Canceling Federal Aid

[CSMajor]

Hey guys,

I just want to make sure I'm going through this process correctly --.. So I'm cancelling both my pell grant and my federal loans through my school. The way I've been instructed by my institution is to fax in a written statement of the cancellations and they'll process it on their end.

Does this sound right? Did your institution work with you to cancel your federal aid?

[Concerned]

What's the reasoning for canceling the student loans?

From my understanding you're just not allowed to take Pell Grants and other Federal Scholarships.

Do you know if this includes Perkin's Loans and other PLUS Loans?

[Concerned]

What's the reasoning for canceling the student loans?

From my understanding you're just not allowed to take Pell Grants and other Federal Scholarships.

Do you know if this includes Perkin's Loans and other PLUS Loans?

This is from the Handbook:

"During phase 1, SSPPs may accept funding from sources outside of SMART, including private scholarships, fellowships, grants, and private or federal student loans. SSPPs may not accept funding from federal scholarships, fellowships, grants (including the Federal Pell Grant) or other federal funding sources other than SMART (including Pathways). The only exceptions are salary supplements provided by SFs and Veteran’s Affairs programs (ex: Montgomery GI Bill, Post 9/11 Veterans Educational Assistance Act, the Survivors’ and Dependents’ Educational Assistance Program).
There is no monetary limit on the amount of outside funding a SSPP may accept. Acceptance of outside funding may in no way impact SSA obligations. Receipt of outside funding does not reduce or eliminate the service commitment."

[CSMajor]

Not to be rude, but if they're covering full tuition why wouldn't I want to cancel all of my loans? The goal of this program, in my eyes, is to come out of college with as little debt as possible.

[Concerned]

Not to be rude, but if they're covering full tuition why wouldn't I want to cancel all of my loans? The goal of this program, in my eyes, is to come out of college with as little debt as possible.

Correct, that is the goal of the program. You never know someone's situation though, the loans may be used to help out a spouse, parent, reconsolidate debt, etc. It is never a bad idea to have a backup option in the case of emergencies. But yes, the scholarship does indeed provide a fair amount that can easily be lived on. I was just curious on whether or not the ban on accepting Federal Aid included loans or not.

[Concerned]

Not to be rude, but if they're covering full tuition why wouldn't I want to cancel all of my loans? The goal of this program, in my eyes, is to come out of college with as little debt as possible.

I also thought you were cancelling them because you thought you had to, not by choice. That worried me, because in my situation I may temporarily need to take out loans for a vehicle since mine just crapped the bed.

[stateaid]

We can accept state aid like the " Virginia Commonwealth Award" right ?

[DifferentGuest]

We can accept state aid like the " Virginia Commonwealth Award" right ?

As far as I know, SMART does not prevent you from accepting state aid. However, in some cases state aid is provided to schools as a waiver, not money. In the case of Massachusetts, the state gives free tuition to students in exchange for good performance on standardized tests. However, this is given to the school as a waiver, waiving their need to pay the state $XXX. In this case it simply negates a portion of what SMART has to cover, and cannot be refunded to you as money, like a federal loan or state/school scholarship could be.