Can I keep my direct loan if I transfer colleges?

I'm thinking about transferring and I'm curious about how my direct loan through my current college would work at a new school. Do I need to reapply for financial aid, or does it just transfer over with me?

If you're considering transferring colleges, it's important to understand how your financial aid, including your direct loan, can be affected. The first thing to know is that financial aid does not automatically transfer from one school to another. You'll need to update and re-submit your Free Application for Federal Student Aid (FAFSA) with your new school's information—this allows the new school's financial aid office to prepare a financial aid package based on the cost of attendance and your financial need.

Now, about your Direct Loan: the good news is, federally funded financial aid like this often goes wherever you go, as long as you are transferring to a school that participates in federal student aid programs. The balance of your Direct Loan doesn't disappear, of course - you'll continue to owe the balance of the loan, and it will be part of your financial aid package at the new school. Also keep in mind that each college has its own cost of attendance, and your eligibility for aid may be different at your new school.

Remember, when you transfer, be sure to inform both your current school and your loan servicer about your plans, so they can give you accurate information and guide you through the process.