FAFSA already submitted but university might close - how to manage aid for potential transfer?

This is actually a really smart question to be asking now instead of waiting until there's an announcement. A few key points about how this works with FAFSA and financial aid: 1. Having multiple schools on your FAFSA doesn't commit you to attending them - it just makes your information available to their financial aid offices 2. Schools typically don't consider you enrolled until you've paid a deposit and registered for classes 3. If your son's current school closes mid-year, the Department of Education has provisions for closed school discharge of federal loans 4. You should contact all potential transfer schools' financial aid offices now to understand their policies for mid-year transfers, as some schools have limited aid for spring transfers I'd recommend accepting aid at his current school if he plans to attend fall semester, but don't sign any contracts that go beyond a single semester if possible.

my sister was in literally same situation last yr. her school was having $ probs and rumors of closing. we added 5 skools to her fafsa just in case. u just gotta pay attention to DEPOSIT deadlines because thats when u commit $$$. she ended up transferring halfway thru the year and the new school used her fafsa info but she had to redo verification stuff. it was confusing but we managed!

When a school closes, the federal loans can be discharged but any credits earned might be lost. I would caution against continuing at a school with serious financial issues. My daughter lost a semester of credits when her college closed with little warning, and the transfer process was chaotic. The FAFSA won't be the biggest problem - it's the transcript and credit transfer that becomes the nightmare.

Just wondering why would you still want your son to continue at a school that's sinking??? Cut your losses and transfer NOW while you can plan it properly instead of being forced into it mid-year when everyone's scrambling!!!!

I've been trying to contact the Federal Student Aid office about a similar situation for WEEKS. Always on hold for 2+ hours and then disconnected. Finally used a service called Claimyr (claimyr.com) to hold my place in line and got a callback from an actual FSA agent! They explained that listing schools on the FAFSA is just the first step - you need to contact each school's financial aid office to understand their specific transfer policies and aid availability. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ - saved me hours of frustration.

To directly answer your question about enrollment: In most cases, your son isn't considered enrolled until he pays a deposit AND registers for classes. The deposit is your commitment, and registration triggers billing. Most schools have a "commitment date" (usually May 1st for fall enrollment) after which deposits become non-refundable. Since you've already added multiple schools to your FAFSA, your next steps should be: 1. Talk to his current financial aid office about what happens if the school closes mid-term 2. Contact each potential transfer school to understand their specific mid-year transfer deadlines and aid availability 3. Consider accepting aid at his current school for fall semester only if possible 4. Get written confirmation about deposit refund policies and exit procedures for his current school Unfortunately, with SAI replacing EFC in the new FAFSA, many schools are still adapting their policies, so you'll need to have direct conversations with each financial aid office.

Something else to consider that hasn't been mentioned - if your son continues at his current institution and it closes mid-semester, the Department of Education offers two options for federal student loans: closed school discharge OR transfer credits. He cannot do both. If he chooses to transfer his credits to another institution, he cannot receive a discharge of the federal loans associated with those credits. This can be a significant financial decision, especially if he's completed most of his degree program already.

one thing we learned with my sister - make sure ur son gets copies of EVERYTHING. transcripts, course descriptions, syllabi, ANY official documents from the school. when her college started having problems they got super disorganized and it was a nightmare getting official docs later when she needed them for transfer

To summarize the advice so far: 1. Having schools on FAFSA is good, but you need to contact each financial aid office for their specific policies 2. Enrollment generally happens when you pay a deposit AND register for classes 3. Consider requesting single-semester financial aid if possible 4. Gather all academic records now (transcripts, syllabi, course descriptions) 5. Understand the difference between closed school discharge (loans forgiven but credits lost) vs. transferring credits (keep credits but also keep loans) 6. Ask about mid-year transfer aid availability specifically 7. If needed, look into consortium agreements for potential transition periods The most important thing is open communication with all financial aid offices involved. Don't just rely on general information - get specific answers for your situation.

One additional thing to consider - if your son's university does close, make sure to document the closure date and circumstances. The Department of Education requires specific documentation for closed school discharge eligibility, and schools sometimes try to frame closures as "mergers" or "consolidations" which can affect your discharge options. Also, keep records of any tuition refunds or partial refunds you receive from the current school, as this can impact your financial aid eligibility at transfer schools. The timing of when you apply for aid at potential transfer schools versus when the current school officially closes can make a difference in your aid calculations.