Can you transfer school loans to another college?

I'm considering transferring to a different college and I'm trying to figure out the logistics. Do student loans transfer when you switch schools, or does anything special have to happen?

Yes, in principle, student loans can be used for any college or university which is accredited and participates in the federal student aid programs. The critical point here is that student loans don't "transfer" from one institution to another in the way credits might. If you decide to transfer colleges, you need to readjust your financial aid.

The process starts by updating your Free Application for Federal Student Aid (FAFSA) with your new school's information. The financial aid office at your new school will receive your FAFSA and prepare a financial aid package for you. You might find that the package looks different from the old school since the Cost of Attendance (COA) and financial aid policies can vary greatly between schools.

You have to be cautious about exiting counseling at your current institution if you have federal loans - it’s a process meant to help you understand your loan responsibilities when you stop attending. The session itself often triggers the loan repayment process. Therefore, it's crucial to let the financial aid office at your current school know about your transfer plans to avoid triggering unnecessary loan repayment.

You also need to check your Satisfactory Academic Progress (SAP). Federal student aid requires attaining a certain SAP, and every school has its own SAP policy. You should reach out to the new school's financial aid office to make sure you meet their SAP guidelines.

Remember to always keep in touch with the financial aid offices at both schools to ensure a smooth transition. For example, you don't want to leave any grants or scholarships behind at your old institution that you could have transferred to the new one. Good luck with your transfer decision!