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  1. #1
    Join Date
    Apr 2013
    Posts
    1

    Default If I Borrow More than I Need Can I Keep the Student Loan Balance

    My question involves collection proceedings in the State of: California

    I qualified for 10,000 dollars in Federal Loan money. I have passed the credit requirements for the full amount, but the college I attend will only give out 3500 of that loan until you reach a higher number of credits. I was two credits short of that requirement and was only supposed to get the 3500. However, there was a mistake and the full 10,000 was disbursed. It went straight onto my salliemae debit card. Can I spend the extra money and pay it back when I pay back the rest of my student loans? Can they take it out of my account? I really do need the extra money and if I can, I would like to spend it.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Salliemae Gave Me the Full Loan Amount, Can I Spend It

    what are the specific terms of the contract such as: this money is allowed to be used for...?

    If you use it for expenses other than those allowed by your contract, they have every right to demand repayment of that amount immediately. It may give them the right to rescind the entire loan amount due to the breach of contract. If the payment was in error, yes, they can take it out of your account.


    and we all need extra money. It is not a valid excuse.

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