S. government, which offers student loans at a low rate of interest. If a student has used these loans to pay his tuition but is then dismissed from school, he will usually not be paid back this money unless his tuition is refunded.

Tuition

    When a student attends an institution of higher learning, he is responsible for paying the tuition money to the school. This money can be collected from a number of different sources, but the student uses it to pay the total tuition cost to the school. So, it is the school, then, that decides how much of this money will be returned if you are dismissed.

Loans

    When a student takes out a loan for school, he uses the loan amount to cover the tuition of the school that he is attending. If the student pulls out of school voluntarily or is dismissed in such a way that he is entitled to a refund, the money will not be paid back directly to the lender, but to the student. He can use this money to service the loan, but the lender will not directly grant him a refund.

Dismissal

    With many schools, if a student is dismissed involuntarily -- meaning that he is required to leave school because of an infraction of the school's rules -- then the student will not receive any refund of his tuition. In such a case, the student will still be responsible for paying back the student loans, even if he does not receive the education which he used to them to pay for.

Considerations

    Each school has its own policy regarding the return of money for a student who is dismissed from school. In order to determine for certain whether the money will be returned to you, you will need to consult the school to which you paid tuition. In addition, if you feel you are entitled a refund but the school has not provided you with one, you should consult a lawyer.

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