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  1. #1
    Join Date
    Feb 2008
    Posts
    1

    Default Can My School Hold My Private Loans For A Semester

    The school is in NY. The private loan company disbursed my full loan for this semester and a period following this semester when I will be studying for national board exams (spring 2008 - summer 2008). Part of the money in this later period is to pay for a review course and only minimal administrative costs are due to the school in that later period. The check was in my name and the school's name. The school subtracted this semester's tuition from 1/2 of the total and disbursed to me the remainder of that 1/2, keeping the other full 1/2 of the amount. Is this legal?? I am accruing interest on the money from the date it was disbursed from the loan company. Why should the school be able to make interest on that money rather than me? Especially given that less than 1/15th of the money they are holding will be due to the school? What are my rights in this situation?? I had heard of this occurring from classmates, but had assumed the full amount was not being disbursed by the loan company. However, I had to sign this check so I know the school received the full amount for both periods of time.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Can My School Hold My Private Loans For A Semester

    If the checks were issued jointly to you and your school, it would seem reasonable to infer that there are restrictions on how you may use the money. Review your contracts with your lender and your school.

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