Do universities get more funding if less students take out federal financial aid loans?

You should make an appointment with a financial aid counselor at the school you plan to attend because you have a number of issues that could affect your eligibility, and without complete information, we can't give you an accurate answer here. But in general.... 1) Why are you no longer eligible for Pell? Is it because family income was too high?

Because you weren't meeting Satisfactory Academic Performance Standards? Or because you exceeded your entire lifetime eligibility limit (i.e. 12 semesters)?

If you lost Pell because of income, it's possible that you will qualify again now that you are an independent student and won't be including parent information. If you lost it because you weren't meeting SAP standards, it's possible that you might regain eligibility if you appeal. If you lost it because you exceeded the lifetime limit, then there's o remedy for that.

The FA person at your new school would know the reason and can perhaps help you regain eligibility if that's possible. 2) In theory, you can receive loans even if you've exceeded the limit for Pell, but again, it would depend on the reason. If you weren't meeting SAP standards, then you would need to appeal and have that approved, or attend for a period of time without federal aid until you demonstrate that you can meet the standards.

Usually this involves maintaining a particular GPA and completing a certain percentage of the credits that you attempt. If you have exceeded the aggregate limits for loans ($57,500 for an independent undergraduate), you would not be able to receive more until you have paid some of the loans off, but not necessarily the entire amount. 3) Once you are enrolled in school and begin classes, you can apply for an in-school deferment that will allow you to postpone your payments until after you cease to be enrolled (either because you graduate or because you withdraw).

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